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Unformatted text preview: Sample Investment Portfolio John and Jane Doe Presented by: The Rafiepour Investment Group UBS Financial Services Inc. August 22, 2011 About UBS As one of the world’s leading wealth managers, UBS is powerfully positioned to address the new realities of today’s global economy. Our focus, leadership and resources, delivered by dedicated and passionate professionals, are uniquely aligned to instill the trust and confidence that investors are seeking. Today, few other firms rival our 150-year tradition of providing exceptional wealth management. Our comprehensive yet customized approach to financial planning and industry-leading research are designed to meet the needs of our individual investors. The unique UBS approach to managing wealth − − − Research and education: UBS Wealth Management Research provides objective research and analysis to facilitate confident investment decisions Objective advice: Our open architecture platform offers a wide choice of both proprietary and nonproprietary products A boutique approach to wealth management: Our wealth managers are not financial generalists, but rather have expertise in the field of wealth management strategies and solutions are customized, one client at a time About this report This report is being provided as a service from UBS Financial Services Inc. The information, data, analyses and opinions contained herein: − − − − − − include confidential and proprietary information from Morningstar may include, or be derived from, account information provided by a UBS Financial Advisor which cannot be verified by Morningstar may not be copied or redistributed do not constitute investment advice offered by Morningstar are provided solely for informational purposes and therefore are not an offer to buy or sell a security are not warranted to be correct, complete or accurate Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature and if applicable, it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. UBS Financial Services Inc. is a subsidiary of UBS AG. Release date 09-30-2011 Page 1 of 44 Hypothetical Portfolio Illustration 07-31-2006 to 07-31-2011 Portfolio Summary Portfolio S&P 500 TR (USD) Net Amount Invested $200k 180 160 140 120 100 80 60 40 20 07-06 01-07 07-07 01-08 07-08 Planning Assumptions Currency Rebalance Annual Fee Paid USD None Sale of Shares 0% 0% 0% Out of Pocket Federal Income Tax Rate Capital Gain Tax Rate State Tax Rate Tax Paid Investment Detail Period 01-09 07-09 01-10 07-10 01-11 Performance Net Amount Invested Final Market Value Average Annualized Return Cumulative Return 0 $100,000 $158,745 9.81% 59.71% Beginning Balance Distribution/ Withdrawal Total Reinvest Charges & Fees Taxes Due Market Value Total Return % 0 Totals New Investment 100,000 0 32,303 8,997 0 158,745 9.81 July-December January-December January-December January-December 2006 2007 2008 2009 0 98,724 123,811 86,326 90,000 10,000 0 0 0 0 0 0 5,632 10,437 5,854 3,446 353 1,733 1,672 1,513 0 0 0 0 98,724 123,811 86,326 123,882 9.69 14.21 -30.28 43.50 January-December January-July 2010 2011 123,882 152,382 0 0 0 0 4,758 2,175 1,992 1,734 0 0 152,382 158,745 23.01 4.18 ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 Page 2 of 44 Hypothetical Portfolio Illustration Continued 07-31-2006 to 07-31-2011 Security Summary $200k % of Total Market Value 180 Start 07-31-2006 End 07-31-2011 160 140 120 100 80 60 40 20 07-06 01-07 07-07 01-08 07-08 01-09 07-09 01-10 07-10 0 01-11 Investment Assumptions Investment Name Holding Period Start End Initial Investment Amount Subsequent Invest/Withdwl Amount Freq Reinvest LiquiDistributions date Income Cap Gains Rebalance % Front Load Franklin Natural Resources A 07-06 07-11 (USD) Northern Income Equity (USD) 07-06 07-11 PIMCO Income A (USD) 03-07 07-11 RidgeWorth High Income A 07-06 07-11 (USD) Royce Premier Invmt (USD) 07-06 07-11 TCW Emerging Markets 07-06 07-11 Income N (USD) Templeton Global Bond A 07-06 07-11 (USD) Tocqueville Gold (USD) 07-06 07-11 Wells Fargo Advantage Emerg 07-06 07-11 Mkts Eq A (USD) Wells Fargo Advantage 07-06 07-11 Growth A (USD) 10,000 0 — Y Y 10,000 10,000 10,000 0 0 0 — — — Y Y Y 10,000 10,000 0 0 — — 10,000 0 10,000 10,000 10,000 Charges and Fees N — $0.00 1.50 0.00-0.00 — 14,730 Y Y Y N N N — — — $0.00 $0.00 $0.00 1.50 1.50 1.50 0.00-0.00 0.00-0.00 0.00-0.00 — — — 12,160 13,997 14,946 Y Y Y Y N N — — $0.00 $0.00 1.50 1.50 0.00-0.00 0.00-0.00 — — 14,335 16,712 — Y Y N — $0.00 1.50 0.00-0.00 — 16,381 0 0 — — Y Y Y Y N N — — $0.00 $0.00 1.50 1.50 0.00-0.00 0.00-0.00 — — 21,866 17,346 0 — Y Y N — $0.00 1.50 0.00-0.00 — 16,271 Annual Deferred Load Period Fee% Amount% Years ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Market Value End $ Release date 09-30-2011 Page 3 of 44 Portfolio Snapshot Portfolio Value $158,745 Benchmark S&P 500 TR (USD) Analysis 09-30-2011 Asset Allocation 4 6 22 2 4 8 Value 0 0 0 23 0 0 0 77 0 Low 28 Med 13 High 13 Ltd Mod Ext Core Growth 0-10 10-25 25-50 >50 Total Stock Holdings Morningstar Fixed Income Style Box % Small 0.00 99.82 0.18 0.00 0.00 Morningstar Equity Style Box % Mid 7.13 28.32 24.10 34.61 5.84 Cash US Stocks Non-US Stocks Bonds Other/Not Clsfd Bmark Net % Large Portfolio Net % 0-10 10-25 25-50 >50 492 Total Bond Holdings 2,731 Stock Analysis 09-30-2011 Stock Sectors World Regions Greater Asia Americas Greater Europe Def ens i ve e itiv s Sen Benchmark Portfolio Cyclical <25 25-50 50-75 >75% Not Classified: 0.02% % of Stocks h Cyclical Portfolio % 46.99 Bmark % 26.81 r t y u Basic Matls Consumer Cycl Financial Svs Real Estate 30.72 8.59 6.80 0.88 3.06 9.36 12.61 1.78 j Sensitive 43.32 45.15 i o p a Commun Svs Energy Industrials Technology 4.47 18.57 9.13 11.15 4.47 11.49 11.62 17.57 k Defensive 9.67 28.04 s Consumer Def d Healthcare f Utilities 4.95 4.44 0.28 12.20 11.94 3.90 Not Classified 0.02 0.00 % of Stocks Portfolio % Bmark % Greater Europe 8.73 0.16 United Kingdom Europe-Developed Europe-Emerging Africa/Middle East 1.72 1.91 1.21 3.89 0.00 0.16 0.00 0.00 Americas 79.31 99.84 North America Latin America 73.35 5.96 99.84 0.00 Greater Asia 11.94 0.00 Japan Australasia Asia-Developed Asia-Emerging 0.00 1.14 4.51 6.29 0.00 0.00 0.00 0.00 Not Classified 0.02 0.00 ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 Page 4 of 44 Portfolio Snapshot Portfolio Value $158,745 Benchmark S&P 500 TR (USD) Performance 07-31-2011 Investment Activity Graph Portfolio Benchmark Final Mkt Val: $158,745 $185k 155 125 95 65 35 07-06 01-07 07-07 01-08 07-08 01-09 07-09 01-10 07-10 01-11 Trailing Returns 3 Mo 1 Yr 3 Yr 5 Yr 10 Yr Portfolio Return Benchmark Return +/- Benchmark Return -2.88 -4.76 1.88 21.63 19.65 1.98 10.54 2.92 7.62 9.81 2.21 7.60 — — — Best/Worst Time Periods Best % 3 Months 1 Year 3 Years 24.55 ( Mar 2009-May 2009 ) -28.85 ( Sep 2008-Nov 2008 ) 51.18 ( Mar 2009-Feb 2010 ) -34.49 ( Nov 2007-Oct 2008 ) 10.54 ( Aug 2008-Jul 2011 ) 1.97 ( Jul 2007-Jun 2010 ) Portfolio Yield ( 09-30-2011 ) Worst % Yield % 12-Month Yield 2.95 Performance Disclosure The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate thus an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please visit http://advisor.morningstar.com/familyinfo.asp. See Disclosure Page for Standardized Returns. Risk Analysis 07-31-2011 Risk/Reward Scatterplot Portfolio Holdings Bmark 5 Year Mean Performance History Graph Portfolio Quarterly returns +/- Benchmark in % 36.80 20.0 32.20 15.0 27.60 23.00 10.0 18.40 13.80 5.0 9.20 4.60 Bmark 0.00 -5.0 -4.60 -9.20 -3.0 -0.1 2.8 5.7 8.6 11.5 14.4 17.3 20.2 23.1 26.0 28.9 31.8 34.7 37.6 2006 2007 2008 2009 2010 2011 -10.0 5 Year Standard Deviation Risk and Return Statistics Standard Deviation Mean Sharpe Ratio 3 Yr Portfolio Bmark 18.33 21.24 10.54 2.92 0.66 0.24 5 Yr Portfolio 10 Yr Bmark Portfolio 15.44 17.91 9.81 2.21 0.61 0.13 — — — — — — MPT Statistics 3 Yr Portfolio 5 Yr Portfolio 10 Yr Portfolio 7.75 0.77 80.03 7.31 0.74 74.34 — — — Bmark Alpha Beta R-Squared ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 Page 5 of 44 Portfolio Snapshot Portfolio Value $158,745 Benchmark S&P 500 TR (USD) Fundamental Analysis 09-30-2011 Asset Allocation Portfolio Net % Portfolio Long % Portfolio Short % 7.13 28.32 24.10 34.61 5.84 12.45 28.32 24.10 35.63 5.85 5.32 0.00 0.00 1.02 0.01 100.00 106.35 6.35 Cash US Stocks Non-US Stocks Bonds Other/Not Clsfd -100 -50 Type Weightings % of Stocks n High Yield b Distressed v Hard Asset m Cyclical x Slow Growth z Classic Growth l Aggressive Growth c Speculative Growth Not Available 0 50 100 Portfolio Bmark 0.61 0.66 16.10 25.48 2.55 0.99 8.49 2.72 42.40 Total 4.62 0.22 12.64 41.40 14.80 2.79 19.56 1.98 2.01 0% Market Maturity % of Stocks Developed Markets Emerging Markets Not Available Valuation Multiples Price/Earnings Price/Book Price/Sales Price/Cash Flow Profitability % of Stocks Net Margin ROE ROA Debt/Capital Portfolio Bmark 82.98 100.00 17.00 0.00 0.02 0.00 Portfolio Bmark 16.91 2.37 1.86 10.49 12.54 1.82 1.14 8.06 Portfolio Bmark 2011-09 2011-09 15.73 14.84 7.30 21.18 13.84 23.05 9.50 34.31 5 10 15 20 25 30 40 45 50 Geometric Avg Capitalization ($Mil) Portfolio Benchmark 9,931.12 44,984.68 Credit Quality Breakdown % of Bonds AAA AA A BBB BB B Below B NR/NA Interest Rate Risk Avg Eff Maturity Avg Eff Duration (total portfolio) Avg Credit Quality Avg Wtd Coupon Fund Statistics Potential Cap Gains Exposure Avg Net Expense Ratio Avg Gross Expense Ratio 35 5.69 1.19 1.22 ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 19.17 2.39 11.09 15.04 19.01 26.37 5.86 1.07 Portfolio 7.23 4.22 — 7.02 Release date 09-30-2011 Page 6 of 44 Holdings 09-30-2011 Top 5 holdings out of 10 Symbol Type Holding Value $ % Assets Tocqueville Gold (USD) Wells Fargo Advantage Emerg Mkts Eq A (USD) TCW Emerging Markets Income N (USD) Templeton Global Bond A (USD) Wells Fargo Advantage Growth A (USD) TGLDX EMGAX TGINX TPINX SGRAX MF MF MF MF MF 21,866 17,346 16,712 16,381 16,271 13.77 10.93 10.53 10.32 10.25 ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 Page 7 of 44 Portfolio Snapshot Portfolio Value $158,745 Benchmark S&P 500 TR (USD) Standardized and Tax Adjusted Returns The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end please visit http://advisor.morningstar.com/familyinfo.asp An investment in a money-market vehicle is not insured or guaranteed by the FDIC or any other government agency. The current yield quotation reflects the current earnings of the money market more closely than the total return quotation. Although money markets seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in them. Standardized Returns assume reinvestment of dividends and capital gains. They depict performance without adjusting for the effects of taxation, but are adjusted to reflect sales charges and ongoing fund expenses. If adjusted for taxation, the performance quoted would be significantly reduced. For variable annuities, additional expenses will be taken into account, including M&E risk charges, fund-level expenses such as management fees and operating fees, contract-level administration fees, and charges such as surrender, contract, and sales charges. After-tax returns are calculated using the highest individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their fund shares through tax-deferred arrangements such as 401(k) plans or an IRA. After-tax returns exclude the effects of either the alternative minimum tax or phase-out of certain tax credits. Any taxes due are as of the time the distributions are made, and the taxable amount and tax character of each distribution are as specified by the fund on the dividend declaration date. Due to foreign tax credits or realized capital losses, after-tax returns may be greater than before-tax returns. After-tax returns for exchange-traded funds are based on net asset value. Annualized returns 09-30-2011 Standardized Returns (%) 7-day Yield — — — — — 1Yr 5Yr 10Yr 10.89 5.69 — — 11.10 Since Inception 9.58 7.38 8.02 7.10 11.54 Inception Date 06-05-1995 03-31-1994 03-30-2007 10-27-2003 12-31-1991 Max Front Load % 5.75 NA 3.75 4.75 NA Max Back Load % NA NA NA NA NA Gross Exp Ratio % 1.02 1.23 0.96 1.01 1.12 -12.62 0.69 2.07 -3.64 2.27 2.88 2.34 — 6.08 5.02 TCW Emerging Markets Income N (USD) Templeton Global Bond A (USD) Tocqueville Gold (USD) Wells Fargo Advantage Emerg Mkts Eq A (USD) Wells Fargo Advantage Growth A (USD) — — — -1.83 -6.49 -2.59 9.50 8.89 16.81 — 10.60 25.05 9.32 8.04 20.69 03-01-2004 09-18-1986 06-29-1998 NA 4.25 NA NA NA NA 1.25 0.93 1.35 — -14.86 6.81 17.70 7.35 09-06-1994 5.75 NA 1.84 BarCap US Agg Bond TR USD BarCap US Universal TR USD BofAML US HY Master II TR USD BofAML USD LIBOR 3 Mon CM Citi ESBI Capped Brady USD — 5.01 6.90 6.64 -1.74 02-24-2000 5.75 NA 1.29 — — — — — 5.26 4.77 1.32 0.27 — 6.53 6.40 6.94 2.45 — 5.66 5.88 8.58 2.44 — — — — — — — — — — — Citi WGBI NonUSD USD Morningstar Moderate Target Risk Morningstar Moderately Aggr Target Risk MSCI EAFE NR USD MSCI EM NR USD — — 4.14 — 7.77 — 7.97 — — — — — Franklin Natural Resources A (USD) Northern Income Equity (USD) PIMCO Income A (USD) RidgeWorth High Income A (USD) Royce Premier Invmt (USD) — — — — — — — — -9.36 -16.15 -3.46 4.87 5.03 16.07 — — — — MSCI World/Metals&Mining USD Russell 1000 Growth TR USD Russell Mid Cap Growth TR USD S&P 500 TR S&P North American Natural Resources TR — — — — -17.30 3.78 0.80 1.14 1.62 1.62 1.64 -1.18 13.30 3.01 6.70 2.82 — — — — — — — — — -1.63 3.18 10.10 — — USTREAS T-Bill Auction Ave 3 Mon — 0.09 1.57 1.96 — — Return after Tax (%) On Distribution On Distribution and Sales of Shares 1Yr Franklin Natural Resources A (USD) 5Yr 10Yr -13.13 1.69 10.07 Since Inception Inception Date 1Yr 5Yr 10Yr Since Inception 8.82 06-05-1995 -8.12 2.02 9.39 8.30 ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 Page 8 of 44 Annualized returns 09-30-2011 Return after Tax (%) On Distribution On Distribution and Sales of Shares Since Inception 5.30 5.71 3.87 10.40 Inception Date 03-31-1994 03-30-2007 10-27-2003 12-31-1991 1Yr 5Yr 10Yr 0.49 1.34 -2.22 1.79 1.39 — 3.30 4.15 4.17 — — 9.70 Since Inception 5.29 5.46 4.16 9.94 1Yr 5Yr 10Yr Northern Income Equity (USD) PIMCO Income A (USD) RidgeWorth High Income A (USD) Royce Premier Invmt (USD) 0.04 -0.20 -5.98 2.06 1.06 — 2.95 4.27 4.19 — — 10.37 TCW Emerging Markets Income N (USD) Templeton Global Bond A (USD) Tocqueville Gold (USD) Wells Fargo Advantage Emerg Mkts Eq A (USD) Wells Fargo Advantage Growth A (USD) -4.42 -8.23 -2.86 6.72 6.62 15.59 — 8.35 24.04 7.48 03-01-2004 5.44 09-18-1986 19.94 06-29-1998 -1.08 -4.17 -1.25 6.56 6.28 14.30 — 7.88 22.69 7.06 5.31 18.92 -14.86 5.00 16.45 6.62 09-06-1994 -9.66 5.24 15.66 6.32 5.01 6.90 6.63 -2.21 02-24-2000 3.26 5.98 5.85 -1.72 ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 Page 9 of 44 Portfolio Snapshot Portfolio Value $158,745 Benchmark S&P 500 TR (USD) Illustration Returns Total 10 holdings as of 07-31-2011 Symbol Type Holdings Date % of Assets Holding Value $ 7-day Yield 1 Yr Ret % 3 Yr Ret % 5 Yr Ret % 10 Yr Ret % Tocqueville Gold (USD) Wells Fargo Advantage Emerg Mkts Eq A (USD) TCW Emerging Markets Income N (USD) Templeton Global Bond A (USD) Wells Fargo Advantage Growth A (USD) TGLDX MF 06-2011 13.77 21,866 — 32.55 24.47 16.93 — EMGAX MF 08-2011 10.93 17,346 — 17.96 6.56 11.64 — TGINX TPINX SGRAX MF MF MF 08-2011 06-2011 08-2011 10.53 10.32 10.25 16,712 16,381 16,271 — — — 13.80 9.89 35.38 15.45 11.78 10.81 10.81 10.37 10.22 — — — RidgeWorth High Income A (USD) Franklin Natural Resources A (USD) Royce Premier Invmt (USD) PIMCO Income A (USD) Northern Income Equity (USD) SAHIX FRNRX RYPRX PONAX NOIEX MF MF MF MF MF 08-2011 06-2011 06-2011 06-2011 09-2011 9.42 9.28 9.03 8.82 7.66 14,946 14,730 14,335 13,997 12,160 — — — — — 14.58 41.47 29.24 10.98 15.38 11.91 2.01 5.98 11.74 4.38 8.36 8.05 7.46 — 3.99 — — — — — Performance Disclosure The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate thus an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please visit http://advisor.morningstar.com/familyinfo.asp. See Disclosure Page for Standardized Returns. ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 Page 10 of 44 Stock Intersection This Stock Detail table shows how the top 25 net stock holdings are distributed across the portfolio, ranked by the percentage of portfolio net assets.The Portfolio Date is the date that the fund's portfolio was last updated. When making comparisons among funds, it is an important date to keep in mind. It is possible that a fund's portfolio could be up to eight months old at the time of publication. See disclosures for more information. Stock Details % of Investments Stock Ticker/ISIN Osisko Mining Corporation(CAD) OSK 0.77 Tocqueville Gold (USD) Franklin Natural Resources A (USD) TGLDX FRNRX 0.71 0.06 Goldcorp, Inc.