Hav adviser release a

V o l u m e I , 2 0 0 8

“I had three goals — to have fun, to help others, and to make money.”

A long Wei From Home . . . . . . . . . . . . . . . . . . 8

Q u A l I t y I n V e s t I n g :

30-year Haverford traditions meet emerging Client needs

Continued on page 4

Haverford’s unique investment and service traditions — refined and proven over nearly three decades — have entered a new era of enrichment and growth under the banner: “Quality Investing.”

Haverford’s investment philosophy was established in 1979 by company founder George W. Connell as a strategy to build and preserve wealth through successive economic cycles. the philosophy has never changed. It’s based on a set of five key financial principles that virtually all investors understand but few follow with the rigor and discipline required to achieve Haverford’s long-term results:

stock prices follow earnings. ��

High quality, established companies ��

provide superior returns with less risk.

Dividend paying growth companies ��

provide superior returns with less risk.

unnecessary portfolio turnover ��

destroys value.

Appropriate diversification ��

lowers risk.

I n s I D e t H I s I s s u e :

HaverfordQuality.com . . . . . . . . . . . . . . . . . . . . 3

Portfolio Profile: Procter & gamble . . . . . . . . . 7

Haverford’s new leadership team . . . . . . . . . . 14

Kudos and Congratulations . . . . . . . . . . . . . . . . 15

Haverford in the news . . . . . . . . . . . . . . . . . . . 16

“ young people don’t always recognize the impact that wealth can have on an individual, the extended family or how it can help a community, charity or cultural institution.”

educating the ‘next generation’ . . . . . . . . . . 12

HAV Adviser 070208.indd 1 7/2/08 8:20:28 PM

2 | V o l u m e I , 2 0 0 8 | H A V e r F o r D A d v i s e r

ten years ago cell phones had only recently become the ubiquitous

appendages they are today. there were no iPods, no iPhones, no

BlackBerrys. A decade ago the Internet and e-mail were going

mainstream, but there was no youtube, no Facebook, no myspace.

A company named “google” was incorporated on september 7,

1998. text messaging was introduced that same year. And the very

first HDtV sets went on sale. When we read the news, the ink from

the newsprint rubbed off on our fingers.

today each of us uses these new technologies to varying degrees,

but there’s no doubt we have choices that were simply unimaginable

a decade ago. this inaugural issue of our redesigned Adviser reflects some of these changes

— and it’s now a full partner with our new Haverford website as we seek additional ways to

communicate with our clients.

note especially the “Weblinks” that direct you to www.HaverfordQuality.com for more

information about a wide range of topics. you can now obtain up-to-date account information

directly from our website. Check out the real-time links to Wall street Journal headlines.

And view the video clips of interviews and commentary by Haverford experts in the local

and national media — print, cable and Internet.

But while the technology may change, our message is always constant and consistent with

the investment philosophy that’s guided Haverford since our inception nearly 30 years ago.

And there’s no change whatsoever in the direct, one-on-one, face-to-face relationships between

our clients and our people — the more than 70 individuals who comprise the face of Haverford

to the world.

From the receptionist to the Portfolio manager to the It specialist to the research Analyst,

each of us is a member of one team, all dedicated to defining what Haverford Quality means

— every day and in everything we do.

Joseph J. mclaughlin, Jr.

Chairman and Chief executive Officer

F r o m H a v e r F o r d ’ s C H a i r m a n a n d C e o

Constancy in a World of ChangeIt was march 1998, just over 10 years ago, that Haverford published the very first issue of Adviser. As we celebrate its tenth anniversary, it amazes me how much has changed over the past decade in the ways we communicate with each other!


V o l u m e I , 2 0 0 8 | H A V e r F o r D A d v i s e r | 3

w w w . H a v e r f o r d Q u a l i t y . c o m

new Features and Client Benefits at HaverfordQuality.com WebsiteBe sure to visit the www.HaverfordQuality.com web site and check out a whole range of

new features and client benefits. Here’s what’s new:

Haverford in the News. The thought leaders at Haverford are well respected and

are featured regularly in the financial news media. Visit the library for their most

recent TV appearances, radio interviews, and quotes from newspapers and websites

around the country.

