Conning's investment professionals adhere to a consistent, disciplined investment philosophy that is supported by our research and extensive market experience. Our investment decisions are guided by this philosophy, based on the following solid beliefs.

• We believe the income component of bond returns is critical over the long term. As a result, we overweight what are, in our opinion, the appropriate market sectors and focus on spread and yield in portfolio holdings.



• We are convinced that appropriate asset allocation and sector weighting provide the best and most important opportunity to add value to a portfolio. After asset allocation and sector weighting, individual security selection within sectors is also an important component of value.



• We believe it is impossible to consistently predict interest rates; we attempt to mitigate interest rate risk through prudent duration management. However, our investment approach recognizes that long term interest rate trends can impact the value of sectors and securities.



• We avoid excessive concentrations of risk and manage overall portfolio risk through diversification. We seek investments with risk balanced by incremental, expected returns.



• We purchase securities that offer the most spread, yield and total-return potential for the duration, credit, option and liquidity risks assumed.