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Catherine Avery Investment Managementwww.caimllc.com

(203) 966-2712

[email protected] 2010 Catherine Avery Investment Management LLC. All Rights Reserved.

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IN PARTNERSHIP WITH

Why Women? Women are quickly surpassing men as the most affluentdemographic in the United States and women were less impacted by the recentrecession than men. Importantly, according to our research,just 10% of womenare concerned about making financial decisions if suddenly single as a result ofdivorce or widowhood. Yet statistics show that nearly 50% of marriages end indivorce and an astounding 80% of women outlive their husbands. Women need totake more control of their investment portfolios, earlier in their lives. Our report isa guidebook for female investors, discussing very specific challenges andopportunities they face in todays environment and helping women compile abasic toolkit for investing.

With Prosperity Comes Challenges. This work / life balance has a dramaticimpact on women, particularly those with families, and time management hasbecome increasingly difficult in todays environment. The right investingstrategy, combined with a financial advisor that will take the time to understandthese issues and provide hands on advice, is the key to a successful investingstrategy for any modern woman. We provide more detail into how CAIM works

with clients in our report.

The First Women Investing Study by the polling companyinc./WomanTrend and CAIM. We are pleased to announce the results ofour first ever survey of women investors in partnership with the pollingcompany, inc./WomanTrend. In this report, we analyze the results of anomnibus survey of 515 adult women (aged 18+) which included personalquestions on investment planning and practices posed to women of all ages anddemographics. The details of the results of this survey are telling and are locatedinside this report.

Dividends Should Be a Womans Best Friend, but ArentYet.According toour research, nearly one-third of female investors are informed about dividendpaying stocks, yet most women shy away from them. Why? Most women aretremendously risk averse but are also unaware of proper diversified investingstrategies. We believe in a diversified approach to creating investment portfoliosfor our women clients, including a dividend yielding equity portfolio to generategrowth and income over time - which should be an essential element to everywomens portfolio today.

What Women Want: Understanding the Modern Female Investor

Catherine [email protected](203) 966-2712

October 21, 2010

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EXECUTIVE SUMMARY

Today, over 1 billion women participate in the global workforce. Nearly 70 million or 7%of those women are American, according to the U.S. Census Bureau. More and morewomen are becoming the heads of their households, earning more than their husbands,rising faster and further in the workforce, and starting entrepreneurial ventures.

Much work has been done to identify the demographic trends underlying the growth in

wealth creation experienced by women over the past two decades. However, very fewstudies have attempted to connect the dots, in a proprietary manner, between the verypowerful demographic trends in our society and the impact these trends are having on theinvesting habits and desires of women investors. In this report, we attempt to make theconnection between the increased affluence of women, the impact of increased demandson womens time, and the specialized level of service required to provide women withthe bestinvestment advice.

Women Control Substantial Amount of Global WealthWomen Control of Wealth, % Women Control of Wealth, $TR

Source: Boston Consulting Group.

Note: Wealth controlled by women represents wealth invested in basis of decisions made by women; reflective of wealth owned by

women with $250,000+ in wealth, calculated in 2009 based on 2008 exchange rates.North America includes U.S. and Canada; Latin America includes South America, Central America, and Mexico.

In total, women control nearly $20 trillion in total wealth and wealth decision making.Women control the largest amount of wealth in North America, which is where we baseour study and findings (our survey is for the United States specifically). However, a fewkey points to make regarding womens control of wealth globally:

West Europe follows U.S. as most prosperous women wealth region. Although a small portion of Japanese women control the wealth, its a relatively

large amount overall.

Australia and New Zealand display strong women wealth control, but small inabsolute dollars.

In the following report, we provide some background data on the environment for womeninvestors, large and small, as well as provide our own, targeted and we believe highlyuseful data related to the ever-powerful female investor.

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In conjunction with the polling company inc./WomanTrend we have alsoproduced a comprehensive, one of a kind survey of women investors in America. Thesurvey was conducted among a representative sample of 515 adult women (age 18+)across geographies in the United States. While we provide a detailed analysis of ourfindings within this report, the big picture is as follows:

How demographic trends are shaping womens role in the work place and family and

how that is affecting womens spending and investment habits.

Data from the U.S. Bureau of Labor Statistics show that in the past 30 years, the percentof women both employed and part of the active labor force has improved markedly, whileit has declined for men over the same period. In 2008 the female labor force comprised30.7% of the total U.S. population, compared to 23.0% in 1970. Comparatively, the malelabor force comprised 35.3% of the population, down from 37.4% in 1970. Women havebeen entering the labor force at a much faster rate than ever before.

Similarly, in 2008 employed women (those that are employed as a percentage of the totalU.S. population) comprised 29.0% of the U.S. population, up from 21.7% in 1970. Mencomprised 33.1%, down from 35.7% in 1970. As the U.S. population grows, men are

becoming a smaller portion of the overall employment pool.

Converging Gender EmploymentMen / Women Labor Force % of Population Men / Women % Employed

SOURCE: Current Population Survey, U.S. Department of Labor, U.S. Bureau of Labor Statistics.

Not only are women becoming a larger proportion of the employment pool, they are alsomaking more money than ever before. As women increasingly enter the labor force, theproportion of two income families continues to grow. From 1987 to 2007, the number oftwo income families in the United States grew 13.2% to nearly 34 million. Increased costof living has been a factor driving some families to seek out dual income; or, emptynesters are taking the opportunity to get back into the work force as their children move

out of the house for college or otherwise.

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Specific examples, in our proprietary survey, of womens investing habits, trends,

desires, and needs.

A high number of women surveyed (87%) selected at least one area of financialeducation they would appreciate, with the most prevalent topics relating to retirementplanning (35%), college funding (26%), debt reduction (18%), and estate planning(18%).

Along similar lines, women would be motivated to seek professional help in planningor managing their personal finances for a myriad of reasons. These include toadequately save for their children to attend college (30%), put away enough for acomfortable retirement (27%), and prepare themselves and their family for lifechanges (25%). Seventeen percent of women would consult an expert on earninghigher returns on investments, as would one-in-ten women (10%) on thefundamentals of financial products.

Women in lower-income households were motivated by the basics for their familiesincluding adequate insurance coverage and preparation for life changes, whereashigh-income women were focused on saving for retirement and understanding or

enjoying high returns from financial investments.

Women prioritized a proven track record (35%), someone who could make thingseasy to understand (35%), and personalized attention (29%) for an ideal financialadvisor. Just 5% of respondents believed that the model consultant would be female.

Values for financial products were in line with womens preferences for a financialconsultant; respondents most frequently requested customization for their individualneeds and the ability to understand the investment type.

The majority of females considered themselves to be knowledgeable about CDs and

savings bonds. Only one-third (32%) were informed about dividend stocks. Mostwomen were unfamiliar with eight other investment types listed in the surveyquestion beyond savings bonds and CDs, with the least informed cohorts beingyoung, less-educated women, and those with lower annual household incomes.

Household incomeproved to be a strong indicator of womens investment savvy. Notonly did those with incomes greater than $50,000 value diversification more thantheir less wealthy counterparts, but they were also significantly more inclined to beaware and knowledgeable of various types of investment opportunities.