WSJ News Ticker & Stock Information. Stay up to date with

the world’s most respected news

source, the Wall Street Journal.

Curious how a particular stock is

doing? Enter the company name or

ticker symbol to receive current

information about that stock.

Audience-Specific Information. The site is organized according to

the needs of different types of

clients. Each has a separate menu

with information that is appropriate

for each audience. There’s no need

to wade through information that

doesn’t pertain to your needs. Commentary and Newsletters. We continue

to share our research and

commentary through direct

mail and on our website. Read

the most recent white papers,

financial commentaries, and

investment outlooks. There’s

even an interactive Adviser file

with active links to sources of

additional information. (See

“What’s a WebLink.”)

Access Account Information. Clients can now access account

information through the Haverford

web site, logging in from the

homepage through a secure link.

You’ll need a user name and

password. For log-in information,

contact your Haverford Portfolio

Manager or call David Moniz of our

operations team at 610-995-8700.

W e b l i n k s t o r i e s @ h a v e r f o r D q u a l i t y . c o M

o b ta i n s W i n G l o a n s from Haverford’s Private Banking

Services. You may not need to

liquidate assets to finance a down

payment or purchase of a new

property. Learn how to obtain a

swing loan from Haverford — quickly

and on very favorable terms.

c h a n G i n G a c o r P o r at e t r u s t e e . The trustee for your assets used to

be the friendly officer at your local

bank. Now the bank’s been acquired

by a conglomerate in another city

and you only hear from them

when they raise your fees. Learn

what’s involved in changing a

corporate trustee.

q D i P r e f e r r e D s t o c k . Learn about Qualified

Dividend Income, the preferred

stock of leading financial institutions.

Stocks are generally callable in five

years, but in the meantime they

produce dividends of 6.5 to 8.5

percent. With banks looking for

capital in the wake of the sub-prime

mortgage crisis, QDI stocks are a

potential alternative to lower-rate

fixed-income investments.

i n v e s t i n G i n l a r G e c a P q u a l i t y G r o W t h s t o c k s . April 14, 2008 Wall Street Transcript

interview with Haverford Chief

Investment Officer of Equity Hank

Smith and Director of Research

Jason Pride.

What’s a WebLink? We’ve redesigned the Haverford Adviser to bring you even more information about financial matters that affect your daily

life. Frequently we encounter topics that are important, but may not affect all Haverford clients.

That’s why we’ve developed WebLinks. Throughout each issue of the Adviser, you’ll see short descriptions of additional

articles that are available through the HaverfordQuality.com web site. If you’re interested, just go to the website, click on

“WebLinks” in the “Commentary and Newsletters” section of the homepage, and select the WebLink that interests you. You

can read the article online or download a file for future reference or printing.

If you don’t have access to a computer, contact your Portfolio Manager to obtain a copy of a WebLink through the mail.



now Haverford’s successful formula is the foundation for an expanded portfolio of investment products with the goal of carrying the Haverford message to a broad audience of quality-conscious investors.

so What’s the Difference?For Dr. Robert Hirsh, the “Quality investing” concept

is no different from what he learned about Haverford when he became a client in 1993. Dr. Hirsh was president of Burlington Anesthesia Associates in mount Holly, nJ, until 2002, when he began gradually easing into retirement.

Investments Produce Critical CashAt the Morris Arboretum of the University of

Pennsylvania, the lush public garden in the Chestnut Hill neighborhood of Philadelphia, income from the unrestricted endowment fund managed by Haverford is the lifeblood of the institution.

“Income from this fund is absolutely critical for us,” says arboretum director Paul W. Meyer. “these aren’t the funds we use for sexy projects, it’s the money for paying the electric bill and the staff salaries. We can’t tolerate a lot of risk, because this money always has

“As a physician, I deal with lots of specialists, so I know how important it is to rely on the good judgment of people who are authorities in their field. the same is true with investing,” he says. “I came to Haverford because I trusted the quality of the investments and the quality of the people. I really have no stomach for making my own investment decisions. I put my retirement dollars in the hands of the experts and concentrated on what I do best.”

