jrc tmp 25435 - kovack securitieskovackadvisors.com/newsletters/sample client proposal.pdf ·...

April 08, 2011

Investment Proposal

Prepared for:

Provided by:

This document contains proprietary and confidential information and may not be reproduced, copied in whole or in part, adapted, modified, or disseminated. All rights reserved.

Ryan Wyllys

Sample Client Proposal Client (not for public use)

This document contains proprietary and confidential information and may not be reproduced, copied in whole or in part, adapted, modified, or disseminated. All rights reserved.

Contents

Introduction

Miscellaneous Notes/Commentary

Risk Tolerance

Household Asset Allocation

Household Portfolio Summary

Household Portfolio Performance

Account Summary

Account Historical Performance

Target Portfolio Historical Performance Simulation

Target Portfolio Historical Performance Analysis

Manager Summary

Glossary

Disclosures

IntroductionThis report is designed to explain, and help you evaluate, a proposed investment portfolio. It provides a detailed look at the recommended asset allocations and money managers selected to assist you with meeting financial goals. THIS REPORT IS FOR USE ONLY IN CONSULTATION WITH YOUR FINANCIAL ADVISOR. Your portfolio was designed based upon the following key factors:* The investment objective for each account* Your willingness/ability to tolerate risk in order to achieve those objectives* How much money you plan to invest* How long you plan to keep your money invested* Additional information provided by you Please note that performance comparisons are based on historical data and may not be reflective of future results. The returns generated by your investment portfolio will be affected by:* The allocation of your assets among asset classes* Security selection* Macro economic and market conditions This proposed portfolio seeks to take advantage of asset allocation as a powerful tool in determining total investment returns. It also aims to achieve diversification to help withstand, and even capitalize upon, unpredictable market conditions. The money management professionals proposed and investment vehicles proposed in the management of your portfolio have been thoroughly screened. They are drawn from a select group of strategies and represent the specific managers and tools that we believe may be best able to help you accomplish your investment objectives. Please read this report carefully and feel free to ask me any questions. A glossary is also available for easy reference to definitions of investment terms..

April 08, 20113Sample Client Proposal Client (not for public use)

Miscellaneous Notes/Commentary


Your ScoreD

A

B

A

B

B

Risk ToleranceUse of risk analysis is one approach for helping you select a suitable portfolio.

Your risk profile has been determined based on your responses to the risk tolerance questionnaire.

1. The purpose of the funds you are placing under professional money management is: (Choose one)

[A] A source of current income (1)

[B] Source of future retirement income (2)

[C] Specific future need such as funding college education, buying a vacation home (3)

[D] Unspecified future use such as funding a trust for children or funding a charitable foundation (4)

2. How long will these funds be dedicated for the purpose stated in question one? This is the time frame for the investment portfolio. (Choose one)

[A] Eight or more years (5)

[B] Six to seven years (4)

[C] Four to five years (3)

[D] Two to three years (2)

[E] Under two years (1)

3. How would you describe your outlook for the U.S. economy? (Choose one)

[A] Very positive (5)

[B] Neutral (3)

[C] I am undecided (1)

[D] Very negative (-2)

4. What is your outlook for inflation? (Choose one)

[A] Remain at about current levels over the next twelve months (2)

[B] Increase moderately over the next twelve months (0)

[C] Increase substantially over the next twelve months (-2)

5. How would you generally categorize your investment objectives? (Choose one)

[A] Maximum capital appreciation, even though the level of risk might be higher and the level of current income might be lower (6)

[B] Capital appreciation with lower current yield but a view to capital preservation (4)

[C] A balance between capital appreciation, preservation of capital and current income (3)

[D] Preservation of capital and relatively high current income (1)

6a. What are your personal investment parameters (Loss of Value)? (Choose one)

[A] Minimum (1)

[B] Moderate (3)

[C] Not my first concern (5)


Your ScoreA

C

A

A

A

A

A

Risk Tolerance cont.

6b. What are your personal investment parameters (Dividend Yield)? (Choose one)

[A] Important (1)

[B] Some (3)

[C] None (5)

6c. What are your personal investment parameters (Growth)? (Choose one - Minimum Loss of Value from question 6a can not be chosen together with Emphasis on Growth below)

[A] Important (1)

[B] Some (3)

[C] Emphasis (5)

7. If you were faced with the following three alternatives, which would you choose? (Choose one)

[A] High long-term returns even though the returns may vary greatly over the short term (5)

[B] Consistent short-term returns even though returns over the long-term may be lower (1)

[C] No preference (3)

8a. Which option below would make you more upset?

[A] Holding cash/money market funds when the market goes up (5)

[B] Holding stocks when the market goes down (0)

8b. Which option below would make you more upset?

[A] Selling a stock and seeing it immediately increase in value (5)

[B] Buying a stock and having it immediately decrease in value (0)

9. An increase in investment return is usually associated with higher level of fluctuation in the value of the portfolio over short periods of time. Would you be willing to accept increased fluctuation in an attempt to achieve a higher return? (Choose one)

[A] Yes (5)

[B] No (-3)

10. Total return has two components: appreciation and yield. Stocks with the highest appreciation potential often have lower yields. How should your portfolio be invested? (Choose one)

[A] Emphasize appreciation (5)

[B] Balance between appreciation and yield (3)

[C] Emphasize yield (1)


Your ScoreD

F

F

B


11. If you inherited $1,000,000 and you invested $500,000, assuming there was no need to liquidate; at what loss in market value would you liquidate the portfolio? (Choose the answer which best reflects your attitude.)

[A] Loss of $25,000 (5%) (0)

[B] Loss of $50,000 (10%) (1)

[C] Loss of $75,000 (15%) (4)

[D] Loss of $100,000 (20%) (5)

[E] Loss of $125,000 (25%) (8)

12. Time is a critical element in investment returns. Maximum return is achieved over the full investment cycle. Each investment objective has a different length to its cycle. These cycles vary from 90 days (in the case of 90-day U.S. Treasury Bills) to 10 years (in the case of stocks in some small growth companies). What is your time frame for achieving investment returns? (Choose one)

[A] 90 days (0)

[B] One year (1)

[C] Three years (2)

[D] Five years (3)

[E] Seven years (4)

[F] Ten years (5)

13. Return expectations are usually based on maintaining the buying power of the funds after inflation. What is your minimum return goal for your entire managed account? (Choose one)

[A] At least equal to inflation, with the possibility of loss of 0% to 5% over a 12 month period (0)

[B] Inflation plus 1% to 3% annually over the investment cycle, with the possibility of a loss of 3% to 6% over a 12 month period (1)

[C] Inflation plus 1% to 3.5% annually over the investment cycle, with the possibility of a loss of 4% to 8% over a 12 month period (2)[D] Inflation plus 2% to 4% annually over the investment cycle, with the possibility of a loss of 8% to 12% over a 12 month period (3)

[E] Inflation plus 3% to 5% annually over the investment cycle, with the possibility of a loss of 10% to 15% over a 12 month period (4)[F] Inflation plus 4% to 5.5% annually over the investment cycle, with the possibility of a loss of 14% to 20% over a 12 month period (5)[G] Inflation plus 5% to 6.5% annually over the investment cycle, with the possibility of a loss of 20% to 30% over a 12 month period (6)

14. Do you anticipate any major expenditures in the next five years which may require liquidation of all or part of your investments? (Choose one)

[A] Yes (0)

[B] No (4)


Your Score

Aggressive Growth (Taxable)

Taxable


15. Is this a taxable or tax-exempt portfolio? (Choose one)

Tax-Exempt

Taxable

Investment Objective Name and Description

This investment strategy is for the most aggressive of investors and may invest up to 100%in equities. Managers found in this profile may purchase stocks of small-mid size companies withmarket capitalizations of less than $100 million; young companies in volatile growth periods –sometimes referred to as micro-cap; and niche markets such as REIT’s (Real Estate InvestmentTrusts). Managers found in this profile may also purchase International and Emerging Marketsecurities. Profile 7 carries the highest potential risk, the longest investment time frame and thehighest potential reward. Appreciation is the primary goal. The maximum loss of valuemeasured over any 4 consecutive quarters can exceed 30%, with a typical range between -20%and -30%. The time frame for the full investment cycle is typically 8 - 10 years, but may exceed10, with a return objective of CPI (Consumer Price Index) + 10%.


