Monthly Recap – February 2010

Our Clients’ Have Enjoyed Outperformance, in Good Times and Bad!

Beacon Hill Investment Advisory claims compliance with the Global
Investment Performance Standards (GIPS®)

Investment Results shown from 8/31/2008 to 12/31/2009 on an
annualized basis.

Beacon Hill Investment Advisory is an independent Registered Investment Advisory. Additional information regarding the firm’s policies and procedures for calculating performance returns is available upon request by calling 614-469-4685. “Our Portfolio” represents our Moderate composite and is for those portfolios with a moderate growth objective, with risk metrics comparable to the “Standard Benchmark” of 2% BarCap U.S. Treasury Bill 6-9 Month index, 40% BarCap U.S. Aggregate Bond index, and 48% Standard & Poor’s 500 index. All returns calculated in U.S. Dollar returns and net of all expenses. Beacon Hill’s Moderate portfolios were not charged fees for the period 8/31/2008-12/31/2008. Past performance is no guarantee of future results.

February . . . At A Glance (2010)

The U.S. Equity markets resumed their strength in February after a pullback in January. Small companies outperformed large companies by almost 3%! The real story this month, however, was the Greek government’s debt issues in the European Union, which continued to rattle the foreign markets, as exemplified by their loss of .9% on the month (after a 7% loss in Jan).

The European Union continues to attempt to prop up confidence in the Greek government, and many investors are beginning to question the stability of Spain and Portugal. Greek officials today announced new measures to increase tax revenues and decrease expenses. We question the Greek government’s ability to do both and we’ll be watching closely to see if values begin to appear. Many of these governments have debt that will be coming due in the next few months.

The U.S. fixed income markets, however, had a relatively quiet month with higher quality bonds outperforming low quality bonds by a very slight margin. The lower quality bonds, while having a positive total return due to their higher yield, did lose some principal due to the unease of the sovereign debt issues.

While we usually examine and explain the yield curve changes on a monthly basis, the changes to the yield curve this month were slight and did not affect fixed income performance enough to warrant explanation.

B.O.S.S. SCHEDULE™
(Business Owner Strategy Sessions)

Monthly workshops are held at the Beacon Hill Office for our clients and friends whom are business owners. Typically, sessions begin at noon with lunch provided and not to exceed an hour. To RSVP, please call Mark at 614-469-4685 or Click Here.

Employee Stock Ownership Plans (ESOP): March 18th
Join Roy Messing, Director of the Ohio Employee Ownership Center to;

• Learn the details of a program that allows the sale of your company to your employees, even if they don’t have the capital!
• Learn how to sell your company without paying capital gains.

Succession Planning: April 22nd
Join Jane Higgins Marx & Bob Barnett, Partner and Managing Partner of Carlile Patchen & Murphy;

• Maximize value while preparing for the unpredictable
• Internal successor versus outside sale analysis
• Timing and implementation process

Our mission is to manage our clients’ financial matters in a manner that allows them to focus on their families, their businesses, and their lives.

Clint Edgington, CFA Partner Beacon Hill Investment Adivsory	Mark Fissel, RFC Partner Beacon Hill Investment Adivsory