Risk Management is incorporated into every aspect of SDI's approach and includes:

Once the initial universe is compiled, screens will be run to eliminate companies that do not meet SDI's investment criteria.

SDI's multi-factor APT model will determine portfolio risk characteristics such as beta and residual volatility and includes a series firm and client specific guidelines including regional, sector, market capitalization and position size constraints.

A subjective, fundamental overlay is used to reflect factors not detected by the model that may negatively impact a client's portfolio.

SDI's portfolio managers monitor client's portfolios on a daily basis to ensure that it is not being impacted by negative news or an event in between portfolio re-balances.

SDI's process incorporates a thorough sell discipline which helps to protect client portfolios and control undue risk.