Master 11-21-11

PRESENTATION TO MASTER: 

P RESENTATION TO MASTER ST . D ENIS J . V ILLERE, III N OVEMBER 21, 2011

COMPANY HISTORY: 

C OMPANY H ISTORY Founded in New Orleans by St. Denis J. Villere in 1911 Operated continuously for century by four generations of the Villere family

OUR PEOPLE: 

O UR P EOPLE St. Denis J. Villere 50 Years of Service George G. Villere 42 Years of Service George V. Young 25 Years of Service St. Denis J. Villere III 12 Years of Service

A FEW FACTS ABOUT US: 

A F EW F ACTS A BOUT U S 500 clients -- 53% of assets are Individual and 47% Institutional $1.4 billion under management On 9/30/99 launched Villere Balanced Fund, the first no-load, independent mutual fund in New Orleans

ASSETS UNDER MANAGEMENT : 

A SSETS U NDER M ANAGEMENT

VILLERE MOVE TO CHARLES SCHWAB : 

V ILLERE M OVE TO C HARLES S CHWAB Previously broker-dealers, Villere saw Schwab as an opportunity to leave that business Schwab trades for as little as $8.95 per trade vs. $.20-$.30 per share at other brokers Allows us to “trade away” using any brokerage firm with the best research or execution for just $.02-.05 per share Securities protected up to the full net equity per account by Securities Investors Protection Corporation (SIPC), and Lloyd’s of London

INVESTMENT STYLE : 

I NVESTMENT S TYLE Our focus is on long term capital growth, consistent with preservation of income Low portfolio turnover is a hallmark of our investment style

DIVERSIFICATION STRATEGY : 

D IVERSIFICATION S TRATEGY In their book, Investment Analysis and Portfolio Management , Frank Reilly and Keith Brown reported: “…about 90% of the maximum benefit of diversification was derived from portfolios of 12 to 18 stocks..” “Academia and consultants have focused on not being diversified enough; we believe there is risk to being too diversified.” The end result of over diversification is mediocre returns

DIVERSIFICATION STRATEGY: 

D IVERSIFICATION S TRATEGY All Equity Accounts: We recommend commitments of 5% of portfolio value per security, resulting in 20 equities Balanced Accounts: We recommend commitments of 3% of portfolio value per security, resulting in 20 equities, the balance in fixed income

PowerPoint Presentation: 

We need guidance regarding income needs, risk tolerance and time horizon We send quarterly reports listing assets, returns vs. indexes and realized gains/losses We suggest asset allocation and choose securities on a discretionary basis C LIENT I NPUT

RESEARCH FOCUS: 

R ESEARCH F OCUS Rely on many research firms to introduce us to an idea Visit company management Speak with competitors, suppliers, or others who might give us insight

EQUITY SELECTION : 

E QUITY S ELECTION Strong earnings potential, low debt to total capitalization Strong cash flow, low price to earnings ratio Finding undervalued assets and growth potential unrecognized by the investment community Proprietary products or services

SECTOR WEIGHTINGS : 

S ECTOR W EIGHTINGS Villere S&P 500 Energy 16.1% 13.3% Financials 10.5 15.8 Healthcare 13.3 11.1 Information Technology 21.0 18.1 Consumer Discretionary 15.7 10.4 Industrials 9.6 11.3 Materials 8.2 3.6 Consumer Staples 4.2 10.2 Telecom Services 1.0 2.8 Utilities 1.2 3.2 * Supplemental Information

TOP 10 HOLDINGS : 

T OP 10 H OLDINGS 3D Systems 7.0% Luminex 4.5% Sandridge 4.1% Pool Corporation 3.2% BE Aerospace 3.1% Visa 3.1% EPIQ 2.9% FedEx 2.9% Northern Oil & Gas 2.9% Jos A. Bank Clothers 2.7% * Supplemental Information

FIXED INCOME SELECTION : 

F IXED I NCOME S ELECTION We tend to purchase bonds utilizing a ladder approach, and generally do not buy bonds that have greater than a ten year maturity Analyze interest coverage ratios, liabilities, debt to equity ratios

ANNUAL FEES : 

A NNUAL F EES One percent (.01) of the first $5,000,000 Three-quarters of one percent (.0075) between $5,000,000 and $10,000,000 One-half of one percent (.005) of the amount above $10,000,000 The minimum fee is $10,000

CFA INSTITUTE GIPS COMPLIANT : 

CFA I NSTITUTE GIPS C OMPLIANT Encouraged by CFA Institute GIPS - Global Investment Performance Standards Third Party Verification of Performance Results

VILLERE PERFORMANCE: 

V ILLERE P ERFORMANCE St. Denis J. Villere and Company claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS Standards. St. Denis J. Villere & Company has been independetly verified for the periods 1/1/88 - 6/30/11. The verification report(s) is/are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. 1. St. Denis J. Villere & Company is an investment advisor registered with the Securities and Exchange Commission under the Investment Advisors Act of 1940. The firm’s objective is to enhance portfolio returns while minimizing risks. 2. The minimum portfolio size for the Tax-free Balanced Composite is $500,000. 3. Valuations and returns are computed and stated in U.S. Dollars. 4. Composite returns are calculated net of management and custodian fees. 5. The composite benchmark is a blended index that is rebalanced annually based on the composite allocation. The underlying benchmarks are the S&P 500, Barclay’s Capital Intermediate Gov't/Corp Bond Index and the 90 Day T-Bill. 6. Periods prior to 9/30/96 are not in compliance with the GIPS standards because closed account data was included in the composite returns. 7. This composite was created in December 2001. A complete list and description of all firm composites is available upon request.

VILLERE EQUITY PERFORMANCE: 

V ILLERE E QUITY P ERFORMANCE One-Year (9/30/10-9/30/11) Villere 19.52% S&P 500 1.00% Five-Year (9/30/06-9/30/11) Villere -0.65% S&P 500 -1.22% Ten-Year (9/30/01-9/30/11) Villere 7.58% S&P 500 2.79% * Please see handout for fully compliant presentation **Returns presented are the equity component of the Taxable Growth composite and is presented as supplemental information

VILLERE EQUITY PERFORMANCE 10 YEAR GROWTH OF $1,000,000: 

V ILLERE E QUITY P ERFORMANCE 10 YEAR G ROWTH OF $1,000,000

PowerPoint Presentation: 

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CLIENT & ASSET GROWTH : 

C LIENT & A SSET G ROWTH Date Assets Managed # Clients 12/31/89 $254 103 12/31/90 $253 118 12/31/91 $305 126 12/31/92 $362 139 12/31/93 $391 163 12/31/94 $387 199 12/31/95 $493 216 12/31/96 $599 250 12/31/97 $793 288 12/31/98 $849 323 12/31/99 $911 351 12/31/00 $965 375 12/31/01 $937 398 12/31/02 $791 426 12/31/03 $1,066 453 12/31/04 $1,347 518 12/31/05 $1,404 547 12/31/06 $1,648 553 12/31/07 $1,555 553 12/31/08 $1,080 536 12/31/09 $1,151 501 12/31/10 $1,313 500

CONCLUSION: 

C ONCLUSION We appreciate your interest in St. Denis J. Villere & Co. We look forward to mutual success! Prosperity Breeds Good Friends