As of June 30, 2010: The Compass Composite contains fully discretionary accounts that are comprised of domestic stocks and bonds that are actively allocated.  Clients should average about 60% in stocks and 40% in bonds over the long run.. For comparison purposes the composite is measured against 60% of the  S&P 500 Index and 40% of the Lehman Aggregate Bond. Portfolios are rebalanced on a monthly basis.  Cornerstone Investment Partners’ investment universe of 800 stocks is comprised of the S&P 500 plus 300 other names, including 50-70 multinational ADRs.  

Cornerstone Investment Partners has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS).

Cornerstone Investment Partners is an independent, privately held investment advisory firm structured as a limited liability company that is wholly owned by professionals actively involved in managing the business. The firm maintains a complete list and description

Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Past performance is not indicative of future results.

Cornerstone Investment Partners set weights accordingly between stocks and bonds based on their relative attractiveness and repositioned portfolios at the beginning of the month if the move was greater than a 5% difference in the weighting between the asset classes. The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all income.  The composite includes both bundled fee and non-bundled fee accounts. Gross returns for non-bundled fee accounts were reduced by transaction costs and gross returns for bundled fee accounts are shown as supplemental information and have not been reduced by transaction costs..  Net of fee performance for these accounts have been reduced by the entire bundled fee. Other than brokerage commissions the bundled fee includes administrative and custodial services, and in some cases the investment management fee.  Some of the bundled fee accounts included pay the investment management fee separately from the bundled fee.  For these accounts, net of fee performance has been reduced by both the bundled fee and the investment management fee. Net of fee performance for non-bundled fee accounts was calculated using actual management fees. Beginning October 1, 2008, composite policy requires the temporary removal of any portfolio incurring a client initiated significant cash inflow or outflow of 30% of portfolio assets.  The temporary removal of such an account occurs at the beginning of the month in which the significant cash flow occurs and the account re-enters the composite within 90 days after the cash flow, or longer if securities are involved.  Additional information regarding the treatment of significant cash flows is available upon request. The annual composite dispersion is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. The Compass composite was created and incepted on January 1, 2007.  Performance is presented net of foreign withholding taxes.

Portfolio results are annualized rates of return computed on a time-weighted basis, using market values on a monthly basis calculated using trade-date.  Additional information regarding the policies for calculating and reporting returns is available upon request.

The general fee schedule for equity accounts is as follows: 0.75% on the first $10,000,000; 0.55% on the next $10,000,000 and 0.35% on the balance. Actual investment advisory fees incurred by clients may vary. As of 12/31/08, non-fee paying clients represent 2.1% of the composite assets

Submit requests to Cornerstone Investment Partners: 8097 Roswell Rd, Bldg A. Atlanta, GA 30350.   Phone: 770-393-2852   Email: marketing@cornerstone-ip.com