He hasn’t been disappointed. “Haverford’s philosophy sometimes seemed simple and uncomplicated compared to what I’d hear from my partners,” Dr. Hirsh says. “they seemed to be much more sophisticated and did a lot more trading, so I was surprised to find that my portfolio was growing at a much faster rate than theirs. so I’ve been very happy with Haverford.”

to be there for us. We need to invest in rock solid companies with a good future.”

like many non-profit institutions that depend on endowment income, morris Arboretum relies on Haverford to devise innovative ways to produce maxi-mum returns while avoiding unnecessary risk. “recently we’ve been able to move toward some exchange-traded investments with more international exposure, so we’re able to participate in the growth of the global market-place. It’s a new area for us,” mr. meyer notes, “but we’re comfortable with it because it’s guided by the same Haverford investment principles we’ve always known.”

Haverford maintains close and active communication with the morris advisory board to achieve consensus on investment strategy. “We receive a great deal of attention and caring, in addition to the service you’d ordinarily expect,” mr. meyer says. “Haverford understands mission. they know what we’re trying to accomplish and they work with us as a full partner to achieve our goals.”

3 0 - y e A r H A V e r F o r D t r A D I t I o n s m e e t e m e r g I n g C l I e n t n e e D s

Continued from Page 1

“ I deal with lots of specialists, so I know how important it is to rely on the

good judgment of people who are authorities in their field.” — Dr. Robert Hirsh, President, Burlington Anesthesia Associates




“ Haverford understands mission.

they know what we’re trying to

accomplish and they work with us as

a full partner to achieve our goals.” — Paul W. Meyer, Director, Morris Arboretum of the University of Pennsylvania

Peace of mind, Personal serviceQuality investing means peace of mind for Jim Hasson,

trustee of a special scholarship fund for Friends of Little

Flower High School for Girls. the fund provides tuition assistance for students attending the Catholic archdioc-esan high school in northeast Philadelphia.

For the most part, the student body at little Flower comes from families with limited financial resources. “they probably wouldn’t be able to afford the $4,000 annual tuition without the help we provide,” mr. Hasson

says. “As a trustee, I have a very important fiduciary responsibility to make sure the kids have the opportunity to get a good education. that’s why we chose Haverford to manage the trust. We don’t want to do anything that would place their future at risk.”

As a businessman — he owns three manufacturing companies — mr. Hasson appreciates the service he’s come to expect from Haverford. “It’s a class act,” he says. “It’s old fashioned personal service that you don’t get anymore from the banks and brokerage houses. At most financial institutions you’re just a number.

“ I’m happy to bet on myself and my business,

but when it comes to investing what I’ve earned,

I don’t like to take chances.” — Jonathan Brassington, CEO, LiquidHub, Inc.



Haverford is different. the research is excellent, they screen for just the right mix of companies, and the performance is good.”

He further explains, “the fact is, we’ve taken some losses lately, but that’s because the market as a whole has been down. I just wonder how much more we would have lost if we’d invested somewhere else. When you invest in quality companies, you realize it’s eventually going to turn positive. We’re in this for the long haul.”

An Approach that WorksAs an entrepreneur, it’s Jonathan Brassington’s

job to keep his company on a positive track, regardless of market conditions. He’s the Ceo of LiquidHub, Inc., a rapidly growing software integration firm headquar-tered in King of Prussia, PA. liquidHub recently received a $38 million infusion of venture capital to fund future expansion.

A native of British guyana, mr. Brassington came to the united states in 1990 when the government there nationalized his family’s manufacturing business. After attending graduate school at the university of Pennsylvania, he and two partners started liquidHub using their own capital. “I’m happy to bet on myself and my business,” mr. Brassington says, “but when it comes to investing what I’ve earned, I don’t like to take chances. I’m not trained to manage my own money, and I’m far too emotional and impulsive. that’s why I chose Haverford.”

mr. Brassington draws important parallels between the qualities he sees in Haverford and those he tries to instill in his own company. “Haverford has found an approach that works,” he says. “they have focus. they stick to their knitting and they don’t try to be all things to all people.

