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Seven money managers examine portfolio management strategies in the latest issue of The Wall Street Transcript, available at (212/952-7433) or http://www.twst.com/info/info505.htm

TWST: Let’s talk about specific REIT investments. What are your largest holdings? What are the reasons for them?

Mr. Andres: The largest holding is Equity Office Properties (NYSE:EOP). Another large holding is Simon Property Group (NYSE:SPG). This is a large owner of regional malls across the country. While there is a lot of concern about the retail environment, we feel that valuations for retail REITs, and in particular Simon Property Group, are trading at excessive discounts. Given the quality of SPG’s assets, their ability to grow cash flow, and their current dividend yield of 7%, it is very attractive.

TWST: How many securities do you own in your Fund and does that number fluctuate?

Mr. Andres: We invest in about 30 companies, plus or minus two or three, so generally between 27 and 33 is our target. We feel 30 holdings allows us to have a concentrated enough portfolio without making too big of a bet in any given name. This ultimately controls our portfolio risk.

TWST: What are your risk management techniques?

Mr. Andres: One of the controls we employ is to limit our investment in any single company to no more than 5% (at cost) of our portfolio. The only exception here is when a security has a greater than 5% weight in our relevant benchmark, we can take a positive active bet of 200 basis points. Other than that, we don’t go over that 5% threshold. So, we never take too big of a bet in any given stock. Secondly, we have sector controls. As I mentioned, we are bottom-up stock selectors, but once we find our best securities and put them in our portfolio, we then look at the sector ranges. We allow ourselves to go up to 10% over the benchmark weight in a given sector. For instance, if our index has a 20% weight in apartments, we can’t go more than 30%. On the underweight side, we can go to 0% in any sector. This may sound aggressive, but we do not want to be forced to buy a stock in a given sector when we feel there are no good investments there. In addition, the initial valuation screen that we run eliminates companies that are prone to be in trouble. That is, this screen steers us away from the “blowups.” In summary, our stock and sector weightings combined with our valuation screen limit the risk level of the portfolio. This has resulted in very strong risk-adjusted returns over our six-year history.

TWST: Where do REITs fit into an investor’s portfolio and how do they meet expectations of investors?

Mr. Andres: REITs have recently caught the eye of many investors, both institutional and retail. Investors are starting to really understand the merits of investing in REITs. For one thing, the diversification benefit of owning REITs has proved itself. Also, high current yield with dividend growth is very attractive. High dividend yield is not just cash in hand, but it also acts to limit volatility, so a bad year for real estate is nowhere close to a bad year in the NASDAQ. We think investors should be looking at real estate and our REIT product as a separate asset class. Those investors who have a need for higher income and stability of income should have a significant exposure to REITs. This will be a very important trend as the baby boom generation reaches retirement age. In addition, endowments, foundations, or plan sponsors that have income requirements will be well served by owning REITs. Finally, investors who are looking for a well-balanced portfolio should be exposed to REITs. Statistics show that, over longer time periods, adding REITs to a diversified portfolio doesn’t hinder total return potential, but significantly reduces risk.

This special Investing Strategies Report includes:

1) Investing in REITS - William K. Morrill, Jr. and Keith R. Pauley, both Managing Directors at LaSalle Investment Management, examine portfolio management strategies in this timely and deeply informative 6,800-word interview from The Wall Street Transcript.

2) Investing in REITS - Damon J. Andres, Vice President at Delaware Investments, examines portfolio management strategies in this timely and deeply informative 2,800-word interview from The Wall Street Transcript.

3) Investing in REITS - Kenneth T. Rosen, Chief Executive Officer and Michael A. Torres, President, both respectively at Lend Lease Rosen Real Estate Securities, examine portfolio management strategies in this timely and deeply informative 4,600-word interview from The Wall Street Transcript.

4) Kyle Prechtl Legg, President at Legg Mason Capital Management, examines portfolio management strategies in this timely and deeply informative 3,900-word interview from The Wall Street Transcript.

5) Richard D. Steinberg, President at Steinberg Global Asset Management, Ltd., examines portfolio management strategies in this timely and deeply informative 3,900-word interview from The Wall Street Transcript.