(CAD) G 0.75 Tocqueville Gold (USD) TGLDX 0.75 Ivanhoe Mines Ltd(CAD) IVN 0.75 Tocqueville Gold (USD) Franklin Natural Resources A (USD) TGLDX FRNRX 0.71 0.04 Apple, Inc.(USD) AAPL 0.67 Wells Fargo Advantage Growth A (USD) SGRAX 0.67 Newmont Mining Corporation(USD) NEM 0.52 Tocqueville Gold (USD) TGLDX 0.52 Randgold Resources, Ltd. ADR(USD) GOLD 0.50 Tocqueville Gold (USD) Franklin Natural Resources A (USD) TGLDX FRNRX 0.40 0.09 Silver Wheaton Corporation(CAD) SLW 0.49 Tocqueville Gold (USD) TGLDX 0.49 Gold Resource Corp(USD) GORO 0.47 Tocqueville Gold (USD) TGLDX 0.47 Schlumberger NV(USD) SLB 0.47 FRNRX SGRAX 0.32 0.16 Holding Portfolio Date Sector r Basic Materials Source of Stock 06-30-11 06-30-11 r Basic Materials Source of Stock 06-30-11 r Basic Materials Source of Stock 06-30-11 06-30-11 a Technology Source of Stock 08-31-11 r Basic Materials Source of Stock 06-30-11 r Basic Materials Source of Stock 06-30-11 06-30-11 r Basic Materials Source of Stock 06-30-11 r Basic Materials Source of Stock 06-30-11 o Energy Source of Stock Franklin Natural Resources A (USD) Wells Fargo Advantage Growth A (USD) China Mobile Ltd. ADR 06-30-11 08-31-11 0.46 Source of Stock Wells Fargo Advantage Emerg Mkts Eq A (USD) EMGAX 0.46 Pan American Silver Corporation(CAD) PAA 0.44 Tocqueville Gold (USD) Royce Premier Invmt (USD) TGLDX RYPRX 0.26 0.18 Chevron Corp(USD) CVX 0.42 FRNRX 0.42 08-31-11 r Basic Materials Source of Stock 06-30-11 06-30-11 o Energy Source of Stock Franklin Natural Resources A (USD) 06-30-11 ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 Page 11 of 44 Stock Intersection Stock Details % of Investments Stock Ticker/ISIN Occidental Petroleum Corporation(USD) OXY 0.41 Franklin Natural Resources A (USD) Northern Income Equity (USD) FRNRX NOIEX 0.28 0.12 IAMGold Corporation(CAD) IMG 0.39 Tocqueville Gold (USD) Franklin Natural Resources A (USD) TGLDX FRNRX 0.35 0.05 Devon Energy Corp(USD) DVN 0.38 Franklin Natural Resources A (USD) Northern Income Equity (USD) FRNRX NOIEX 0.30 0.08 Royal Gold, Inc.(USD) RGLD 0.37 Tocqueville Gold (USD) TGLDX 0.37 Halliburton Company(USD) HAL 0.36 Franklin Natural Resources A (USD) FRNRX 0.36 SINA Corporation(USD) SINA 0.36 Wells Fargo Advantage Emerg Mkts Eq A (USD) EMGAX 0.36 Barrick Gold Corporation(CAD) ABX 0.35 Tocqueville Gold (USD) Franklin Natural Resources A (USD) TGLDX FRNRX 0.30 0.05 ATAC Resources Ltd.(CAD) ATC 0.35 Tocqueville Gold (USD) TGLDX 0.35 Franco-Nevada Corp(CAD) FNV 0.33 Tocqueville Gold (USD) TGLDX 0.33 Buenaventura Mining Company Inc. ADR(USD) BVN 0.32 Tocqueville Gold (USD) Wells Fargo Advantage Emerg Mkts Eq A (USD) TGLDX EMGAX 0.20 0.12 AngloGold Ashanti Limited ADR(USD) AU 0.32 Tocqueville Gold (USD) Wells Fargo Advantage Emerg Mkts Eq A (USD) Franklin Natural Resources A (USD) TGLDX EMGAX FRNRX 0.15 0.13 0.04 Exxon Mobil Corporation(USD) XOM 0.32 Franklin Natural Resources A (USD) FRNRX 0.32 New Gold, Inc.(CAD) NGD 0.31 TGLDX 0.31 Holding Portfolio Date Sector o Energy Source of Stock 06-30-11 09-30-11 r Basic Materials Source of Stock 06-30-11 06-30-11 o Energy Source of Stock 06-30-11 09-30-11 r Basic Materials Source of Stock 06-30-11 o Energy Source of Stock 06-30-11 a Technology Source of Stock 08-31-11 r Basic Materials Source of Stock 06-30-11 06-30-11 r Basic Materials Source of Stock 06-30-11 r Basic Materials Source of Stock 06-30-11 r Basic Materials Source of Stock 06-30-11 08-31-11 r Basic Materials Source of Stock 06-30-11 08-31-11 06-30-11 o Energy Source of Stock 06-30-11 r Basic Materials Source of Stock Tocqueville Gold (USD) 06-30-11 ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 Page 12 of 44 Total Return Currency 01-01-2006 to 09-30-2011 USD Total Return % 196.0 168.0 140.0 112.0 84.0 56.0 28.0 0.0 -28.0 -56.0 2006 2007 Securities 2008 2009 2010 -84.0 YTD 2006 2007 2008 2009 2010 YTD Franklin Natural Resources A(USD,FRNRX) Northern Income Equity(USD,NOIEX) PIMCO Income A(USD,PONAX) RidgeWorth High Income A(USD,SAHIX) Royce Premier Invmt(USD,RYPRX) 14.24 18.26 — 12.08 8.81 38.87 5.43 — 2.74 12.73 -51.18 -30.82 -5.95 -27.68 -28.29 62.34 32.20 18.64 61.28 33.25 30.12 15.99 19.96 17.06 26.46 -24.07 -7.09 4.74 -4.17 -11.55 TCW Emerging Markets Income N(USD,TGINX) Templeton Global Bond A(USD,TPINX) Tocqueville Gold(USD,TGLDX) Wells Fargo Advantage Emerg Mkts Eq A(USD,EMGAX) Wells Fargo Advantage Growth A(USD,SGRAX) 7.73 13.51 39.24 46.21 4.03 10.86 12.42 33.47 -12.66 6.28 -34.94 -47.61 44.57 18.86 86.60 72.85 20.75 12.68 53.33 22.21 -3.89 -3.50 -13.55 -17.06 7.96 27.61 -40.39 47.50 26.26 -1.75 Performance Disclosure The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate thus an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please visit http://advisor.morningstar.com/familyinfo.asp. ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 Page 13 of 44 Franklin Natural Resources A (USD) Overall Morningstar RtgTM Investment Detail QQQ 118 US OE Natural Res Standard Index Category Index S&P 500 TR S&P North American US OE Natural Res Natural Resources TR 5 2 5 2 4 7 7 4 4 7 4 84 85 93 95 95 95 98 95 92 92 Investment Style Equity 7 88 Morningstar Cat 98 Stock % 100k 80k 60k 40k Growth of $10,000 Franklin Natural Resources A 29,812 20k 10k 4k * ) ( ( * ( * * ( & & Category Average 27,893 Standard Index 9,552 _ Performance Quartile (within category) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 09-11 History 18.70 34.82 43.92 19.03 37 73 15.20 -16.70 -4.81 -1.11 79 77 14.36 -5.24 16.86 7.74 50 82 17.93 24.98 -3.71 -9.42 69 97 23.53 31.23 20.35 6.65 28 110 31.21 37.50 32.58 0.89 60 138 33.28 14.24 -1.56 -2.61 44 156 42.89 38.87 33.38 4.44 47 187 19.39 -51.18 -14.18 -8.63 65 221 31.04 62.34 35.88 24.80 22 137 39.72 30.12 15.06 6.24 5 130 30.16 -24.07 -15.39 -5.16 — 142 NAV/Price Total Return % +/- Standard Index +/- Category Index % Rank Cat No. of Funds in Cat Performance 09-30-2011 Quarterly Returns 2009 2010 2011 Trailing Returns Risk and Return Profile 1st Qtr 2.84 3.61 12.11 2nd Qtr 23.52 -13.81 -6.11 3rd Qtr 19.16 19.34 -27.86 4th Qtr 3 Yr 118 funds 5 Yr 71 funds 10 Yr 38 funds Morningstar Rating Morningstar Risk Morningstar Return 3Q +Avg Avg 3Q +Avg Avg 2Q Avg -Avg 3 Yr 5 Yr 10 Yr Standard Deviation Mean Sharpe Ratio 32.44 0.81 0.19 30.58 4.11 0.24 25.95 11.55 0.48 Total % 7.25 22.10 — 62.34 30.12 -24.07 1 Yr 3 Yr 5 Yr 10 Yr Incept -12.62 -12.62 -7.29 -1.16 — 0.81 2.88 2.88 4.11 10.89 10.89 11.55 9.58 9.58 9.97 -8.43 -5.66 -0.42 1.46 5.29 0.93 8.74 1.45 — — 41 30 20 62 No. in Cat 135 118 71 38 7-day Yield — TM Load-adj Mthly Std 09-30-2011 Total Return +/- Std Index +/- Cat Index % Rank Cat Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 800632-2301 or visit www.franklintempleton.com. MPT Statistics Alpha Beta R-Squared 12-Month Yield 30-day SEC Yield Potential Cap Gains Exp Standard Index Best Fit Index 1.73 1.33 75.51 — — — — — -3.50% Fees and Expenses Sales Charges Front-End Load % Deferred Load % Fund Expenses 5.75 NA Management Fees % 12b1 Expense % Gross Expense Ratio % ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 0.47 0.30 1.02 ® ß Release date 09-30-2011 Page 14 of 44 Franklin Natural Resources A (USD) Overall Morningstar RtgTM Investment Detail QQQ 118 US OE Natural Res Standard Index Category Index S&P 500 TR S&P North American US OE Natural Res Natural Resources TR Morningstar Cat Performance 09-30-2011 Long % Short % Mid Small 0.00 Large 0.00 0.00 0.00 0.00 0.00 100.00 100.00 Total 1.09 69.62 28.39 0.00 0.90 Low 1.09 69.62 28.39 0.00 0.90 Med Net % Cash US Stocks Non-US Stocks Bonds Other/Not Clsfd High Composition % Value Blend Growth Ltd P/E Ratio TTM P/C Ratio TTM P/B Ratio TTM Geo Avg Mkt Cap $mil Rel Index Rel Cat Fixed-Income Style 17.6 8.8 2.2 18411 1.40 1.09 1.19 0.41 1.25 1.07 1.11 1.00 Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon Avg Wtd Price Top Holdings — — — — — Credit Quality Breakdown Share Chg Share since 03-2011 Amount 119 Total Stocks 0 Total Fixed-Income 24% Turnover Ratio % Net Assets T 649,000 1 mil 630,000 586,004 618,000 Chevron Corp Halliburton Company Exxon Mobil Corporation Schlumberger NV Devon Energy Corp T T Y T T 436,000 564,000 1 mil 413,000 392,000 Occidental Petroleum Corporation Anadarko Petroleum Corp Petrohawk Enery Corp SM Energy Co Hess Corp 3.05 2.91 2.18 2.04 1.97 T T T Y T 503,900 231,000 533,000 1 mil 409,000 Total SA ADR Apache Corporation Cameron International Corporation Weatherford International Ltd Peabody Energy Corporation 1.96 1.92 1.80 1.71 1.62 Sector Weightings h r t y u Ext Port Avg Equity Style T Y T Mod 4.48 3.92 3.44 3.40 3.27 Stocks % Rel Std Index Cyclical Basic Materials Consumer Cyclical Financial Services Real Estate 24.0 24.0 0.0 0.0 0.0 0.90 7.84 0.00 0.00 0.00 Bond % AAA AA A — — — BBB BB B Below B — — — — NR/NA — Regional Exposure Stock % Rel Std Index 81.9 13.1 5.0 0.82 80.63 — Americas Greater Europe Greater Asia Stocks % Rel Std Index j i o p a Sensitive Communication Services Energy Industrials Technology 75.2 0.2 72.9 1.4 0.7 Ticker: Minimum Initial Purchase: Min Auto Investment Plan: Minimum IRA Purchase: Purchase Constraints: FRNRX $1,000 $50 $250 — 1.66 0.05 6.34 0.12 0.04 Stocks % Rel Std Index k s d f Defensive Consumer Defensive Healthcare Utilities 0.8 0.7 0.0 0.1 0.03 0.06 0.00 0.04 Operations Family: Manager: Tenure: Objective: Base Currency: Franklin Templeton Investment Fds Multiple 12.5 Years Specialty - Natural Resources USD Incept: Type: Total Assets: ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 06-05-1995 MF $1,050.49 mil ® ß Release date 09-30-2011 Page 15 of 44 Northern Income Equity (USD) Overall Morningstar RtgTM Investment Detail QQQ 842 US OE Moderate Allocation Standard Index Category Index Morningstar Cat Morningstar Morningstar Moderate Target Risk Moderately Aggr Target Risk 4 1 0 1 1 1 1 1 1 1 1 32 17 16 40 53 50 55 60 59 60 Investment Style Equity 1 24 US OE Moderate Allocation 54 Stock % 100k 80k 60k 40k Growth of $10,000 Northern Income Equity 17,216 20k Category Average 12,786 10k Standard Index 16,809 4k _ _ _ _ _ _ _ ( ( & & _ Performance Quartile (within category) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 09-11 History 11.71 6.67 4.99 7.88 — — 11.10 -2.00 0.46 4.57 — — 10.25 -4.48 2.21 7.81 — — 11.82 20.12 -2.36 -9.02 — — 12.27 10.37 -1.11 -3.70 — — 11.64 5.85 -1.19 -2.99 — — 12.92 18.26 5.31 2.27 — — 12.52 5.43 -3.20 -3.51 58 1103 8.31 -30.82 -8.63 -0.17 72 1206 10.72 32.20 10.42 4.64 9 1177 12.15 15.99 3.58 1.01 4 1074 11.13 -7.09 -2.19 1.56 — 962 NAV/Price Total Return % +/- Standard Index +/- Category Index % Rank Cat No. of Funds in Cat Performance 09-30-2011 Quarterly Returns 2009 2010 2011 Trailing Returns Risk and Return Profile 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr -6.28 4.35 7.55 15.11 -7.46 -1.29 15.19 10.84 -12.48 6.38 8.37 — 32.20 15.99 -7.09 3 Yr 842 funds 1 Yr 3 Yr 5 Yr 10 Yr Incept Load-adj Mthly Std 09-30-2011 Total Return 0.69 0.69 0.69 5.17 — 5.17 2.34 2.34 2.34 5.69 5.69 5.69 7.38 7.38 7.38 +/- Std Index +/- Cat Index -0.34 1.37 0.35 1.62 -0.66 0.76 -0.61 -0.54 — — 29 12 18 7 No. in Cat 952 842 706 381 7-day Yield — TM Morningstar Rating Morningstar Risk Morningstar Return % Rank Cat Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 800595-9111 or visit www.northernfunds.com. Standard Deviation Mean Sharpe Ratio MPT Statistics Alpha Beta R-Squared 12-Month Yield 30-day SEC Yield Potential Cap Gains Exp 5 Yr 706 funds 10 Yr 381 funds 3Q High +Avg 3Q High +Avg 4Q +Avg +Avg 3 Yr Total % 5 Yr 10 Yr 18.94 5.17 0.35 16.12 2.34 0.13 12.54 5.69 0.35 Standard Index Best Fit Index — — — — — — 2.04% 2.29% -6.11% Fees and Expenses Sales Charges Front-End Load % Deferred Load % Fund Expenses NA NA Management Fees % 12b1 Expense % Gross Expense Ratio % ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 0.85 NA 1.23 ® ß Release date 09-30-2011 Page 16 of 44 Northern Income Equity (USD) Overall Morningstar RtgTM Investment Detail QQQ 842 US OE Moderate Allocation Standard Index Category Index Morningstar Cat Morningstar Morningstar Moderate Target Risk Moderately Aggr Target Risk US OE Moderate Allocation Performance 09-30-2011 Small 0.00 Mid 0.00 0.00 0.00 0.00 0.00 100.00 100.00 Total 8.48 51.66 4.97 0.82 34.07 Low 8.48 51.66 4.97 0.82 34.07 Med Cash US Stocks Non-US Stocks Bonds Other/Not Clsfd Long % Short % High Net % Large Composition % 06-302011 Value Blend Growth Ltd Rel Index Rel Cat Fixed-Income Style 12.9 7.4 1.6 34155 0.99 0.97 0.98 1.65 0.94 0.86 0.89 0.96 Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon Avg Wtd Price — — — 3.42 107.88 Credit Quality Breakdown P/E Ratio TTM P/C Ratio TTM P/B Ratio TTM Geo Avg Mkt Cap $mil Bond % Top Holdings Share Chg Share since 06-2011 Amount 50 Total Stocks 1 Total Fixed-Income 19% Turnover Ratio % Net Assets 33 mil 6 mil 3 mil 6 mil 5 mil Northern Institutional Divers Asse Caci Intl Cv 2.125% United Rentals Cv 4% Tyson Foods Cv 3.25% Newmont Mng Cv 1.625% 69,000 124,000 5 mil 60,000 6 mil 3M Co Marathon Oil Corp Regis Corp Minn Cv 5% Occidental Petroleum Corporation Intel Cv 2.95% 1.70 1.70 1.64 1.62 1.61 95,000 6 mil 120,000 6 mil 6 mil Great Plains Engy Pfd Old Rep Intl Cv 8% Eaton Corp Amer Eqty Invt Life Hld Cv 5.25% Fifth Str Fin 144A Cv 5.375% 1.61 1.61 1.60 1.60 1.59 T Sector Weightings h r t y u Stocks % Rel Std Index Cyclical Basic Materials Consumer Cyclical Financial Services Real Estate Operations Family: Manager: Tenure: Objective: Base Currency: Ext Port Avg Equity Style R Mod 25.9 3.3 7.8 13.1 1.7 Northern Funds Jackie Benson 4.6 Years Convertible Bond USD 0.72 0.46 0.79 0.85 0.48 8.48 1.98 1.93 1.91 1.73 AAA AA A — — — BBB BB B Below B — — — — NR/NA — Regional Exposure Stock % Rel Std Index 93.4 6.6 0.0 1.27 0.48 0.00 Americas Greater Europe Greater Asia Stocks % Rel Std Index j i o p a Sensitive Communication Services Energy Industrials Technology 39.6 6.2 11.7 15.6 6.2 Ticker: Minimum Initial Purchase: Min Auto Investment Plan: Minimum IRA Purchase: Purchase Constraints: NOIEX $2,500 $250 $500 — 0.97 1.30 1.03 1.25 0.50 Stocks % Rel Std Index k s d f Defensive Consumer Defensive Healthcare Utilities Incept: Type: Total Assets: ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 34.4 14.9 17.9 1.6 1.49 1.61 1.98 0.34 03-31-1994 MF $336.92 mil ® ß Release date 09-30-2011 Page 17 of 44 PIMCO Income A (USD) Overall Morningstar RtgTM Investment Detail QQQQQ 217 US OE Multisector Bond Standard Index Category Index Morningstar Cat BarCap US Agg Bond BarCap US Universal TR USD TR USD 0 0 0 0 0 0 0 6 2 5 0 — — — — — — 49 87 91 84 Investment Style Fixed-Income 0 — US OE Multisector Bond 82 Bond % 100k 80k 60k 40k Growth of $10,000 PIMCO Income A 14,709 20k Category Average 12,115 10k Standard Index 13,349 4k _ _ _ _ _ _ _ _ & ) & _ Performance Quartile (within category) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 09-11 History — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — 10.08 — — — — — 8.91 -5.95 -11.19 -8.33 7 215 9.84 18.64 12.71 10.03 84 242 11.04 19.96 13.42 12.80 1 268 11.12 4.74 -1.90 -1.13 — 316 NAV/Price Total Return % +/- Standard Index +/- Category Index % Rank Cat No. of Funds in Cat Performance 09-30-2011 Quarterly Returns 2009 2010 2011 Trailing Returns Risk and Return Profile 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr -2.57 5.22 3.89 7.44 4.65 1.39 9.48 7.60 -0.56 3.52 1.24 — 18.64 19.96 4.74 3 Yr 217 funds 1 Yr 3 Yr 5 Yr 10 Yr Incept Load-adj Mthly Std 09-30-2011 Total Return 2.07 2.07 6.04 12.16 — 13.60 — — — — — — 8.02 8.02 8.95 +/- Std Index +/- Cat Index 0.78 1.27 5.63 5.43 — — — — — — 3 9 — — No. in Cat 291 217 — — 7-day Yield — TM Morningstar Rating Morningstar Risk Morningstar Return % Rank Cat Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 800426-0107 or visit www.pimco-funds.com. Standard Deviation Mean Sharpe Ratio MPT Statistics Alpha Beta R-Squared 12-Month Yield 30-day SEC Yield Potential Cap Gains Exp 5 Yr 163 funds 10 Yr 106 funds 5Q -Avg +Avg — — — — — — 3 Yr Total % 5 Yr 10 Yr 6.41 13.60 2.00 — — — — — — Standard Index Best Fit Index 6.72 0.81 26.02 — — — 5.80% 6.22% 0.74% Fees and Expenses Sales Charges Front-End Load % Deferred Load % Fund Expenses 3.75 NA Management Fees % 12b1 Expense % Gross Expense Ratio % ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 0.60 0.25 0.96 ® ß Release date 09-30-2011 Page 18 of 44 PIMCO Income A (USD) Overall Morningstar RtgTM Investment Detail QQQQQ 217 US OE Multisector Bond Standard Index Category Index Morningstar Cat BarCap US Agg Bond BarCap US Universal TR USD TR USD US OE Multisector Bond Performance 09-30-2011 Composition % Net % Long % Short % 60.31 0.00 0.00 7.92 0.08 Med Low 68.30 High 100.00 168.30 Small Total Mid -41.59 18.72 0.00 0.00 0.22 0.22 130.59 138.51 10.78 10.86 Large Cash US Stocks Non-US Stocks Bonds Other/Not Clsfd Value Blend Growth Ltd Mod Ext Equity Style Port Avg Rel Index Rel Cat Fixed-Income Style P/E Ratio TTM P/C Ratio TTM P/B Ratio TTM Geo Avg Mkt Cap $mil — — — — — — — — — — — — Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon Avg Wtd Price Top Holdings Credit Quality Breakdown Share Chg Share since 03-2011 Amount 1 Total Stocks 2,129 Total Fixed-Income 181% Turnover Ratio % Net Assets R R T R R 315 mil 309 mil 16 mil 150 mil 150 mil Y R T R 92 mil 79 mil 65 mil 69 mil 56 mil FNMA 4% FHLMC CMO 5.5% FNMA 4% Rbssp Resec Tr 2011-3 FRN Cdx Hy15 5y Sp Myc 1.80 1.69 1.26 1.19 1.13 Y Y R 61 mil 52 mil 51 mil 50 mil 47 mil Banc Amer Large Ln 2010-Hltn 2.001 FNMA 4.5% FNMA 4% Ing Bk Nv 144A FRN FNMA 4% 1.11 1.06 0.99 0.98 0.93 R Sector Weightings h r t y u US Treasury Note 1.75% FNMA Pimco Fds Private Account Portfoli FNMA FNMA Stocks % Rel Std Index Cyclical Basic Materials Consumer Cyclical Financial Services Real Estate Operations Family: Manager: Tenure: Objective: 4.29 6.57 — 4.64 96.84 — — — — — PIMCO Daniel Ivascyn 4.6 Years Multisector Bond — — — — — -6.16 6.03 3.12 3.03 2.80 Bond % AAA AA A — — — BBB BB B Below B — — — — NR/NA — Regional Exposure Stock % Rel Std Index — — — — — — Americas Greater Europe Greater Asia Stocks % Rel Std Index j i o p a Sensitive Communication Services Energy Industrials Technology Base Currency: Ticker: Minimum Initial Purchase: Purchase Constraints: — — — — — USD PONAX $1,000 — — — — — — Stocks % Rel Std Index k s d f Defensive Consumer Defensive Healthcare Utilities Incept: Type: Total Assets: ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. — — — — — — — — 03-30-2007 MF $5,837.14 mil ® ß Release date 09-30-2011 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 19 of 44 RidgeWorth High Income A (USD) Overall Morningstar RtgTM Investment Detail Standard Index Category Index QQQ BarCap US Agg Bond BofAML US HY Master II TR USD 504 US OE High Yield Bond TR USD 0 6 6 6 6 3 3 3 6 6 6 97 95 96 96 94 92 92 90 68 86 US OE High Yield Bond Investment Style Fixed-Income 6 — Morningstar Cat 89 Bond % 100k 80k 60k 40k Growth of $10,000 RidgeWorth High Income A 19,792 20k 10k 4k _ _ _ _ * & & * ( & & Category Average 17,255 Standard Index 20,992 _ Performance Quartile (within category) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 09-11 History — -9.46 -21.09 -4.34 — — — 5.55 -2.89 1.08 — — — -3.75 -14.01 -1.86 — — 7.66 25.02 20.91 -3.13 — — 7.60 9.95 5.61 -0.92 48 493 6.97 3.90 1.47 1.16 15 518 7.23 12.08 7.75 0.36 12 549 6.73 2.74 -4.23 0.51 25 542 4.45 -27.68 -32.92 -1.29 69 559 6.53 61.28 55.35 3.77 8 543 7.09 17.06 10.52 1.87 11 574 6.45 -4.17 -10.82 -2.48 — 583 NAV/Price Total Return % +/- Standard Index +/- Category Index % Rank Cat No. of Funds in Cat Performance 09-30-2011 Quarterly Returns 2009 2010 2011 Trailing Returns Risk and Return Profile 1st Qtr 8.02 5.87 4.44 2nd Qtr 17.89 -2.34 1.29 3rd Qtr 4th Qtr 3 Yr 504 funds 5 Yr 424 funds 10 Yr 283 funds Morningstar Rating Morningstar Risk Morningstar Return 3Q +Avg Avg 3Q +Avg +Avg 3W +Avg Avg 3 Yr 5 Yr 10 Yr Standard Deviation Mean Sharpe Ratio 16.40 12.20 0.78 13.70 7.12 0.46 10.82 7.97 0.58 Total % 14.65 7.24 -9.42 10.46 5.57 — 61.28 17.06 -4.17 1 Yr 3 Yr 5 Yr 10 Yr Incept Load-adj Mthly Std 09-30-2011 Total Return -3.64 -3.64 1.17 10.40 — 12.20 6.08 6.08 7.12 — — 7.97 7.10 7.10 7.76 +/- Std Index +/- Cat Index -4.10 -0.15 4.23 -1.48 0.59 0.18 2.30 -0.61 — — 44 10 4 22 No. in Cat 580 504 424 283 7-day Yield — TM % Rank Cat Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 888784-3863 or visit www.ridgeworthfunds.com. MPT Statistics Alpha Beta R-Squared 12-Month Yield 30-day SEC Yield Potential Cap Gains Exp Standard Index Best Fit Index 10.84 0.25 0.40 — — — 7.64% 8.76% -7.18% Fees and Expenses Sales Charges Front-End Load % Deferred Load % Fund Expenses 4.75 NA Management Fees % 12b1 Expense % Gross Expense Ratio % ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 0.60 0.30 1.01 ® ß Release date 09-30-2011 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 20 of 44 RidgeWorth High Income A (USD) Overall Morningstar RtgTM Investment Detail Standard Index Category Index Morningstar Cat QQQ BarCap US Agg Bond BofAML US HY Master II TR USD 504 US OE High Yield Bond TR USD US OE High Yield Bond Performance 09-30-2011 Long % Short % Mid Small 3.31 Large 0.00 0.00 0.00 3.31 0.00 100.00 103.31 Total 5.68 2.39 0.00 92.06 3.18 Low 5.68 2.39 0.00 88.75 3.18 Med Net % Cash US Stocks Non-US Stocks Bonds Other/Not Clsfd High Composition % Value Blend Growth Equity Style P/E Ratio TTM P/C Ratio TTM P/B Ratio TTM Geo Avg Mkt Cap $mil Ltd Rel Index Rel Cat Fixed-Income Style 4.4 6.0 1.5 38441 — — — — 0.48 1.14 0.94 5.53 Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon Avg Wtd Price 4.14 6.34 — 8.86 95.81 Credit Quality Breakdown Share Chg Share since 07-2011 Amount 4 Total Stocks 215 Total Fixed-Income 269% Turnover Ratio % Net Assets 27 mil 20 mil 11 mil 13 mil 10 mil State Str Instl Invt Tr Treas Mmkt Reynolds Grp Issuer 144A 9.875% United Refng 10.5% Texas Competitive Elec Hldgs 144A Cit Grp 7% Y 11 mil 11 mil 12 mil 9 mil 8 mil Convatec Healthcare E.S.A. 10.5% Aventine Renewable Energy Hold 12/ Harrahs Oper 10% Nrg Engy 144A 7.875% Chs / Cmnty Health Sys 8.875% 2.05 2.01 1.95 1.93 1.75 T 9 mil 380,035 8 mil 8 mil 8 mil Inc Resh 144A 11.5% Gmac Cap Tr I Pfd Cdxhy16j8 Cds Usd P V 00mevent Cdxhy16j8 Cds Usd R F 5.00000 Spd3 Intelsat Bermuda 11.25% 1.72 1.68 -1.65 1.57 1.52 Y Y Y T Sector Weightings Stocks % Rel Std Index Cyclical Basic Materials Consumer Cyclical Financial Services Real Estate Operations Family: Manager: Tenure: Objective: Ext Port Avg Top Holdings h r t y u Mod 100.0 0.0 100.0 0.0 0.0 — — — — — RidgeWorth Multiple 5.2 Years Corporate Bond - High Yield 5.53 3.83 2.30 2.25 2.14 Bond % AAA AA A 0.00 0.00 0.00 BBB BB B Below B 4.78 24.39 52.53 14.51 NR/NA 3.79 Regional Exposure Stock % Rel Std Index 100.0 0.0 0.0 — — — Americas Greater Europe Greater Asia Stocks % Rel Std Index j i o p a Sensitive Communication Services Energy Industrials Technology Base Currency: Ticker: Minimum Initial Purchase: Min Auto Investment Plan: 0.0 0.0 0.0 0.0 0.0 USD SAHIX $2,000 $500 — — — — — Stocks % Rel Std Index k s d f Defensive Consumer Defensive Healthcare Utilities Purchase Constraints: Incept: Type: Total Assets: ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 0.0 0.0 0.0 0.0 — — — — — 10-27-2003 MF $445.46 mil ® ß Release date 09-30-2011 Page 21 of 44 Royce Premier Invmt (USD) Overall Morningstar RtgTM Investment Detail Standard Index Category Index Morningstar Cat S&P 500 TR QQQQQ 675 US OE Mid-Cap Growth Russell Mid Cap Growth TR USD US OE Mid-Cap Growth 6 6 9 9 8 8 8 8 8 9 8 89 87 91 82 85 88 90 88 88 85 87 Investment Style Equity 8 87 Stock % 100k 80k 60k 40k Growth of $10,000 Royce Premier Invmt 30,970 20k Category Average 9,723 10k Standard Index 9,552 4k _ _ _ _ _ _ _ _ _ _ _ _ Performance Quartile (within category) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 09-11 History 9.83 17.12 26.23 28.87 — — 10.54 9.61 21.50 29.76 — — 9.39 -7.75 14.35 19.65 — — 12.90 38.74 10.05 -3.98 — — 15.12 22.82 11.94 7.34 — — 16.86 17.07 12.16 4.97 — — 17.66 8.81 -6.99 -1.85 — — 17.36 12.73 7.23 1.30 — — 12.24 -28.29 8.71 16.03 — — 16.31 33.25 6.79 -13.04 — — 20.35 26.46 11.40 0.08 — — 18.00 -11.55 -2.87 0.04 — 770 NAV/Price Total Return % +/- Standard Index +/- Category Index % Rank Cat No. of Funds in Cat Performance 09-30-2011 Risk and Return Profile Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 2009 2010 2011 -10.70 6.68 10.07 21.96 -8.85 -1.07 18.68 12.48 -18.77 3.10 15.62 — 33.25 26.46 -11.55 3 Yr 675 funds Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept Load-adj Mthly Std 09-30-2011 Total Return 2.27 2.27 2.27 5.17 — 5.17 5.02 5.02 5.02 11.10 11.10 11.10 11.54 11.54 11.54 +/- Std Index +/- Cat Index 1.12 1.47 3.94 -0.72 6.20 3.39 8.29 4.41 — — 25 29 8 1 No. in Cat 759 675 601 404 7-day Yield — TM Morningstar Rating Morningstar Risk Morningstar Return % Rank Cat Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 800221-4268 or visit www.roycefunds.com. Standard Deviation Mean Sharpe Ratio MPT Statistics Alpha Beta R-Squared 12-Month Yield 30-day SEC Yield Potential Cap Gains Exp 5 Yr 601 funds 10 Yr 404 funds 3Q Avg +Avg 5Q Avg High 5Q Avg High 3 Yr Total % 5 Yr 10 Yr 25.45 5.17 0.32 21.54 5.02 0.26 18.20 11.10 0.57 Standard Index Best Fit Index 4.34 1.14 90.29 — — — — — 24.92% Fees and Expenses Sales Charges Front-End Load % Deferred Load % Fund Expenses NA NA Management Fees % 12b1 Expense % Gross Expense Ratio % ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 0.95 NA 1.12 ® ß Release date 09-30-2011 Page 22 of 44 Royce Premier Invmt (USD) Overall Morningstar RtgTM Investment Detail QQQQQ 675 US OE Mid-Cap Growth Standard Index Category Index Morningstar Cat S&P 500 TR Russell Mid Cap Growth TR USD US OE Mid-Cap Growth Performance 09-30-2011 Long % Short % Mid Small 0.00 Large 0.00 0.00 0.00 0.00 0.00 100.00 100.00 Total 12.57 70.99 15.73 0.00 0.71 Low 12.57 70.99 15.73 0.00 0.71 Med Net % Cash US Stocks Non-US Stocks Bonds Other/Not Clsfd High Composition % Value Blend Growth Ltd P/E Ratio TTM P/C Ratio TTM P/B Ratio TTM Geo Avg Mkt Cap $mil Rel Index Rel Cat Fixed-Income Style 18.2 15.6 2.5 2615 1.46 1.94 1.37 0.06 0.96 1.21 0.86 0.47 Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon Avg Wtd Price Top Holdings 0 Total Fixed-Income 10% Turnover Ratio % Net Assets T Gartner, Inc. A Lincoln Electric Holdings, Inc. Unit Corporation Trican Well Service, Ltd. Nu Skin Enterprises, Inc. A Y 5 mil 7 mil 3 mil 4 mil 2 mil Pan American Silver Corporation Ensign Energy Services Inc. Westlake Chemical Corporation Woodward, Inc. Gardner Denver, Inc. 1.95 1.85 1.81 1.76 1.70 4 mil 1 mil 4 mil 2 mil 2 mil Thor Industries, Inc. Fossil, Inc. National Instruments Corporation Schnitzer Steel Industries, Inc. A Proassurance Corporation 1.67 1.63 1.60 1.59 1.59 T Sector Weightings h r t y u 2.44 2.36 2.32 2.11 2.06 Stocks % Rel Std Index Cyclical Basic Materials Consumer Cyclical Financial Services Real Estate Operations Family: Manager: Tenure: Objective: Base Currency: — — — — — Credit Quality Breakdown 74 Total Stocks 5 mil 5 mil 3 mil 7 mil 4 mil T Y Ext Port Avg Equity Style Share Chg Share since 03-2011 Amount Mod 39.0 12.8 14.0 9.5 2.7 Royce Multiple 19.8 Years Small Company USD 1.45 4.19 1.50 0.75 1.50 Bond % AAA AA A — — — BBB BB B Below B — — — — NR/NA — Regional Exposure Stock % Rel Std Index 95.3 3.3 1.4 0.95 20.52 — Americas Greater Europe Greater Asia Stocks % Rel Std Index j i o p a Sensitive Communication Services Energy Industrials Technology 49.9 0.0 8.1 28.1 13.6 Ticker: Minimum Initial Purchase: Min Auto Investment Plan: Minimum IRA Purchase: Purchase Constraints: RYPRX $2,000 $1,000 $1,000 C 1.10 0.00 0.71 2.42 0.77 Stocks % Rel Std Index k s d f Defensive Consumer Defensive Healthcare Utilities Incept: Type: Total Assets: ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 11.2 6.4 4.8 0.0 0.40 0.52 0.40 0.00 12-31-1991 MF $6,109.86 mil ® ß Release date 09-30-2011 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 23 of 44 TCW Emerging Markets Income N (USD) Overall Morningstar RtgTM Investment Detail QQQQQ 92 US OE Emerging Markets Bond Standard Index Category Index Morningstar Cat BarCap US Agg Bond Citi ESBI Capped TR USD Brady USD 9 9 9 6 9 9 9 9 6 9 6 100 94 83 70 77 100 97 91 96 96 Investment Style Fixed-Income 6 100 US OE Emerging Markets Bond 89 Bond % 100k 80k 60k 40k 20k 10k _ _ _ _ ) ) ( * & Category Average 32,459 4k _ Growth of $10,000 TCW Emerging Markets Income N 36,568 Standard Index 20,992 _ & Performance Quartile (within category) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 09-11 History — 10.08 -1.54 -2.74 — — — 15.95 7.51 8.35 — — — 12.84 2.58 4.05 — — — 28.83 24.72 4.50 — — 8.66 12.35 8.02 1.05 — — 9.25 6.81 4.38 1.05 97 58 9.54 7.73 3.40 -16.92 98 63 9.26 4.03 -2.94 7.34 74 81 7.34 -12.66 -17.90 48.15 30 92 9.88 44.57 38.64 -94.61 9 112 11.09 20.75 14.21 -17.10 3 122 10.13 -3.89 -10.53 16.53 — 128 NAV/Price Total Return % +/- Standard Index +/- Category Index % Rank Cat No. of Funds in Cat Performance 09-30-2011 Quarterly Returns 2009 2010 2011 Trailing Returns Risk and Return Profile 1st Qtr 5.65 8.70 2.60 2nd Qtr 16.48 -0.77 3.47 3rd Qtr 4th Qtr 3 Yr 92 funds 5 Yr 60 funds 10 Yr 40 funds Morningstar Rating Morningstar Risk Morningstar Return 5Q Avg High 5Q Avg High 4W -Avg +Avg 3 Yr 5 Yr 10 Yr Standard Deviation Mean Sharpe Ratio 15.62 15.08 0.98 12.66 9.50 0.66 10.73 12.23 0.95 Total % 13.12 9.60 -9.46 3.86 2.14 — 44.57 20.75 -3.89 1 Yr 3 Yr 5 Yr 10 Yr Incept Load-adj Mthly Std 09-30-2011 Total Return -1.83 -1.83 -1.83 15.08 — 15.08 9.50 9.50 9.50 — — 12.23 9.32 9.32 9.32 +/- Std Index +/- Cat Index -7.09 8.94 7.11 -3.34 2.97 7.62 6.57 4.79 — — 61 2 2 21 No. in Cat 124 92 60 40 7-day Yield — TM % Rank Cat Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 800248-4486 or visit www.tcw.com. MPT Statistics Alpha Beta R-Squared 12-Month Yield 30-day SEC Yield Potential Cap Gains Exp Standard Index Best Fit Index 1.81 1.76 21.02 — — — 7.29% 7.12% -8.15% Fees and Expenses Sales Charges Front-End Load % Deferred Load % Fund Expenses NA NA Management Fees % 12b1 Expense % Gross Expense Ratio % ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 0.75 0.25 1.25 ® ß Release date 09-30-2011 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 24 of 44 TCW Emerging Markets Income N (USD) Overall Morningstar RtgTM Investment Detail QQQQQ 92 US OE Emerging Markets Bond Standard Index Category Index Morningstar Cat BarCap US Agg Bond Citi ESBI Capped TR USD Brady USD US OE Emerging Markets Bond Performance 09-30-2011 Long % Short % Mid Small 0.00 Large 0.00 0.00 0.00 0.00 0.00 100.00 100.00 Total 5.94 0.00 0.00 88.81 5.25 Low 5.94 0.00 0.00 88.81 5.25 Med Net % Cash US Stocks Non-US Stocks Bonds Other/Not Clsfd High Composition % Value Blend Growth Ltd Mod Ext Equity Style Port Avg Rel Index Rel Cat Fixed-Income Style P/E Ratio TTM P/C Ratio TTM P/B Ratio TTM Geo Avg Mkt Cap $mil — — — — — — — — — — — — Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon Avg Wtd Price Top Holdings Credit Quality Breakdown Share Chg Share since 07-2011 Amount 0 Total Stocks 95 Total Fixed-Income 173% Turnover Ratio % Net Assets T R R T R 104 mil 9,135 mil 46 mil 45 mil 232 mil T T T T 63 mil 46 mil 46 mil 43 mil 40 mil Petroleos De Venezuela Sa 8.5% Banco Do Brasil S A 5.875% Vedanta Res 144A 8.25% Mie Hldgs 144A 9.75% Vtb Cap S A Ln Partn Sr Secd 144A 1.60 1.59 1.54 1.42 1.39 T T R T T 41 mil 39 mil 37 mil 37 mil 38 mil Croatia Rep 6.375% Bbva Bancomer S A Inst De Banc 6.5% Petrobras Intl Fin 5.375% Pt Pertamina Persero 144A 5.25% Provincia De Cordoba 144A 12.375% 1.39 1.36 1.35 1.33 1.31 Sector Weightings h r t y u Petroleos De Venezuela Sa 4.9% Federal Republic Of Nigeria 10% Petroleos Mexicanos 5.5% Southern Copper 6.75% Argentina Rep Stocks % Rel Std Index Cyclical Basic Materials Consumer Cyclical Financial Services Real Estate Operations Family: Manager: Tenure: Objective: Base Currency: 5.64 10.76 — 7.87 — — — — — — TCW Multiple 1.8 Years Worldwide Bond USD — — — — — 2.58 1.74 1.73 1.66 1.66 Bond % AAA AA A 2.83 0.85 7.95 BBB BB B Below B 25.85 30.46 30.74 1.32 NR/NA 0.00 Regional Exposure Stock % Rel Std Index — — — — — — Americas Greater Europe Greater Asia Stocks % Rel Std Index j i o p a Sensitive Communication Services Energy Industrials Technology Ticker: Minimum Initial Purchase: Min Auto Investment Plan: Minimum IRA Purchase: Purchase Constraints: — — — — — TGINX $2,000 $100 $500 — — — — — — Stocks % Rel Std Index k s d f Defensive Consumer Defensive Healthcare Utilities Incept: Type: Total Assets: ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. — — — — — — — — 03-01-2004 MF $2,669.27 mil ® ß Release date 09-30-2011 Page 25 of 44 Templeton Global Bond A (USD) Overall Morningstar RtgTM Investment Detail QQQQQ 240 US OE World Bond Standard Index Category Index Morningstar Cat BarCap US Agg Bond Citi WGBI NonUSD TR USD USD 5 6 5 5 2 2 2 2 6 5 2 93 86 92 82 78 45 70 82 92 54 Investment Style Fixed-Income 2 94 US OE World Bond 52 Bond % 100k 80k 60k 40k 20k 10k * & & & * & & & & & Category Average 19,838 4k * Growth of $10,000 Templeton Global Bond A 29,936 Standard Index 20,992 _ Performance Quartile (within category) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 09-11 History 8.24 2.79 -8.83 5.43 49 145 7.97 4.18 -4.27 7.71 30 134 8.97 20.03 9.78 -1.96 24 144 10.21 21.29 17.18 2.77 9 162 11.13 14.62 10.28 2.48 4 167 10.31 -3.07 -5.50 6.13 39 170 11.05 13.51 9.17 6.57 4 197 11.42 10.86 3.89 -0.60 6 218 11.20 6.28 1.04 -3.83 16 234 12.72 18.86 12.93 14.48 19 269 13.59 12.68 6.14 7.47 7 270 12.69 -3.50 -10.15 -9.18 — 316 NAV/Price Total Return % +/- Standard Index +/- Category Index % Rank Cat No. of Funds in Cat Performance 09-30-2011 Quarterly Returns 2009 2010 2011 Trailing Returns Risk and Return Profile 1st Qtr 0.15 6.36 2.16 2nd Qtr 7.91 -2.53 2.41 3rd Qtr 