“the people at Haverford know who they are. And that’s reflected in the whole idea of Quality investing.” �


Continued from Previous Page

“ I have a very important

fiduciary responsibility to

make sure the kids have the

opportunity to get a good

education… We don’t want to

do anything that would place

their future at risk.” — Jim Hasson, Trustee, Special Scholarship Fund,

Friends of Little Flower High School for Girls



Yield on Initial Investment

P&G: The Importance of Dividend Growth

0%

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1979 1983 1987 1991 1995 1999 2003 2007

Price Earnings Dividend

Stock Price Earnings / Dividends

$0

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1963 1968 1973 1978 1983 1988 1993 1998 2003 20080

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A staple among Haverford’s investments

— it’s been in the portfolio since Haverford’s

founding nearly 30 years ago — Procter &

Gamble (NYSE: PG) is the world’s largest

consumer products company, marketing

more than 300 brands in more than 160

countries. P&G is credited with creating the

industry model for consumer products

branding and marketing, and reigns as the

largest single advertiser in the world.

P&G was founded in 1837 by James

Gamble and William Procter in Cincinnati,

Ohio. Today, Procter & Gamble brands

include such familiar household names as:

Pampers®, Tide®, Dawn®, Pringles®,

Charmin®, Iams®, Oral-B®, Duracell® and

Gillette®. The company employs more than

138,000 people worldwide.

“P&G has a simple but powerful purpose,”

Chief Executive Officer A.G. Lafley recently

told PBS’ Charlie Rose. “We’re in the

business of improving your everyday life.”

The vast majority of P&G products are

purchased weekly for daily use — household

commodities whose sales are generally

impervious to changing economic conditions.

Consumers continue to diaper babies, wash

the dishes and clean the house — with little

regard to the economic cycle.

While Procter & Gamble’s brands may

seem like distinctly American icons, the

company derives roughly 60% of its nearly

$80 billion in annual revenues from outside

the United States, 28% from developing

markets. Lafley calls developing markets a

“consistent engine of growth” for the

company, since birth rates tend to be higher,

households are larger, and incomes have

risen to where people can afford the regular

purchase of household products. For the

most part, products are manufactured

in the markets where they are consumed,

and P&G has an on-the-ground presence in

more than 80 countries.

Procter & Gamble is committed to

innovation, evidenced by $2 billion of annual

research and development expenditures,

and the successful commercialization of a

steady stream of new products. One example

of R&D success is the Gillette Fusion shaving

system, which is on track to become Procter

& Gamble’s 24th billion-dollar brand!

“Innovation is a social system,” Lafley

stresses. “It’s a team sport.”

Innovation is essential to keep P&G at

the top of its game. For 2007, the company

ranked #3 on Fortune’s “Global Most

Admired Companies,” #10 in “America’s

Most Admired,” and #2 in “Top Companies

for Leaders.”

With $200 billion of market capitalization,

P&G remains popular with Haverford as

well, with a track record of continuing growth

in revenues, operating margins and earnings

per share.

For more information on Procter &

Gamble, visit www.pg.com. �

Procter & gambleConsumer Products Powerhouse thrives in the Business of Improving everyday life

H a v e r f o r d P o r t f o l i o P r o f i l e

Dividend Yield 2.4%

Financial Strength (S&P) A+

Market Capitalization $198 Billion

Long-term debt to Capital 22.2%

Return on Equity 14.8%

Price to Earnings (2009 Estimate) 15.8 X

Estimated Long Term Business Growth (Over 5 years) 12%

2007 Annual Revenues $76.5 Billion

2007 Total Earnings $10.3 Billion

Total Dividends Paid in 2007 $4.2 Billion

# of $ Billion Brands 23

# 1 Selling Product Pampers

Source: Haverford, Standard & Poor’s, and company reports

W H A t m A K e s P & g A t t r A C t I V e t o H A V e r F o r D :

Source: Factset



H a v e r f o r d C L i e n t P r o f i L e

A long Wei From Homeskin Care entrepreneur Wei Brian Blends Chinese Herbalism and Western technology to Create Products Promoting Inner Beauty

As a nine-year-old growing up in

the lake district of central China,

Wei Brian and a friend would often

show up at the local medical clinic pretending

to be sick. their imagined afflictions gained

them access to knowledge about the ancient

herbal cures that form the basis for traditional

Chinese medicine. she would learn to match

the ingredients of the herbal remedies

with plants and flowers gathered in the local

countryside.