$20,000 4.08% $10,000 2.00% $10,000 2.08%

$50,000 10.20% $0 0.00% $50,000 10.20%

$190,000 38.77% $0 0.00% $190,000 38.77%

$0 0.00% $100,000 20.00% $100,000 20.00%

$25,000 5.10% $0 0.00% $25,000 5.10%

$0 0.00% $50,000 10.00% $50,000 10.00%

$0 0.00% $50,000 10.00% $50,000 10.00%

$15,000 3.06% $0 0.00% $15,000 3.06%

$40,000 8.16% $0 0.00% $40,000 8.16%

$0 0.00% $190,000 38.00% $190,000 38.00%

$150,000 30.61% $100,000 20.00% $50,000 10.61%

100.00%$500,000100.00%$490,000

Household Asset AllocationThis page illustrates the asset allocation of your portfolio compared to the proposed target portfolio based upon a Aggressive Growth (Taxable) objective.

Proposed Asset AllocationCurrent Asset Allocation

Adjusted %Adjusted Amount%Amount%AmountAsset Class

Cash Equivalents

Specialty - REITs

Domestic All Cap

Domestic Large Cap Core

Domestic Large Cap Growth

Domestic Mid Cap Core

Domestic Small Cap Core

Domestic Small Cap Growth

FI - Long Municipal

International Equity

Emerging Markets

Total

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. PROVIDED FOR ILLUSTRATION PURPOSES ONLY, IN ONE-ON-ONE PRESENTATIONS. Refer to the Disclosure page for more information.

Household Comparative Asset Allocation


$8,0001.60% N/A N/A

$2,0000.40% N/A N/A

$80,00016.00% N/A N/A

SAMN/A $20,0004.00% 1.81% $362

$40,0008.00% N/A N/A

SAMN/A $10,0002.00% 1.10% $110

$40,0008.00% N/A N/A

FUNDNMSCX $10,0002.00% 0.90% $90

$80,00016.00% N/A N/A

FUNDNWFFX $20,0004.00% 1.47% $294

$152,00030.40% N/A N/A

SAMN/A $19,0003.80% 2.30% $437

SAMN/A $19,0003.80% 2.11% $400

$1,693$500,000100.00%

Household Portfolio SummaryThis page illustrates the investment selections for your proposed target portfolio, which is comprised of all the accounts included in the proposal.

Manager Name (Product) Ticker Type Asset Class Benchmark AllocationInvestment

Amount YieldProjected

Income

To Be Determined Cash Equivalents

FDXCASH Cash Equivalents

To Be Determined Domestic Large Cap Core

Dana Investment Advisors (Dana Socially Responsible Equity)

FTSE KLD 400 Social IndexDomestic Large Cap Core

To Be Determined Domestic Mid Cap Core

Forward Management (Domestic Equity Small-Mid Cap Core)

Russell 2500Domestic Mid Cap Core

To Be Determined Domestic Small Cap Core

Columbia Funds (Small Cap Index Z) Russell 2000Domestic Small Cap Core

To Be Determined Emerging Markets

American Funds (New World F) MSCI Emerging Markets FreeEmerging Markets

To Be Determined International Equity

Eagle Global Advisors, LLC (International Equity) MSCI EAFEInternational Equity

Gratry & Company (International Growth) MSCI EAFEInternational Equity

Total


Proposed Asset Allocation

Proposed Asset Allocation Summary


0.13% 0.13% 0.79% 2.42% 0.54%0.04% 2.39%15.05% 15.05% -2.86% 2.28% 23.86%10.75% 1.41%25.47% 25.47% 1.05% 4.66% 28.81%13.07% 6.54%26.85% 26.85% 2.22% 4.47% 28.04%16.25% 6.34%19.19% 19.19% -0.03% 13.11% 35.41%7.36% 16.18%

8.20% 8.20% -6.55% 2.94% 29.70%6.65% 3.93%

100.00%

Household Portfolio PerformanceThis page illustrates the performance history of the asset allocation for the proposed target portfolio.

10 YearAsset Class QuarterYear

To Date 1 Year 3 Year 5 Year3 Year

Std Dev

Cash EquivalentsDomestic Large Cap CoreDomestic Mid Cap CoreDomestic Small Cap CoreEmerging MarketsInternational Equity

Total

An investor should carefully consider investment objectives, risks, charges and expenses before investing in an exchange traded fund (ETF) or mutual fund. This information and more complete information, including potential risks, is included in each ETF or mutual fund prospectus, which can be obtained from the investment firm, or contacting your investment professional directly. Read prospectus carefully before investing. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost. Mutual funds and ETFs may have investment objectives other than matching a particular market index and are subject to risks similar to those of stocks. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. The recent growth rate in the stock market has helped to produce short term returns for some asset classes that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. There is no certainty that any investment or strategy will be profitable or successful in achieving investment objectives. The performance information shown represents past performance and is not a guarantee of future results. For current performance information, including performance to the most recent month-end, please contact your advisor. The performance of an index is not indicative of the performance of any particular investment. It is not possible to invest directly in an index. Indices are not subject to fee or commissions/transactions costs. See “Key Terms Related to Indices” for a description of terms used in certain of the investment proposals presented that illustrate benchmarks and indices. PROVIDED FOR ILLUSTRATION PURPOSES ONLY, IN ONE-ON-ONE PRESENTATIONS. Refer to the Disclosures page for important information that should be considered in connection with reviewing the performance data presented, including information concerning the method used to compute the returns presented and regarding the fees and expenses.

Proposed Asset Allocation

Performance History - Period Ending December 31, 2010

Benchmark

T-billsS & P 500Russell MidCapRussell 2000MSCI Emerging Markets FreeMSCI EAFE

2.00%20.00%10.00%10.00%20.00%38.00%

AccountAllocation


$2,000 2.00%FTSE KLD 400 Social Index DIASRI SAM 20.00%Russell 2500 BCMSMC SAM 10.00%Russell 2000 NMSCX FUND 10.00%MSCI Emerging Markets Free NWFFX FUND 20.00%MSCI EAFE GCCIGE SAM 19.00%MSCI EAFE EAGIEC SAM 19.00%

$100,000 100.00%

Account Summary - Client Account #1 (Kovack Program)This page summarizes the investment selections for your Client Account #1 (Kovack Program) account.

Asset Class Benchmark Symbol Type AllocationCash EquivalentsDomestic Large Cap CoreDomestic Mid Cap CoreDomestic Small Cap CoreEmerging MarketsInternational EquityInternational Equity

Account Total


$20,000$10,000$10,000$20,000$19,000$19,000

Account Asset Allocation

Proposed Manager/Product RecommendationsManager Name (Product) AmountFDXCASHDana Investment Advisors (Dana Socially Responsible Equity)Forward Management (Domestic Equity Small-Mid Cap Core)Columbia Funds (Small Cap Index Z)American Funds (New World F)Gratry & Company (International Growth)Eagle Global Advisors, LLC (International Equity)


$5,000 2.00%$50,000 20.00%$25,000 10.00%$25,000 10.00%$50,000 20.00%$95,000 38.00%

$250,000 100.00%

Account Summary cont. - Client Account #2 (Kovack Program)This page summarizes the investment selections for your Client Account #2 (Kovack Program) account.

