This excerpt taken from the SGZ 10-Q filed Oct 28, 2005.
We believe that pre-tax investment income will continue to grow as a result of strong cash flow from Insurance Operations, and the potential rise in interest rates, in combination with our allocation of new cash flow primarily to fixed income securities. As the Federal Reserve is not expected to finish its monetary tightening cycle until mid -2006, we expect continued volatility in the fixed income market during the remainder of 2005. To manage our interest rate risk, we aim to keep portfolio duration stable and to maintain a well-laddered maturity structure for our bond portfolio. With regard to our equity portfolio, we are committed to pursuing opportunities in industries with favorable fundamentals and will continue to reduce exposure to those stocks or sectors with less favorable fundamentals and valuations.