“I was very much a tomboy — a nature

girl, outside all the time,” ms. Brian says.

“my friends and I would hunt and dig herbs

and then make up our own herbal remedies

— trying them out on each other. I’ve been

fascinated by herbs for as long as I can

remember.”

red peony root and reishi mushroom.

Pomegranate peel, ginger and green tea. Wei

Brian parlayed her passion for herbs into a



successful herbal

skincare and cosmetics

company, Wei east.

today she reaches

millions of American women through one

of the most successful Home shopping

network brands of all time. she’s a one-

woman ambassador melding ancient Chinese

ways with the freedom and opportunity she’s

found in the united states.

Her path has taken a circuitous route. ms.

Brian’s childhood was a study in contradictions

as mao tse-tung’s Cultural revolution first

attacked the intellectualism of her college

professor parents, but ultimately gave way to

the burst of commercial development that

heralded China’s rise on the world stage.

taught never to aim low, she first aspired

to win a nobel Prize in ocean science, but

reality intervened as she earned a bachelor’s

degree in computer science from Wuhan

university. she came to the united states in

1985 with a scholarship to study artificial

intelligence at Drexel university — earning

her master’s degree in 1988. there she met

future husband mark Brian, an engineer;

the couple married in 1987.

“then my father, who was my very best

friend, became quite sick and we returned to

China,” ms. Brian says. “His dying wish was

that I use my talents to serve China and to

alleviate the suffering of our people, who were

then facing a very uncertain future. I told him

I would help my two older sisters, who were

never able to receive an advanced education

because of the Cultural revolution.”

Her promise to her father, along with a

desire to bring beauty to Chinese women

— then accustomed to the fashion of stan-

dard-issue blue-gray army jackets — led her

back to her love of herbs. “our company

had very humble beginnings,” ms. Brian says.

“the laboratory was our kitchen, where

I worked with my mom, my two sisters and

a friend. I had three goals — to have fun,

to help others, and to make money.”

Husband mark introduced ms. Brian to

the marketing approaches perfected by mary

Kay Cosmetics in the united states, and she

established both her product line and her

company by applying the direct sales concept

“I had three goals — to have fun, to help others,

and to make money.”

Wei at the grand opening of Wei East’s new factory in China with her mentor who is a former Chinese provincial governor.

Wei at her local herbalist in her China home town.


1 0 | V o l u m e I , 2 0 0 8 | H A V e r F o r D A d v i s e r

to the Chinese market. ultimately she built a

network of 40,000 distributors. unfortunately,

her business model collapsed when the

Chinese government outlawed all direct sales

marketing in 1998. Her sights again turned

westward, where her products were sold

principally through beauty salons.

then, in 2001, ms. Brian met a buyer for

Home shopping network and was introduced

to a new world of cable television sales. It was

an ideal platform not only for her growing

line of skin care and cosmetics products, but

also for her message to

American women.

“American women are

so busy, always hurrying

from one task to the next

and the next,” she says.

“they have so little time

to appreciate the beauty

around them, much less

their own inner beauty.

I’m not selling just a jar

of cream, I’m offering

women a chance to

connect with the

balance, the harmony

and the simplicity of

ancient Chinese

philosophy.

“By themselves, both eastern and Western

cultures are lacking; together, they comple-

ment and complete one another.”

ms. Brian’s audience embraced Wei east’s

all-natural, herbally-inspired products. But

viewers were equally captivated by this diminu-

tive, energetic woman who offered wisdom

and hope to salve the stresses of everyday life.

In Brian’s American television debut, her

entire Hsn inventory sold out in 3-1/2 hours.

For 6-1/2 years, Wei east has remained a

stalwart of the Hsn lineup and one of the

network’s benchmark brands.

“ …I’m not selling just a jar of cream, I’m offering women a chance to connect with the balance, the harmony and the simplicity of ancient Chinese philosophy.”

Wei shares her philosophy.


