Georgia Bankers Association

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1 PRESENTATION FOR: Georgia Bankers Association February 25, 2008 Peggy Taylor, CFA Investment Specialist & Principal Chip Reames Managing Partner & Principal Atlanta Capital Management Company, LLC Two Midtown Plaza, Suite West Peachtree Street Atlanta, Georgia Celebrating our 40 th year 1 ATLANTA CAPITAL MANAGEMENT CO., LLC

2 2 ATLANTA CAPITAL MANAGEMENT CO., LLC

3 Atlanta Capital Management Company December 2008 Summary of Investment Performance Fourth Quarter YTD One Year Three Years* Five Years* Ten Years* Eaton Vance Atlanta Capital Large Cap Growth -23.8% -36.9% -36.9% -8.5% -3.3% -1.0% Russell 1000 Growth Index -22.8% -38.4% -38.4% -9.1% -3.4% -4.3% S&P 500 Index -21.9% -37.0% -37.0% -8.4% -2.2% -1.4% Eaton Vance Atlanta Capital SMID Cap -19.7% -26.2% -26.2% -1.9% 3.3% 6.0% Russell 2500 Index/Russell 2000 Index** -26.3% -36.8% -36.8% -8.8% -1.3% 2.9% Large Cap Growth Portfolio Financials was the largest contributing sector for both the year and fourth quarter. Industrial stock selection throughout the year detracted from performance. SMID Cap Portfolio The primary reason for outperformance was the stock selection in Consumer Discretionary. Stock selection was also strong in Health Care and Technology. * Annualized Numbers ** Russell 2000 until 12/31/06, Russell 2500 thereafter Please see disclosures on the last page of the presentation 3 ATLANTA CAPITAL MANAGEMENT CO., LLC

4 Eaton Vance-Atlanta Capital Large Cap Growth As of December 31, 2008 Top Ten Holdings % Portfolio Metrics Abbott Laboratories 3.5 Cisco Systems 3.2 CVS/Caremark 3.2 Kohl s 3.0 Hewlett-Packard 2.9 EOG Resources 2.7 Staples 2.7 Apple 2.6 Medtronic 2.5 Coca-Cola 2.5 Sector Exposure Metrics # of Holdings Wtd. Avg. Mkt. Cap (billion) Historical Earnings Growth Forecasted Earnings Growth** Return on Equity Price/Earnings (2009) Dividend Yield S&P 500 Index 500 $78.5 8% 8% 14% 14.2x 3.1% High Quality Growth Plus 55 $77 $50.6 bn 21% 20% 14% 13% 22% 16.9x 12.2x 1.4% 2.0% Russell 1000 Growth Index 643 $ % 13% 23% 12.2x 1.9% EV-ACM Large Cap Growth S&P 500 Index Info rmatio n T echno lo gy H ealth C are C o nsumer Staples F inancials Industrials C o nsumer D iscretio nary 4 ATLANTA CAPITAL MANAGEMENT CO., LLC 0.0 Energy M aterials T eleco m Services *Annualized estimate. **First Call estimate. Top ten holdings are based on total assets of a representative portfolio and are subject to change. The specific securities identified are not representative of all of the securities purchased, sold or recommended for advisory clients. Actual holdings will vary for each client and there is no guarantee that a particular client s account will hold any or all of the securities listed. It should not be assumed that any of the above securities were or will be profitable. For a complete list of all recommendations made by Atlanta Capital during the preceding 12 months, please contact Marketing Support. The S&P 500 represents the primary, long-term index. The Russell 1000 Growth represents the secondary, short-term style specific index. Source: Baseline. 0.0 Utilities

5 Equity Holdings September 2008 Eaton Vance-Atlanta Capital Large Cap Growth Aging American Consumer Consumer Energy Financials Industrials Tech and Telecom Abbott Labs DENTSPLY Int l Genentech Medtronic Merck & Co. St. Jude Medical Stryker Corp. Charles Schwab SEI Investments T. Rowe Price Global Brand Leadership Coca-Cola Nike Procter & Gamble Walt Disney Co. AFLAC American Express Goldman Sachs Deere & Co. Textron Apple Cisco Systems Hewlett-Packard Co. Intel Corp. Microsoft Productivity Enhancement Lab. Corp of America Pharma. Product Dev. SYSCO Corp. Schlumberger Bank of New York Mellon Automatic Data Proc. Int l Business Machines Linear Technology Microchip Technology NetApp Qualcomm Industrial Renaissance EOG Resources FMC Technologies Marathon Oil Nat l Oilwell Varco Air Products & Chem. Dover Corp. Emerson Electric General Electric Honeywell Int l Jacobs Engineering Vulcan Materials Market Dominance CVS Caremark Corp. Int l Game Tech. Kohl s Corp. Omnicom Group Staples Wal-Mart Stores Wells Fargo Google New Purchases 5 ATLANTA CAPITAL MANAGEMENT CO., LLC

