Capital Guardian	Small Cap Value

(Los Angeles, CA)

Personnel:	Portfolio Team of Five

Merle Robertson -- Client Relations

Investment Philosophy/Characteristics

Investment philosophy can best be described as value-oriented. Efforts are focused on trying to identify the difference between the underlying value of a company and the market price of its securities. The investment approach used is research driven and bottom-up in that investment decisions are based on extensive field research and direct company contact.

Investment process revolves around the "multiple Portfolio Management System" ( MPMS ). Since 1957, the Capital Group organization has utilized a unique approach to managing client portfolios. It enables experienced, proven decision-makers to work on each client account or commingled fund by dividing the portfolio into segments. Each portfolio or commingled fund is divided into six segments. Within client or commingled fund guidelines, each portfolio manager is free to make individual decisions as to company selection, industry selection, timing of valuation and transactions, as well as percent to be invested.

Focus small capitalization portfolios on companies with market capitalizations between $50 million and $1 billion. However, if a company's market capitalization appreciates above $1 billion, and if it continues to represent an attractive value, will not automatically sell the stock.

Considerable emphasis placed on fundamental research, and as a result has one of the largest in=house research staffs in the industry. Fundamental to investment approach is the belief that those who have superior knowledge of the securities they buy and sell are likely to make better investment decisions.

Fidelity bond coverage in force.

Specific decisions as to the timing of purchases and sales and allocation of positions are primarily in the hands of the individual. On the sell side, factors that may cause a position to be sold include:

--	price appreciation

--	deteriorating long-term fundamentals or unfavorable fundamental developments

--	current market valuations relative to the general market

--	greater long-term fundamental attractiveness in other names