Adelante manages each of the firm's investment strategies on a team basis.
The firm's portfolio manager, research analysts and in-house trader comprise
the portfolio committee, which meets regularly to review events occurring in the
investment universe and in the capital markets. Decisions on portfolio construction
are made based on client guidelines, proprietary research conducted by analysts
and movements in share prices closely monitored by the trader.

Adelante adheres to specific investment guidelines to achieve performance objectives
and to manage portfolio risk. First, we maintain a preference for "core" institutional
real estate property types (e.g. apartments, office, industrial and retail), avoiding
securities in narrowly focused specialty real estate companies that we believe will not
deliver adequate long-term returns in relation to the level of risk assumed. Second, as
a risk control measure, our guidelines limit exposure to both individual companies and
property types; a single security may not exceed 10% of an account and weighting
in a single property type may not exceed twice the sector weighting in the benchmark
index. Third, as a diversification measure, accounts must be exposed to at least three
property types. Finally, companies with a market capitalization of less than $100
million are screened out to avoid illiquid securities.