At John G. Ullman & Associates, Inc. we manage balanced portfolios that include stock based on our risk segmentation investment classes. These classes are categorized as follows:

Conservative investments include cash and equivalents (money market funds), U.S. Government securities, investment grade corporate and municipal bonds, specified utility stocks, guaranteed principal insurance contracts from strong insurance companies, and certain high quality convertible bonds.

The High Quality Growth and High Quality Cyclical Growth segment includes commitments into equities of firms with long established records of performance, and selected investment grade debt issues convertible into common stocks or payable in foreign currencies.

The High Quality Growth subsegment is exemplified by companies in which both the financial condition and operating results are viewed as exceptional over an extended period of time.

The High Quality Cyclical Growth subsegment focuses on outstanding corporations with a greater dependence on the economy in general. Their financial condition must also be very strong, but sales and earnings growth are more closely tied to the business cycle.

The Aggressive Growth and Special Situations category emphasizes investments intended to be held for more than one year (long-term capital gains objective) with higher risk and reward features. The Aggressive Growth subsegment includes firms with exceptional technologies, market positions, and/or growth potential. Most often, these firms have established themselves as leaders in their respective fields. Vulnerability, and therefore risk, can be related to substantial capital investment and financial exposure, limited customer base or product line, and/or intense competition which rapidly growing markets tend to attract.