Welcome to the March issue of Condor Monthly!

We hope you'll join us in welcoming spring and, of course, the end of tax season. In "From the Portfolio Manager" this month, we discuss Allegheny Technologies, a recent addition to Condor's Large Cap Growth portfolio. In this month's "Financial Planning Corner," we review special financial planning topics for same-sex couples, in light of a recent change in New Jersey state law that recognizes civil unions.

From the Portfolio Manager

Allegheny Technologies (ATI)

Allegheny Technologies, which engages in the production and distribution of specialty metals worldwide, is a recent addition to Condor's Large Cap Growth portfolios.

Diversified Revenue Stream

Because Allegheny is involved primarily in the production of titanium-based and nickel-based products, among other specialty items, and their use is becoming more widespread among various industries, the company has been experiencing substantial demand for its materials. In 2006, the aerospace and defense industries, as well as the energy exploration segment, accounted for the bulk of the company's revenues.

Aerospace and Defense

The commercial aerospace cycle has shown few signs of slowing as airlines across the world, particularly in emerging market countries, continue to demand aircraft to support the growing demand for air travel. For example, in 2006, the company entered into an agreement to supply Boeing with titanium-related products for nine years. Newer planes, both for commercial and defense purposes, will be using more titanium for their frames in an effort to minimize weight and maximize fuel efficiency.

Chemical Processing/Oil and Gas

As a result of higher global oil and gas exploration, many companies have been transitioning to more challenging areas in an effort to differentiate themselves. Therefore, many explorers have had to deal with difficult conditions, including high pressure and severe temperatures. Additionally, some companies have attempted to tap unorthodox sources of oil, such as oil sands. Again, metals such as titanium and nickel have been sought due to their relatively strong nature and corrosion-resistant attributes. Drills used on rigs also use tungsten bits, as the metal is one of the densest available.

Allegheny Technologies continues to have solid growth prospects as a result of robust demand from a host of different businesses. Many multinational corporations, including the aforementioned Boeing, have already entered into long-term deals with Allegheny for its products. Since we believe that the company can continue to experience more demand for its goods, we view shares of ATI as well-positioned for the next 3-5 years.

Company information as of 3/31/2007

Financial Planning Corner

New Jersey joins handful of states providing legal recognition to same-sex couples

New Jersey has recently become the third state in the nation to amend its marriage laws to permit same-sex couples to enjoy the same rights and privileges as married couples under state law. Beginning in 2004, New Jersey has allowed same-sex couples to apply for domestic partnerships, giving couples the right to inherit possessions if there is no Will and health care coverage for partners of state employees, among other provisions. It now joins just a handful of states that recognize same sex partnership rights. These rights, ranging from domestic partnerships to marriage, are currently recognized in only seven states:

• Massachusetts is the only state that allows same-sex marriage
• New Jersey is the third state, after Vermont and Connecticut, allowing civil unions
• California, Hawaii, and Maine have domestic partnership registries

New Jersey's new law allows partners in civil unions to gain all the benefits and protections of marriage provided by the state, but benefits and protections governed by federal law, such as Social Security and immigration, are not affected.

The measure was signed by Governor Corzine in December 2006 and became law on February 19, 2007. While this law eliminates the need for special planning for unmarried couples with regard to matters governed by the state, careful financial planning is still important with regard to benefits governed by federal law.

Key Financial Planning Issues

1. Health Insurance
Many companies are now offering health insurance to domestic partners. Unlike federally recognized married couples, the value of health benefits provided by the employer to a partner is treated as taxable income. A careful cost/benefit analysis should be conducted prior to adding a partner to your company health plan to determine whether the marginal tax will outweigh the benefit of adding a partner to the plan.

2. Estate Planning
In the state of NJ, same sex couples who are married in civil unions have the full estate benefits and protections conferred by marriage. In other words, all property transferring to the surviving partner is free from the New Jersey estate tax, but is not exempt from the federal estate tax. In addition, the Defense of Marriage Act (DOMA), which states that neither the federal government nor other states are mandated to recognize a civil union formed under the laws of a state that allows civil unions, raises significant questions regarding the estates of New Jersey domestic partners who move out of state. As a result, estate planners who work with same-sex couples must continue to prepare an exhaustive set of documents, in the event that partners choose to relocate. It is also important to consider issues such as owning and transferring properties from other states and holding financial assets in accounts outside of New Jersey. As a result, it is very important for same-sex couples to still have an iron-clad Will, since most other states do not offer the same protections as New Jersey.

3. Pension Benefits
New Jersey state law extends pension coverage to same-sex civil union partners of state, local government, and education employees and retirees. However, pension benefits that are subject to federal law or not under control of the state of New Jersey may not be transferable from one civil union partner to another. As such, partners in civil unions should consider securing an adequate amount of life insurance, or perhaps establishing a trust fund, to offset the loss of income due to a partner's death.

4. Social Security
Since social security is mandated by federal law, same-sex partners cannot transfer social security benefits to partners. As a result, unless DOMA laws are repealed, same-sex couples should not count on receiving social security benefits in the event of a partner's death. As with pension benefits, life insurance or a trust fund can be used to guarantee financial protection for the surviving partner.

5. Other Federal Tax Laws of Interest

• Same-sex couples still cannot file jointly for federal income taxes
• Property transfers at less than fair value may be considered a taxable gift
• Can claim a partner as a dependent; however the dependent partner must make less than $3,400 a year to qualify