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Firm – Growth Strategy

Historical Fundraising Focus:

Bank Clients: Great Lakes Region & Surrounding States

Bank Markets, TX, FL, CA

Large Institutional Consultants - Control large end of institutional market

Callan, Hewitt, Wilshire, NEPC, Russell, Meketa, Alan Biller, ACG, PCA, Buck, Bilkey Katz, Bogdahn, Cambridge, CTC, DeMarche, Ellwood, Summit, etc….

Top large competitors winning mandates: Blackrock, Vanguard, State Street Global. WAM is unknown. Firm must continue with large but also focus on midsize consultants

Future Fundraising Focus:

Midsize & Large Consultants

Midsize Consultants / RIAs / Third Parties

Twice as profitable environmentally &

socially responsible investment products

Direct Sales:

Insurers; Large captives

Large asset owners w/o consultants

2001

2003

2005

2007

2009

2011

2013

2015

0

5

10

15

20

Firm AUM (In Billions. Not Adjusted For Market

Movement)

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Firm – Future Focus / Institutional Markets

• Large Consultants:

• Have met, been reviewed and approved by the majority of their research teams, continue meetings where appropriate

• Loosing RFPs to larger competitors. Will continue to pursue opportunities, email consultants press releases of firm wins

• Midsize Consultants/RIAs/Third Parties:

• Identified, in my database, initial outreach completed. Firm manager review and approval in process

• 4 top midsize consultants/RIAs/third parties: all contacted, reviewing and in 2- 12 month manager approval process

• Once approved, will begin in person or conference calls with each team to promote the

use of the firm

• Anticipate $50-$300 Million each year from each firm and growing as they get to know the firm

• Investment Bank Affiliated – Assets Under Advisement = $234 Billion / 50 US Teams (1)

• Progress: 11 months into review process. Anticipate approval this month

• Bank Affiliated – Assets Under Advisement = $205 Billion / 24 US Teams (1)

• Investment Bank Affiliated – Assets Under Advisement = $105 Billion / 18 US Teams (1)

• Bank Affiliated – Asset Under Advisement = $58 Billion / 11 US Teams (1)

• Direct to Asset Owners:

• Insurers: Captives- Cross sell bank clients, CapTrust relationship, $117B / One Centralized Team

• Large Institutions: UPS, others not using consultants

• Institutional Market:• Passive Management: strong consistent growth in assets

• Differentiating Products: Socially Responsible / Environmental, Social, Governmental Investing – Strong Growth Areas

• Customized Management, Portfolio Manager Access1. Plan Sponsor Magazine / Research.

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The Firm: Consistent Fundraising = Increasingly Profitable Subsidiary

• The Firm Breakeven Calculation

• Fixed Costs: salaries, research, office space rent: to be analyzed and determined

• Cost cutting where possible

• Current Revenue Estimate: ($X.XB Firm AUM + Commingled Funds $X.XB) X Average Fee of XXbp

• Increasing Profit Margin, Once Breakeven Costs Covered

• Non interest rate related, non correlated (Bank Owned Firm)

• Long-term increasing revenue. Average account life 10 years

• Consistently Increase Firm Assets and Revenue

• Focus on higher revenue products; e.g. SRI, ESG and others

• Focus on successful channels and platforms, e.g. midsized consultants, direct to large asset owners

The Firm Estimated Expenses & Revenue in $ Millions (With Projections)

2015 2020 2025 2030 20350102030405060

RevenueBreakeven

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Firm Proprietary Database

Daily FTP download of index constituents from fixed income

index providers:Barclays

Merrill Lynch

Daily Morning Maintenance Process:Prices updated, corporate actions processed, cash flows

Index Verification:Reports created to validate index constituent data

When no discrepancies found, continue to next

step

If discrepancies found, update data in World

Asset database and re-run index verification

Morning Downloads:• Cash balance from custodians:

Bank & external custodians via Advent Portfolio Exchange™

• Daily prices via index provider• Corporate actions via custodian

interface

Constituent weightings are calculated and portfolios are reviewed to determine rebalancing trades

ESG Applications:(if applicable)

Environmental, Social &Governmentally responsible restrictions & screens applied, if elected

Trade Execution: Seek to obtain “best execution” on all securities transactions.

Ongoing Portfolio Review & Reporting:Daily review of client portfolio holdings and performance.

Reporting according to client specifications.

Potential Client Investment Review and RecommendationsWork within investment guidelines to best meet investment objectives

Initial:

Ongoing:

Detailed Firm Investment Process