Separate Account – Domestic Equity Style Definitions

CAI Large Cap Broad Style
Managers who concentrate their holdings in large capitalization domestic equity regardless of style (growth, value, or core). The purpose of this group is to allow a comparison with the universe of large cap equity funds without focusing on a particular investment style. The Large Cap Broad Style consists of the Large Cap Growth, Large Cap Value, and Large Cap Core managers, as well as large capitalization managers of undetermined style.

CAI Large Cap Growth Style
Managers who invest mainly in large companies that are expected to have above average prospects for long-term growth in earnings and profitability. Future growth prospects take precedence over valuation levels in the stock selection process. The Large Cap Growth Style invests in companies with P/E ratios, Price-to-Book values, Return-on-Assets values, and Growth-in-Earnings values above the broader market. The companies typically have zero dividends or dividend yields below the broader market. This style invests in securities which exhibit greater volatility than the broader market as measured by the securities' Beta and Standard Deviation. Portfolios have high growth z-scores and low value z-scores.

CAI Large Cap Core Style
Managers whose portfolio holdings and characteristics are similar to that of the broader market as represented by the Standard & Poor's 500 Index, with the objective of adding value over and above the index, typically from sector or issue selection. The core portfolio exhibits similar risk characteristics to the broad market as measured by low residual risk with Beta and R-Squared values close to 1.00 and combined growth and value z-score values close to 0.00.

CAI Large Cap Value Style
Managers who invest primarily in large companies believed to be currently undervalued in the general market and whose shares are priced below the market compared to their peers. Valuation issues take precedence over near term earnings prospects in the stock selection process. The Large Cap Value Style invests in companies with P/E ratios, Return-on-Equity values, and Price-to-Book values below the broader market and the middle capitalization segment. This style invests in securities with risk/reward profiles in the lower risk range of the medium capitalization market. Portfolios have low growth z-scores and high value z-scores.

CAI Mid Cap Broad Style
Managers who invest primarily in middle capitalization range companies with market capitalizations between $1.5 billion and $10 billion. The average market capitalization is approximately $5.17 billion. The Mid Cap Broad Style invests in securities with greater volatility than the broader market as measured by the risk statistics Beta and Standard Deviation. This style consists of the Mid Cap Growth and the Mid Cap Value Style Groups and other funds classified strictly as Mid Cap Broad.

CAI Mid Cap Growth Style
Managers who invest primarily in middle capitalization range companies that are expected to have above average prospects for long-term growth in earnings and profitability. Future growth prospects take precedence over valuation levels in the stock selection process. The average market capitalization is approximately $3 billion with market capitalizations between that of core equity companies and small capitalization companies. The Mid Cap Growth Style invests in companies with P/E ratios, Price-to-Book values, and Growth-in-Earnings values above the broader market as well as the middle capitalization market segment. Invests in securities with greater volatility than the broader market and the middle capitalization segment as measured by the risk statistics Beta and Standard Deviation.

CAI Mid Cap Core Style
Managers who hold portfolios with characteristics similar to that of the broader market as represented by the Standard & Poor's 400 or the Russell MidCap indices. Their objective is to add value over and above the index, typically from sector or issue selection.

CAI Mid Cap Value Style
Managers who invest primarily in middle capitalization range companies believed to be currently undervalued in the general market and whose shares are priced below the market compared to their peers. Valuation issues take precedence over near term earnings prospects in the stock selection process. The Mid Cap Value Style invests in companies with P/E ratios, Return-on-Equity values, and Price-to-Book values below the broader market and the middle capitalization segment. This style invests in securities with risk/reward profiles in the lower risk range of the medium capitalization market. Portfolios have low growth z-scores and high value z-scores.

CAI Small/Mid Cap Broad Style
Managers who invest primarily in small to middle capitalization range companies with market capitalization below core equity companies. The market capitalization is about the upper quartile of the Small Cap group and the lower decile of the Mid Cap group. The Small/Mid Cap Broad style invests in securities with greater volatility than the broader market as measured by the risk statistics Beta and Standard Deviation. This style consists of the Small/Mid Cap Growth and the Small/Mid Cap Value Style Groups and other funds classified strictly as Small/Mid Cap Broad.

CAI Small/Mid Cap Growth Style
Managers who invest in a range of small to middle capitalization companies that are expected to have above average prospects for long-term growth in earnings and profitability. Future growth prospects take precedence over valuation levels in the stock selection process. The market capitalization is about the upper quartile of the Small Cap group and the lower decile of the Mid Cap group. The securities exhibit greater volatility than the broader market as well as either the small/middle capitalization market segment as measured by the risk statistics Beta and Standard Deviation. Portfolios have high growth z-scores and low value z-scores.

CAI Small/Mid Cap Value Style
Managers who invest in a range of small to middle capitalization companies that are believed to be currently undervalued in the general market. Valuation issues take precedence over near term earnings prospects in the stock selection process. The market capitalization is about the upper quartile of the Small Cap group and the lower decile of the Mid Cap group. The Small/Mid Cap Value Style invests in companies with P/E ratios, Return-on-Equity values, and Price-to-Book values below the broader market in addition to the small/middle capitalization market segment. This style invests in securities with dividend yields in the high range for the small capitalization market. The Small/Mid Cap Value Style invests in securities with risk/reward profile in the lower risk range of the small/middle capitalization market. Portfolios have low growth z-scores and high value z-scores.

CAI Small Cap Broad Style
Managers who invest in companies with  market capitalization between $400 million and $1.5 billion. The companies typically have zero dividends or dividend yields below the broader market. The securities exhibit greater volatility than the broader market as measured by the risk statistics Beta and Standard Deviation. The Small Cap Broad Style consists of the Small Cap Growth and the Small Cap Value Style Groups and other funds classified strictly as Small Cap Broad.

CAI Small Cap Growth Style
Managers who invest mainly in small companies that are expected to have above average prospects for long-term growth in earnings and profitability. Future growth prospects take precedence over valuation levels in the stock selection process. The Small Cap Growth Style invests in companies with P/E ratios, Price-to Book values, and Growth-in Earnings values above the broader market, in addition to the small capitalization market segment. The companies typically have zero dividends or dividend yields below the broader market. The securities exhibit greater volatility than the broader market as well as the small capitalization market segment as measured by the risk statistics values Beta and Standard Deviation. Portfolios have high growth z-scores and low value z-scores.

CAI Small Cap Core Style
Managers who hold portfolios with characteristics similar to that of the broader market as represented by the Standard & Poor's 600 or the Russell 2000 indices. Their objective is to add value over and above the index, typically from sector or issue selection.

CAI Small Cap Value Style
Managers who invest in small capitalization companies that are believed to be currently undervalued in the general market. Valuation issues take precedence over near-term earnings prospects in the stock selection process. The companies are expected to have a near-term earnings rebound and eventual realization of expected value. The Small Cap Value Style invests in companies with P/E ratios, Return-on-Equity values, and Price-to-Book values below the broader market in addition to the small capitalization market segment. This style invests in securities with dividend yields in the high range for the small capitalization market. The Small Cap Value Style invests in securities with risk/reward profiles in the lower risk range of the small capitalization market. Portfolios have low growth z-scores and high value z-scores.

CAI Micro Cap Style
Managers who invest in small capitalization companies with relatively small capitalization, approximately $420 million. The companies typically have zero dividends or dividend yield below the broader market.  The securities exhibit greater volatility than the broader market as measure by the risk statistic Beta and Standard Deviation.