7.11 7.40 -7.76 4th Qtr 3 Yr 240 funds 5 Yr 175 funds 10 Yr 117 funds Morningstar Rating Morningstar Risk Morningstar Return 4Q Avg +Avg 5Q Avg High 5Q Avg High 3 Yr 5 Yr 10 Yr Standard Deviation Mean Sharpe Ratio 10.14 10.50 1.02 8.79 9.84 0.94 8.05 11.08 1.11 Total % 2.68 1.20 — 18.86 12.68 -3.50 1 Yr 3 Yr 5 Yr 10 Yr Incept Load-adj Mthly Std 09-30-2011 Total Return -6.49 -6.49 -2.34 8.91 — 10.50 8.89 8.89 9.84 10.60 10.60 11.08 8.04 8.04 8.23 +/- Std Index +/- Cat Index -7.60 -6.48 2.53 2.41 3.32 2.07 5.41 3.11 — — 92 18 3 1 No. in Cat 299 240 175 117 7-day Yield — TM % Rank Cat Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 800632-2301 or visit www.franklintempleton.com. MPT Statistics Alpha Beta R-Squared 12-Month Yield 30-day SEC Yield Potential Cap Gains Exp Standard Index Best Fit Index 5.86 0.59 5.64 — — — 5.77% 3.00% 1.52% Fees and Expenses Sales Charges Front-End Load % Deferred Load % Fund Expenses 4.25 NA Management Fees % 12b1 Expense % Gross Expense Ratio % ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 0.40 0.25 0.93 ® ß Release date 09-30-2011 Page 26 of 44 Templeton Global Bond A (USD) Overall Morningstar RtgTM Investment Detail QQQQQ 240 US OE World Bond Standard Index Category Index Morningstar Cat BarCap US Agg Bond Citi WGBI NonUSD TR USD USD US OE World Bond Performance 09-30-2011 Long % Short % 0.10 Large 0.00 0.00 0.00 0.10 0.00 Mid Small 100.00 100.10 Total 48.37 0.00 0.00 51.72 0.01 Low 48.37 0.00 0.00 51.62 0.01 Med Net % Cash US Stocks Non-US Stocks Bonds Other/Not Clsfd High Composition % Value Blend Growth Ltd Mod Ext Equity Style Port Avg Rel Index Rel Cat Fixed-Income Style P/E Ratio TTM P/C Ratio TTM P/B Ratio TTM Geo Avg Mkt Cap $mil — — — — — — — — — — — — Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon Avg Wtd Price Top Holdings Credit Quality Breakdown Share Chg Share since 03-2011 Amount 0 Total Stocks R Korea(Republic Of) 4.25% 2.51 Kommuninvest I Sve 1.75% Korea(Republic Of) 3.75% 2.41 2.34 % Net Assets T T T T T T T R Sweden(Kingdom Of) 5.5% 2.28 Poland(Rep Of) Westn Aust Tsy Cp 5.5% Poland(Rep Of) Russian 30 SU-144A Malaysia 2.509% 1.74 1.55 1.14 1.14 1.13 73 mil 505,029 69 mil 930,930 2,750 mil T Korea(Republic Of) 3% 3,096 mil 866 mil 2,004 mil 583 mil 2,062 mil T R Mexico(Utd Mex St) 9% Brazil(Fed Rep Of) 6% Mexico(Utd Mex St) 8% Brazil(Fed Rep Of) 10% European Bank For Reconstructi 1.11 1.08 1.04 0.90 0.84 Sector Weightings h r t y u 160 Total Fixed-Income 12% Turnover Ratio 1,660,246 mil 1,601,718 mil 9,303 mil 1,501,513 mil 8,349 mil T 1.74 3.36 — 5.88 — 2.53 Stocks % Rel Std Index Cyclical Basic Materials Consumer Cyclical Financial Services Real Estate — — — — — — — — — — Bond % AAA AA A 27.88 2.60 43.67 BBB BB B Below B 13.62 8.16 3.93 0.00 NR/NA 0.14 Regional Exposure Stock % Rel Std Index — — — — — — Americas Greater Europe Greater Asia Stocks % Rel Std Index j i o p a Sensitive Communication Services Energy Industrials Technology — — — — — — — — — — Stocks % Rel Std Index k s d f Defensive Consumer Defensive Healthcare Utilities — — — — — — — — Operations Family: Manager: Tenure: Objective: Base Currency: Franklin Templeton Investment Fds Multiple 10.8 Years Worldwide Bond USD Ticker: Minimum Initial Purchase: Min Auto Investment Plan: Minimum IRA Purchase: Purchase Constraints: TPINX $1,000 $50 $250 — Incept: Type: Total Assets: ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 09-18-1986 MF $58,093.64 mil ® ß Release date 09-30-2011 Page 27 of 44 Tocqueville Gold (USD) Overall Morningstar RtgTM Investment Detail QQQQ 69 US OE Equity Precious Metals Standard Index Category Index Morningstar Cat BofAML USD LIBOR 3 MSCI US OE Equity Precious Mon CM World/Metals&Minin Metals g USD 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 Investment Style Fixed-Income 0 0 Bond % 115k 80k 60k 40k Growth of $10,000 Tocqueville Gold 94,566 20k Category Average 62,618 10k Standard Index 14,143 4k & * & ( * ( & ) ) & _ & Performance Quartile (within category) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 09-11 History 11.40 -10.70 -17.31 12.87 21 39 13.83 21.90 16.85 20.80 38 41 24.20 83.26 81.31 87.54 14 47 36.58 53.65 52.36 -10.68 50 56 33.07 -5.82 -7.12 -19.70 34 60 40.80 30.03 26.89 -3.63 62 63 51.43 39.24 34.14 4.68 20 63 48.84 12.42 6.78 -27.65 100 67 30.85 -34.94 -38.76 20.97 78 72 57.47 86.60 85.61 8.98 2 74 86.50 53.33 53.00 31.44 6 77 74.78 -13.55 -13.75 17.16 — 81 NAV/Price Total Return % +/- Standard Index +/- Category Index % Rank Cat No. of Funds in Cat Performance 09-30-2011 Risk and Return Profile Quarterly Returns 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 2009 2010 2011 19.16 2.16 0.82 7.94 11.80 -6.30 28.05 19.15 -8.49 13.30 12.67 — 86.60 53.33 -13.55 3 Yr 69 funds Trailing Returns 1 Yr 3 Yr 5 Yr 10 Yr Incept Load-adj Mthly Std 09-30-2011 Total Return -2.59 -2.59 -2.59 32.24 — 32.24 16.81 16.81 16.81 25.05 25.05 25.05 20.69 20.69 20.69 +/- Std Index +/- Cat Index -2.87 14.71 31.28 30.71 14.35 15.19 22.61 11.75 — — % Rank Cat 19 2 6 8 No. in Cat 81 69 55 40 7-day Yield — TM Morningstar Rating Morningstar Risk Morningstar Return Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 800697-3863 or visit www.tocquevillefunds.com. Standard Deviation Mean Sharpe Ratio MPT Statistics Alpha Beta R-Squared 12-Month Yield 30-day SEC Yield Potential Cap Gains Exp 5 Yr 55 funds 10 Yr 40 funds 5Q Avg High 4Q -Avg +Avg 4Q -Avg +Avg 3 Yr Total % 5 Yr 10 Yr 40.35 32.24 0.90 36.40 16.81 0.57 33.94 25.05 0.78 Standard Index Best Fit Index 45.05 -10.59 1.12 — — — — — 34.44% Fees and Expenses Sales Charges Front-End Load % Deferred Load % Fund Expenses NA NA Management Fees % 12b1 Expense % Gross Expense Ratio % ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 0.81 0.25 1.35 ® ß Release date 09-30-2011 Page 28 of 44 Tocqueville Gold (USD) Overall Morningstar RtgTM Investment Detail Standard Index QQQQ 69 US OE Equity Precious Metals Category Index Morningstar Cat BofAML USD LIBOR 3 MSCI US OE Equity Precious Mon CM World/Metals&Minin Metals g USD Performance 09-30-2011 Long % Short % Mid Small 0.00 Large 0.00 0.00 0.00 0.00 0.00 100.00 100.00 Total 8.13 12.67 70.26 0.00 8.95 Low 8.13 12.67 70.26 0.00 8.95 Med Net % Cash US Stocks Non-US Stocks Bonds Other/Not Clsfd High Composition % Value Blend Growth Ltd P/E Ratio TTM P/C Ratio TTM P/B Ratio TTM Geo Avg Mkt Cap $mil Rel Index Rel Cat Fixed-Income Style 23.3 15.8 2.8 4845 — — — — 1.08 1.04 1.13 0.61 Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon Avg Wtd Price Top Holdings 59 Total Stocks 9% Turnover Ratio % Net Assets Physical Gold Goldcorp, Inc. Osisko Mining Corporation Ivanhoe Mines, Ltd. Newmont Mining Corporation 3 mil 3 mil 883,200 1 mil 3 mil Silver Wheaton Corporation Gold Resource Corp Randgold Resources, Ltd. ADR Royal Gold, Inc. IAMGold Corporation 3.54 3.42 2.93 2.67 2.54 8 mil 2 mil 5 mil 887,837 1 mil ATAC Resources Ltd. Franco-Nevada Corporation New Gold, Inc. Agnico-Eagle Mines Barrick Gold Corporation 2.53 2.41 2.22 2.22 2.16 T T Sector Weightings h r t y u 0 Total Fixed-Income 98,032 3 mil 8 mil 5 mil 2 mil T T T T T 5.81 5.46 5.18 5.13 3.76 Stocks % Rel Std Index Cyclical Basic Materials Consumer Cyclical Financial Services Real Estate Operations Family: Manager: Tenure: Objective: Base Currency: — — — — — Credit Quality Breakdown Share Chg Share since 03-2011 Amount T Ext Port Avg Equity Style Y Mod 100.0 100.0 0.0 0.0 0.0 Tocqueville John C. Hathaway 13.3 Years Specialty - Precious Metals USD — — — — — Bond % AAA AA A — — — BBB BB B Below B — — — — NR/NA — Regional Exposure Stock % Rel Std Index 90.5 8.0 1.5 — — — Americas Greater Europe Greater Asia Stocks % Rel Std Index j i o p a Sensitive Communication Services Energy Industrials Technology Ticker: Minimum Initial Purchase: Min Auto Investment Plan: Minimum IRA Purchase: Purchase Constraints: 0.0 0.0 0.0 0.0 0.0 TGLDX $1,000 $1,000 $250 — — — — — — Stocks % Rel Std Index k s d f Defensive Consumer Defensive Healthcare Utilities Incept: Type: Total Assets: ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 0.0 0.0 0.0 0.0 — — — — 06-29-1998 MF $2,407.97 mil ® ß Release date 09-30-2011 Page 29 of 44 Wells Fargo Advantage Emerg Mkts Eq A (USD) Overall Morningstar RtgTM Investment Detail QQQQQ 314 US OE Diversified Emerging Mkts Standard Index Category Index Morningstar Cat MSCI EAFE NR USD MSCI EM NR USD US OE Diversified Emerging Mkts 4 2 4 4 4 4 4 1 1 4 4 86 88 89 91 94 92 97 97 96 90 90 Investment Style Equity 4 90 Stock % 100k 80k 60k 40k 20k 10k & * * ) * & ( & ( & Category Average 20,490 4k ( Growth of $10,000 Wells Fargo Advantage Emerg Mkts Eq A 28,479 Standard Index 10,296 _ Performance Quartile (within category) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 09-11 History 8.03 -33.36 -19.19 -2.53 71 159 8.08 0.62 22.07 3.24 13 175 7.78 -3.71 12.23 2.46 34 184 12.13 57.68 19.09 1.86 29 196 14.29 17.81 -2.44 -7.75 90 202 17.14 32.56 19.03 -1.44 47 212 21.25 46.21 19.87 14.04 1 242 24.80 33.47 22.30 -5.91 67 274 10.83 -47.61 -4.23 5.72 11 312 18.72 72.85 41.08 -5.65 51 367 22.86 22.21 14.46 3.33 22 386 18.96 -17.06 -2.08 4.82 — 452 NAV/Price Total Return % +/- Standard Index +/- Category Index % Rank Cat No. of Funds in Cat Performance 09-30-2011 Quarterly Returns 2009 2010 2011 Trailing Returns Risk and Return Profile 1st Qtr 1.57 2.51 1.18 2nd Qtr 31.82 -7.45 -0.26 3rd Qtr 19.66 18.27 -17.82 4th Qtr 3 Yr 314 funds 5 Yr 231 funds 10 Yr 143 funds Morningstar Rating Morningstar Risk Morningstar Return 5Q Low +Avg 5Q Low High 5Q -Avg +Avg 3 Yr 5 Yr 10 Yr Standard Deviation Mean Sharpe Ratio 27.99 9.81 0.47 26.02 8.08 0.37 22.74 18.40 0.78 Total % 7.90 8.92 — 72.85 22.21 -17.06 1 Yr 3 Yr 5 Yr 10 Yr Incept -14.86 -14.86 -9.66 7.67 — 9.81 6.81 6.81 8.08 17.70 17.70 18.40 7.35 7.35 7.72 -0.31 6.49 10.95 3.54 11.54 3.21 13.37 2.33 — — 4 7 3 7 No. in Cat 423 314 231 143 7-day Yield — TM Load-adj Mthly Std 09-30-2011 Total Return +/- Std Index +/- Cat Index % Rank Cat Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 800222-8222 or visit www.wellsfargo.com/advantagefunds. MPT Statistics Alpha Beta R-Squared 12-Month Yield 30-day SEC Yield Potential Cap Gains Exp Standard Index Best Fit Index 11.24 1.01 83.43 — — — — — 2.24% Fees and Expenses Sales Charges Front-End Load % Deferred Load % Fund Expenses 5.75 NA Management Fees % 12b1 Expense % Gross Expense Ratio % ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 1.08 NA 1.84 ® ß Release date 09-30-2011 Page 30 of 44 Wells Fargo Advantage Emerg Mkts Eq A (USD) Overall Morningstar RtgTM Investment Detail Standard Index Category Index Morningstar Cat MSCI EAFE NR USD QQQQQ 314 US OE Diversified Emerging Mkts MSCI EM NR USD US OE Diversified Emerging Mkts Performance 09-30-2011 Small 0.00 Mid 0.00 0.00 0.00 0.00 0.00 100.00 100.00 Total 11.05 0.00 88.51 0.00 0.44 Low 11.05 0.00 88.51 0.00 0.43 Med Cash US Stocks Non-US Stocks Bonds Other/Not Clsfd Long % Short % High Net % Large Composition % 07-312011 Value Blend Growth Ltd P/E Ratio TTM P/C Ratio TTM P/B Ratio TTM Geo Avg Mkt Cap $mil Rel Index Rel Cat Fixed-Income Style 11.3 6.7 1.8 18002 1.06 1.13 1.53 0.68 1.10 1.02 1.06 1.09 Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon Avg Wtd Price Top Holdings 119 Total Stocks 195 mil 2 mil 647,817 78,386 730,491 T T T T 2 mil 4 mil 2 mil 2 mil 4 mil T T T 1 mil 789,795 1 mil 2 mil 1 mil T Sector Weightings h r t y u 0 Total Fixed-Income 6% Turnover Ratio % Net Assets Wfa Cash Inv Mm Fund Par 3800 China Mobile Ltd. ADR SINA Corporation Samsung Electronics Co Ltd Kt&G Corp 9.32 4.18 3.32 2.63 2.25 Grupo Televisa SA ADR Taiwan Semiconductor Manufacturing KT Corporation ADR Bank Bradesco ADR Lojas Americanas S.A. Pfd Shs 2.22 2.11 2.01 1.85 1.67 Petroleo Brasileiro SA Petrobras A ICICI Bank Ltd ADR Petroleo Brasileiro SA Petrobras A Banco do Brasil SA BB Brasil America Movil SAB de CV ADR L 1.51 1.48 1.48 1.44 1.38 Stocks % Rel Std Index Cyclical Basic Materials Consumer Cyclical Financial Services Real Estate Operations Family: Manager: Tenure: Objective: Base Currency: — — — — — Credit Quality Breakdown Share Chg Share since 07-2011 Amount T Ext Port Avg Equity Style Y Mod 39.8 11.9 10.5 15.8 1.6 — — — — — Wells Fargo Advantage Multiple 5.1 Years Diversified Emerging Markets USD Bond % AAA AA A — — — BBB BB B Below B — — — — NR/NA — Regional Exposure Stock % Rel Std Index 26.2 17.5 56.2 — — — Americas Greater Europe Greater Asia Stocks % Rel Std Index j i o p a Sensitive Communication Services Energy Industrials Technology 51.9 19.5 12.9 5.6 13.8 Ticker: Minimum Initial Purchase: Min Auto Investment Plan: Minimum IRA Purchase: Purchase Constraints: EMGAX $1,000 $50 $250 — — — — — — Stocks % Rel Std Index k s d f Defensive Consumer Defensive Healthcare Utilities Incept: Type: Total Assets: ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 8.4 7.4 0.2 0.7 — — — 09-06-1994 MF $1,930.01 mil ® ß Release date 09-30-2011 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 31 of 44 Wells Fargo Advantage Growth A (USD) Overall Morningstar RtgTM Investment Detail Standard Index Category Index Morningstar Cat Russell 1000 Growth TR USD QQQQQ S&P 500 TR 1,483 US OE Large Growth US OE Large Growth 7 7 7 7 7 7 8 7 7 7 7 93 97 97 98 98 100 98 98 98 99 99 Investment Style Equity 7 96 Stock % 100k 80k 60k 40k 20k 10k ) * * & * * & * & & Category Average 7,257 4k _ Growth of $10,000 Wells Fargo Advantage Growth A 10,619 Standard Index 9,552 _ Performance Quartile (within category) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 09-11 History 26.96 -9.49 -0.39 12.93 — — 17.58 -34.54 -22.66 -14.12 91 1064 13.14 -25.26 -3.16 2.63 34 1234 17.09 30.06 1.38 0.31 33 1311 19.22 12.46 1.58 6.16 12 1400 20.97 9.11 4.19 3.84 28 1495 22.64 7.96 -7.83 -1.11 41 1642 28.89 27.61 22.11 15.79 5 1748 17.22 -40.39 -3.40 -1.96 49 1809 25.40 47.50 21.04 10.29 10 1796 32.07 26.26 11.20 9.55 2 1718 31.51 -1.75 6.93 5.45 — 1688 NAV/Price Total Return % +/- Standard Index +/- Category Index % Rank Cat No. of Funds in Cat Performance 09-30-2011 Quarterly Returns 2009 2010 2011 Trailing Returns Risk and Return Profile 1st Qtr -3.25 6.57 12.91 2nd Qtr 18.43 -8.53 1.35 3rd Qtr 4th Qtr 3 Yr 1483 funds 5 Yr 1260 funds 10 Yr 787 funds Morningstar Rating Morningstar Risk Morningstar Return 5Q Avg High 5Q Avg High 5Q Avg High 3 Yr 5 Yr 10 Yr Standard Deviation Mean Sharpe Ratio 21.27 12.13 0.64 19.38 8.18 0.42 17.33 7.27 0.38 Total % 16.42 14.22 -14.14 10.58 13.40 — 47.50 26.26 -1.75 1 Yr 3 Yr 5 Yr 10 Yr Incept Load-adj Mthly Std 09-30-2011 Total Return 5.01 5.01 11.42 9.94 — 12.13 6.90 6.90 8.18 6.64 6.64 7.27 -1.74 -1.74 -1.24 +/- Std Index +/- Cat Index 10.28 7.64 10.90 7.44 9.36 6.56 4.45 4.26 — — 1 1 1 1 1675 1483 1260 787 TM % Rank Cat No. in Cat 7-day Yield — Performance Disclosure The Overall Morningstar Rating is based on risk-adjusted returns, derived from a weighted average of the three-, five-, and 10-year (if applicable) Morningstar metrics. The performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate; thus an investor's shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than return data quoted herein. For performance data current to the most recent month-end, please call 800222-8222 or visit www.wellsfargo.com/advantagefunds. MPT Statistics Alpha Beta R-Squared 12-Month Yield 30-day SEC Yield Potential Cap Gains Exp Standard Index Best Fit Index 10.44 0.95 90.46 — — — — — 5.46% Fees and Expenses Sales Charges Front-End Load % Deferred Load % Fund Expenses 5.75 NA Management Fees % 12b1 Expense % Gross Expense Ratio % ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 0.70 NA 1.29 ® ß Release date 09-30-2011 | Note: Portions of the analysis are based on pre-inception returns. Please read disclosure for more information. Page 32 of 44 Wells Fargo Advantage Growth A (USD) Overall Morningstar RtgTM Investment Detail Standard Index Category Index Morningstar Cat Russell 1000 Growth TR USD QQQQQ S&P 500 TR 1,483 US OE Large Growth US OE Large Growth Performance 09-30-2011 Small 0.00 Mid 0.00 0.00 0.00 0.00 0.00 100.00 100.00 Total 4.20 92.95 2.85 0.00 0.00 Low 4.20 92.95 2.85 0.00 0.00 Med Cash US Stocks Non-US Stocks Bonds Other/Not Clsfd Long % Short % High Net % Large Composition % 07-312011 Value Blend Growth Ltd P/E Ratio TTM P/C Ratio TTM P/B Ratio TTM Geo Avg Mkt Cap $mil Rel Index Rel Cat Fixed-Income Style 23.5 14.6 3.9 11873 1.87 1.82 2.12 0.26 1.41 1.27 1.32 0.35 Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon Avg Wtd Price Top Holdings — — — — — Credit Quality Breakdown Share Chg Share since 07-2011 Amount 95 Total Stocks 0 Total Fixed-Income 54% Turnover Ratio % Net Assets T T T T T 937,000 246 mil 2 mil 1 mil 2 mil Apple, Inc. Wfa Cash Inv Mm Fund Par 3800 Whole Foods Market, Inc. Praxair, Inc. Cognizant Technology Solutions Cor T T T T T 2 mil 245,000 3 mil 4 mil 322,000 Alexion Pharmaceuticals, Inc. Priceline.com, Inc. St Jude Medical, Inc. CarMax, Inc. Intuitive Surgical, Inc. 2.48 2.40 2.32 2.28 2.24 T T T T T 341,000 2 mil 675,000 3 mil 3 mil MasterCard Incorporated A Kansas City Southern, Inc. Mettler-Toledo International, Inc. Dick's Sporting Goods, Inc. Life Time Fitness, Inc. 2.05 1.97 1.96 1.82 1.81 Sector Weightings Stocks % Rel Std Index Cyclical Basic Materials Consumer Cyclical Financial Services Real Estate Operations Family: Manager: Tenure: Objective: Base Currency: Ext Port Avg Equity Style h r t y u Mod 27.9 1.7 18.6 7.3 0.3 Wells Fargo Advantage Multiple 9.4 Years Growth USD 1.04 0.57 1.99 0.58 0.16 6.58 4.49 2.77 2.55 2.53 Bond % AAA AA A — — — BBB BB B Below B — — — — NR/NA — Regional Exposure Stock % Rel Std Index 97.9 2.1 0.0 0.98 13.08 — Americas Greater Europe Greater Asia Stocks % Rel Std Index j i o p a Sensitive Communication Services Energy Industrials Technology 53.1 1.5 7.2 12.8 31.6 Ticker: Minimum Initial Purchase: Min Auto Investment Plan: Minimum IRA Purchase: Purchase Constraints: SGRAX $1,000 $100 $250 — 1.18 0.34 0.63 1.10 1.80 Stocks % Rel Std Index k s d f Defensive Consumer Defensive Healthcare Utilities Incept: Type: Total Assets: ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. 