V o l u m e I , 2 0 0 8 | H A V e r F o r D A d v i s e r | 1 1

ms. Brian is still considering future chal-

lenges for Wei east, seeking new opportunities

to bridge eastern and Western cultures. she

shuttles back and forth between the company’s

u.s. headquarters in newtown square, PA, and

the Wei east manufacturing complex in China,

located near her childhood home in Wuhan.

But it was 11-year-old son Alex who taught

Wei Brian to follow her own admonitions to

embrace harmony and balance, and to live in

the moment as mother and caregiver. When

Alex, the eldest of two children (daughter

Katie is four),

was diagnosed

autistic, he became

the focus of her life.

“Alex was a gift

to me,” ms. Brian

says. “As the

doctors explained

Alex’s condition to

us, mark and I

decided to give

him the opportunity to be everything he could

be. He’s responded very well to home school-

ing, and has exceeded all our expectations.

“Alex has shown me what’s really important

— to be loving and nonjudgmental, and to

approach life with an understanding heart.

these values have affected every part of my

life, including my company,” she says. “my

greatest desire is to give everyone I encounter

something that is good and pure, so that they

too can experience and project their outward

and inward beauty.”

ms. Brian first came to Haverford to set

up a trust fund for Alex, working closely

with Portfolio Manager Cynthia Zickel. “I

immediately felt comfortable with everyone

at Haverford,” she says. “I got the sense that

they know what they’re doing and they really

care about their work. they know who they

are, and they’re not taken in by fads.”

“I never evaluated anyone else,” she says.

“I realized Haverford’s DnA suits my philoso-

phy. In China we have a saying, ‘Hire people

you trust.’ I trust Haverford with the resources

that will provide for my son’s future. I trust

Haverford with what I truly hold dear.” �

F o r m o r e I n F o r m A t I o n

o n W e I B r I A n , H e r C o m P A n y,

H e r P r o D u C t s A n D

H e r P H I l o s o P H y,

V I s I t W W W. W e I e A s t . C o m .

“I immediately felt comfortable with everyone at Haverford… they know who they are, and they’re not taken in by fads.”

Wei with her daughter Katie.



At Haverford, we believe a prepared and informed family is critical to the success of any wealth management plan. Inspired by requests from many clients, Haverford is offering a new seminar program to prepare and engage young adult investors between 20 and 40 years of age. our goal is to instill them with confidence and awareness of the responsibilities, opportunities and risks associated with wealth.

the program is presented by the Institute for Private Investors — professionals with

many years of experience offering objective, unbi-ased investor education. Participants learn in their own peer groups using true-to-life case studies where there are no right or wrong answers. lively discussions in small teams provide valuable insights

without the need to disclose personal informa-tion. the objective is to increase knowledge and awareness of financial responsibilities, not to further any Haverford sales agenda.

Adviser recently spoke with Steve Mills, vice President and Portfolio Manager, proponent and sponsor of the next generation initiative.

A D V I S E R : steve, what was the genesis of the next generation program?

M I L L S : In the past several months a number of clients have approached Haverford team members with questions and concerns about how to educate their adult children who eventually will inherit significant wealth. often these “children” are in their 20’s, 30’s or 40’s. While they’ve grown up in affluent families, they’ve never had the personal responsibility for managing the family assets.

A D V I S E R : Do many clients find it difficult to talk to their children about wealth?

M I L L S : yes, I believe it’s a very common problem. many people are uncomfortable talking about wealth, even though it’s

educating the ‘next generation’ of Haverford Investors

All parents want their children to have the tools to deal with the twists and turns of life, but the challenges can be especially acute among affluent families. For many, it’s very difficult to talk openly about wealth and the responsibilities it entails.



absolutely essential. suddenly assuming a large inheritance can be a staggering responsibility if a person isn’t prepared. We’re all familiar with the stereotype of the kid who inherits a fortune and loses it to a rock star lifestyle, but that’s usually not the case.

many children of affluent families have all the advantages of a sound upbringing and a privileged education. they go on to become doctors and lawyers and business leaders in

their own right. they may be very skilled at their chosen occupations, but quite unfamiliar with the responsibilities of wealth manage-ment. they’ve never had to worry about managing the family estate, or philanthropy, or investing.