A summary of key issues such as divorce and entrepreneurship that are impacting

women and their investing needs more today than every before.

In light of all that we have seen and discussed in our report, there are three key issues thatare impacting the way women invest today probably more than ever before in history.

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First, divorce rates at or near 50% can leave women in precarious situations. Namely,women can find themselves extremely well off yet in need of sophisticated financialplanning in order to care for themselves and their family, or women can find themselvesworse off (in some cases in a very unbalanced situation), where sophisticated financialplanning and hard work is the only way to manage the financial outcome.

Second, an aging overall population that leaves women who generally live longer thanmen in a difficult situation. In the United States alone 80% of women outlive their

husbands and they remain widows for an average of 14 years. Again, this situation canleave women in need of sophisticated financial planning for income purposes at a crucialyet unfortunate time in their (and their families) lives.

Thirdly, the recent recession has, for better or worse, transformed the economic roleswomen play in their families. Men have for the most part suffered more job losses thanwomen, which has caused women to have a more active role in many aspects of dailyfamily life, including investment decisions.

Finally, women are increasingly entrepreneurial in nature, seizing opportunities to startnew businesses. This trend leads to difficult time management issues, particularly with

familial commitments. Women need to make sure they are properly invested in order tomake sure that they dont just invest the appropriate amount of time in their family, butthey also invest the appropriate amount of money as well.

Overview of dividend investing strategies and why we believe the appropriate dividend

strategy is a good fit for a diversified portfolio.

Most women will need to retain up to 85% of their pre-retirement income to remaincomfortable through retirement. In order to do that, a growth and income strategy shouldbe applied to a broader diversified investing plan in order to develop that income overtime. The earlier that growth and income strategy is developed, the more likely it is to

generate healthy yields in the future.

Given the changing roles women are playing both within the family and within society asa whole, cash flow and yield investing is becoming an increasingly important part of awomans investment portfolio. Yet, most women have little to no true understanding ofhow to build such portfolios, where to seek out the appropriate research and finally whichnames to actually choose for their portfolio.

Time and again dividend stocks have proven their mettle with their excellent performanceover time. Additionally, dividend stocks remain stable even when the markets are far tooturbulent and unpredictable for non-dividend stocks. Investing in dividend paying stocks

is one of the best ways to preserve value through dividend reinvestment and stock priceappreciation.

We believe a portfolio of dividend stocks is likely to well outperform the S&P 500 Indexand returns from Treasuries over a 20 year period. We would argue that a dividendpaying portfolio also has limited downside risk as the companies able to pay dividendsgenerally have reached at or near their long term growth expectations, are generally morestabilized, under leveraged, and more secure investments than growth companies.

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Additionally, we believe in taking a much longer term approach to dividend investing(and investing overall). As an example, we have provided a brief analysis of a selectionof dividend stocks and their performance compared to the S&P 500 over a 10 year and 20year period of time. Our mock portfolio includes McDonalds (MCD), Chevron (CVX),Emerson Electric (EMR), Johnson and Johnson (JNJ), and Coca Cola (KO). In a ten yeartime frame, four of these five companies stocks were up double digits (KO was up just8% during the period), while the S&P 500 was down 26% in the same time frame. Over

a twenty year period, while all of these stocks and indices were up triple digits,each ofour random sampling dividend stocks beat the S&P 500 handily, with MCD more thantripling the return of the S&P 500 during the last 20 years.

Comparable Equity Returns of Select Dividend Stocks vs. S&P 500

10 Year Return Comparison 20 Year Return Comparison

Source: Baseline; Catherine Avery Investment Management.

At the same time, all of these companies in our mock portfolio have increased theirdividend ten times in the past year, with double digit dividend growth rates over the pastfive years. In summation, not only did these stocks outperform the index over a long

period of time, these high quality, well capitalized companies were also able to increasetheir dividends at the same time.

Hence, growthplus income.

Mock Portfolio Dividend Growth


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SECTION I

PEEK INSIDE WHAT

WE ALREADY KNOW

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WHAT DO WE ALREADY KNOW ABOUT WOMEN INVESTORS?

As a group, women display certain characteristics that help them make sound decisionsabout their finances. They tend to be holistic thinkers, aware of all aspects of an issue andequally aware of the importance of balance. Women tend to be intuitive they arediscerning and perceptive in their view of the world and they tend to be more concernedwith quality rather than quantity, which can translate into better decision making in thecomplex world of investing.

Womens goals for financial saving and investment tend to take the longer-view andvalue the bigger-picture than those of their male counterparts. Women are more likely tothink of their spouse, children, grandchildren, and even unborn members of their familyline. They also consider philanthropic outcomes when investing for the future.

Women trade less frequently and prefer less volatile portfolios than men; they have morerisk-averse investing strategies. Women investors also expect lower returns, but valuethem for the long term.

Women are not interested in accumulating money and wealth just for the sake of

accumulation. Women much more so than men are interested in wealth from astandpoint of stability. They view money as a way to care for themselves and theirfamily and improve their lives. Therefore, women want a financial advisor that can helpthem accomplish these very specific goals.

In this report we highlight several past studies that have intrigued us and provide someclues as to the motivations and sensitivities of women investors.

Firstly, in 2007 Oppenheimer Funds, Inc. annual Women and Investing survey revealedthat the majority of women (58%) agree that their primary investment goal is to save forretirement. However, only one-half of respondents were currently involved in a

retirement plan, and 79% felt unprepared for that life stage. When asked whether theywould put a spare $1,000 towards a vacation or their retirement savings, over half chosethe beach getaway. This decision-making style may be based in womens upbringing;many young girls are taught to save up for big purchases, regardless of actual needs.

In another study of retirement goals, in June 2010, AXA Equitable Life InsuranceCompany released the results of a study entitled Retirement in America: A Survey ofConcerns and Expectations, whose purpose was to identify investors (men and women)concerns about the economy following the financial crisis. The study however showedthat there was great dispersion between the way men and women perceived their financialrisks following the crisis, with twice as many women (22%) than men (11%) indicatingtheir top financial worry was not being able to save for retirement.

The study revealed a unique dichotomy however among women investors. Nearly 60% ofwomen think investing in equities is important for reaching their retirement goals (sameas men, according to the study). However, 60% of women also revealed they are notconfident that investing in equities is a good idea, compared to 47% of men.Additionally, nearly 50% more women than men (62% vs. 42% respectively) lackconfidence in their ability to invest in equities.

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How is it possible that an equal number of women believe that equities investing isimportant for retirement but arent sure if it is a good idea?

We posit that women lack the confidence in both themselves and their advisor to invest inrisk assets.

Women Have Less Confidence When it Comes to Investing

Men Investing Confidence Women Investing Confidence

Source: Sharebuilder Women and Investing Survey 2007.

Many women have a high level of expertise in their particular business, but if thatbusiness is not professional investing oftentimes it is not women have little to noexpertise. Unfortunately, this factor can result in a lack of confidence.

According to a ShareBuilder survey of men and women investors, 21% of womenreported they were not confident in their ability to invest, while only just 8% of menreported the same. Although only 11% of men reported they were very confident in

their investing capabilities, just 3% of women surveyed reported the same. Additionally,74% of men responding to the survey reported that investing is "fun," compared to 61%of women. As a result, women engage in investing less frequently.

