Fixed-Income Investment Credo

The Philadelphia Trust Company, for client fixed-income portfolios, will employ an active investment management philosophy that will achieve client objectives, focus on total after-tax return, and utilize only high quality ("A" rated or higher) marketable securities. The maximum maturity will be ten years with maturities strategically positioned.

• The bonds included in a portfolio will be diversified in order to reflect our interest rate outlook. Maturities will be positioned to maximize yield curve inefficiencies.

• Bond market analysis will employ forecasts of the economy in general and interest rates in particular; projections of supply and demand imbalances, liquidity, intra-market spreads; and continuous monitoring of bond indenture provisions and credit histories.

• Bonds will be highly rated by one of the top credit-rating agencies, and every one will be subject to an exhaustive in-house analysis. The process of evaluation will be constant.