Asset Class Benchmark Symbol Type AllocationCash EquivalentsDomestic Large Cap CoreDomestic Mid Cap CoreDomestic Small Cap CoreEmerging MarketsInternational Equity

Account Total



Proposed Manager/Product RecommendationsManager Name (Product) AmountTo Be DeterminedTo Be DeterminedTo Be DeterminedTo Be DeterminedTo Be DeterminedTo Be Determined


$3,000 2.00%$30,000 20.00%$15,000 10.00%$15,000 10.00%$30,000 20.00%$57,000 38.00%

$150,000 100.00%

Account Summary cont. - Client Account #3 (Kovack Program)This page summarizes the investment selections for your Client Account #3 (Kovack Program) account.

Asset Class Benchmark Symbol Type AllocationCash EquivalentsDomestic Large Cap CoreDomestic Mid Cap CoreDomestic Small Cap CoreEmerging MarketsInternational Equity

Account Total



Proposed Manager/Product RecommendationsManager Name (Product) AmountTo Be DeterminedTo Be DeterminedTo Be DeterminedTo Be DeterminedTo Be DeterminedTo Be Determined


9.81% 16.51% 16.51% -0.40% 4.06% 21.99%1/31/00N/A7.10% 0.00%

15.84% 28.97% 28.97% 7.54% 9.05% 22.75%1/01/98N/A8.01% 0.00%

16.25% 26.05% 26.05% 3.04% 4.60% 27.40%10/15/968.22%7.15% 0.20%4.95% 17.33% 17.33% -1.38% 11.19% 29.95%3/15/0113.12%N/A 1.04%8.72% 13.24% 13.24% -2.39% 8.23% 26.39%9/30/97N/A6.98% 0.00%7.80% 5.99% 5.99% -8.45% 3.88% 29.47%1/01/95N/A5.22% 0.00%

100.00%

Account Performance History - Client Account #1 (Kovack Program)This page illustrates the performance history of the asset allocation for your Client Account #1 (Kovack Program) account.

Asset ClassManager Name (Product) 5 Year3 Year1 YearYear

to DateQuarter3 Year

Std Dev10 YearIncept

DateSince

Incept*Expense

RatioCash EquivalentsFDXCASHDomestic Large Cap CoreDana Investment Advisors (Dana Socially

Responsible Equity)Domestic Mid Cap CoreForward Management (Domestic Equity

Small-Mid Cap Core)Domestic Small Cap CoreColumbia Funds (Small Cap Index Z)Emerging MarketsAmerican Funds (New World F)International EquityGratry & Company (International Growth)International EquityEagle Global Advisors, LLC (International

Equity)

Account Total

An investor should carefully consider investment objectives, risks, charges and expenses before investing in an exchange traded fund (ETF) or mutual fund. This information and more complete information, including potential risks, is included in each ETF or mutual fund prospectus, which can be obtained from the investment firm, or contacting your investment professional directly. Read prospectus carefully before investing. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost. Mutual funds and ETFs may have investment objectives other than matching a particular market index and are subject to risks similar to those of stocks. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. The recent growth rate in the stock market has helped to produce short term returns for some asset classes that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes. There is no certainty that any investment or strategy will be profitable or successful in achieving investment objectives. The performance information shown represents past performance and is not a guarantee of future results. For current performance information, including performance to the most recent month-end, please contact your advisor. The performance of an index is not indicative of the performance of any particular investment. It is not possible to invest directly in an index. Indices are not subject to fee or commissions/transactions costs. See “Key Terms Related to Indices” for a description of terms used in certain of the investment proposals presented that illustrate benchmarks and indices. PROVIDED FOR ILLUSTRATION PURPOSES ONLY, IN ONE-ON-ONE PRESENTATIONS. Refer to the Disclosures page for important information that should be considered in connection with reviewing the performance data presented, including information concerning the method used to compute the returns presented and regarding the fees and expenses.* Since Inception returns provided for mutual funds if available.

2.00%20.00%

10.00%

10.00%20.00%19.00%19.00%


Proposed Manager/Product Performance History - Period Ending December 31, 2010

Allocation


100.00%

Account Performance History cont. - Client Account #2 (Kovack Program)This page illustrates the performance history of the asset allocation for your Client Account #2 (Kovack Program) account.




DateSince

Incept*Expense

RatioCash EquivalentsTo Be DeterminedDomestic Large Cap CoreTo Be DeterminedDomestic Mid Cap CoreTo Be DeterminedDomestic Small Cap CoreTo Be DeterminedEmerging MarketsTo Be DeterminedInternational EquityTo Be Determined

Account Total


2.00%20.00%10.00%10.00%20.00%38.00%



Allocation


100.00%

Account Performance History cont. - Client Account #3 (Kovack Program)This page illustrates the performance history of the asset allocation for your Client Account #3 (Kovack Program) account.




DateSince

Incept*Expense

RatioCash EquivalentsTo Be DeterminedDomestic Large Cap CoreTo Be DeterminedDomestic Mid Cap CoreTo Be DeterminedDomestic Small Cap CoreTo Be DeterminedEmerging MarketsTo Be DeterminedInternational EquityTo Be Determined

Account Total


2.00%20.00%10.00%10.00%20.00%38.00%



Allocation


9.13%

8.99%

15.35%

14.95%

15.35%

14.95%

38.12%

39.55%

14.16%

13.35%14.95%

15.35% -41.07%

-41.87%

23.52%

23.24%

15.35% -2.08% 5.77%

14.95% -2.30% 5.43%

N/A

N/A

2010 2009 2008 2007 2006

Target Portfolio PerformanceThis page illustrates historical benchmark performance for asset classes included in your proposed target portfolio.

Historical Performance

Target Portfolio *

Blended Benchmark

PreviousQuarter

Year ToDate

1Year

3Year

5Year

10Year

Calendar Returns (%)

Target Portfolio *

Blended Benchmark

Target Portfolio *

Blended Benchmark

Annualized Returns (%)Quarter

Year toDate 1 Year 3 Year

Year ToDate

5 Year 10 Year

The simulations included herein do not represent the actual performance of any account, and instead are blended portfolios constructed to illustrate what would have happened if the selected set of hypothetical Separate Account Managers, Manager Models, Mutual Funds and/or ETFs had been combined in a portfolio reflecting the selected allocations among asset classifications and assuming a quarterly rebalancing. Historical composite performance is presented "gross of fees" and does not take into account the fees and expenses. The performance of an unmanaged index is not indicative of the performance of any particular investment. It is not possible to invest directly in an index. Indices are unmanaged and not subject to fee or commissions/transactions costs. See “Key Terms Related to Indices” for a description of terms used in certain of the investment proposals presented that illustrate benchmarks and indices. Performance of recommended portfolios and/or results of investment strategies are not guaranteed. Consult the Disclosures page for important information that should be considered in connection with reviewing the performance data presented, including information concerning the method used to compute the returns presented and regarding the fees and expenses. Actual returns will differ based on a number of factors. PROVIDED FOR ILLUSTRATION PURPOSES ONLY, IN ONE-ON-ONE PRESENTATIONS.

Performance calculations on this page only include investments that have returns for the relevant time periods. The invesments and their respective benchmarks that do not have returns are removed from the annualized returns calculation. For example, if an investment has only 3 years of returns, the investment and its benchmark will not be included in the 5 year annualized return, but will be included in all shorter time period return calculations.