Regardless of age, income and investing experience, only 35% of women surveyed(compared to 50% of men) trust themselves to make good investing decisions.

Additionally, studies have shown that women are dissatisfied (and in some respectsdistrusting) of most financial services products. According to the Boston ConsultingGroup, more than 70% of women are dissatisfied with both the product offering andservice level they receive from their financial advisor. Those statistics are staggering

when it comes to the financial advice offered to women, they are generally dissatisfied.

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Womens Level of Dissatisfaction with Various Financial Services

Source: Boston Consulting Group.

Categorically, women have two key pre-requisites when choosing a financial advisor.

Women want to work with advisors that listen to them and take the time tounderstand their concerns, goals and objectives regardless of their age or financial

situation. Women want to make informed, educated decisions. Women are most concernedwith having as much information as possible before making major decisions abouttheir finances.

As the polling company inc./WomanTrend has written on the topic, women both single and married are increasingly in the position in which they require thebenefits of making their money work for them. These women are increasingly seekingout professional advice on how to manage their personal and household investments inunstable markets where control is currency for women planning their financial goalsand future.

For many women with limited experience in personal investment or planning, aprofessional advisor is a key gatekeeper to the market, providing education, confirmationof past decisions, and emotional support through life changes. In this way, when womenare considering a financial advisor they she may ask herself not only, do I like her? butalso is she like me? They may seek someone who is knowledgeable and qualified, butnot overly formal; experienced, but relatable. In todays service economy, women mayexpect personalized and customized service across the board from the coffee shop to

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the travel agency, but especiallywhen in an area as personal and impactful as personalfinances.

Women should work with a financial professional that understands them, and one thatwill take the time and effort to also teach them about the implemented investmentstrategy for their own portfolio. When it comes to investment advice, it seems, womenwant a relationship. They desire connection and a sense of rapport. Because women areparticularly attuned to issues of trust and loyalty, they place high value on their

relationship with the person who advises them about their finances. Oftentimes, if womenunderstand the risk profile of an investment and have the trust of their advisor, they arewilling to accept a certain level of risk in their portfolio.

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SECTION II

A TOP DOWN APPROACH

SHIFTING DEMOGRAPHICS

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DEMOGRAPHIC SHIFTS SHAPE INVESTMENT DECISIONS

Changing demographics are at the heart of this shift in womens financial power intodays society. Broadly, demographic data show that a future America will have morewomen, who will be more educated and more affluent than they are today. We discuss inthis report how that shift is taking place, why that is the case, and the implications forfuture generations.

Baby Boomers Grow Faster Than the AverageDemographic statistics from the U.S. Census Bureau show that on the whole, there willbe slightly more women than men living in the United States over the next 40 years (as isthe norm), but population growth for both men and women will be similar. Both willgrow at approximately 0.9% annually.

Key demographics however will grow much slower than the population as a whole. Boththe male and female populations aged 18-64 are projected to grow at an annual rate of0.6%, while they are projected to grow 0.7% annually for the 25-44 age range.

Total U.S. Population Growth (MM) U.S. Population Growth (MM) Ages 64+

Source: U.S. Census Bureau.

So what is the key demographic that will drive growth in the United States in the coming40 years? Baby boomers aged 64+. Easily the fastest growing segment of the U.S.population, baby boomers will grow 2.0% annually over the next 40 years. The malepopulation in this category will grow 2.1% annually, while the women in this categorywill grow 1.9% annually. Despite a slightly faster growth rate for men, by 2050 there willbe 22% more women than men aged 64+, down from approximately 33% today.

Women in the Labor Force

The past several decades have been marked by notable changes in women's labor forceactivities. Women's labor force participation is significantly higher today than it was in

the 1970s, particularly among women with children, and a larger share of women workfull time and year round than in past decades. Women's earnings as a proportion of men'searnings also have grown over time. In 1979, women working full time earned 62% ofwhat men did; in 2008, women's earnings were 80% of men's.

The source of this unprecedented wealth creation for women is education. Women aremore educated today than ever before, and are expected to continue to rise in educational

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status well into the future. Women are competitively driven to succeed and thispersonality trait is driving a continued thirst for knowledge and success.

In 2003, the proportion of women graduating college as a percent of the total labor forcein the United States reached 32.2%, surpassing men for the first time in history. Thistrend has continued and the gap has only widened since then in 2008, 35.6% of womenin the labor force were college graduates, compared to 33.0% of men.

Additionally, women are now also receiving more doctorates than men. In the 2008-2009school year, women received more doctorates than men (just over half), up from 49% in2007-2008 and 44% in 2000, according to a report by the Washington-based Council ofGraduate Schools, which represents more than 500 universities. The report doesntinclude professional degrees in law, business and medicine.

Approximately 90% of the total in the U.S. Women earned 67% of education doctoratesand 70% of the doctorates in health sciences, a category that includes nursing.Meanwhile, men received 78% of engineering doctorates and 73% of math and computersciences doctorates. Mens dominance in these fields helps explain why women reportlower incomes than men, although as we will see, this trend is also changing.

College Graduates as % of Total Labor Force

Source: Current Population Survey, U.S. Department of Labor, U.S. Bureau of Labor Statistics.

Education is a key driver of womens improved standing in the United States labor force.Data from the U.S. Bureau of Labor Statistics show that in the past 30 years, the percentof women both employed and part of the active labor force has improved markedly, whileit has declined for men over the same period. In 2008 the female labor force comprised30.7% of the total U.S. population, compared to 23.0% in 1970. Comparatively, the male

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Women Are Generating More Income Than Ever Before


And Are Contributing More to Household Income


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SECTION III

THE CAIM-WOMENTREND

WOMEN INVESTOR SURVEY

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KEY FINDINGS FROM OUR SURVEY

A high number of women surveyed (87%) selected at least one area of financialeducation they would appreciate, with the most prevalent topics relating to retirementplanning (35%), college funding (26%), debt reduction (18%), and estate planning(18%).

Along similar lines, women would be motivated to seek professional help in planningor managing their personal finances for a myriad of reasons. These include to

adequately save for their children to attend college (30%), put away enough for acomfortable retirement (27%), and prepare themselves and their family for lifechanges (25%). Seventeen percent of women would consult an expert on earninghigher returns on investments, as would one-in-ten women (10%) on thefundamentals of financial products.

Women in lower-income households were motivated by the basics for their familiesincluding adequate insurance coverage and preparation for life changes, whereashigh-income women were focused on saving for retirement and understanding orenjoying high returns from financial investments.

Women prioritized a proven track record (35%), someone who could make thingseasy to understand(35%), and personalized attention(29%) for an ideal financialadvisor. Just 5% of respondents believed that the model consultant would be female.

Values for financial products were in line with womens preferences for a financialconsultant; respondents most frequently requested customization for their individualneeds and the ability to understand the investment type.

The majority of females considered themselves to be knowledgeable about CDs andsavings bonds. Nearly one-third (32%) of females were informed about dividendstocks.Most women were unfamiliarwith eight other investment types listed in the

survey question beyond savings bonds and CDs, with the least informed cohortsbeing young, less-educated women, and those with lower annual household incomes.