A D V I S E R : What do you mean by “the responsibilities of wealth management?”

M I L L S : I think most of my clients regard wealth as a kind of privilege that comes from accomplishment. It’s a privilege that allows you to benefit your family and your commu-nity in very special ways. young people don’t always recognize the impact that wealth can have on an individual, the extended family or how it can help a community, charity or cultural institution.

Wealth must be preserved in order to maintain that privilege. Children have a

the “next generation” program is being developed and presented by the Institute for Private Investors, a new york-based organization that provides a wide range of educational and networking resources to families and advisors of high-net-worth investors. their experts are conducting a series of custom developed seminars for Haverford’s private guests. It’s a very objective, unbiased program. no investment recommendations are given. It’s not a Haverford “commercial” — we’re just the sponsor.

A D V I S E R : Where can clients obtain more information?

M I L L S : they can contact their Haverford Portfolio managers. or they can contact me personally. I’m committed to this program because I know it serves a very critical need. �

responsibility to serve as prudent custodians so that wealth can accomplish goals and be passed on to the next generation.

A D V I S E R : Is your purpose to “sell” the “next generation” on Haverford?

M I L L S : obviously the parents have chosen Haverford with asset growth and wealth preservation in mind, so sure, we’d like to see continuity. But that’s not our focus.

“suddenly assuming a large inheritance can be

a staggering responsibility if a person isn’t prepared.”

— Steve Mills, Vice President and Portfolio Manager



Joseph J. McLaughlin, Jr., has been promoted to Chairman and Chief executive Officer of the Haverford trust Company and its affiliates, Haverford Financial services and Haverford Investment management. A Haverford employee since 1992, mr. mclaughlin has served as President since 1998, handling the company’s day-to-day operations. He is a member of the executive Committee, the Investment selection Committee, and the Board of Directors of the Haverford trust Company.

In his new role, mr. mclaughlin will take the lead in setting the firm’s growth

strategy and in working with its executive team to identify new service offerings and markets that are syner-gistic with current products and services. He has served in the finan-cial services industry for over 25 years and is a graduate of st. Joseph’s university in Philadelphia.

mr. mclaughlin succeeds Haverford Founder George W. Connell, who, as vice Chairman of the firm, will continue to have a very active role with Haverford and its clients. mr. Connell will continue

to serve on the executive Committee, the Board of Directors, and the Investment selection Committee.

Binney H. C. Wietlisbach has been promoted to President of the Haverford trust Company. In her new role, mrs. Wietlisbach will be directly responsible for all Private Client services of the firm, including investment management, trust, and private banking services.

mrs. Wietlisbach joined Haverford in 1992 and has served as executive vice President and Portfolio Manager. she is a member of the executive Committee, the Board of Directors, and the Investment selection Committee of the Haverford trust Company. A 23-year veteran of the

financial services industry, mrs. Wietlisbach is a graduate of Pennsylvania state university. �

the faces are the same, but the responsibilities have changed. Congratulations to Haverford’s newly-appointed senior leadership team!

Binney Wietlisbach, President ; george Connell, Founder and Vice Chairman; and Joseph J. mclaughlin, Jr., Chairman and Chief Executive Officer

Haverford’s leadership team takes on new responsibilities

“the innovation at Haverford is that we’re committed to our strategy and we don’t follow the herd mentality

of the marketplace.” — G E O R G E W . C O n n E L L



Catherine P. “Catsy” Michell, CIMA, has been pro-moted to director of sales, in addition to her current position as vice President and Portfolio Manager. she will continue her responsibilities for developing client relationships and managing investment portfolios, and will now lead the overall sales effort of the firm.

ms. michell has over 20 years experience in the financial services and investment advisory industry.

Clockwise, from top-left: Catherine P. “Catsy” Michell, CIMA, Jeanne Pattalino, Paula Lyons, and Terri Brodheim

Jeanne Pattalino has joined the firm as an investment Officer. ms. Pattalino will oversee key investment decisions and asset allocation for Haverford’s growing client base, working directly with vice President and Portfolio Manager thomas J. lynch. she joins Haverford with more than 25 years of investment management and capital markets experience.

