By Standard & Poor's The Outlook

A dynamic, actively managed portfolio, the S&P Top Ten Portfolio is comprised of stocks that S&P Equity Research believes to be well positioned for solid capital appreciation over the next 12 months.

Stocks must have our highest five-stars ranking to enter the portfolio. If the ranking drops below four stars, the stock will be removed.

In addition, any stock in the portfolio may be replaced with a five-star stock at any time. With the exception of Akamai Technologies (AKAM), the other stocks are currently ranked five stars.

The goal of the Top Ten Portfolio is to outperform the S&P 500 index on a capital appreciation basis. S&P’s Senior Portfolio Group, a subcommittee of our Investment Policy Committee, selects the stocks.

The intention of the portfolio is to be fairly balanced among economic sectors. The portfolio currently has eight large-cap stocks, one mid-cap and one small-cap issue.

It has four stocks from the information technology sector, three issues from consumer staples, and one stock each from the industrials, consumer discretionary and telecommunication services sectors.

From its inception through Dec. 2, 2011, the portfolio rose 1.6% on an annualized basis vs. a 0.8% gain for the S&P 500.

This year through Dec. 2, the portfolio fell 1%, while the benchmark declined 1.1%. Readers should note that past performance is no guarantee of future results.

•     Akamai Technologies (AKAM): A leader in Internet content delivery services.
•     American Tower (AMT): A market leader in wireless tower industry.
•     Applied Materials (AMAT): The world’s largest maker of wafer fabrication equipment.
•     Coach (COH): The number one luxury accessories brand in the U.S.
•     Coca-Cola (KO): We expect sales growth of more than 20% in 2011.
•     General Mills (GIS): We expect more at-home eating by consumers.
•     IBM (IBM): Should benefit from revenue growth in emerging markets.
•     Kelly Services (KELYA): Should benefit from focus on non-skilled temporary workers.
•     Oracle (ORCL): We see solid growth and benefits from Sun acquisition.
•     Philip Morris International (PM): The largest publicly traded tobacco company.

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