* Certain portfolio returns may have been replaced by their respective asset class benchmark returns due to the fact that these assets were not assigned to an actual Manager (e.g. "To Be Determined") when this Proposal was generated.

Retu

rn %

Performance History - Period Ending December 31, 2010


The simulations included herein do not represent the actual performance of any account, and, instead are blended portfolios constructed to illustrate what would have happened if the selected set of hypothetical Separate Account Managers, Manager Models, Mutual Funds and/or ETFs had been combined in a portfolio reflecting the selected allocations among asset classifications and assuming a quarterly rebalancing. Historical composite performance is presented “gross of fees” and does not take into account the fees and expenses. The performance of an unmanaged index is not indicative of the performance of any particular investment. It is not possible to invest directly in an index. Indices are unmanaged and not subject to fee or commissions/transactions costs. See “Key Terms Related to Indices” for a description of terms used in certain of the investment proposals presented that illustrate benchmarks and indices. Performance of recommended portfolios and/or results of investment strategies are not guaranteed. PROVIDED FOR ILLUSTRATION PURPOSES ONLY, IN ONE-ON-ONE PRESENTATIONS. Refer to the Disclosures page for important information that should be considered in connection with reviewing the performance data presented, including information concerning the method used to compute the returns presented and regarding the fees and expenses. The mix of indices in this report have been rebalanced each quarter.

-2.08% -2.30%

0.11%

27.41% 27.93%

0.80%

-0.10

23.17%

98.07%

-3.10

24.14%

5.77% 5.43%

8 8

0.35%

22.24% 22.63%

0.64%

0.15 0.13

99.47%

Target Portfolio Historical Performance AnalysisThis page summarizes the performance and risk analysis for your proposed target portfolio.

Risk Analysis (12 Quarters)

Reward Measures

Risk Adjusted Alpha

Tracking Error

Risk vs. Reward

Experience Measures

0.00%

0.00%

100.00%

0.00%

0.00%

100.00%

0.22%

0.98

-2.93

1.04

-22.74%

98.22%

-0.11

-22.76% -22.74% -22.76%

0.34%

0.98

1.01

3.41 3.01

97.82%

TargetPortfolio

BlendedBenchmark

Annualized Return

Risk Measures

Sharpe Ratio

Upside Capture

R-Squared

N/A

1.00

100.00%

1.00

0.00

Risk Analysis (20 Quarters)

N/A

1.00

1.00

6

0.12

6

0.39

23.17% 24.14%

Excess Return

Standard Deviation

Treynor Ratio

Downside Capture

Target Portfolio

Blended Benchmark

0.00

Beta

Information Ratio

Best Quarter

100.00%

Worst Quarter

# Negative Quarters

Growth of $100 (Up to 20 Quarters)

Target Portfolio Blended Benchmark

Risk/Return (20 Quarters)

(Data Not Available)


Period Ending 9/30/10Period Ending 12/31/10


Industrial And Commercial Bank Of China Limited

America Movil S.A.B. de C.V. ADR L 2.73%Nestle SA

Turkcell Iletisim Hizmetleri ASOJSC Pharmstandard GDRAnheuser-Busch InBev SAMtn Group LimitedKingboard Chemical Holdings Ltd.Banco Bilbao Vizcaya Argentaria SATeva Pharmaceutical Industries, Ltd. ADR

1.31%

1.11%1.09%1.06%1.05%0.96%0.94%0.90%0.90%

12.05%

Manager SummaryAmerican Funds (New World F) - Period Ending December 31, 2010

Type: FUND

Headquarters: Los Angeles, CA

Total AUM: $943,343 M

Ownership: Employee-Owned

Inception of Style: 03/15/2001

Assets in Style: $1,859 M

Research Method: Top Down Analysis

Geography Focus: International

Investment Emphasis: Capital Appreciation

Total Staff: 2,700

Investment Professionals: 169

Avg. Years with Firm: 14

Type of Portfolio: Equity

Avg. Annual Turnover: 20%

Portfolio Yield: 1.47%

Avg. # of Holdings: 428

Avg. Years Industry Experience: 17 Symbol/Acronym: NWFFX

Median Market Cap: $19,371 M

Avg. Price/Earnings Ratio: 15.1

Avg. Price/Book Ratio: 2.5

30-Day SEC Yield: N/A

% in US Market: 5%

% in Emerging Markets: 56%

The fund invests in securities of issuers based in "qualified developing countries," as well as in equity securities of issuers based in the developed world with significant assets or revenues attributable to developing countries. The fund will invest at least 35% of assets in securities of issuers based primarily in qualified developing countries. For their total return potential, the fund also invests in bonds offering exposure to developing countries and may invest up to 25% of assets in debt securities, which may be rated below investment grade (BB and below).

David C. Barclay is a senior vice president of Capital Research and Management Company. He also is a portfolio manager that handles emerging markets and U.S. high-yield securities. Mr. Barclay joined Capital Research and Management Company in 1988 and serves as the director of The Capital Group Companies, Inc. Prior to Capital Research, he worked at E.F. Hutton Company, Inc. and at The Bank of New York. Mr. Barclay obtained an MBA from Harvard University Graduate School of Business and a BA in economics from Brown University.

Security % of Portfolio

Percent of Total

Consult the Disclosures page for important information that should be considered in connection with reviewing the performance data presented, including information concerning the method used to compute the returns presented and regarding the fees and expenses. Actual returns will differ based on a number of factors. PROVIDED FOR ILLUSTRATION PURPOSES ONLY, IN ONE-ON-ONE PRESENTATIONS.

Equity Sector Regional Exposure

Investment Philosophy Portfolio Manager Profile

Top Ten Holdings

Historical composite performance is presented "gross of fees" and does not take into account the fees and expenses. Consult the Disclosures page for important information that should be considered in connection with reviewing the performance data presented, including information concerning the method used to compute the returns presented and regarding the fees and expenses. Performance of recommended portfolios and/or results of investment strategies are not guaranteed. Actual returns will differ based on a number of factors. PROVIDED FOR ILLUSTRATION PURPOSES ONLY, IN ONE-ON-ONE PRESENTATIONS.

0.84

-1.35%

-2.23%

29.95%

-0.19

-6.90

-0.45

74.13%

87.58%

27.25%

-26.60%

5

0.98

-0.03%

0.00%

35.41%

1.00

-0.02

-0.83

0.00

100.00%

100.00%

34.84%

-27.56%

5

1.00

11.19%

-0.51%

24.95%

0.83

0.32

9.67

-0.45

81.01%

86.55%

27.25%

-26.60%

6

0.97

13.11%

0.00%

29.62%

1.00

0.36

10.69

0.00

100.00%

100.00%

34.84%

-27.56%

6

1.00

4.95% 17.33% 17.33% -1.38% 13.12%

16.53%7.36% 19.19% 19.19% -0.03%

17.33% 52.28% -46.32% 32.87% 33.39%

19.19% 79.02% -53.18% 39.79% 32.59%

17.33%

19.19%

2010 2009 2008 2007 2006

N/A

16.18%

11.19%

13.11%

Manager Summary cont.American Funds (New World F) - Period Ending December 31, 2010

Manager BenchmarkReward Measures

Annualized Return

Risk Adjusted Alpha

Risk Measures

Standard Deviation

Beta

Risk vs. Reward

Sharpe Ratio

Treynor Ratio

Information Ratio

Experience Measures

Upside Capture

Downside Capture

Best Quarter

Worst Quarter

# Negative Quarters

Manager Benchmark

Annualized Returns (%)

Manager

Benchmark*

Benchmark*

Manager


Year toDate 1 Year 3 Year 10 Year

SinceIncept **

*Benchmark - MSCI Emerging Markets Free

5 Year

6.92%

-1.38%

0.00%

-1.92%

6.71% 0.00%

Risk Analysis

Excess Return

Tracking Error

R-Squared

12 Quarters 20 Quarters

Performance History

Year ToDate

Quarter

N/A N/A

** Since Inception returns provided for mutual funds if available.


Manager

Benchmark*


No data available

Risk / Return (20 Quarters)



Varian Semiconductor Equipment Associates, Inc.