19.0 6.9 12.0 0.0 0.68 0.57 1.01 0.00 02-24-2000 MF $5,402.91 mil ® ß Release date 09-30-2011 Hypothetical Report Disclosure Statement General This is an illustration of a simulated investment that assumes the portfolio holding(s) were purchased on the first day of the period indicated. Sales and tax charges, including those required in the event of transfers between assets, are taken into account at the rates shown and may be higher or lower than what an investor would have actually paid had the investments been purchased then or now. The performance data represents past performance and is not indicative of future results. Principal value and investment returns will fluctuate, and an investor's shares/units, when redeemed, may be worth more or less than the original investment. The underlying holdings of the portfolio are not federally or FDIC-insured and are not deposits or obligations of, or guaranteed by, any financial institution. Investing in securities involves investment risks including possible loss of principal and fluctuation in value. The investment returns do not reflect active trading and do not necessarily reflect the results that might have been achieved by active management of the account. The investment returns of other clients of the advisor may differ materially from the investment portrayed. The information contained in this report is from the most recent information available to Morningstar as of the release date, and may or may not be an accurate reflection of the current composition of the securities included in the portfolio. There is no assurance that the weightings, composition and ratios will remain the same. Pre-inception Returns The analysis in this report may be based, in part, on adjusted historical returns for periods prior to the fund's actual inception. These calculated returns reflect the historical performance of the oldest share class of the fund, adjusted to reflect the fees and expenses of this share class. These fees and expenses are referenced in the report's Charges and Fees section. When pre-inception data is presented in the report, the header at the top of the report will indicate this. While the inclusion of pre-inception data provides valuable insight into the probable long-term behavior of newer share classes of a fund, investors should be aware that an adjusted historical return can only provide an approximation of that behavior. For example, the fee structures of a retail share class will vary from that of an institutional share class, as retail shares tend to have higher operating expenses and sales charges. These adjusted historical returns are not actual returns. Calculation methodologies utilized by Morningstar may differ from those applied by other entities, including the fund itself. The investment returns do not necessarily reflect the deduction of all investment advisory fees. Client investment returns may be reduced if additional fees are incurred. Performance for closed-end and exchange-traded funds is calculated based on the fund's end of the day market prices as reported by the New York Stock Exchange. Separate account performance is based on the mean experience of an investor in the account. This illustration may reflect the results of systematic investments and/or withdrawals. Systematic investment does not ensure a profit, nor does it Page 33 of 44 protect the investor against a loss in a declining market. Also, systematic investing will not keep an investor from losing money if shares are sold when the market is down. Investment Summary Graph The investment summary graph plots the approximate market value of the security or portfolio over the investing horizon. It may also include the total investment assumed in the illustration and/or a benchmark. Total investment includes dollar inflows and outflows, including outflows representing noted taxes and annual fees paid out of pocket. If a benchmark index is included on a graph, it assumes a similar pattern of investment/withdrawal as that of the security or portfolio. Taxes and transaction costs are also applied to the benchmark index. Note that direct investment in an index is not possible. Indexes are unmanaged portfolios representing different asset classes, with varying levels of associated risk. The benchmark index included in the graph may or may not represent an appropriate or accurate comparison with the security or portfolio illustrated. Standardized Returns For ETF/ETNs, the standardized returns reflect performance, both at market price and NAV (or in the case of ETNs, the Closing Indicative Note Value) price, without adjusting for the effects of taxation or brokerage commissions. These returns are adjusted to reflect all ongoing ETF/ETN expenses and assume reinvestment of dividends and capital gains. If adjusted, the effects of taxation would reduce the performance quoted. For HOLDRs, the standardized returns reflect performance at market price, without adjusting for the effects of taxation or brokerage commissions. These returns are adjusted to reflect all ongoing expenses and assume reinvestment of dividends and capital gains. If adjusted, the effects of taxation would reduce the performance quoted. For money-market mutual funds, standardized return is total return adjusted for sales charges and reflects all ongoing fund expenses. Current 7-day yield more closely reflects the current earnings of the money-market fund than the total return quotation. For mutual funds, standardized return is total return adjusted for sales charges and reflects all ongoing fund expenses. Preceding this disclosure statement, standardized returns for each portfolio holding are shown. For VA subaccounts, standardized return is total return based on the inception date within the separate account and is adjusted to reflect recurring and nonrecurring charges such as surrender fees, contract charges, maximum front-end load, maximum deferred load, maximum M&E risk charge, administration fees, and actual ongoing fund-level expenses. For VL subaccounts, standardized return is total return based on the inception date within the separate account and is adjusted to reflect recurring and nonrecurring charges such as surrender fees, contract charges, maximum front-end load, maximum deferred load, maximum M&E risk charge, administration fees, and actual ongoing fund-level expenses. For VLs, additional fees specific to a VL policy such as transfer fees and cost of insurance fees, which are based on specific characteristics of an individual, are not included. If VL fees were included in the return calculations, the performance would be significantly lower. An investor should contact a financial advisor and ask for a personalized performance illustration, either hypothetical or historical, which reflects all applicable fees and charges including the cost of insurance. Please review the prospectus and SAI for more detailed information. Definitions of Report Terms Annual Fee Paid: Your advisor was able to specify whether annual fees, if any, should be assumed paid out of pocket or from selling shares of securities held ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 Page 34 of 44 in the illustration. Total Reinvest: The sum of distributions reinvested during the period. Average Annualized Return: Average annualized money-weighted return (internal rate of return). In illustrations with time periods less than one year, this figure is not annualized. Total Return %: The total money-weighted return (internal rate of return) on investments for the period. Capital Gains (Individual Report): Percentage of the total market value of the holding that is attributable to the reinvestment of capital gains distributions. Charges & Fees (Investment Detail): The sum of fees charged to the investor during the period, including front or deferred loads, VA charges, and annual fees. Cumulative Return: The total money-weighted return of the investment over the entire time period of the illustration. Distribution/Withdrl: The sum of distributions not reinvested, plus any cash withdrawals during the period. Income (Individual Report): The percentage of the total market value of the holding that is attributable to the reinvestment of income or dividend distributions. Liquidate: Indicates whether the advisor chose that the holding be liquidated on the end date. Median (Comparison Report): The total money-weighted return (internal rate of return) of the median security in the illustration for the calendar year indicated. New investment: Any new cash invested during the period. Principal (Individual Reports): The percentage of the total market value of the holding that is attributable to new investment. Rebalance (Planning Assumptions): Indicates whether rebalancing is used, and its frequency. "No" indicates no rebalancing. Options for rebalancing frequency are monthly, quarterly, semi-annually, and annually. Rebalance (Investment Assumptions): Percentage of total asset allocation to be maintained in this holding through rebalancing. Security Return (Comparison Report): The total money-weighted return (internal rate of return) for the holding in the calendar year indicated, taking into account cash flows, charges, and fees. Subsequent Invest/Withdwl: The amount, type, and frequency of subsequent investments or withdrawals from the holding. Withdrawals are represented by a negative number. Systematic investments and withdrawals may be made monthly, quarterly, semi-annually, or annually. If "Custom", a custom schedule of investments or withdrawals was used. Taxes Due: The total amount of taxes due from the investor, determined by applying specified tax rates to distributions and sale of shares during each calendar year. Taxes Paid: Your advisor was able to specify whether taxes, if any, should be assumed paid out of pocket or from selling shares of securities held in the illustration. Net Amount Invested: The total out-of-pocket expense for the investor. Includes new investment, annual fees paid to advisor, and taxes due. This figure is net of withdrawals, including liquidation. Portfolio Snapshot Report Disclosure Statement General Investment portfolios illustrated in this report can be scheduled or unscheduled. With an unscheduled portfolio, the user inputs only the portfolio holdings and their current allocations. Morningstar calculates returns using the given allocations assuming monthly rebalancing. Taxes, loads, and sales charges are not taken into account. With "scheduled" portfolios, users input the date and amount for all investments into and withdrawals from each holding, as well as tax rates, loads, and other factors that would have affected portfolio performance. A hypothetical illustration is one type of scheduled portfolio. Both scheduled and unscheduled portfolios are theoretical, for illustrative purposes only, and are not reflective of an investors actual experience. For both scheduled and unscheduled portfolios, the performance data given represents past performance and should not be considered indicative of future results. Principal value and investment return of stocks, mutual funds, and variable annuity/life products will fluctuate, and an investor's shares/units, when redeemed, will be worth more or less than the original investment. Stocks, mutual funds, and variable annuity/life products are not FDIC-insured, may lose value, and are not guaranteed by a bank or other financial institution. Portfolio statistics change over time. Used as supplemental sales literature, the Portfolio Snapshot report must be preceded or accompanied by the fund/policy's current prospectus or equivalent. In all cases, this disclosure statement should accompany the Portfolio Snapshot report. Morningstar is not itself a FINRA-member firm. The underlying holdings of the portfolio are not federally or FDIC-insured and are not deposits or obligations of, or guaranteed by any financial institution. Investing in securities involves investment risks including possible loss of principal and fluctuation in value. The information contained in this report is from the most recent information available to Morningstar as of the release date, and may or may not be an accurate reflection of the current composition of the securities included in the portfolio. There is no assurance that the weightings, composition and ratios will remain the same. Items to Note Regarding Certain Underlying Securities A closed-end fund is an investment company, which typically makes one public offering of a fixed number of shares. Thereafter, shares are traded on a secondary market such as the New York Stock Exchange. As a result, the secondary market price may be higher or lower than the closed-end fund's net asset value (NAV). If these shares trade at a price above their NAV, they are said to be trading at a premium. Conversely, if they are trading at a price below their NAV, they are said to be trading at a discount. An exchange-traded fund (ETF) is an investment company that typically has an investment objective of striving to achieve a similar return as a particular market index. The ETF will invest in either all or a representative sample of the securities included in the index it is seeking to imitate. Like closed-end funds, ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 ETFs can be traded on a secondary market and thus have a market price that may be higher or lower than its net asset value. If these shares trade at a price above their NAV, they are said to be trading at a premium. Conversely, if they are trading at a price below their NAV, they are said to be trading at a discount. Exchange Traded Notes (ETN) are unsecured debt obligations of a particular issuer with returns that generally track the total return of an underlying index. Unlike standard debt securities, ETNs may not return the principal amount at maturity and, therefore, depending on the specific terms of the product, investors could lose all or a substantial portion of their investment based on the performance of the underlying index. Investors could also lose their entire investment if the issuer becomes insolvent. UBS Financial Services Inc. does not guarantee in any way the obligations or the financial condition of any issuer or the accuracy of any financial information provided by any issuer of ETNs. ETNs are not traditional investments and investing in ETNs can contain a call feature which allows the issuer to repurchase the ETN at its option prior to maturity. If this call feature is exercised, investors may not be able to reinvest the proceeds received at a comparable rate of return. While ETNs are generally listed on an exchange, the issuer is not obligated to maintain such listing or to ensure that there is a secondary market for the ETNs. As a result, there may be limited or no liquidity in the ETNs and investors should be prepared to hold their investment to maturity. A money-market fund is an investment company that invests in commercial paper, banker's acceptances, repurchase agreements, government securities, certificates of deposit and other highly liquid securities, and pays money market rates of interest. Money markets are not FDIC-insured, may lose money, and are not guaranteed by a bank or other financial institution. Although the money market seeks to preserve a stable per share value (i.e. $1.00 per share), it is possible to lose money by investment in the fund. A unit investment trust (UIT) is an investment company organized under a trust agreement between a sponsor and trustee. UITs typically purchase a fixed portfolio of securities and then sell units