Household income proved to be a strong indicator of womens investment savvy.Not only did those with incomes greater than $50,000 value diversification moreoften than their less wealthy counterparts, but they were also significantly moreinclined to be aware and knowledgeable of various types of investment opportunities.

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Which TWO of the following types of financial education would beMOST valuable to you? (RANDOMIZED AND READ, ACCEPTED

TWO RESPONSES)

All HH IncomeWomen $100k+(N=515) (N=78)

35% 51% RETIREMENT PLANNING26% 24% COLLEGE FUNDING18% 10% HOW TO GET OUT OF DEBT18% 30% ESTATE PLANNING15% 22% STRATEGIES FOR YOUR 401(K) OR

EMPLOYMENT-RELATED PENSIONS13% 14% BASIC INVESTING PLANNING OR

MONITORING12% 3% BUYING AND SELLING A HOME11% 3% LIFE INSURANCE

8% 16% RESEARCHING AND SELECTING STOCKS5% 5% MANAGING FLEXIBLE SPENDING

ACCOUNTS

12% 3% NONE OF THESE (COULD SELECT ONLYTHIS RESPONSE)

1% * OTHER (VOL.)1% 1% I DONT KNOW/IT DEPENDS (VOL.)* 1% REFUSED (VOL.)

PLANNING FOR FUTURE NEEDS IS PARAMOUNT

When provided with a list of ten areas for financial education, fully 87% of womensurveyed indicated they would like to learn more about at least one of the topics, as did95% of affluent women.

Long-term retirement planningwas a topic for further exploration by women, as morethan one-third of respondents (35%) were interested in retirement planning and 15%

were focused on their 401(K)s or other employer-related pensions. Attention toretirement planning was higher among those women with a household income of $100kor greater, including a majority (51%) focused on planning for their workplacewithdrawal and 22% hungry for strategies for their 401(K).

Inspired by major investments and life changes such as having children or gettingmarried, women were also intrigued by topics including college funding (26% ofwomen and 24% of high-income women) and buying and selling a home (12% offemale respondents and 3% of high net worth women). Learning about reducingliabilities was paramount to 18% of female respondents, but was deemed to be lessnecessary by those in high-income households (10%).

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Planning for the future personal finances was an area for education required bywomen including estate planning (18% of women overall and even more so for high-income women, 30%) and life insurance (11% of all females and just 3% of thoseearning $100k+.

In fact, the day-to-daybasics on financial investing were relatively less popular withwomen. Affluent women were slightly more likely than females overall to requireinformation on basic investing, planning, or monitoring (14% vs. 13% overall), but

twice as likely to be interested in researching and selecting stocks (16% vs. 8% for allrespondents).

Cohorts more apt than average to select ____________ as one of two types of financial education thatwould be most valuable to them.

Retirement Planning

Retirement Planning (35% Overall)Strategies for your 401(K) or Employment-Related

Pensions (15% Overall) Women age 35-44 (53%) and 55-64 (46%) Northeasterners (40%) College graduates (42%)

Women age 45-54 (20%) Those earning $75-$100k (26%)

Major Purchases

College Funding (26% Overall) Buying and Selling a Home (12% Overall)

Females age 18-34 (48%) and 35-44 (36%) Hispanic (41%) and Black (38%) women Those earning $50-$75k and $75-$100k (both 31%) Those with children in the home (47%), especially

those age 12-17 (50%) High school graduates (31%)

18-34 year old females (18%) Those residing in the West (19%) Hispanic (22%) and African American (18%)

women Those in households earning $35-$50k (19%) High school graduates (17%)

Reducing Liabilities Planning for Future Personal FinancesHow to get out of Debt

(18% Overall)Estate Planning

(18% Overall)Life Insurance(11% Overall)

18-34 year olds (29%) Southerners (24%) and Northeasterners (23%)

Blacks (37%) and Hispanics (34%) Women in households earning less than $35k

annually (30%) Those with children in the household (25%),

especially those with kids under age 12 (27%) High school graduates (25%) and those with some

college experience (22%)

Women age 45-55and 65 or older

(both 25%) Midwesterners

(22%) White women (22%) Those without

children (24%) College graduates

(26%)

Women in householdsearning $35-$50k

annually (21%) Those with two people

in the household (16%) Women with children in

the home (15%) High school graduates

(17%)

Basics on Financial InvestingBasic Investing Planning Or Monitoring

(13% Overall)Researching And Selecting Stocks

(8% Overall) Women age 35-44 (18%), 45-54 (19%), and 55-63

(20%)

Those earning $75-$100k (17%) College graduates (20%)

Hispanic females (10%) Woman-only households (14%)

College graduates (14%)

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For which TWO of the following reasons would you seekprofessional assistance with your personal finances?

(RANDOMIZED AND READ, ACCEPTED TWORESPONSES)


30% 36% ABILITY TO SAVE FOR CHILDRENTO GO TO COLLEGE

27% 32% ENJOYING A COMFORTABLERETIREMENT

25% 21% ASSURANCE SPOUSE/FAMILY ISTAKEN CARE OF IN CASE OF LIFE

CHANGES22% 18% HAVING ADEQUATE INSURANCE

COVERAGE FOR MYSELF AND/ORMY FAMILY

17% 27% OPPORTUNITY TO EARN HIGHERRETURNS ON INVESTMENTS

14% 11% INCREASED PROTECTION DURINGUNEXPECTED LIFECIRCUMSTANCES

14% 11% PREPARATION FOR ANUNANTICIPATED OR EARLYRETIREMENT

10% 12% UNDERSTANDING FINANCIAL

PRODUCTS OR INVESTMENTS10% 7% ABILITY TO MANAGE FINANCES IFDIVORCED OR WIDOWED

8% 3% NONE OF THESE (COULD SELECTONLY THIS RESPONSE)

* - OTHER (VOL.)1% - I DONT KNOW/IT DEPENDS (VOL.)* - REFUSED (VOL.)

Women Seek Professional Financial Advice for Particular Reasons

Similar to the previous inquiry on financial areas of exploration, nine out of ten women(90%) selected at least one area for which they would appreciate expert counsel. In fact,97% of women in high-income households ($100k+) would seek the advice of a

financial planner for at least one of the topics listed.

Saving for children to attend college or universitywas the most prevalent motivatorfor women to seek outside help, selected by three-in-ten women (30%) and 36% of thosein a household earning $100k+ annually.

Similar to the results of the inquiry on financial education, retirement planning wasparamount when considering working with a financial consultant. Twenty-seven percentof women would be interested in financial help so that they could enjoy a relaxingretirement, and this was more prevalent among wealthy women (32%). Whats more,

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Thinking about the ideal financial advisor, whether or not youwork with one currently, which TWO of the following

characteristics would you MOST desire in financial advisor?(ROTATED AND READ, ACCEPTED TWO RESPONSES)


35% 46% TRACK RECORD OR PASTPERFORMANCE

35% 23% MAKES THINGS EASY TO UNDERSTAND29% 38% PERSONALIZES SERVICES TOWARD YOU

AS AN INDIVIDUAL

18% 16% NOT CONDESCENDING18% 19% RELATABLE OR UNDERSTANDING13% 13% OFFERS SERVICES AT DIFFERING

LEVELS OF INVESTMENTS AND FEES10% 8% PART OF A SMALL FIRM

8% 7% GRADUATED FROM A GOOD OR WELL-KNOWN SCHOOL

5% 3% FEMALE4% 9% PART OF A LARGE FIRM

4% 1% NONE OF THESE (COULD SELECT ONLYTHIS RESPONSE)

2% 1% OTHER (VOL.)