6 Eaton Vance-Atlanta Capital SMID Cap As of December 31, 2008 Top Ten Holdings % Portfolio Metrics Affiliated Managers 4.6 Markel 4.1 SEI Investments 3.9 HCC Insurance Hldgs 3.3 O Reilly Automotive 3.3 AptarGroup 3.0 Sonic 2.9 FactSet Research 2.8 Alberto-Culver 2.8 Aaron Rents 2.6 Metrics # of Holdings Wtd. Avg. Mkt. Cap (billions) Historical Earnings Growth Forecasted Earnings Growth** Return on Equity Price/Earnings (2009) Dividend Yield Russell 2500 Index 2,433 $1.8 8% 13% 8% 13.8x 2.2% High Quality SMID Cap 52 $2.5 19% 13% 17% 13.4x 1.0% Sector Exposure High Quality SMID Cap Russell 2500 Index F inancials C o nsumer D iscretio nary Info rmatio n T echno lo gy Industrials H ealth C are C o nsumer Staples M aterials Energy Utilities T eleco m Services **First Call estimate. Top ten holdings are based on total assets of a representative portfolio and are subject to change. The specific securities identified are not representative of all of the securities purchased, sold or recommended for advisory clients. Actual holdings will vary for each client and there is no guarantee that a particular client s account will hold any or all of the securities listed. It should not be assumed that any of the above securities were or will be profitable. For a complete list of all recommendations made by Atlanta Capital during the preceding 12 months, please contact Marketing Support. The Russell 2500 represents the primary, long-term index. Source: Baseline. 6 ATLANTA CAPITAL MANAGEMENT CO., LLC

7 Equity Holdings September 2008 Eaton Vance-Atlanta Capital SMID Cap Consumer Energy Financials Industrials Tech and Telecom Aaron Rents Alberto-Culver Arbitron Bio-Rad Labs A Church & Dwight Covance DENTSPLY Int l Henry Schein John Wiley & Sons LKQ Corp. Matthews International McCormick & Co. Mentor Corp. Mohawk Industries O Reilly Automotive Owens & Minor Patterson Companies Sally Beauty Holdings Sonic Corp. Varian Medical Dril-Quip Energen Corp. Oceaneering Int l Affiliated Managers Brown & Brown City National Corp. Cullen/Frost Bankers Forest City Enterprises HCC Insurance Markel Corp. Morningstar RLI Corp. SEI Investments Westamerica Bancorp. Ametek AptarGroup Copart Graco Idex Corp. Kirby Corp. Landstar System Amphenol Corp. ANSYS Blackbaud FactSet Research Systems Fair Isaac Corp. Jack Henry & Assoc. Mettler-Toledo Int l National Instruments Total System Services New Purchases 7 ATLANTA CAPITAL MANAGEMENT CO., LLC

8 Lengthy periods of advance and short periods of violent declines US Long-Run Real Equity Returns ( ) Source: Credit Suisse, Bloomberg, Datastream 8 ATLANTA CAPITAL MANAGEMENT CO., LLC

9 Stocks are Cheap on a Historical Basis Source: Baseline 9 ATLANTA CAPITAL MANAGEMENT CO., LLC

10 Three Signs of Possible Good News for the Stock Market $2,500 $2,000 Money supply growth is accelerating, a good leading indicator of stock prices 25% 20% $1,500 15% $1,000 10% $500 5% $0 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 0% Millions Federal Reserve s Balance Sheet M2 3-Month Annualized Growth Rate Lots of cash available to fuel a rally Credit conditions are slowly improving Source: Bloomberg, Federal Reserve, ISI 10 ATLANTA CAPITAL MANAGEMENT CO., LLC

11 High Quality Could Enjoy Sustained Period of Solid Performance Future? High Quality Dominates over Long Term High Quality Stocks Typically Out-Perform Low Quality Stocks With Less Volatility Perfect Storm Massive Tax Cuts & Monetary Stimulus Cheap & Easy Credit Global Economic Expansion Economic Crisis A Weak Global Economy and continued credit crisis Suggest that High Quality Stocks May Outperform B+ or Better B or Below B+ or Better B or Below Annualized Return: 12.0% > 9.9% 11.6% < 18.2% Standard Deviation: 13.8% < 18.3% 8.0% < 11.1% 20% 20.0% % HQ/LQ Relative Return 15% 10% 5% 0% -5% -10% -15% -20% High Quality Outperforms 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% High Quality Underperforms *Time period: January 1, 1989 December 31, The High and Low Quality portfolios are provided to compare the aggregate of all companies with High Quality S&P Rankings (B+ or Better) to those with Low Quality S&P Rankings (B or Below). The universe includes all U.S. common stocks with S&P Quality Rankings and prices greater than $1. Portfolios are formed and rebalanced monthly, and rates of return are calculated using a market capitalization-weighted methodology. The data has been prepared by Standard & Poor s Investment Advisory Services LLC and contains proprietary information. The material is based upon information that S&P considers to be reliable, but neither S&P nor its affiliates warrants its completeness, accuracy or adequacy and it should not be relied upon as such. Copyright 2009, Standard & Poor s, a division of The McGraw-Hill Companies. A reference to a particular investment or security in the S&P Services is not a recommendation to buy, sell, or hold such investment or security. S&P is not furnishing individualized investment advice to any investor. There is no guarantee that any forecasts or opinions expressed in this material will be realized. These opinions may change at any time without prior notice. Performance during certain periods reflects strong stock market performance that is not typical and may not be repeated. Indexes are unmanaged and it is not possible to directly invest in an index. Past performance does not predict future results. Reproduction or redistribution of this page in any form without express permission from Atlanta Capital is prohibited. 11 ATLANTA CAPITAL MANAGEMENT CO., LLC % % 5. 0 % 0. 0 % % % % % 2008

