The Portfolio Manager
The portfolio is managed by Morningstar Investment Services, a provider of rating services and analytical research to the financial services industry. Morningstar provides two managed portfolios, a growth portfolio, "the Hare", and a value portfolio, "the Tortoise." The value portfolio is modeled on the Tortoise. Here is how Morningstar describes this portfolio:

"The portfolio has two goals: to outperform the S&P500Index and to generate positive returns regardless of the broad market environment. Companies in this portfolio tend to be large, moderate to low risk, and slow growing. We aim for all the companies to have an economic moat."

The Investment Strategy
In order to achieve the fund's objectives, the fund will consistently follow the strategy described:

(1) Companies in the portfolio will have a lower P/E ratio than that of the overall market. Value issues are those that can be purchased at a lower price compared to their earnings than growth stocks. It is anticipated that the market will recognize these as undervalued issues, causing their share prices to rise.

(2) Companies in the portfolio will have a lower share price relative to their book value (tangible or "hard" assets) than that of the overall market. Value issues are those that can be purchased at a lower price compared to their book value than growth stocks. It is anticipated that the market will recognize these as undervalued issues, causing their share prices to rise

(3) Companies in the portfolio will usually have a wide economic moat. An economic moat is a competitive edge that keeps others from entering the firm's turf. It may be the capital required to enter that business, intellectual property, economies produced by size, etc.) Companies with an economic moat have less market competition and greater control over their pricing.

The current (October 30, 2009) portfolio:

Holdings	Morningstar Ratings and Fundamentals
Stock Name	Fair Value	Current	Size Of	Dividend	Stewardship
Berkshire BRK.B	$4,600	$3,285	Wide	0	A
Kinder Morgan KMB	56	48	Wide	8.8	B
First American FAF	50	32	Narrow	2.7	B
Novartis NVS	73	50	Wide	3.5	B
Walgreen WAG	38	38	Narrow	1.4	B
Lowe's Co LOW	36	21	Wide	1.8	A
Johnson & Johnson	80	60	Wide	3.3	C
Wal-Mart Stores WMT	60	49	Wide	2.3	B
General Dynamics GD	65	65	Wide	2.4	A
Automatic Data ADP	41	39	Wide	3.4	B
JP Morgan Chase JPM	47	44	Narrow	0.5	A
Cintas CTAS	35	30	Wide	1.6	C
Sysco SYY	35	25	Wide	3.9	B
Exxon Mobil XOM	87	68	Wide	2.5	B
Coca Cola KO	55	54	Wide	3.1	B
TransCanada TRP	36	31	Narrow	4.9	A
PepsiCo PEP	68	61	Wide	3.0	B
Proctor & Gamble PG	77	57	Wide	3.1	B
American Express AXP	54	33	Wide	2.2	B
Home Depot HD	35	26	Wide	3.4	B
3M Company MMM	85	73	Wide	2.8	B
Diageo DEO	80	61	Wide	4.8
Pfizer PFE	26	16	Wide	3.9	C

Expenses
Because this is a Model portfolio, it carries none of the usual mutual fund sales commissions, selling concessions, administrative expenses and fund manager costs.

Through TD Ameritrade transaction costs are $9.95 regardless of the number of shares, and BenefitWorks charges .0004583 monthly, or 55 one hundredths of one percent of assets annually to unitize the portfolio and maintain the daily NAV (net annual value, or share price) calculation. The average "no-load" managed mutual fund charges 1.4% of assets. Mutual funds purchased through insurance companies or banks may have additional fees.