2% - DO NOT KNOW (VOL.)1% - REFUSED VOL.)

Comprehension and Customization Are Key to Advisory Role

The perfect financial advisor for these women would possess three main characteristics.The first is strong past performance, which was paramount for more than one-third ofrespondents (35%), and even higher (46%) for affluent women. Results in the fieldwere valued over those in the classroom as a degree from a well-known institution onthe wall of a financial advisor was important to just 8% of women.

Thirty-five percent of women valued a financial advisor who could serve as translatorto make complex financial jargon understandablefor the client. This was less prevalentamong affluent women (23%) who may be more attuned to the typical financial languageused during planning and investments.

Customization was key for nearly three-in-ten respondents (29%) when considering afinancial consultant. This is unsurprising as customization nation extends frompersonalized coffee orders to tailored customer services in other purchase areas. Affluentwomen, who may be relatively larger consumers of services, were more apt than

respondents overall to value personalized services (38% vs. 29%). Secondary to thismade-to-order attitude toward financial management was a desire for services thatcould fit any budget or investment level (13% overall).

A mutually-respectful peer-to-peer relationshipwith a financial advisor was reflectedin the interest in a relatable and non-condescending individual (both 18%), and thesecharacteristics were similarly valued by high income women.

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The size of the advisory firm was less important to women than other characteristicsthough a small company was valued over that of a large one (10% vs. 4%). Affluentwomen saw this in the reverse, favoring a larger firm by nearly the same margin allwomen favored a small one (9% vs. 4% on average).

Whats more, these women claimed to be gender neutral when it comes to sex andinvesting. Just 5% of women claimed to have a preference for a female financial advisor,though this may have been a subtle consideration for the 18% of women who said they

value a relatable consultant.

As depicted in the nearby chart, women were more likely to emphasize financialadvisors previous performance as their household income increased. Higherincomes also correlated with an amplified desire forpersonalized services.

Thinking about the ideal financial advisor, whether or not you work with one

currently, which TWO of the following characteristics would you MOST desire in

financial advisor?

Source: The Polling Company / WomanTrend.

Younger women were more apt than their older counterparts to consider their

personal finance consultants track record(46%, 18-34 year olds vs. 32%, 35-44;33%, 45-54; 30%, 55-64; and 29%, 65+). African American women were more likely than respondents overall to value a

relatable or understanding advisor (33% vs. 18%), while Hispanic femaleswere especially apt to appreciate a consultant employed by a small firm(15% vs.10% overall).

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Thinking about an ideal financial product in whichyou could invest, which TWO of the following

characteristics do you find MOST desirable? Aninvestment that (ROTATED AND READ,

ACCEPTED TWO RESPONSES)

All HH IncomeWomen $100k+

(N=515) (N=78)

36% 37% IS CUSTOMIZED TO MYPERSONAL FINANCIALSITUATION

32% 31% IS EASY TO UNDERSTAND29% 31% IS LOW RISK23% 19% PROVIDES IMMEDIATE

ACCESS TO FUNDS, IFNECESSARY

18% 23% IS LONG-TERM FOR GETTINGRETURNS

18% 28% IS DIVERSIFIED AMONG

MULTIPLE INVESTMENTS14% 9% REQUIRES A SMALL AMOUNTOF MONEY

9% 8% IS SHORT-TERM FOR GETTINGRETURNS

4% - NONE OF THESE (COULDSELECT ONLY THISRESPONSE

* - OTHER (VOL.)2% - DO NOT KNOW (VOL.)1% - REFUSED (VOL.)

Respondents who had attended or graduated from college were more than twice asinclined as high school graduates to desire individualized services from theiroptimal financial advisor (34% and 38% vs. 15%, respectively).

Financial Products: Easy to Understand and Personalization Drive Decisions

Switching their thoughts to financial products, womens priorities remained vested intheir ability to personalize (36%) and easily comprehend information (32%). Nearly

three-in-ten (29%) women found a low risk investment desirable, and 23% of femalesconsidered the immediate availability of funds a top priority, both of which may be by-products of the current uncertainty and turmoil in the financial, employment, and housingmarkets.

Diversification was paramount to18% of women, with affluent gals10 points more likely thanrespondents overall to value thischaracteristic (28%).

Eighteen percent of women werefocused on returns in the long-term, while 9% were concernedwith short term results.

The prioritization of acustomized financialinvestment differed on thebookends of the agespectrum; 45% of females 18-34 selected this characteristic

compared to one-quarter ofwomen ages 65+ (25%).

Women with kids in thehousehold were twice as likelyas their childless counterpartsto value long-term returns inan optimal financial product(26% vs. 13%).

Cohorts of women more apt todesire an easy-to-understandinvestment included African

Americans (42%), mothers (39% vs. 27% of childless women) and those withoutcollege degrees (38% vs. 23% of college graduates).

Women with a household income of $50,000 or greater esteemed the benefits of adiversified portfoliomore often than those making under $50K annually, by a ratio ofnearly three-to-one (28% vs. 10%, respectively). This characteristic was also

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important to White women (23%) as compared to African American (10%) andHispanic (8%) females.

Younger women were more inclined to desire long-term returns than older women,who demonstrated an affinity for short-term earnings.

Thinking about an ideal financial product in which you could invest, which TWO of

the following characteristics do you find MOST desirable? An investment that

produces


Womens Financial Knowledge Lacking Beyond CDs and Savings Bonds

When women were presented with 10 varied investments and asked to self-identify theirlevel of acumen for each, candid and eye-opening response ensued. Majorities feltconversant about CDs(63%) andsavings bonds (58%); however, they admitted that theother eight financial products cited were beyond most respondents range of expertise.Fully 18% of women did not feel knowledgeable about any of the 10 investmentinstruments or activities.

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I will now read you a list of different types ofinvestments you can make. Please stop me

when I get to an investment about which you feelyou are knowledgeable. You can select as many

as apply.


63% 74% CERTIFICATES OF DEPOSIT(CDS)

58% 67% SAVINGS BONDS46% 63% MUTUAL FUNDS32% 46% COMMON STOCKS32% 43% DIVIDEND STOCKS27% 40% MUNICIPAL BONDS26% 41% PREFERRED STOCKS19% 36% CORPORATE BONDS12% 20% INDEX FUNDS12% 21% MORTGAGE-BACKED

SECURITIES

18% 12% NONE OF THESE (COULDSELECT ONLY THISRESPONSE)

1% 2% OTHER (VOL.)1% 1% DO NOT KNOW (VOL.)1% - REFUSED (VOL.)

Cohorts of females that were knowledgeable about the fewest financial products wereyounger, less educated women and those with lower household incomes. One-quarterof 18-34 year old females (25%), 23% of high school graduates and 24% of those

with some college experience, and nearly three-in-ten (29%) women with a householdincome less than $35,000 were completely uninformed on the types of investmentslisted.

