Metropolitan West Capital Management
www.mws.com

The Fund and Objective

This value oriented commingled equity fund commenced operations on September 30, 2000. Legacy Trust Company has employed Metropolitan West Capital Management as the fund's investment advisor. The fund is only available to Legacy's trust account clients; and as a commingled fund, it has a month-end opportunity for purchases and sales of units at the current net asset value.

The Advisor

Metropolitan West Capital Management was formed as an independent advisory firm in 1997. Previously, the key personnel had worked together as a team with another advisory firm since 1992. The firm is based in Newport Beach, California and serves a geographically diverse clientele. The firm was selected because of its strong adherence to its value orientation in stock selection during the recent adverse market environment for value stocks and for the historical portfolio returns they have generated which have placed the firm consistently in the top ranks of value managers.

Investment Style

The fund focuses security selection on larger, high business franchises, which are trading at a discount to the computed intrinsic value of the company. The research process closely tracks around 150 companies at any one time, which have been identified to be intrinsically undervalued. From this research list, about 50 companies are identified as near-term purchase candidates because of changes occurring in the industry, the company's assets or management structure which will act as a catalyst to unlock the perceived value of the shares. The portfolio is constructed from the best 30 to 35 opportunities for appreciation, diversified by business sectors, economic cyclicality and global exposure.

The portfolio stocks are usually purchased with a two - to three - year prospective holding period, and the 35% annual turnover is considered to be moderately tax sensitive. Up to 20% of the portfolio is invested in domestically traded foreign companies to capture a marginal global exposure. The portfolio characteristics typically show a below market price-to-earnings and price-to-book value ratios and a higher than market dividend yield.

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