12 Consistent Growth & Stability in Earnings An Advantage to High Quality Investing Quarterly As Reported Earnings Growth by Quality Ranking Group 10% 8% 6% 4% 2% 0% (2%) (4%) (6%) Recession (8%) Quality Average Growth Compound Annual Growth Earnings Variability # Positive Quarters # Negative Quarters B+ or Better 2.2% 9.0% 2.6% 109 or 94% 7 or 6% B or Below 1.0% 3.7% 7.8% 79 or 68% 37 or 32% *Time period: December 31, 1978 December 31, The High and Low Quality portfolios are provided to compare the aggregate of all companies with High Quality S&P Rankings (B+ or Better) to those with Low Quality S&P Rankings (B or Below). The universe includes all U.S. common stocks with S&P Quality Rankings and prices greater than $1. Portfolios are formed and rebalanced monthly, and earnings growth rates are calculated using a market capitalization-weighted methodology. The data in this report has been prepared by Standard & Poor s Investment Advisory Services LLC and contains proprietary information. The material is based upon information that S&P considers to be reliable, but neither S&P nor its affiliates warrants its completeness, accuracy or adequacy and it should not be relied upon as such. Copyright 2008, Standard &Poor s, a division of The McGraw-Hill Companies. A reference to a particular investment or security in the S&P Services is not a recommendation to buy, sell, or hold such investment or security. S&P is not furnishing individualized investment advice to any investor. There is no guarantee that any forecasts or opinions expressed in this material will be realized. These opinions may change at any time without prior notice. Performance during certain periods reflects strong stock market performance that is not typical and may not be repeated. Indexes are unmanaged and it is not possible to directly invest in an index. Past performance does not predict future results. Reproduction or redistribution of this page in any form without express permission from Atlanta Capital is prohibited. 12 ATLANTA CAPITAL MANAGEMENT CO., LLC

13 Performance Disclosures As of May 1, 2002, GBA Master Trust-Equity Fund was mutualized into Atlanta Capital Large-Cap Growth Fund. On January 29, 2004, the Atlanta Capital Large-Cap Growth Fund was merged into the Eaton Vance-Atlanta Capital Large Cap Growth Fund. As of May 1, 2002, GBA Master Trust- Small Cap Equity Fund was mutualized into Atlanta Capital Small-Cap Fund. On January 29, 2004, the Atlanta Capital Small-Cap Fund was merged into the Eaton Vance-Atlanta Capital Small Cap Fund. As of May 1, 2002, GBA Master Trust- Fixed Income Fund was mutualized into Atlanta Capital Intermediate Bond Fund. On January 29, 2004, the Atlanta Capital Intermediate Bond Fund was merged into the Eaton Vance-Atlanta Capital Intermediate Bond Fund. Performance returns prior to May 1, 2002 are the historical returns of the GBA Master Trust and were calculated before management fees, custody charges and other indirect expenses (gross of fee returns). Performance returns beginning May 1, 2002 are the I shares for the Intermediate Bond Fund. Performance returns beginning May 1, 2002 through December 31, 2005 are the I shares for the Large Cap Fund and the Small Cap Fund. Performance returns beginning January 1, 2006 are the A shares for these two funds. Returns for the I shares and the A shares are calculated by determining the percentage change in net asset value for each share class (net of all fees and expenses of the Fund) with all distributions reinvested. The Fund's past performance is no guarantee of future returns. Investment return and principal value of Fund shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Class I shares are sold without a sales charge. Class A shares are sold without a sales charge to participants in the GBA Master Trust 401(k) plan. All returns are shown without deducting a sales charge. Performance is for the stated time periods only; due to market volatility, the Fund's current performance may be lower or higher than the quoted return. Fund performance during certain time periods reflects the strong stock market performance and/or the strong performance of stocks held during those periods. This performance is not typical and may not be repeated. Eaton Vance-Atlanta Capital Large Cap Growth Fund Average Annual Total Returns of A Shares at 12/31/08 Eaton Vance-Atlanta Capital SMID Cap Fund Average Annual Total Returns of A Shares at 12/31/08 1 YEAR (36.89)% 1 YEAR (26.20)% LIFE *** (2.53)% LIFE *** 3.02% *** Performance Inception of Mutual Fund 4/30/02 *** Performance Inception of Mutual Fund 4/30/02 13

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