Womens household incomes were strongly related to their intellectual proficiency offinancial products. Affluent women were more conversant than the average womansurveyed in every category of financial product listed. The level of knowledgebetween respondents with incomes of less than $35k and those making $100k or morediffered by 17 percentage points on average.

CDs were especially recognizable among 55-64 year olds (74%), those residing in theSouth (71%), and college graduates (72%) compared to 63% overall.

Familiarity with savings bondspeaked in the middle of the age spectrum including47% of those age 18-34, 58% of 35-44 year olds, 70% of those 45-54, 63% of 55-64year olds, and 59% of those 65+.

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Mutual fundswere well-known by similar audiences to CDs including those 45-54(60%), women in the South (50%), and college graduates (60%). The majority ofWhite women (51%) held knowledge on mutual funds compared to 44% of AfricanAmericans and 22% of Hispanics.

Common stockswere a recognized investment tool by 36% of both 45-54 year oldsand those age 55-64 compared to 32% of respondents overall. Thirty-nine percent ofcollege graduates regarded common stocks as an area of knowledge.

Nearly one-third (32%) of women felt well-informed about dividend stocks overall.Experience with dividend stocks peaked in the middle of the age spectrum including21% of 18-34 year olds, 28% of those 35-44, 43% 45-54 year olds, 39% of womenage 55-64, and 36% of those 65+. Additionally, 40% of college graduates werefamiliar with dividend stocks compared to 25% of those with some collegeexperience and 25% of high school graduates.

I will now read you a list of different types of investments you can make. Please stop

me when I get to an investment about which you feel you are knowledgeable. You can

select as many as apply.


IN SUMMARY

Women recognized many areas in which they require a how-to lesson or more seriousprofessional assistance with respect to their finances. Planning for major purchases, suchas a college education, and saving for retirement proved to be top concerns for womennationwide. The ability to deal with unexpected changes in life circumstances were topof mind for many, in areas for education and professional services, and its effect wasmeasured both personally and for loved ones.

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While the fundamentals in financial planning and investing were less prevalent givenother more immediate or impactful topics overall, affluent women were more focused onmaking their money work for them. This was reflected in womens knowledge offinancial products, of which CDs, savings bonds, and mutual funds were most recognizedby respondents.

Women favored many of the characteristics upheld by Catherine Avery InvestmentManagement in a financial advisor including a proven track record, personalized attention

and customized services, and clear, intelligible financial advice. This peer-to-peerrelationship is less focused on gender or company size, but rather a sense that the servicesand information are being geared to the individual and her needs and communicated in arespectful way that speaks to her, not throughher.

MethodologyFrom August 20 23, 2010, the polling company inc./WomanTrend conducted a telephone survey of 515 female adults (age 18+) in the United States in orderto discern their knowledge, comprehension and attitude toward financial products.

The survey was fielded at a Computer Assisted Telephone Interviewing (CATI) phonefacility using live callers. The sample was drawn utilizing a Random Digit Dial (RDD),where phone numbers were generated by a computer to ensure that every household inthe nation had an equal chance to be surveyed.

Sampling controls were used to ensure that a proportional and representative number ofwomen were interviewed from such demographic groups as age, race and ethnicity, andgeographic region.

Five questions specific to opinions, attitudes, and behaviors with respect to finance andinvesting were added to a half-sample, female-only omnibus survey to inform andsupport the release of the Women Investors report. The final questionnaire, which alsoincluded demographic queries, was approved by Catherine Avery prior to fielding.

The margin of error is calculated at 4.3% at the 95% confidence level, meaning that in19 out of 20 cases, the results obtained would differ by no more than four point threepercentage points in either direction if the entire female adult population nationwide wereto be surveyed.

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SECTION IV

KEY ISSUES

IMPACTING WOMEN TODAY

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FOUR TIMELY ISSUES IMPACTING MODERN WOMEN

In light of all that we have seen and discussed in our report, there are three key issues thatare impacting the way women invest today probably more than ever before in history.

First, divorce rates at or near 50% can leave women in precarious situations. Namely,women can find themselves extremely well off yet in need of sophisticated financialplanning in order to care for themselves and their family, or women can find themselves

worse off (in some cases in a very unbalanced situation), where sophisticated financialplanning and hard work is the only way to manage the financial outcome.

Second, an aging overall population that leaves women who generally live longer thanmen in a difficult situation. In the United States alone 80% of women outlive theirhusbands and they remain widows for an average of 14 years. Again, this situation canleave women in need of sophisticated financial planning for income purposes at a crucialyet unfortunate time in their (and their families) lives.

Thirdly, the recent recession has, for better or worse, transformed the economic roleswomen play in their families. Men have been disproportionately affected by job losses

during the recession, including in fields like construction, manufacturing, and financialservices (traditionally male dominated), which has caused women to have a more activerole in many aspects of daily family life, including investment decisions.

Finally, women are increasingly entrepreneurial in nature, seizing opportunities to startnew businesses. This trend leads to difficult time management issues, particularly withfamilial commitments. Women need to make sure they are properly invested in order tomake sure that they dont just invest the appropriate amount of time in their family, butthey also invest the appropriate amount of money as well.

Divorce

In the last 20 years, divorce statistics have skyrocketed. Nearly 50% of U.S. marriagesare ending in divorce. Although 82% of all married couples will reach their fifth weddinganniversary, only 52% will celebrate 15 years of marriage. The median duration of firstmarriages that end in divorce is slightly less than eight years. Most people will wait aboutthree years after a divorce to remarry, and most divorce proceedings will takeapproximately one year to complete.

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Comparative Average Divorce Rates

Source:Divorce Magazine.

Divorce rates do vary substantially in different countries such as in Sweden (64%),Canada (45%), France (43%), Israel (26%), and Greece (18%). In Italy, 12% of marriagesend in divorce and some couples are hampered by a serious regulatory backlog thatrequires a three year waiting period! All kidding aside, divorce can be a straining,challenging life event for everyone involved. Although many statistics show that divorce

is pervasive in lower socio-economic classes, many divorced women will testify that theprocess and the challenges that are associated with it knows no boundaries of age,socio-economic standing, and race.

The history of divorce in the United States is quite cultural. There is consensus that theoverall U.S. divorce rate had a brief spurt after World War II followed by a decline, thenstarted rising in the 1960s and even more quickly in the 1970s. It leveled off in the 1980sand even declined slightly.

A decline in the divorce rate, however, does not necessarily reduce married people'sperceived exposure and vulnerability to the risk of a financially and potentially ruinous

divorce. It also reflects fewer and later marriages. The likelihood of a divorce is lowestfor adults age 60, for whom 36% of men and 32% of women may divorce from their firstmarriage by the end of their lives.

The fact is, we have become a nation of pervasive divorce. Unfortunately, that hard factcan create hardship for everyone involved. In addition to the emotional burden divorcecarries, a significant financial burden can also ensue; in many instances husbands arefinancially responsible for taking care of the family to some degree however, women

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that are responsible for taking care of their children in a post divorce situation often havesignificant financial burdens that require long term financial planning.