Paula Lyons has joined Haverford as Banking Assistant. ms. lyons will provide support and key client interaction for Haverford’s private banking services team. she is a graduate of Cedar Crest College in Allentown, PA.

Terri Brodheim has been promoted to Manager, Corporate events. In addition to her current responsi-bilities as Office Manager, ms. Brodheim will manage all aspects of meeting and event planning for Haverford, including client appreciation events, golf outings and seminars.

W e b l i n k s t o r i e s @ h a v e r f o r D q u a l i t y . c o M

h e a lt h s a v i n G s a c c o u n t s , or HSA’s, are

a new way for business owners to

provide employees with health

insurance coverage at a more

affordable cost. HSA’s pair a

high-deductible catastrophic

health insurance policy with a

tax-deferred account similar

to an IRA, to which employees

can contribute pre-tax earnings

to pay for healthcare expenses.

c o l l e G e a D M i s s i o n s c o n s u lt i n G . Do you have a child ready to

start college next year? College

admissions consultants serve as

coaches to guide you and your

child through the application-

interview-acceptance process.

What you don’t know can hurt

your child’s chances for getting

accepted at a top university.

W e e k ly s u M M a r y. Every Monday, a new weekly

summary recaps the previous

week’s financial news and

performance and looks ahead to

the future.

q u a r t e r ly M a r k e t c o M M e n ta r i e s .

The Haverford research team

updates its forecasts for each

calendar quarter. See how market

trends are matching projections.

Kudos and Congratulations!


In this year of continuing financial

turbulence, Haverford thought leadership

is in hot demand, as the opinions of our

experts are avidly sought by print journalists

and the producers of television broadcasts

and Internet webcasts. Some recent and

regular appearances include:

CNBC’s � The Call, Street Signs and

Power Lunch

Bloomberg TV � Morning Call

The Street.com �

WallSt.net �

Fox Business Network �

CN8 � Money Matters Today

Haverford business leaders have become

television personalities in video interviews

frequently conducted via a remote link.

For Hank Smith, Chief Investment Officer

of Equity at Haverford, the interviews

sometimes represent a slight disconnect

between breaking news and Haverford’s

Quality Investing strategy.

“Broadcasters tend to be consumed

by the news of the day and the effect

it will have on the financial markets

right now. At Haverford, we take a much

longer-term perspective. Day-to-day

fluctuations prompted by news reports

are mostly irrelevant.”

Jason Pride, Director of Research,

notes, however, that Haverford has devel-

oped unusually in-depth knowledge about

the companies that comprise its portfolio.

Reporters are hungry to tap into this

expertise. “For example, our portfolio

has grown right along with Microsoft for

many years. We hold 6 million shares

on behalf of our clients. So as Microsoft

continues its on-again-off-again pursuit

of Yahoo, we have a point of view that’s

probably more informed than most.”

Haverford in the newsthe economy. the economy. the economy. Financial news vies with the presidential

elections as 2008’s top news topic. slowdown or recession? the subprime mortgage mess.

rising fuel prices. Consumer spending up or down? How will the market respond?

HAV E RF ORD A d v i s e rP u B l I s H I n g t e A m : Patrick Hoyer, timothy Hoyle; mnovakDesign, design Advisor ; Peter olson, Principal Photography; Brent rosenberger, editorial Consultant; Veronica ryan, Managing editor ; Kimberly southmayd, susan Werner, Cynthia Zickel.

Printed in Philadelphia on recycled paper and to FsC environmental standards by Pearl Pressman liberty.

The opinions expressed in the Adviser are those of Haverford. Views and security holdings are subject to change at any time based on market and other conditions. This publication is for informational purposes only and should not be construed as investment advice or recommendations with respect to the information or specific securities

presented. No forecasts are guaranteed and past performance is no guarantee of future results. Information is derived from sources believed to be reliable, however, we cannot guarantee its accuracy. Investments in securities are not FDIC insured, not bank guaranteed and may lose value.

Video clips and print interviews with Haverford investment professionals are posted on www.HaverfordQuality.com. Just click on

“More…” under “Haverford in the News.” �


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