Taylor Captline Matthew Chadwell Hadd Francis 41 companies 11.82% of S&P 500 Sector Industries include: Agricultural Products Brewers Distiller and Vinters Food Distributors Household Products Hypermarkets and Supermarkets Packaged Foods and Meats Personal Products Retail Drugs Retail Food Soft Drinks Tobacco COMPANY NAME MRKT CAP 5/1/09 (millions)% of Sector WAL-MART STORES $ 196, % PROCTER & GAMBLE 145, % COCA-COLA 98, % PEPSICO 77, % PHILIP MORRIS INTL 74, % CVS/CAREMARK 46, % KRAFT FOODS 34, % ALTRIA GROUP 33, % WALGREEN 31, % COLGATE-PALMOLIVE 30, % Top 10 account for 73.4% of sector market cap. As of 5/1/09 Number of CompaniesMKTCAP Level as of 5/1/09DailyMTDQTDYTD S&P $ 7,626, % 9.98%-2.85% Energy39 $ 977, % 8.01%-5.04% Materials28 $ 256, % 15.45%12.19% Industrials58 $ 800, % 19.02%-6.89% Consumer Discretionary81 $ 717, % 17.75%7.61% Consumer Staples41 $ 917, % 3.51%-8.20% Health Care54 $ 1,048, % -1.02%-9.46% Financials80 $ 908, % 20.12%-15.31% Information Technology75 $ 1,404, % 12.69%17.15% Telecommunications Services9 $ 285, % 3.68%-5.10% Utilities35 $ 310, % 3.09%-9.14% Consumer Staples performing below S&P 500 daily, MTD, QTD and YTD Information gathered from S&P500 website Consumer Staples is currently weighted at 13.06% in the SIM compared to 12.04% in the S&P 500. It is currently overweight by 102 bps. Life cycle Domestic International Business cycle Bernanke testified today that recession should end later this year. Competition High Supplier power Low Substitutes High Buyer power High Barriers to entry High Forward P/E to S&P 500 Trailing P/E to S&P 500 Price Net Profit Margin to S&P 500 ROE to S&P 500 AGPRD mean reversion Hit hard by recession HYPMK stable TBACO stable but not showing signs of large growth MeanCurrent AGPRD BRWRS DSTLR FOODD HSHLD HYPMK PKGFD CSMTG RTDRG FOODR139.8 BEVGS TBACO Price to Book Price to Sales Mean Reversion Price to CF Price to Sales Price to Book Current values extremely close to mean values Price to CF Sector P/E P/E TOP/EP/E TOP/E LATEST5 YR 10 YR REL TO 4 QTRSAVG SPX CONSUMER DISCRETION CONSUMER STAPLES ENERGY FINANCIALSNM14.5NM15.4NM HEALTH CARE INDUSTRIALS INFORMATION TECH MATERIALS TELECOMMUNICATION UTILITIES Reduce sector weight in SIM portfolio by 124 basis points to bring in line with S&P 500. Economic indicators signal recovery Sector appears fairly valued What Questions Do You Have?