Russell 2000 Mini Index Ftrs Dec10 Icus 2.22%iShares S&P SmallCap 600 Index

SM Energy CoEast West Bancorp, Inc.Oil States International, Inc.

Biomed Realty Trust, Inc.Polaris Industries, Inc.Concur Technologies, Inc.Cooper Companies

0.92%

0.57%0.56%0.55%0.53%0.51%0.51%0.50%0.49%

7.36%

Manager SummaryColumbia Funds (Small Cap Index Z) - Period Ending December 31, 2010

Type: FUND

Headquarters: Boston, MA

Total AUM: $292,900 M

Ownership: Ameriprise Financial, Inc.



Research Method: Bottom Up Analysis

Geography Focus: Domestic

Investment Emphasis: Core

Total Staff: 782







Avg. Years Industry Experience: 20 Symbol/Acronym: NMSCX

Median Market Cap: $794 M



30-Day SEC Yield: N/A

% in US Market: 96%


The investment objective of the Columbia Small Cap Index Fund is to seek total return before fees and expenses that corresponds to the to total returns of the S&P SmallCap 600 Index. The fund under normal circumstances will invest at least 80% of total assets in common stocks that comprise the S&P SmallCap 600 Index. The fund may also invest in stock index features or options as substitutes for securities in the S&P SmallCap 600 Index. The S&P SmallCap 600 Index is a weighted index which means common stocks have different weightings in the index, the funds advisors attempt to allocate stock to that of the S&P SmallCap 600 Index. They fund attempts to have a minimum of a 95% correlation between the funds results and the S&P SmallCap 600 Index returns. The advisor may sell a stock when the stocks percentage is reduced in the index or for other reasons.

Alfred F. Alley III is a assistant vice president of Columbia Management Advisors. He has been there since 2005. He previously was a managing partner at Tandem Trading from October 2001 to June 2005. He holds a CFA designation.


Percent of Total




Top Ten Holdings


0.97

0.82%

0.76%

27.40%

-0.05

-1.40

0.26

98.38%

96.23%

21.13%

-24.99%

5

0.99

2.22%

0.00%

28.04%

1.00

0.05

1.43

0.00

100.00%

100.00%

20.69%

-26.12%

5

1.00

4.60%

0.12%

22.60%

0.97

0.06

1.45

0.00

97.19%

96.93%

21.13%

-24.99%

9

0.99

4.47%

0.00%

23.14%

1.00

0.09

2.05

0.00

100.00%

100.00%

20.69%

-26.12%

8

1.00

16.25% 26.05% 26.05% 3.04% 8.22%

N/A16.25% 26.85% 26.85% 2.22%

26.05% 25.51% -30.85% -0.40% 14.90%

26.85% 27.18% -33.79% -1.56% 18.37%

26.05%

26.85%

2010 2009 2008 2007 2006

7.15%

6.34%

4.60%

4.47%

Manager Summary cont.Columbia Funds (Small Cap Index Z) - Period Ending December 31, 2010


Annualized Return

Risk Adjusted Alpha

Risk Measures

Standard Deviation

Beta

Risk vs. Reward

Sharpe Ratio

Treynor Ratio

Information Ratio

Experience Measures

Upside Capture

Downside Capture

Best Quarter

Worst Quarter

# Negative Quarters

Manager Benchmark


Manager

Benchmark*

Benchmark*

Manager



SinceIncept **

*Benchmark - Russell 2000

5 Year

2.36%

3.04%

0.00%

0.12%

2.39% 0.00%

Risk Analysis

Excess Return

Tracking Error

R-Squared


Performance History

Year ToDate

Quarter

N/A N/A



Manager

Benchmark*


No data available




National Oilwell Varco Inc 2.61%Ameriprise Financial Inc

Cooper Industries Ltd-Cl AEndo Pharmaceut Hldgs IncApple IncHess CorpTyco Electronics LtdDeluxe CorpHealth Mgmt Associates Inc-AIntl Business Machines Corp

2.47%

2.41%2.30%2.24%2.23%2.21%2.21%2.19%2.18%

23.05%

Manager SummaryDana Investment Advisors (Dana Socially Responsible Equity) - Period Ending December 31, 2010

Type: SAM

Headquarters: Brookfield, WI

Total AUM: $2,900 M

Ownership: 100% Employee Owned


Assets in Style: $90 M



Investment Emphasis: Relative Value

Total Staff: 35







Avg. Years Industry Experience: 21 Symbol/Acronym: DIASRI




Max. Cash Holding: 2%

% in US Market: 100%


Dana's Socially Responsible Equity strategy initially screens the companies listed in the Domini 400 Social Index. The team utilizes a proprietary systematic and fundamental analysis methodology for creating a portfolio of companies with improving earnings outlooks that remain undervalued in the current marketplace. Downside risk is reduced by incorporating a variety of valuation characteristics, earnings revisions and sector neutrality, which eliminates overpriced companies and those that are likely to have negative earnings announcements, while allowing exposure to all sectors of the market. Proprietary quantitative models are then used to screen stocks within each sector. The models rank companies based on three factors: value relative to other stocks in the sector, value relative to growth and earnings momentum. The screening takes the 400 company universe down to a filtered list of approximately 200 companies, ranked most attractive to least attractive within each sector. Portfolio construction is done by determining the approximate dollars to invest in each sector based on the weights of the benchmark, with a target portfolio of 50 companies, or about 2% of the portfolio in each company.

Duane Roberts, CFA, executive vice president, joined the firm in 1999. Mr. Roberts previously managed a technology hedge fund, and the endowment fund at Southern Methodist University. He earned an M.S. in statistics from Stanford University, and an M.B.A. in finance from Southern Methodist University. Other members of the team include Deborah Trask and Benjamin Friedman.


Percent of Total




Top Ten Holdings


0.94

2.14%

1.97%

21.99%

-0.22

-5.12

0.44

96.09%

89.55%

15.29%

-23.83%

6

0.96

-2.54%

0.00%

22.96%

1.00

-0.15

-3.33

0.00

100.00%

100.00%

16.61%

-21.43%

6

1.00

4.06%

2.30%

17.83%

0.94

0.05

0.93

0.52

97.77%

84.32%

15.29%

-23.83%

8

0.95

1.69%

0.00%

18.52%

1.00

-0.04

-0.73

0.00

100.00%

100.00%

16.61%

-21.43%

9

1.00

9.81% 16.51% 16.51% -0.40% N/A

N/A7.67% 8.53% 8.53% -2.54%

16.51% 24.71% -32.00% 7.62% 14.74%

8.53% 31.11% -34.94% 3.74% 13.23%

16.51%

8.53%

2010 2009 2008 2007 2006

7.10%

1.10%

4.06%

1.69%

Manager Summary cont.Dana Investment Advisors (Dana Socially Responsible Equity) - Period Ending December 31, 2010


