At Novare Capital Management our overriding objective in core equities is to outperform the S&P 500 over a complete market cycle while maintaining less market risk and tax efficiency.

Research
Novare Capital conducts quantitative and qualitative analysis using our proprietary model as well as studies research from independent sources such as Argus, Standard & Poor’s (S&P) and select Wall Street firms. This information is used to create our “select list,” which includes high quality companies that fit into one of three investment disciplines: value companies, growth companies and income companies.

Sector Allocation

A well-diversified portfolio has exposure to the 10 different sectors of the S&P 500 as well as small cap, mid cap and international equities. We meet each client’s unique needs with specific allocation recommendations for each portfolio.

Company Valuation
We believe a properly diversified portfolio should contain growth stocks, value stocks and income stocks. We look at many factors and metrics to determine if a company will meet our criterion, including:

• Earnings growth
• Price/Earnings ratio
• Solid balance sheet
• Free cash flow growth
• Business margins
• Pricing

Top Ten Equity Holdings as of 12/31/2011

• Enterprise Product Partners
• Lab Corp
• CVS Corp
• Mylan Labs
• Pepsico
• Chevron
• Intuit
• Auto Data Processing
• Conocophillips
• Qualcomm Inc

Holdings are subject to change. These holdings represent approximately 30% of the core equity composite.

When to Sell
At Novare Capital, we use several screens to gauge performance and valuation relative to our expectations regarding the company and the sector. We diligently monitor all of these factors and make decisions thoughtfully.