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PENSIONS & INVESTMENTS—April 25, 1977

IT'S ABOUT TIME INVESTMENT MANAGERS WERE JUDGED ON THEIR SUCCESSES INSTEAD OF THEIR ADDRESSES.

In other words, it's about time

that managers of employee benefit plans realized that you don't have to be located in one of the great investment centers to have a great investment record.

Take us, for example. The First National Bank of Birmingham. We're certainly not at the hub of the investment industry, yet our Trust Division has been outperforming the industry standards for years.

1972-76 is a good example. During that time, our Cor porate commingled equity fund's rate of return was 7.9 percent versus only 4.9 percent for the Standard & Poor's 500. And for 1976 itself, our overall return was more than

14 points higher than the S&Pa hefty 38.5 percent.

How can a bank from Birmingham get this kind of results for its clients? Because despite all the myths and misunderstandings, it's still philosophy that determines investment success. Not geography.

And we have a philosophy that would be just as sound no matter where we had our office. Which is simply that if you consistently buy stocks that are

NEW YORK

undervalued and then sell them when they reach full value, the results will be consistently good.

As a result of this philosophy, we already have one of the largest trust departments in the Southeast. And it's still growing. Which just goes to show that there must be a lot of people out there who are more interested in our return on investment than our return address.

ATLANTA

If you're one of them, please contact Davis H. Crenshaw, Vice President and Trust Marketing Officer, The First National Bank of Birmingham, P.O. Box 11007, Birmingham, Ala. 35288; tel. (205) 326-5397.

THE FIRST NATIONAL BANK

OF BIRMINGHAM

J

AN ALABAMA BANCORPORATION AFFILIATE MEMBER FDIC

BIRMINGHAM

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This rate of return was accomplished through efficient management
of our $129 million Fixed Income Collective Fund for Retirement
Trusts without impairing the quality of the portfolio. 98.45% of the
market value is in Governments. Agencies and AAA Corporate Bonds.
We feel this is the type of bond management you should be looking for.
For further information or to arrange for a fact finding presentation,
call (216) 861-4900 or write the Trust Group, New Business Division.
National City Bank. 623 Euclid Avenue, Cleveland, Ohio 44114.

National City Bank
Cleveland Ohio

57

PENSIONS & INVESTMENTS-December 18, 1978

[graphic]

The Investment Spectrum.

It takes a broad range of investment skills to match retirement fund objectives today.

Here's how the people of First Chicago, with investment responsibility for $8.8 billion, can provide diversification that's beyond the realm of other major money managers.

Mention diversification to most money managers and they'll tell you about their stocks and bonds. Mention it to First Chicago and we'll tell you a lot

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centers and garden apartments.

Fund F has provided an annualized return of 8.2% since its inception in 1973. And for the 12 months ending June 30, return was 9.4%. International securities

[graphic]

Since the securities markers of other countries
tend to peak and valley at different times than our
own, adding equities of overseas companies to
your portfolio can reduce volatility Yet this avenue
of investment remains foreign to most major
money managers

We were among the first to recognize the advantages of international diversification. In early 1973, our Trust Department established a London base staffed with a seasoned investment team. Today that team has management responsibility for over $140 million in equity and debt invest

Investments are diversified by country. type, industry and company And our common stock emphasis is on well-managed, high quality corporations, especially those in sound, relatively high-growth economies with solid currencies.

Recent equity performance has been particu
larly favorable, as reflected by International Fund
G: Since Oct. 76, unit value has increased 31.1%
while the S&P 500 was up only 0.4%

A market matching system
that really matches.

Modern Portfolio Theory suggests, and we
agree, that part of your employee benefit
assets should be under passive index
management. And First Chicago has
developed a technology for it that's unique.

Using one of three asset composition
techniques, plus special trading strategies

The First

Index of total return of our International Fund G compared with the S&P 500 during three market phases.

and dividend reinvestment approaches, we can create a portfolio to match virtually any existing common stock index, or an index designed especially to meet your goals. Our S&P 500 Index Fund, for example, has tracked this popular average within 20 basis points since the fund was introduced in July, 1977.

Besides the benefits of broad diversification and close tracking, our Market Matching system also provides participants a worthwhile reduction in management and transaction charges.

And more.

These are only a few of the special investment
tools we've developed to broaden diversification.
improve performance and reduce overall portfolio
volatility. Each is available as a special service, or as
part of our complete retirement fund management
program. If limited diversification isn't doing the
job for you, why not look into the full spectrum at
First Chicago Write or call John P Scott, Trust
Officer, Trust Department, The First National
Bank of Chicago (312) 732-4152. Member FDIC.

National Bank of Chicago

Trust Department

BUSINESS WEEK-April 2, 1979

How international diversification improves return and reduces volatility for Morgan's investment clients

[graphic]

Morgan officers at this international investment strategy meeting in London are (from left) Robert Rex and Nicholas Potter. New
York; Karl Van Hom and Pleme Daviron, London; Hideo Do Tokyo: Carl Hathaway. New York; Walter Zinsser, London.

Alert pension fund sponsors, foundations, and other institutions are discovering the advantages of investment diversification by country. Through actively managed international portfolios they're getting improved return and lower volatility.

Many of them are clients of The Morgan Bank, which manages more than half a billion dollars in overseas equity and fixed-income securities for U.S. employee benefit plans. The chart at right shows the five-year performance of our commingled pension fund devoted to international equities.

At Morgan our investment approach traditionally has been international. Even when U.S. regulations made new overseas buying impractical, we kept up our research and our contacts. Today our international investment team includes professionals based in

London, Paris, Geneva, and Tokyo.
Geographic diversification that's
actively managed and based on careful
research broadens the range of invest-
ment options. It can smooth the cycli-
cal bumps that are likely to jar a one-
Comparative performance

Chart shows value at year-ends of $1 invested Jan
31. 1974 in Morgan's commingled pension fund for
International equities, Standard & Poor's 500 Stock
Index, and the Capital International Index for
Europe. Australia, and the Far East. Reinvestmen
of income assumed

The Morgan Bank

economy portfolio. It can turn inflation
differentials and currency fluctuations
into opportunities rather than hazards.

But this kind of fund management
takes special resources. Morgan's
international investment managers draw
on the knowledge of a multinational
research team, the country-by-country
analyses of the bank's international
economists, and the currency judg
ments of its foreign exchange special-
ists in the world's money centers.
Employing these strengths systemati-
cally, they build international portfolios
that balance risk and return in accord
with the client's specific objectives.

For more information on the advantages of international diversification. please write on your letterhead to Henry D. Cavanna, Vice President, Morgan Guaranty Trust Company, 9 West 57th Street, New York, N.Y. 10019.

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