Widows

Another important and tragic phenomenon is the rate of widowing, particularly in theUnited States as the population continues to age. Estate settlement and learning to be onones own again doesnt have to be difficult. However, without proper planning, it canbe just that. Grief, misunderstanding, and sometimes the greed of others can make this

challenging life event a nightmare. Some estates have been financially obliterated in theensuing battle, not to mention the extreme emotional trauma to the widow and thebreakdown of the family itself.

A fact of life is that 80% of women in the United States outlive their husbands. Onaverage, nearly one-third, or 32% of women aged 55 and older are widows. Thesewomen will remain widows for an average of 14 years.

Based on U.S. Census Bureau data, we conservatively estimate there are 7.3 millionwidows in 2010. The U.S. Census Bureau does not provide population data for the groupthat is 55 and older, but they do provide it for the 65 and older demographic. As a result,we have based our widow population estimates on this metric one that is a conservativeestimate of the widow population.

Extrapolating that data, and assuming approximately one-third of the total femalepopulation above 65 outlives their husbands, we estimate the United States will addapproximately an average of one million widows every five years until 2050, althoughsome years will be more additive than others. In aggregate, we conservatively estimate8.2 million additional widows will emerge within the U.S. population in the next 40 years each of them outliving their husbands by an average of 14 years.

From an investing standpoint, this data means that women must prepare for at least 14years of income beyond their husband. In particular, if these women have some form ofinheritance, a very specific investment strategy, tailored to their needs, must be employedto meet their expense, cost of living and other requirements during this period.

We believe CAIM can play a key role in developing portfolios for widowers, and discussthis offering in greater detail.

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According to data released by the Pew Research Center in June 2010, 46% of womenworkers have had to work fewer hours, take unpaid leave, or switch from full-time topart-time during the recession. These figures compare to 54% among men in theworkforce. Additionally, 21% of women and 24% of men reported having their pay cut,inferring across-the-board pay cuts in most industries and across most jobs, a figure thathas played out in many a 2010 earnings report.

The recession has made women think differently about their spending (and investing)

habits. Uncertainty and for some, insolvency, has compelled many to replace old habitsof racking up credit card debt with new habits of restraint and thrift. A recent survey fromCitibank revealed that women ages 18-39 have increased their savings and investmentsyear over year. Furthermore, 60% of these younger ladies intended to reduce their debt inthe next six months, with women 40 or older slightly less motivated to shave off theirdebt (49%).

Although women have emerged from the recent recession with different circumstancesfrom men, women have become even more risk averse. They are tightening the pursestrings because their familial obligations are likely to have increased and they are less aptto use credit or debt to make purchases. All of these factors are indicators of a rapidly

changing world of investing for todays women.

Entrepreneurship and Time Management

According to a report issued by the CIBC, nearly one million women own a smallbusiness. The number of women-owned companies is growing 60% faster then those oftheir male counterparts. Out of the small-business category, women as sole proprietorsare the fastest growing segment.

It appears at the surface that women are just as, if not more, enterprising than their malecounterparts. As of 2004, one in three men said they started their own business due tonegative employment reasons, yet only one in five women say the same. Men arguably

use the excuse that they are entrepreneurs, women make the conscious decision to doit on their own.

For these women, it is even more important to maximize their business success andincome, mainly because one in three women have no other source of income other thantheir business.

Additionally, women are achieving higher levels of education than ever before, workingmore and making more money than any time in history. How does that translate topractical life?

Women have less time to spend with family; time to develop a career or business; time tospend with friends; time to spend on themselves. There just are not enough hours in theday for todays modern, busy woman. Women constantly seek a balance between theirwork and family lives.

This challenge helps to account for the discrepancy in revenue growth, not just betweenmale-led businesses, where women earn 80 cents to every dollar a man makes, butbetween married female entrepreneurs and single self-employed women. According to

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the Womens Entrepreneurial Networking System, Inc., business revenue growth forsingle women rose a cumulative 70% between 2001 and 2004, approximately three timesfaster than married women.

Todays modern woman is more successful than ever before. While this success hastranslated into more wealth creation, it has also translated into additional challengesrelated to their every day family life, and importantly, spending and investment decisions.Todays woman needs to meet those challenges particularly as it relates to investing

head on, in order to protect their families, their careers, and their own financial longevity.

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SECTION V

DIVIDEND INVESTING: AN OVERVIEW

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DIVIDENDS AND DIVERSIFICATION

Most women will need to retain up to 85% of their pre-retirement income to remaincomfortable through retirement. In order to do that, a growth and income strategy shouldbe applied to a broader diversified investing plan in order to develop that income overtime. The earlier that growth and income strategy is developed, the more likely it is togenerate healthy yields in the future.

Given the changing roles women are playing both within the family and within society asa whole, cash flow and yield investing is becoming an increasingly important part of awomans investment portfolio. Yet, most women have little to no true understanding ofhow to build such portfolios, where to seek out the appropriate research and finally whichnames to actually choose for their portfolio.

Time and again dividend stocks have proven their mettle with their excellent performanceover time. Additionally, dividend stocks remain stable even when the markets are far tooturbulent and unpredictable for non-dividend stocks. Even when the stock price declines,investors continue to collect an income stream. Investing in dividend paying stocks isone of the best ways to preserve value through dividend reinvestment and stock price

appreciation.

We believe a portfolio of dividend stocks is likely to well outperform the S&P 500 Indexand returns from Treasuries over a 20 year period. We would argue that a dividendpaying portfolio also has limited downside risk as the companies able to pay dividendsgenerally have reached at or near their long term growth expectations, are generally morestabilized, under leveraged, and more secure investments than growth companies.

According to our analysis, $1,000 principal investment in a dividend paying stock, with a3% annual dividend yield growing at 5% per year, and modest 5% annual stock priceappreciation, would grow to over $4,000 (342%) at the end of 20 years. This return

compares to just over 200% for Treasuries, and a 20 year actual historical return of 191%for the S&P 500. Dont forget, as the chart indicates, the S&P 500 has been incrediblyvolatile over the past 20 years as well.

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Returns Comparison: Dividends vs. LT Treasuries vs. S&P 500

Source: Catherine Avery Investment Management LLC; Yahoo Finance; As of August 31, 2010.

Below are the assumptions we made when calculating our comparison chart:

Dividend stock:3% annual dividend yield, 5% annual dividend yield growth, 5%annual stock price appreciation.

LT Treasury:LT Treasury Composite from August 31, 2010 (3.12%), 2%

annualized growth rate (assumes Treasuries reach 6% in 20 years)

S&P 500:Actual 20-year historical performance of the S&P 500.

Picking the Best Dividend Stocks

As we have indicated, we believe dividend stocks are a far better option than governmentbonds, which have very little option to keep inflation at bay. Even during the onset ofrecession as many as 300 of the 500 companies listed in S&P 500 raised their dividendpay outs.

One important investing criteria when evaluating dividend paying stocks is to invest in

those companies that are easy to understand. Also, the products in which the companydeals should have a historical trend of steady demand and a projected expectation of thesame.

We have compiled a sample portfolio from a recent analysis of dividend paying stockspublished by Credit Suisse. What we found is a very solid group of companies whoseaverage share prices have risen greater than the S&P 500 in the last twelve months; in themeantime, many of these companies have also increased their dividend.