Annualized Return

Risk Adjusted Alpha

Risk Measures

Standard Deviation

Beta

Risk vs. Reward

Sharpe Ratio

Treynor Ratio

Information Ratio

Experience Measures

Upside Capture

Downside Capture

Best Quarter

Worst Quarter

# Negative Quarters

Manager Benchmark


Manager

Benchmark*

Benchmark*

Manager



SinceIncept **

*Benchmark - FTSE KLD 400 Social Index

5 Year

4.54%

-0.40%

0.00%

2.37%

4.30% 0.00%

Risk Analysis

Excess Return

Tracking Error

R-Squared


Performance History

Year ToDate

Quarter

N/A N/A



Manager

Benchmark*


No data available




Keppel Corp Ltd-Spons ADR 4.40%Nestle SA -Spons ADR

British American Tob-Sp ADRNovartis Ag-ADRVALE S.A. ADR PFDFUJIFILM Holdings Corp ADRAgrium IncDbs Group Holdings-Spon ADRThompson Creek Metals Co IncBASF Se-Spon ADR

4.07%

4.04%3.16%3.05%2.96%2.70%2.32%2.23%2.23%

31.16%

Manager SummaryEagle Global Advisors, LLC (International Equity) - Period Ending December 31, 2010

Type: SAM

Headquarters: Houston, TX

Total AUM: $4,419 M

Ownership: Partnership owns 97% of the firm



Research Method: Three Step Approach


Investment Emphasis: Earnings Growth or Momentum

Total Staff: 29







Avg. Years Industry Experience: 16 Symbol/Acronym: EAGIEC





% in US Market: 7%


Eagle Global Advisors has a top-down approach to its geographic and sector allocation and a disciplined bottom-up process to its security selection. General economic factors (e.g., relative GDP, supply and demand, currency, political, etc.) are analyzed to determine relative country and sector attractiveness. The portfolio management team screens individual companies by four major factors including earnings revision, valuation, momentum, and growth. They assess changes in analysts' earnings estimates, earnings surprises, and analysts' rating changes. Valuation factors include proprietary expected returns, price-to-book, earnings yield gap, and dividend yield. Near term earnings growth, acceleration of profitability, and return on equity are the firm's growth criteria. A company's price momentum, particularly 6-month, is considered. Each of four major factors is then ranked to establish an overall ranking for the stocks of consideration. The strategy's sell process starts when a company experiences slowing growth, high valuation, downward earnings revisions, and/or relative underperformance. Stocks falling into the bottom 30% of the universe rankings then trigger fundamental review by analysts. If fundamental review confirms the negative ranking, the stock will be sold. Up to 20% of the portfolio may be invested in emerging markets.

Edward R. Allen III serves as chairman of the international equity and fixed income committees. He is also a member of the domestic equity committee. Prior to founding Eagle Global Advisors, Mr. Allen was employed by Eagle Management and Trust, which was acquired by Boatmen's Trust and then NationsBank. Before entering the investment advisory business, he served as an assistant professor of economics at the University of Houston. Mr. Allen earned his Ph.D. in economics from the University of Chicago and is also a CFA charterholder.


Percent of Total




Top Ten Holdings


0.98

-1.90%

-1.99%

29.47%

-0.44

-13.15

-0.38

92.68%

101.88%

20.26%

-22.96%

6

0.97

-6.55%

0.00%

29.70%

1.00

-0.25

-7.34

0.00

100.00%

100.00%

25.85%

-20.50%

6

1.00

3.88%

1.16%

24.38%

0.99

0.03

0.70

0.21

104.43%

99.40%

20.26%

-22.96%

6

0.95

2.94%

0.00%

24.05%

1.00

0.02

0.51

0.00

100.00%

100.00%

25.85%

-20.50%

7

1.00

7.80% 5.99% 5.99% -8.45% N/A

N/A6.65% 8.20% 8.20% -6.55%

5.99% 26.05% -42.56% 22.10% 29.09%

8.20% 32.46% -43.06% 11.63% 26.86%

5.99%

8.20%

2010 2009 2008 2007 2006

5.22%

3.93%

3.88%

2.94%

Manager Summary cont.Eagle Global Advisors, LLC (International Equity) - Period Ending December 31, 2010


Annualized Return

Risk Adjusted Alpha

Risk Measures

Standard Deviation

Beta

Risk vs. Reward

Sharpe Ratio

Treynor Ratio

Information Ratio

Experience Measures

Upside Capture

Downside Capture

Best Quarter

Worst Quarter

# Negative Quarters

Manager Benchmark


Manager

Benchmark*

Benchmark*

Manager



SinceIncept **

*Benchmark - MSCI EAFE

5 Year

5.11%

-8.45%

0.00%

0.94%

5.40% 0.00%

Risk Analysis

Excess Return

Tracking Error

R-Squared


Performance History

Year ToDate

Quarter

N/A N/A



Manager

Benchmark*


No data available




Varian Medical Systems Inc 4.54%Nordson Corp

Micros Systems IncWorld Fuel Services CorpWW Grainger IncExpeditors Intl Wash IncAlbemarle CorpTiffany & CoFactset Research Systems IncAdvisory Board Co/The

4.36%

4.36%4.29%4.22%4.13%4.06%4.01%3.90%3.90%

41.77%

Manager SummaryForward Management (Domestic Equity Small-Mid Cap Core) - Period Ending December 31, 2010

Type: SAM

Headquarters: San Francisco, CA

Total AUM: $5,965 M

Ownership: Privately Owned





Investment Emphasis: Individual Security Selection

Total Staff: 96







Avg. Years Industry Experience: 15 Symbol/Acronym: BCMSMC





% in US Market: 91%


The Small-Mid Cap Core strategy is based on the belief that superior investment results can be achieved by constructing a style- and sector-diversified portfolio of profitable small- and mid-sized company stocks. The investment process starts with a quantitative screen on the companies in the Russell 2500 Index, and looks for companies with above-average earnings growth and earnings yield. Companies with negative attributes such as excess valuation, deteriorating margins, or questionable financials are automatically eliminated. Qualitative review is conducted on the remaining companies' fundamentals and industry characteristics. The manager looks for focused companies, meaning each company operates in a single business segment. The manager emphasizes on clean financial statements during the qualitative review, and buys companies with profitable operations, dominant market niche, and reasonable valuations. A typical portfolio holds about 27-35 stocks, a 5% maximum exposure placed on any single issue. The portfolio's sector allocations can deviate moderately from the benchmark, as they allow up to 200% overweight in smaller sectors, and limit weightings to +/-10% for larger (double-digit) sectors.

Randall Coleman, portfolio manager and analyst, has more than 20 years of investment experience. He received his B.A. from the University of California at Davis and an M.B.A. from the American Graduate School of International Management. He is a CFA charterholder. David Ruff, portfolio manager and analyst, has more than 22 years of investment experience and is a CFA charterholder. Mr. Ruff received his B.S. degree from Iowa State University, and is a past president of the Security Analysts of Sacramento.


