Mellon Capital Management Corporation employs a systematic investment approach based on sound financial theory and classical valuation methods. This approach removes sentiment, allowing its research-driven process to capture value for its clients. The founders of Mellon Capital^SM, William Fouse and Thomas Loeb, are recognised as the originators of value-based tactical asset allocation and index fund management. Since its inception, Mellon Capital has demonstrated its ability to adapt to a changing environment, introduce new ideas, and operate with a high degree of refinement.

• Headquartered in San Francisco, California, USA
• Founded in 1983
• AUM US$191.3 billion^*
• Founders William Fouse and Thomas Loeb are recognised as the originators of value-based tactical asset allocation and index fund management
• US/global asset allocation, indexing and quantitative specialist manager
• Systematic, value-based investment process

• Senior investment professionals have, on average, more than 20 years' experience providing investment solutions to sophisticated institutional clients
• Research-intensive product development
• Quantitative-driven investment management
• Process blends sound financial constructs and cost-effective implementation

• US and Global Allocation

- Mellon Capital's Tactical Asset Allocation strategies are systematically implemented based on recommendations from its proprietary TAA and Global Global TAA®Models. The TAA Model takes as inputs the consensus expected asset class returns, and determines the risks and the correlations for each asset class. Given the trade-off between expected risk and return over a ten-year horizon, the Model identifies the asset mix that maximises the risk-adjusted expected return. The Global TAA Model integrates country allocation and currency hedging into the allocation process.

• Enhanced Indexing

- Stock selection-based, using systematic valuation to exploit temporary stock mispricings. Objective is to provide consistent incremental outperformance over the target index while maintaining a similar level of risk.

• Indexing

- Disciplined and structured indexing approach, with the singular objective of duplicating each index's fundamental characteristics and performance. Mellon Capital manages indexing strategies that track the major US and international market segments.

^{* Source: Mellon Capital Management Corporation as at 30 June 2007}