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High Yield / Low Volatility Return Dispersion

Source: Credit Suisse; Bloomberg; First Call; Catherine Avery Investment Management; as of August 31, 2010.

We have also produced a scatter diagram of the risk / reward scenario presented by theselected stocks. What the diagram shows is quite interesting. Nearly all of the stockssurveyed generated positive absolute stock price returns in the past twelve months ontopof their quarterly dividend payments.

In fact, several of them actually produced outsized returns and have an outsized dividend

yield. Duke Energy, Altria, and Reynolds American all produced better than averagestock price returns and rank in the top quartile in terms of dividend yield. Othercompanies like Southern Co., Bristol Myers, and American Electric Power all generatesolid returns on top of dividends. Finally, there are the outliers like McDonalds;although not one of the highest dividend yields of the group, the company generatednearly 30% stock price improvement in the last year, on top of a 3% annual dividend.

The Credit Suisse survey produced a relative sample of value oriented equities withattractive risk / reward scenarios that we believe have a very solid place in the investmentportfolios of most women. However, there are many more companies just like thosehighlighted in the analysis, companies that we at Catherine Avery Investment

Management spend time analyzing and recommending for our client portfolios.

Additionally, we believe in taking a much longer term approach to dividend investing(and investing overall). As an example, we have provided a brief analysis of a selectionof dividend stocks and their performance compared to the S&P 500 over a 10 year and 20year period of time. Our mock portfolio includes McDonalds (MCD), Chevron (CVX),Emerson Electric (EMR), Johnson and Johnson (JNJ), and Coca Cola (KO). In a ten yeartime frame, four of these five companies stocks were up double digits (KO was up just

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8% during the period), while the S&P 500 was down 26% in the same time frame. Overa twenty year period, while all of these stocks and indices were up triple digits,each ofour random sampling dividend stocks beat the S&P 500 handily, with MCD more thantripling the return of the S&P 500 during the last 20 years.

Comparable Equity Returns of Select Dividend Stocks vs. S&P 500

10 Year Return Comparison 20 Year Return Comparison


At the same time, all of these companies in our mock portfolio have increased theirdividend ten times in the past year, with double digit dividend growth rates over the pastfive years. In summation, not only did these stocks outperform the index over a longperiod of time, these high quality, well capitalized companies were also able to increasetheir dividends at the same time. Hence, growthplus income.

Mock Portfolio Dividend Growth


Based on what we know about women investors, we believe they are not diversifying intoequities that fit their risk / reward profile enough in their investment portfolios. Puttingones eggs into one basket so to speak can be risky, even when investing in CDs orgovernment securities like many women find themselves. Not only does that investmentphilosophy leave a strong value proposition on the table, it also does not represent proper

diversification in an investment portfolio. We are strong advocates of dividend investingfor women and we encourage more women and their financial advisors to focus onadding a dividend portfolio in order to diversify their risk and generate growth andincome.

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About Catherine Avery

Catherine Maniscalco Avery founded CAIM LLC in 2007 after more than 20 years of successfully

managing client assets at major institutions. Catherine's investment career and credentials are broad; she

has worked for a number of leading investment firms in the U.S., including Morgan Stanley, Shearson

Lehman Hutton, Prudential Securities and Merrill Lynch. Importantly, she also has vast portfolio

management experience spanning a wide range of asset classes. In today's investment world, whereportfolio managers are so often narrowly focused on managing one asset class, the breadth of Catherine's

investment experience is increasingly rare. She has been widely cited as an expert portfolio manager in

such news sources as Financial Planning Magazine, The New York Times, Consumer's Digest, Fox

Business and National Post of Canada.

In her more than 25 years as a portfolio managerinvesting in both domestic and international securities

marketsCatherine has managed customized private client portfolios, wrap accounts, a natural resources

fund, mid and large cap portfolios, an equity income fund (which involved her in fixed income markets andreal estate investment trusts), and a global fund.

On an individual basis, she has been personally responsible for portfolios totaling more than $750

millionwhile as a member of a larger portfolio management team, she has shared responsibility formanaging more than $14 billion on behalf of investors.

Catherine has a degree in Finance from New York University. She is also a member of the CFA Institute,

the New York Society of Security Analysts and the Stamford CFA Society. Catherine lives in New Canaan

with her husband and two sons.

About CAIMCAIM is an independent, owner-run investment management firm specializing in managing customized

investment portfolios for women and baby boomers.

The backbone of Catherine Avery Investment Management (CAIM) is our core investment philosophy:

Take a long-term perspective

Create well diversified investment portfolios

Employ a classic investment philosophy including low volatility dividend paying equities

These principles are the tried and true guidelines that have helped some of the world's most successfulinvestors over the years. They guide our investment philosophy because we believe in producing consistentresults for our clients. Since we are independent, we are free of conflicts and are absolutely committed toalways doing what is in the best interests of our clients.

Founded by Catherine Maniscalco Averya seasoned investment professional with over 25 yearsexperience as a portfolio managerCAIM specializes in creating and managing investment portfolios for

women and baby boomers.

CAIM is an owner-run investment management firm and an independent SEC Registered Investment

Advisor. As such, we have a fiduciary responsibility to always act in the best interests of our clients.

Charles Schwab & Co., Inc. has been selected as CAIM's primary custodian. CAIM portfolios can beaccessed through Schwab managed account platform.

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DISCLOSURES

THE ENCLOSED CHARTS ILLUSTRATE THE COMPARATIVE RESULTS BETWEENA SAMPLE "VALUE STOCK" PORTFOLIO AND A SAMPLE "GROWTH STOCK"

PORTFOLIO. THESE CHARTS ARE INTENDED TO ILLUSTRATE A POINT AND DONOT CONSTITUTE PERSONAL INVESTMENT ADVICE. THE READER AND HIS OR

HER ADVISER SHOULD EVALUATE THE CHARTS AND ANY OTHER ADVICECONTAINED IN THIS REPORT IN VIEW OF THE READER'S INVESTMENT NEEDS

AND OBJECTIVES.

NO CONTENT PUBLISHED BY CAIM LLC CONSTITUTES A RECOMMENDATION

THAT ANY PARTICULAR INVESTMENT, SECURITY, PORTFOLIO OF SECURITIES,TRANSACTION OR INVESTMENT STRATEGY IS SUITABLE FOR ANY SPECIFIC

PERSON. TO THE EXTENT ANY OF THE CONTENT PUBLISHED AS PART OF THEREPORT MAY BE DEEMED TO BE INVESTMENT ADVICE, SUCH INFORMATION IS

IMPERSONAL AND MAY NOT NECESSARILY MEET THE OBJECTIVES OR NEEDSOF ANY SPECIFIC INDIVIDUAL OR ACCOUNT, OR BE SUITABLE ADVICE FOR

ANY PARTICULAR READER. EACH READER AGREES AND ACKNOWLEDGESTHAT ANY SPECIFIC ADVICE OR INVESTMENT DISCUSSED IN THE REPORT

MUST BE INDEPENDENTLY EVALUATED BY THE READER AND HIS OR HER

ADVISER IN VIEW OF THE READER'S INVESTMENT NEEDS AND OBJECTIVES.

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