Percent of Total




Top Ten Holdings


0.80

5.06%

4.69%

22.75%

0.14

3.92

0.47

83.51%

70.37%

18.51%

-23.05%

6

0.95

2.49%

0.00%

27.79%

1.00

0.06

1.69

0.00

100.00%

100.00%

20.27%

-26.25%

5

1.00

9.05%

4.11%

18.78%

0.81

0.31

7.24

0.52

91.25%

70.66%

18.51%

-23.05%

9

0.95

4.86%

0.00%

22.63%

1.00

0.11

2.43

0.00

100.00%

100.00%

20.27%

-26.25%

8

1.00

15.84% 28.97% 28.97% 7.54% N/A

N/A14.86% 26.71% 26.71% 2.49%

28.97% 38.58% -30.41% 2.69% 20.73%

26.71% 34.39% -36.79% 1.37% 16.17%

28.97%

26.71%

2010 2009 2008 2007 2006

8.01%

6.98%

9.05%

4.86%

Manager Summary cont.Forward Management (Domestic Equity Small-Mid Cap Core) - Period Ending December 31, 2010


Annualized Return

Risk Adjusted Alpha

Risk Measures

Standard Deviation

Beta

Risk vs. Reward

Sharpe Ratio

Treynor Ratio

Information Ratio

Experience Measures

Upside Capture

Downside Capture

Best Quarter

Worst Quarter

# Negative Quarters

Manager Benchmark


Manager

Benchmark*

Benchmark*

Manager



SinceIncept **

*Benchmark - Russell 2500

5 Year

7.50%

7.54%

0.00%

4.19%

6.13% 0.00%

Risk Analysis

Excess Return

Tracking Error

R-Squared


Performance History

Year ToDate

Quarter

N/A N/A



Manager

Benchmark*


No data available




Autoliv Inc 3.16%Quimica Y Minera Chile-Sp ADR

British American Tob-Sp ADRAmerica Movil-ADR Series LABB Ltd-Spon ADRCompanhia De Bebidas-Prf ADRBanco Bradesco S/A (ADS)Syngenta AG-ADRLogitech International-RegBG Group Plc-Spon ADR

2.90%

2.86%2.84%2.80%2.75%2.75%2.62%2.58%2.58%

27.84%

Manager SummaryGratry & Company (International Growth) - Period Ending December 31, 2010

Type: SAM

Headquarters: Shaker Heights, OH

Total AUM: $400 M

Ownership: 100% Employee Owned



Research Method: Top Down Analysis


Investment Emphasis: Growth at a Reasonable Price

Total Staff: 9







Avg. Years Industry Experience: 30 Symbol/Acronym: GCCIGE





% in US Market: 0%


Gratry has a 3-5 year time horizon, focusing on top-down/bottom-up factors, and strives for a well-diversified portfolio of approximately 35 ADR large cap growth and value securities, with the flexibility to invest 0-25% in emerging markets as the manager sees fit. A macroeconomic assessment of the potential economies concentrates on growth, balance of payments, inflation, interest rates, and fiscal and monetary policies. On a country basis, they assess P/E, dividend yields, and earnings growth prospects. These countries are then ranked based on three main criteria: economic, monetary and value. Individual security selection is taken into consideration as they search for firms with superior business fundamentals, a reasonable valuation, and favorable risk measures. Fundamentals are measured, as they invest in companies that have a competitive advantage over their peers and have efficient channels of distribution or manufacture quality products, thus leading to sales growth, and superior operating margins and cash flow. They must also have clear objectives and targets for the future and historically surpass these goals. Gratry is valuation-sensitive but will pay a premium for the best-managed companies. They also look at risk, such as cash flow interest coverage, volatility, and its contribution to the portfolio as a whole's volatility.

Mark A. Anderson, CFA, is a managing director - investments of Gratry & Co. He has been in the investment management business since 1986. Prior to joining the firm in 2000, he served as a vice president and portfolio manager at Renaissance Investment Management, as assistant treasurer - insurance at Leucadia National Corp., and as assistant vice president at Bank of America. Mr. Anderson earned an M.B.A. in finance from St. Louis University.


Percent of Total




Top Ten Holdings


0.87

4.16%

3.07%

26.39%

-0.26

-7.82

0.51

95.10%

85.76%

18.18%

-20.37%

5

0.95

-6.55%

0.00%

29.70%

1.00

-0.25

-7.34

0.00

100.00%

100.00%

25.85%

-20.50%

6

1.00

8.23%

5.11%

22.29%

0.89

0.23

5.70

0.68

110.90%

85.62%

18.18%

-20.37%

6

0.92

2.94%

0.00%

24.05%

1.00

0.02

0.51

0.00

100.00%

100.00%

25.85%

-20.50%

7

1.00

8.72% 13.24% 13.24% -2.39% N/A

N/A6.65% 8.20% 8.20% -6.55%

13.24% 31.86% -37.72% 23.35% 29.48%

8.20% 32.46% -43.06% 11.63% 26.86%

13.24%

8.20%

2010 2009 2008 2007 2006

6.98%

3.93%

8.23%

2.94%

Manager Summary cont.Gratry & Company (International Growth) - Period Ending December 31, 2010


Annualized Return

Risk Adjusted Alpha

Risk Measures

Standard Deviation

Beta

Risk vs. Reward

Sharpe Ratio

Treynor Ratio

Information Ratio

Experience Measures

Upside Capture

Downside Capture

Best Quarter

Worst Quarter

# Negative Quarters

Manager Benchmark


Manager

Benchmark*

Benchmark*

Manager



SinceIncept **

*Benchmark - MSCI EAFE

5 Year

6.85%

-2.39%

0.00%

5.30%

6.93% 0.00%

Risk Analysis

Excess Return

Tracking Error

R-Squared


Performance History

Year ToDate

Quarter

N/A N/A



Manager

Benchmark*


No data available


Glossary

Alpha - A measure of the difference between a portfolio's actual returns and its expected performance, given its level of risk as measured by beta. It is a measure of the historical movement of a portfolio's performance not explained by movements of the market, or a portfolio's non-systematic risk. A positive alpha indicates the portfolio has performed better than its beta would predict. A negative alpha indicates a portfolio has underperformed, given the expectations established by the fund's beta. Alpha may be useful in analyzing a manager's specific contribution or value added to a portfolio's performance.

Annual Return - Total return per year from an investment, including dividends or interest and capital gains or losses but excluding commissions and other transaction costs and taxes.

Asset Allocation - The process of determining what proportions of your portfolio holdings are to be invested in the various asset classes.

Asset Class - A generalized term which broadly defines a category of potential investments.

Asset Mix - The percentage weightings (or mix) of different asset classes to be held in the portfolio. There may be separate asset mixes for the taxable and tax-deferred holdings in a portfolio.

Best Quarter - The highest single quarter return from a set of quarterly returns. Beta - A measure of the sensitivity of a portfolio to movements in the market. Consistency - The percentage of quarters (or months) that a portfolio achieved a rate

of return higher than that of its benchmark. The higher the consistency figure, the more value-added a manager has contributed to the portfolio's performance.

Downside Capture Ratio - A Measure of a portfolio's performance during a benchmark's period of negative performance.

Downside Risk - A similar measure to standard deviation, but focuses only on the negative movements of the return series. Calculated by taking the standard deviation of the negative quarterly (or monthly) set of returns. The higher the downside risk, the riskier the portfolio.

Excess Return - A portfolio's return in excess of a relative benchmark. Information Ratio - A similar measure to Sharpe Ratio, but focuses on the relative

rate of return per one relative unit of risk (where Sharpe Ratio focuses on the absolute).

Key Terms

Proxy - A holding representing the "best" fit for a particular asset class, when the actual holding is not available.

R-Squared - The percentage of a portfolio's performance explained by the behavior of the appropriate market benchmark. The higher the R-Squared, the closer the correlation of the portfolio's performance pattern to that of the appropriate market benchmark.

Return - The combined return from current yield and capital appreciation on an asset.Risk - The unpredictability of investment returns. The chance that the actual return

from an investment in an asset class will be different from its expected return. Risk is typically measured statistically using standard deviation.

Risk Adjusted Alpha - A portfolio's return in excess of what would be expected given the portfolio's beta.

Sharpe Ratio - A measure of a portfolio's absolute reward-to-risk. It determines the risk premium (return in excess of risk-free securities) per unit of total risk (standard deviation).

Standard Deviation - A statistical measure of the range of a portfolio's performance, the variability of a return around its average return over a specified time period.

Tracking Error - A measure of the standard deviation of a portfolio's performance relative to the performance of an appropriate market benchmark.

Treynor Ratio - Similar to Sharpe Ratio, but focuses on Beta rather than overall risk (standard deviation).

Upside Capture Ratio - A measure of a portfolio's performance during a benchmark's period of positive performance.

Worst Quarter - The lowest single quarter return from a set of quarterly returns.Yield - The current cash income received from investment in an asset. Bonds provide

yield in the form of interest payments and stocks through dividends.# of Negative Quarters - The number of quarters, from a set of quarterly returns,

where the quarters’ return is less than zero.

Key Terms cont.


Glossary cont.Key Terms Related to Indices

Benchmark - The weighted average of indices that represents the goals of a specific portfolio within the established investment policy. The benchmark is typically used to compare the success of a portfolio's performance against market movements that are representative of the portfolio's goals.

Index - Statistical composite that measures the ups and downs of stock, bond, and commodities markets, reflecting market prices and the number of shares outstanding for the companies in the index.

Russell 1000 Growth - The Russell 1000 Growth Index measures the Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values.

Russell 1000 Value - The Russell 1000 Value Index measures the Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values.

Russell MidCap - The Russell MidCap Index measures the performance of the 800 smallest companies in the Russell 1000 Index, which represents approximately 26% of the total market capitalization of the Russell 1000 Index. This index has a market capitalization range of $1.4 billion to $11.2 billion.

Russell 2000 - The Russell 2000 Index measures the 2000 smallest companies in the Russell 3000 Index, which represents approximately 10% of the total market capitalization of the Russell 3000 Index.

MSCI EAFE - The Morgan Stanley Capital International EAFE Index is a capitalization-weighted index that includes stocks traded on 16 exchanges in Europe, Australia, and the Far East.

ETF - Exchange Traded FundFUND - Mutual FundMM - Money MarketMP - Model PortfolioSAM - Separate Account Manager

Manager Types

Fixed IncomeFixed Income - Investments with specified payment dates and amounts, primarily

bonds. Risk will vary, depending on type, quality, and maturity of the security. Examples include bonds, debentures and mortgage-backed securities.

CashCash Equivalents - Investment of high liquidity and safety with a known market

value and a very short-term maturity. Examples are Treasury bills and money market funds.

EquitiesLarge Cap Stocks - Equity securities of large capitalization companies that have a

market capitalization of over $5 billion. These are large, relatively stable companies whose stock prices may not grow as fast as a smaller company.

Mid Cap Stocks - Equity securities of medium-sized capitalization companies. These stocks are chosen on the basis of median market size, good liquidity, and broad industry group representation.

Small Cap Stocks - Equity securities of small capitalization companies that have a market capitalization between $300 million and $2 billion. These are small, recently established companies whose stock prices will grow faster than mid cap companies.

InternationalInternational Equities - Equity securities issued by companies located in

developed countries throughout the world. This requires an investor to be alert to trends in foreign currencies as well as movements of foreign markets.

Emerging Market Equities - Equity securities issued by companies located in development state (emerging) countries throughout the world. This requires an investor to be alert to possibly illiquid markets and movements in foreign currencies.

OtherAlternative Investments - An investment category comprising of non-traditional

(stocks and bonds) investments. Alternative Investments can include futures & options (derivatives) as well as hedge fund investments and is considered riskier than traditional investments.

Asset Classes


DisclosurePlease be advised that nothing in this Investment Proposal shall constitute a binding contract, investment advice or be considered a substitute for a duly authorized Investment Advisory Agreement. This Investment Proposal is not intended to provide tax or legal advice. We recommend that you speak with a tax advisor regarding the tax implications of the recommendations made in any proposal prior to investing. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Diversifying investments does not ensure against market loss.

This Investment Proposal is not a solicitation. Before investing in any specific product, the prospectus or other applicable descriptive document should be reviewed carefully. This Investment Proposal is based upon information received from third parties, which is believed to be accurate, but no representation is made that the information provided is accurate and complete.

The charts and tables presented herein are for illustrative purposes only and should not be considered as the sole basis for your investment decision. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. There can be no assurance that the future performance of any specific investment or investment strategy made reference to in this Proposal will be profitable or equal any corresponding indicated historical performance level(s). Actual account results may differ from the performance shown herein and past performance is no guarantee of future results.

The historical index performance results are provided exclusively for comparison purposes only, so as to provide general comparative information to assist in determining whether the performance of a specific investment and/or investment allocation meets, or continues to meet, an individual investment objective(s). It should not be assumed that any account holdings will correspond directly to any comparative index reflected herein. These specific index asset allocation portfolios are not currently used in managing actual client assets, nor does the index allocation or specific manager allocation performance results reflect the actual results of any specific client portfolio.

Any blended index and manager portfolio data results reflect hypothetical, back-tested results and, as such, have inherent limitations, including: (1) the portfolio results do not reflect actual trading using client assets, but were achieved by means of the retroactive application of each of the referenced managers, certain aspects of which may have been designed with the benefit of hindsight; (2) back tested performance may not reflect the impact that any material market or economic factors might have had on the manager’s creation of or changes to the hypothetical portfolio if the portfolio had been used during the period to actually manage client assets; and, (3) actual clients may have experienced investment results during the corresponding time periods that were materially different from those portrayed in the portfolio. If this Investment Proposal contained no blending of index or managers performance, then the following discussion of blending results is not applicable.

Where the reflected hypothetical performance results (both index and specific managers) indicates that performance data is presented "gross of fees", the returns presented do not reflect the impact of the fees and expenses associated with the investment, the deduction of which would decrease hypothetical results. For example: an advisory fee of 1% compounded over a 10 year period would reduce a 10% return to an 8.9% annual return. Such fees and expenses may include, without limitation, a manager fee, an advisory fee, a platform fee, and commissions charged on transactions. Fees may vary by manager and client and the net effect of the deduction of fees on annualized performance varies over time depending on account size, time period and overall investment performance. The fees are disclosed in published fee schedules, which are available upon request. The hypothetical performance results illustrated in the Investment Proposal also do not reflect the impact of taxes.

Your client service agent and/or designated advisor will act as advisor to and on behalf of your account. The manager described herein and the other service providers involved with the program do not act as advisor or fiduciary to and on behalf of your account. The managers and other service providers involved with the program do not provide individualized discretionary advice. Your client service agent and/or designated advisor provides individualized investment advice and portfolio manager services using the non-discretionary investment recommendations (model portfolio) furnished by the manager to your client service agent and/or designated advisor. Administrative and/or technological requirements of your client service agent, and/or other factors, such as varying trade rotation practices of managers, affect the timing of delivery of such non-discretionary investment recommendations and may delay the review and implementation thereof by your client service agent with respect to your account. Such delay may adversely impact the management of your account and the performance of your


account relative to the manager's discretionary client account and other accounts managed using manager's non-discretionary investment recommendations. Trades that are placed by your client service agent may be more or less favorable than the prices obtained by the manager for its client accounts. Additionally, the delayed release and implementation of investment recommendations may, in certain circumstances, reduce or eliminate the information’s usefulness.

Different types of investments involve varying degrees of risk. The investment return and principal value of investment securities will fluctuate based on a variety of factors, including, but not limited to, the type of investment, changing market conditions, currency exchange differences, stability of financial and other markets, and diversification. No assurance can be given that capital market assumptions will prove to be correct, and the difference between assumptions and actual conditions could vary materially.

When comparing the performance of different managers, bear in mind that there may be differences in the investment styles of managers even though they may be grouped in the same asset class category. The choice of any money manager should not be based on performance alone. Other factors should be taken into consideration, including in your investment objective, risk tolerance and investment time horizon.

Disclosure cont.


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