in the trust to investors. The major difference between a UIT and a mutual fund is that a mutual fund is actively managed, while a UIT is not. On a periodic basis, UITs usually distribute to the unit holder their pro rata share of the trust's net investment income and net realized capital gains, if any. If the trust is one that invests only in tax-free securities, then the income from the trust is also tax-free. UITs generally make one public offering of a fixed number of units. However, in some cases, the sponsor will maintain a secondary market that allows existing unit holders to sell their units and for new investors to buy units. Variable annuities are tax-deferred investments structured to convert a sum of money into a series of payments over time. Variable annuity policies have limitations and are not viewed as short-term liquid investments. An insurance company's fulfillment of a commitment to pay a minimum death benefit, a schedule of payments, a fixed investment account guaranteed by the insurance company, or another form of guarantee depends on the claims-paying ability of the issuing insurance company. Any such guarantee does not affect or apply to the investment return or principal value of the separate account and its subaccount. The financial ratings quoted for an insurance company do not apply to the separate account and its subaccount. If the variable annuity subaccount is invested in a money-market fund, it seeks to preserve a stable per share value (i.e. $1.00 per share), but it is possible to lose money by investment in the fund. Variable life insurance is a cash-value life insurance that has a variable cashvalue and/or death benefit depending on the investment performance of the subaccount into which premium payments are invested. Unlike traditional life insurance, variable life insurance has inherent risks associated with it, including market volatility, and is not viewed as a short-term liquid investment. Page 35 of 44 For more information on a variable life product, including each subaccount, please read the current prospectus. Please note, the financial ratings noted on the report are quoted for an insurance company and do not apply to the separate account and its subaccount. If the variable life subaccount is invested in a money-market fund, it seeks to preserve a stable per share value (i.e. $1.00 per share), but it is possible to lose money by investment in the fund. A bond is a debt security. When an investor purchases a bond, the purchase amount is lent to a government, municipality, corporation or other entity known as an issuer. The issuer promises to pay a specified rate of interest during the life of the bond and repay the face value of the bond when it matures. Individual bond issue data, price evaluations, and effective duration are provided by Interactive Data Corporation. Pre-inception Returns The analysis in this report may be based, in part, on adjusted historical returns for periods prior to the fund's actual inception. These calculated returns reflect the historical performance of the oldest share class of the fund, adjusted to reflect the fees and expenses of this share class. These fees and expenses are referenced in the report's list of holdings and again on the standardized returns page. When pre-inception data is presented in the report, the header at the top of the report will indicate this and the affected data elements will be displayed in italics. While the inclusion of pre-inception data provides valuable insight into the probable long-term behavior of newer share classes of a fund, investors should be aware that an adjusted historical return can only provide an approximation of that behavior. For example, the fee structures of a retail share class will vary from that of an institutional share class, as retail shares tend to have higher operating expenses and sales charges. These adjusted historical returns are not actual returns. Calculation methodologies utilized by Morningstar may differ from those applied by other entities, including the fund itself. Scheduled Portfolio Trailing Returns Scheduled Portfolios are customized by the user to account for loads, taxes, cash flows and specific investment dates. Scheduled portfolios use the portfolio's investment history to calculate final market values and returns. For scheduled portfolios, both individual holdings and portfolio returns are internalrate-of-return calculations that reflect the timing and dollar size of all purchases and sales. For stocks and mutual funds, sales charges and tax rates are taken into account as specified by the user (except in the pre-tax returns, which reflect the impact of sales charges but not taxes). Note that in some scheduled portfolio illustrations, dividends and capital gains distributions, if applicable, are reinvested at the end of the month in which they are made at the month-end closing price. This can cause discrepancies between calculated returns and actual investor experience. The trailing returns for scheduled portfolios commence at the end of the day on the investment start date. All front-load fees and beginning of period assetbased fees are deducted at the start of the day, therefore these fees will not be incorporated within the trailing return time period that matches the whole investment time period. For example, an investor pays $10,000 for security A with a 5% front-load and generates a 5-year Hypothetical Illustration that shows an end value of $12,500. Assuming no cash inflows or outflows aside from the initial investment and end value, the whole investment time period return will be 4.56% ((12,500/ $10,000)^(1/5)-1) while the 5-year trailing return will be 5.64% (( $12,500/ $9,500)^(1/5)-1). Scheduled Portfolio Returns-Based Performance Data For scheduled portfolios, the monthly returns used to calculate alphas, betas, R-squareds, standard deviations, Sharpe ratios and best/worst time-period data are internal rates of return. ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 Page 36 of 44 Important VA Disclosure for Scheduled Portfolios For variable annuity products, policy level charges (other than front-end loads, if input by the advisor) are not factored into returns. When withdrawals and liquidations are made, increases in value over the purchase price are taxed at the capital gains rate that currently is in effect. This is not reflective of the actual tax treatment for these products, which requires the entire withdrawal to be taxed at the income tax rate. If adjusted for sales charges and the effects of taxation, the subaccount returns would be reduced. expenses and assume reinvestment of dividends and capital gains. If adjusted, the effects of taxation would reduce the performance quoted. Scheduled Portfolio Investment Activity Graph The historic portfolio values that are graphed are those used to track the portfolio when calculating returns. Non-Standardized Returns For mutual funds, total return is not adjusted for sales charges and reflects all ongoing fund expenses for various time periods. These returns assume reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the mutual fund returns would be reduced. Please note these returns can include pre-inception data and if included, this data will be represented in italics. Unscheduled Portfolio Returns Monthly total returns for unscheduled portfolios are calculated by applying the ending period holding weightings supplied by the user to an individual holding's monthly returns. When monthly returns are unavailable for a holding (ie. Due to it not being in existence during the historical period being reported), the remaining portfolio holdings are re-weighted to maintain consistent proportions. Inception dates are listed in the Disclosure for Standardized and Tax Adjusted Returns. Trailing returns are calculated by geometrically linking these weighted-average monthly returns. Unscheduled portfolio returns thus assume monthly rebalancing. Returns for individual holdings are simple timeweighted trailing returns. Neither portfolio returns nor holding returns are adjusted for loads or taxes, and if they were, the returns stated would be reduced. The returns stated assume the reinvestment of dividends and capital gains. Mutual fund returns include all ongoing fund expenses. VA/VL returns reflect subaccount level fund expenses, including M&E expenses, administration fees, and actual ongoing fund level expenses. Unscheduled Portfolio Investment Activity Graph The historic performance data graphed is extrapolated from the ending portfolio value based on monthly returns. Benchmark Returns Benchmark returns may or may not be adjusted to reflect ongoing expenses such as sales charges. An investment's portfolio may differ significantly from the securities in the benchmark. Returns for custom benchmarks are calculated by applying user-supplied weightings to each benchmark's returns every month. Trailing returns are calculated by geometrically linking these weighted-average monthly returns. Custom benchmark returns thus assume monthly rebalancing. Standardized Returns For mutual funds, standardized return is total return adjusted for sales charges, and reflects all ongoing fund expenses. Following this disclosure statement, standardized returns for each portfolio holding are shown. For money-market mutual funds, standardized return is total return adjusted for sales charges and reflects all ongoing fund expenses. Current 7-day yield more closely reflects the current earnings of the money-market fund than the total return quotation. For VA subaccounts, standardized return is total return based on the inception date within the separate account and is adjusted to reflect recurring and nonrecurring charges such as surrender fees, contract charges, maximum front-end load, maximum deferred load, maximum M&E risk charge, administration fees and actual ongoing fund-level expenses. For ETF/ETNs, the standardized returns reflect performance, both at market price and NAV price, without adjusting for the effects of taxation or brokerage commissions. These returns are adjusted to reflect all ongoing ETF/ETN The charges and expenses used in the standardized returns are obtained from the most recent prospectus and/or shareholder report available to Morningstar. For mutual funds and VAs, all dividends and capital gains are assumed to be reinvested. For stocks, stock acquired via divestitures is assumed to be liquidated and reinvested in the original holding. For money-market funds, total return is not adjusted for sales charges and reflects all ongoing fund expenses for various time periods. These returns assume reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the money-market returns would be reduced. For VA and VL subaccounts, non-standardized returns illustrate performance that is adjusted to reflect recurring and non-recurring charges such as surrender fees, contract charges, maximum front-end load, maximum deferred load, maximum M&E risk charge, administrative fees and underlying fund-level expenses for various time periods. Non-Standardized performance returns assume reinvestment of dividends and capital gains. If adjusted for the effects of taxation, the subaccount returns would be significantly reduced. Please note these returns can include pre-inception data and if included, this data will be represented in italics. Investment Advisory Fees The investment(s) returns do not necessarily reflect the deduction of all investment advisory fees. Client investment returns will be reduced if additional advisory fees are incurred such as deferred loads, redemption fees, wrap fees, or other account charges. Asset Allocation The weighting of the portfolio in various asset classes, including "Other" is shown in this graph and table. "Other" includes security types that are not neatly classified in the other asset classes, such as convertible bonds and preferred stocks. "Not classified" represents the portion of the portfolio that Morningstar could not classify at all, due to missing data. In the graph and table, allocation to the classes is shown for long positions, short positions, and net (long positions net of short) positions. These new portfolio statistics help investors look "under the hood" of a portfolio. These statistics summarize what the managers are buying and how they are positioning the portfolio. When short positions are captured in these portfolio statistics, investors get a more robust description of the funds' exposure and risk. Most managed product portfolios hold fairly conventional securities, such as long positions in stocks and bonds. Other portfolios use other investment strategies or securities, such as short positions or derivatives, to reduce transaction costs, enhance returns, or reduce risk. Some of these securities and strategies behave like conventional securities, while others have unique return and risk characteristics. Most portfolios take long positions in securities. Long positions involve buying the security outright and then selling it later, with the hope that the security ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 price rises over time. In contrast, short positions are taken to benefit from anticipated price declines. In this type of transaction, the investor borrows the security from another investor, sells it and receives cash, and then is obligated to buy it back at some point in the future. If the price falls after the short sale, the investor will have sold high and can now buy low to close the short position and lock in a profit. However, if the price of the security increases after the short sale, the investor will experience losses by buying it at a higher price than the sale price. The strategy of selling securities short is prevalent in specialized portfolios, such as long-short, market-neutral, bear-market, and hedge funds. Most conventional portfolios do not typically short securities, although they may reserve the right to do so under special circumstances. Funds may also short derivatives, and this is sometimes more efficient than shorting individual securities. Short positions produce negative exposure to the security that is being shorted. This means that when the security rises in value, the short position will fall in value and vice versa. Morningstar's portfolio statistics will capture this negative exposure. For example, if a fund has many short stock positions, the percent of assets in stocks in the asset allocation breakdown may be negative. Funds must provide their broker with cash collateral for the short position, so funds that short often have a large cash position, sometimes even exceeding 100% cash. Page 37 of 44 For interest-rate sensitivity, Morningstar obtains from fund companies the average effective duration. Generally, Morningstar classifies a fixed-income fund's interest-rate sensitivity based on the effective duration of the Morningstar Core Bond Index (MCBI), which is currently three years. The classification of Limited will be assigned to those funds whose average effective duration is between 25% to 75% of MCBI's average effective duration; funds whose average effective duration is between 75% to 125% of the MCBI will be classified as Moderate; and those that are at 125% or greater of the average effective duration of the MCBI will be classified as Extensive. For municipal bond funds, Morningstar also obtains from fund companies the average effective duration. In these cases static breakpoints are utilized. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-US taxable and non-US domiciled fixed income funds static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii) Moderate: greater than 3.5 and less than equal to 6 years; (iii) Extensive: greater than 6 years. Stock Regions This section provides the allocation of the portfolio's long stock positions to the world regions, in comparison with a benchmark. Investment Style The Morningstar Style Box reveals a fund's investment style as of the date noted on this report. Risk and Return Standard deviation is a statistical measure of the volatility of a portfolio's returns around its mean. For equity funds the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, core, or growth). Mean represents the annualized geometric return for the period shown. For fixed-income funds, the vertical axis shows the credit quality of the bonds owned and the horizontal axis shows interest rate sensitivity as measured by a bond's effective duration. Morningstar seeks credit rating information from fund companies on a periodic basis (e.g., quarterly). In compiling credit rating information, Morningstar instructs fund companies to only use ratings that have been assigned by a Nationally Recognized Statistical Rating Organization (NRSRO). If two NRSROs have rated a security, fund companies are to report the lowest rating; if three or more NRSROs have rated the same security differently, fund companies are to report the rating that is in the middle. For example, if NRSRO X rates a security AA-, NRSRO Y rates the same security an A and NRSRO Z rates it a BBB+, the fund company should use the credit rating of 'A' in its reporting to Morningstar. PLEASE NOTE: Morningstar, Inc. is not itself an NRSRO nor does it issue a credit rating on the fund. An NRSRO rating on a fixed-income security can change from time-to-time. For credit quality, Morningstar combines the credit rating information provided by the fund companies with an average default rate calculation to come up with a weighted-average credit quality. The weighted-average credit quality is currently a letter that roughly corresponds to the scale used by a leading NRSRO. Bond funds are assigned a style box placement of "low", "medium", or "high" based on their average credit quality. Funds with a low credit quality are those whose weighted-average credit quality is determined to be less than "BBB-"; medium are those less than "AA-", but greater or equal to "BBB-"; and high are those with a weighted-average credit quality of "AA-" or higher. When classifying a bond portfolio, Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstar's analysis of actual historical default rates). Morningstar then averages these default rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve. Sharpe ratio uses a portfolio's standard deviation and total return to determine reward per unit of risk. Alpha measures the difference between a portfolio's actual returns and its expected performance, given its beta and the actual returns of the benchmark index. Alpha is often seen as a measurement of the value added or subtracted by a portfolio's manager. Beta is a measure of the degree of change in value one can expect in a portfolio given a change in value in a benchmark index. A portfolio with a beta greater than one is generally more volatile than its benchmark index, and a portfolio with a beta of less than one is generally less volatile than its benchmark index. R-squared reflects the percentage of a portfolio's movements that is explained by movements in its benchmark index, showing the degree of correlation between the portfolio and a benchmark. This figure is also helpful in assessing how likely it is that alpha and beta are statistically significant. Portfolio Yield The dividend yield produced for the most recent 12 months is presented. Fundamental Analysis The below referenced data elements are a weighted average of the long equity holdings in the portfolio. The median market capitalization of a subaccount's equity portfolio gives you a measure of the size of the companies in which the subaccount invests. The Price/Cash Flow ratio is a weighted average of the price/cash-flow ratios of the stocks in a subaccounts portfolio. Price/cash-flow shows the ability of a business to generate cash and acts as a gauge of liquidity and solvency. ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 The Price/Book ratio is a weighted average of the price/book ratios of all the stocks in the underlying fund's portfolio. The P/B ratio of a company is calculated by dividing the market price of its stock by the company's per-share book value. Stocks with negative book values are excluded from this calculation. The Price/Earnings ratio is calculated by dividing the market value of the equity assets by the trailing 12 month earnings. The 12 month earnings value comes from multiplying the number of shares and the adjusted trailing 12 months' earnings per share for each equity asset and summing the results. The Price/Sales ratio is a weighted average of the price/sales ratios of the stocks in the underlying fund's portfolio. The P/S ratio of a stock is calculated by dividing the current price of the stock by its trailing 12 months' revenues per share. In computing the average, Morningstar weights each portfolio holding by the percentage of equity assets it represents. The return on assets (ROA) is the percentage a company earns on its assets in a given year. The calculation is net income divided by end-of-year total assets, multiplied by 100. The Return on Equity (ROE) is the percentage a company earns on its shareholders' equity in a given year. The calculation is net income divided by end-of-year net worth, multiplied by 100. Market Maturity shows the percentage of a holding's long common stocks that are domiciled in developed and emerging markets. The data elements listed below are a weighted average of the long fixed income holdings in the portfolio. Average maturity is used for holdings in the taxable fixed-income category. This is a weighted average of all the maturities of the bonds in a portfolio, computed by weighting each maturity date by the market value of the security. Credit quality breakdowns are shown for corporate-bond holdings and depict the quality of bonds in the underlying portfolio. The report shows the percentage of fixed-income securities that fall within each credit quality rating as assigned by an NRSRO. Bonds not rated by an NRSRO are included in the not rated (NR) category. Debt as a percentage of capital is calculated by dividing long-term debt by total capitalization (the sum of common equity plus preferred equity plus long-term debt). This figure is not provided for financial companies. Duration is a time measure of a bond`s interest-rate sensitivity. Net Margin is a measure of profitability. It is equal to annual net income divided by revenues from the same period for the past five fiscal years, multiplied by 100. Type Weightings divide the stocks in a given holding's portfolio into eight type designations each of which defines a broad category of investment characteristics. Not all stocks in a given holding's portfolio are assigned a type. These stocks are grouped under NA. Page 38 of 44 variable annuities/life, ETF/ETN and closed-end funds we use the gross prospectus ratio as provided in the prospectus. Separate accounts and stocks are excluded from the average expense ratio. Potential capital gains exposure is the percentage of a holding`s total assets that represent capital appreciation. Stock Intersection Report Disclosure Statement Used as supplemental sales literature, the Stock Intersection report must be preceded or accompanied by the fund's/policy's current prospectus or equivalent. In all cases, this disclosure statement should accompany the Stock Intersection report. Morningstar is not itself a FINRA-member firm. Information contained in the report is from the most recent information available to Morningstar. The Stock Intersection report reviews the top 25 holdings in the portfolio to identify, at a glance, the portfolio's overall weighting in a particular security or sector. This report only displays the top 25 holdings; the investor's portfolio may hold substantially more. Note that while the investor does not own the securities held by an open-end fund, closed-end fund, or similar investment, the holdings are relevant in reviewing the overall asset allocation and diversification. This report is not an offer or recommendation by Morningstar to purchase or liquidate any security listed. Concentration Ratio The concentration ratio depicts how much of the portfolio is contained within the top 25 stock holdings. If a portfolio contains 25 or fewer securities, it would be considered non-diversified. A non-diversified portfolio is more risky than a portfolio with a larger number of investments. Percentage of Portfolio The Percentage of Portfolio column indicates the percentage of net assets any given security (either as an individual holding or as an underlying stock) makes up as an overall position of the portfolio. Holding Portfolio Date The Portfolio Date is the date that the fund's portfolio was last updated. When making comparisons among funds, it is an important date to keep in mind. Although Morningstar tries to ensure that we receive timely information, we don't always receive current information from fund companies. By law, funds need only report this information two times during the calendar year, and they have two months after the report date to actually release the shareholder report and portfolio. Therefore, it is possible that a fund's portfolio could be up to eight months old at the time of publication. Sector Morningstar breaks down all equities into the following sectors: Consumer Defensive, Healthcare, Utilities, Communication Services, Energy, Industrials, Technology, Basic Materials, Consumer Cyclical, Financial Services, and Real Estate. The data elements listed below are a weighted average of the total holdings in the portfolio. The average expense ratio is the percentage of assets deducted each year for operating expenses, management fees, and all other asset-based costs incurred by the fund, excluding brokerage fees. Please note for mutual funds, Total Return Graph Disclosure ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 General Disclosures Used as supplemental sales literature, this report must be preceded or accompanied by a current prospectus or equivalent. Please read these carefully before investing. Morningstar is not itself a FINRA-member firm. The information contained in this report is from the most recent information available to Morningstar as of the release date, and may or may not be an accurate reflection of current data for securities included in the portfolio. There is no assurance that the data will remain the same. Ibbotson Associates, Inc. and Morningstar Associates, LLC, both a registered investment advisor and wholly owned subsidiary of Morningstar, Inc., provides various institutional investment consulting services, including asset allocation advice to investment advisers who have or will be creating a fund-offund/asset allocation product. However, despite the fact that such relationships may exist, the information displayed for those products will not be influence as they objective measures and/or are derived by quantitative driven formulas (i.e., Morningstar Rating). Notes Regarding Included Securities A closed-end fund is an investment company, which typically makes one public offering of a fixed number of shares. Thereafter, shares are traded on a secondary market such as the New York Stock Exchange. As a result, the secondary market price may be higher or lower than the closed-end fund's net asset value (NAV). If these shares trade at a price above their NAV, they are said to be trading at a premium. Conversely, if they are trading at a price below their NAV, they are said to be trading at a discount An exchange-traded fund (ETF) is an investment company that typically has an investment objective of striving to achieve a similar return as a particular market index. The ETF will invest in either all or a representative sample of the securities included in the index it is seeking to imitate. ETFs can be traded on a secondary market and thus have a market price that may be higher or lower than its net asset value. If these shares trade at a price above their NAV, they are said to be trading at a premium. Conversely, if they are trading at a price below their NAV, they are said to be trading at a discount. A holding company depository receipt (HOLDR) is similar to an ETF, but is focused on narrow industry groups and initially owns 20 stocks which are unmanaged, and can become more concentrated due to mergers, or the disparate performance of their holdings. HOLDRs can only be bought in 100share increments. Investors may exchange shares of a HOLDR for its underlying stocks at any time. A money market fund is an investment company that invests in commercial paper, banker's acceptances, repurchase agreements, government securities, certificates of deposit and other highly liquid securities, and pays money market rates of interest. Money markets are not FDIC-insured, may lose money, and are not guaranteed by a bank or other financial institution. Although the money market seeks to preserve a stable per share value (i.e. $1.00 per share), it is possible to lose money by investment in the fund. Variable annuities are tax-deferred investments structured to convert a sum of money into a series of payments over time. Variable annuity policies have limitations and are not viewed as short-term liquid investments. An insurance company's fulfillment of a commitment to pay a minimum death benefit, a schedule of payments, a fixed investment account guaranteed by the insurance company, or another form of guarantee depends on the claims-paying ability of the issuing insurance company. Any such guarantee does not affect or apply to the investment return or principal value of the separate account and its subaccount. The financial ratings quoted for an insurance company do not Page 39 of 44 apply to the separate account and its subaccount. If the variable annuity subaccount is invested in a money-market fund, although it seeks to preserve a stable per share value (i.e. $1.00 per share), it is possible to lose money by investment in the fund. Variable life insurance is a cash-value life insurance product that has a variable cash value and/or death benefit depending on the investment performance of the subaccount into which premium payments are invested. Unlike traditional life insurance, variable life insurance has inherent risks associated with it, including market volatility, and is not viewed as a short-term liquid investment. For more information on a variable life product, including each subaccount, please read the current prospectus. Please note, the financial ratings noted on the report are quoted for an insurance company and do not apply to the separate account and its subaccount. If the variable life subaccount is invested in a money-market fund, although it seeks to preserve a stable per share value (i.e. $1.00 per share), it is possible to lose money by investment in the fund. Before investing in a 529 portfolio, an investor should consider whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's 529 college savings plan. A bond is a debt security. When an investor purchases a bond, the purchase amount is lent to a government, municipality, corporation or other entity known as an issuer. The issuer promises to pay a specified rate of interest during the life of the bond and repay the face value of the bond when it matures. Individual bond issue data, price evaluations, and effective duration are provided by Interactive Data Corporation. General Performance Disclosure The Performance data given represents past performance and should not be considered indicative of future results. Principal value and investment return will fluctuate, so that an investor's shares and/or units when redeemed may be worth more or less than the original investment. Securities in this report are not FDIC-insured, may lose value, and are not guaranteed by a bank or other financial institution. For mutual funds, the analysis in this report may be based, in part, on historical returns for periods prior to the historical performance of the fund's oldest share class, adjusted to reflect the fees and expenses of this share class. While the inclusion of preinception data provides valuable insight into the probable longterm behavior of newer share classes of a fund, investors should be aware that an adjusted historical return can provide only an approximation of that behavior. For example, the fee structures between a retail share class will vary from that of an institutional share class, as retail share classes tend to have higher operating expense and sales charges. These adjusted historical returns are not actual returns. Calculation methodologies utilized by Morningstar may differ from those provided by other entities, including the fund itself. If mutual fund preinception data is included in this report, this data will be represented in the report in italics. For variable annuity and variable life subaccounts, total return reflects the investment experience of a subaccount since its inception, and extended to the performance history of the underlying insurance fund. Total returns are adjusted to reflect fees & expenses, such as M&E charges, administrative fees, contract charges, fund-level expenses such as management fees and operating fees. Return is not adjusted to reflect front-end loads or surrender fees. It reflects the return that would be earned by an investor who held the security through the period shown, but did not buy at the beginning or sell at the end. If adjusted for the effects of loads, surrender fees, and taxation, the subaccount returns would be significantly reduced. When subaccount returns reflect preinception data, it will be represented in italics. ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 Variable Life Return Please refer to the hypothetical illustration in the prospectus which, among other things, shows the effect that fees and charges have on performance. We urge investors to obtain a personalized illustration that reflects the costs of insurance protection. Total Return Report This graph allows the market value of securities, indexes, and Morningstar categories to be graphed over customized time periods. The graph reflects the discrete return of the illustration time horizon displayed at the top of the report. The returns that were achieved are displayed in the table beneath the graph. If this graph is not accompanied by a Hypothetical Illustration Report, the returns noted for a security do not reflect any sales charges and do not reflect impacts of taxation. If impacts of sales charges and taxation were reflected, the returns would be lower than those indicated in the report. If this graph is accompanied by a Hypothetical Illustration report, the results are based on the investment assumptions for the hypothetical illustration, which is also included in this report. The same investments, withdrawals, reinvestment of dividends and gains, rebalancing, and fees, are applied. The return shown in this graph is money-weighted return (or internal rate of return), which is impacted by investor cash flows. The returns noted for a security reflect any sales charges that were applied in the illustration, but do not reflect impacts of taxation. If impacts of taxation were reflected, the returns would be lower than those indicated in the report. For exchange-traded funds and closed-end funds, market returns are used. Mutual Fund Detail Report Disclosure Statement The Mutual Fund Detail Report is to be used as supplemental sales literature, and therefore must be preceded or accompanied by the fund's current prospectus and a disclosure statement. Please read the prospectus carefully. In all cases, this disclosure statement should accompany the Mutual Fund Detail Report. Morningstar is not itself a FINRA-member firm. Portfolio information is based on the most recent information available to Morningstar. Pre-inception Returns The analysis in this report may be based, in part, on adjusted historical returns for periods prior to the fund's actual inception. These calculated returns reflect the historical performance of the oldest share class of the fund, adjusted to reflect the fees and expenses of this share class. These fees and expenses are referenced in the report's Performance section. When pre-inception data are presented in the report, the header at the top of the report will indicate this. In addition, the pre-inception data included in the report will appear in italics. While the inclusion of pre-inception data provides valuable insight into the probable long-term behavior of newer share classes of a fund, investors should be aware that an adjusted historical return can only provide an approximation of that behavior. For example, the fee structures of a retail share class will vary from that of an institutional share class, as retail shares tend to have higher operating expenses and sales charges. These adjusted historical returns are not actual returns. Calculation methodologies utilized by Morningstar may differ from those applied by other entities, including the fund itself. Performance Page 40 of 44 The performance data given represents past performance and should not be considered indicative of future results. Principal value and investment return will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original investment. Fund portfolio statistics change over time. The fund is not FDIC-insured, may lose value and is not guaranteed by a bank or other financial institution. Total return reflects performance without adjusting for sales charges or the effects of taxation, but is adjusted to reflect all actual ongoing fund expenses and assumes reinvestment of dividends and capital gains. If adjusted for sales charges and the effects of taxation, the performance quoted would be reduced. Standardized Total Return is reflected as of month- and quarter-end time periods. It depicts performance without adjusting for the effects of taxation, but is adjusted for sales charges and all ongoing fund expenses, and assumes reinvestment of dividends and capital gains. If adjusted for the effects of taxation, the performance quoted would be reduced. The sales charge used in the calculation was obtained from the fund's most recent prospectus and/or shareholder report available to Morningstar. Standardized returns never include pre-inception history. Morningstar % Rank within Morningstar Category does not account for a fund's sales charge (if applicable). Rankings will not be provided for periods less than one year. Growth of 10,000 This graph compares the growth of an investment of 10,000 (in the base currency of the fund) with that of an index and with that of the average for all funds in its Morningstar category. The total returns are not adjusted to reflect sales charges or the effects of taxation, but are adjusted to reflect actual ongoing fund expenses, and assume reinvestment of dividends and capital gains. If adjusted, sales charges would reduce the performance quoted. The index is an unmanaged portfolio of specified securities and cannot be invested in directly. The index and the category average do not reflect any initial or ongoing expenses. A fund's portfolio may differ significantly from the securities in the index. The index is chosen by Morningstar. If pre-inception data is included in the analysis, it will be graphed. Risk and Return The Morningstar Rating is calculated for funds with at least a three-year history. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating for a mutual fund is derived from a weighted average of the performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Rating metrics. Please note that some Morningstar proprietary calculations, including the Morningstar Rating, may be calculated based on adjusted historical returns (pre-inception returns). If the extended performance rating is in effect, the "stars" are represented as unshaded stars. For each mutual fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's adjusted monthly performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. This investment's independent Morningstar Rating metric is then compared against the open-end mutual fund universe's actual performance breakpoints to determine its extended performance rating. The Overall Morningstar Rating for ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 a mutual fund is derived from a weighted average of the actual performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Rating metrics. Morningstar Return rates a mutual fund's performance relative to other funds in its Morningstar Category. It is an assessment of a fund's excess return over a risk-free rate (the return of the 90-day Treasury Bill), after adjusting for all applicable loads and sales charges, in comparison with the mutual funds in its Morningstar Category. In each Morningstar Category, the top 10% of funds earn a High Morningstar Return (HIGH), the next 22.5% Above Average (+AVG), the middle 35% Average (AVG), the next 22.5% Below Average (-AVG), and the bottom 10% Low (LOW). Morningstar Return is measured for up to three time periods (three-, five-, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the mutual fund. Funds with less than three years of performance history are not rated. Morningstar Risk evaluates a mutual fund's downside volatility relative to that of other funds in its Morningstar Category. It is an assessment of the variations in a fund's monthly returns, with an emphasis on downside variations, in comparison with the mutual funds in its Morningstar Category. In each Morningstar Category, the 10% of funds with the lowest measured risk are described as Low Risk (LOW), the next 22.5% Below Average (-AVG), the middle 35% Average (AVG), the next 22.5% Above Average (+AVG), and the top 10% High (HIGH). Morningstar Risk is measured for up to three time periods (three-, five-, and 10 years). These separate measures are then weighted and averaged to produce an overall measure for the mutual fund. Funds with less than three years of performance history are not rated. If pre-inception returns are included in this analysis, the risk and return profile data calculated on the basis of these returns will appear in italics. Risk Measures The risk measures below are calculated for funds with at least a three- year history. Standard deviation is a statistical measure of the volatility of the fund's returns. Mean represents the annualized geometric return for the period shown. The Sharpe ratio uses standard deviation and excess return to determine reward per unit of risk. Alpha measures the difference between a fund's actual returns and its expected performance, given its level of risk (as measured by beta). Alpha is often seen as a measure of the value added or subtracted by a portfolio manager. Beta is a measure of a fund's sensitivity to market movements. A portfolio with a beta greater than 1 is more volatile than the market, and a portfolio with a beta less than 1 is less volatile than the market. R-squared reflects the percentage of a fund's movements that is explained by movements in its benchmark index, showing the degree of correlation between the fund and the benchmark. This figure is also helpful in assessing how likely it is that alpha and beta are statistically significant. Best fit index: Alpha, beta, and R-squared statistics are presented for a broad market index and a "Best fit" index. The Best-Fit index identified in this report was determined by Morningstar by calculating R-squared for the fund against approximately 100 indexes tracked by Morningstar. The index representing the highest R-squared is identified as the best-fit index. The best-fit index may not Page 41 of 44 be the fund's benchmark, nor does it necessarily contain the types of securities that may be held by the fund. Risk measures calculated using pre-inception data, if included in the analysis, will be presented in italics. Asset Allocation The weighting of the portfolio in various asset classes, including "Other" is shown in the table. "Other" includes security types that are not neatly classified in the other asset classes, such as convertible bonds and preferred stocks. In the table, allocation to the classes is shown for long positions, short positions, and net (long positions net of short) positions. These statistics summarize what the managers are buying and how they are positioning the portfolio. When short positions are captured in these portfolio statistics, investors get a more robust description of the funds' exposure and risk. Most managed product portfolios hold fairly conventional securities, such as long positions in stocks and bonds. Other portfolios use other investment strategies or securities, such as short positions or derivatives, to reduce transaction costs, enhance returns, or reduce risk. Some of these securities and strategies behave like conventional securities, while others have unique return and risk characteristics. Most portfolios take long positions in securities. Long positions involve buying the security outright and then selling it later, with the hope that the security price rises over time. In contrast, short positions are taken to benefit from anticipated price declines. In this type of transaction, the investor borrows the security from another investor, sells it and receives cash, and then is obligated to buy it back at some point in the future. If the price falls after the short sale, the investor will have sold high and can now buy low to close the short position and lock in a profit. However, if the price of the security increases after the short sale, the investor will experience losses by buying it at a higher price than the sale price. The strategy of selling securities short is prevalent in specialized portfolios, such as long-short, market-neutral, bear-market, and hedge funds. Most conventional portfolios do not typically short securities, although they may reserve the right to do so under special circumstances. Funds may also short derivatives, and this is sometimes more efficient than shorting individual securities. Short positions produce negative exposure to the security that is being shorted. This means that when the security rises in value, the short position will fall in value and vice versa. Morningstar's portfolio statistics will capture this negative exposure. For example, if a fund has many short stock positions, the percent of assets in stocks in the asset allocation breakdown may be negative. Funds must provide their broker with cash collateral for the short position, so funds that short often have a large cash position, sometimes even exceeding 100% cash. Note that all other portfolio statistics presented in this report are based on the long holdings of the fund only. Style Analysis The Morningstar Style Box reveals a fund's investment style as of the date noted on this report. For equity funds the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend, or growth). For fixed-income funds, the vertical axis shows the credit quality of the bonds owned and the horizontal axis shows interest rate sensitivity as measured by a bond's effective duration. ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 Morningstar seeks credit rating information from fund companies on a periodic basis (e.g., quarterly). In compiling credit rating information, Morningstar instructs fund companies to only use ratings that have been assigned by a Nationally Recognized Statistical Rating Organization (NRSRO). If two NRSROs have rated a security, fund companies are to report the lowest rating; if three or more NRSROs have rated the same security differently, fund companies are to report the rating that is in the middle. For example, if NRSRO X rates a security AA-, NRSRO Y rates the same security an A and NRSRO Z rates it a BBB+, the fund company should use the credit rating of 'A' in its reporting to Morningstar. PLEASE NOTE: Morningstar, Inc. is not itself an NRSRO nor does it issue a credit rating on the fund. An NRSRO rating on a fixed-income security can change from time-to-time. For credit quality, Morningstar combines the credit rating information provided by the fund companies with an average default rate calculation to come up with a weighted-average credit quality. The weighted-average credit quality is currently a letter that roughly corresponds to the scale used by a leading NRSRO. Bond funds are assigned a style box placement of "low", "medium", or "high" based on their average credit quality. Funds with a low credit quality are those whose weighted-average credit quality is determined to be less than "BBB-"; medium are those less than "AA-", but greater or equal to "BBB-"; and high are those with a weighted-average credit quality of "AA-" or higher. When classifying a bond portfolio, Morningstar first maps the NRSRO credit ratings of the underlying holdings to their respective default rates (as determined by Morningstar's analysis of actual historical default rates). Morningstar then averages these default rates to determine the average default rate for the entire bond fund. Finally, Morningstar maps this average default rate to its corresponding credit rating along a convex curve. For interest-rate sensitivity, Morningstar obtains from fund companies the average effective duration. Generally, Morningstar classifies a fixed-income fund's interest-rate sensitivity based on the effective duration of the Morningstar Core Bond Index (MCBI), which is currently three years. The classification of Limited will be assigned to those funds whose average effective duration is between 25% to 75% of MCBI's average effective duration; funds whose average effective duration is between 75% to 125% of the MCBI will be classified as Moderate; and those that are at 125% or greater of the average effective duration of the MCBI will be classified as Extensive. For municipal bond funds, Morningstar also obtains from fund companies the average effective duration. In these cases static breakpoints are utilized. These breakpoints are as follows: (i) Limited: 4.5 years or less; (ii) Moderate: more than 4.5 years but less than 7 years; and (iii) Extensive: more than 7 years. In addition, for non-US taxable and non-US domiciled fixed income funds static duration breakpoints are used: (i) Limited: less than or equal to 3.5 years; (ii) Moderate: greater than 3.5 and less than equal to 6 years; (iii) Extensive: greater than 6 years. Equity Portfolio Statistics The referenced data elements below are a weighted average of the long equity holdings in the portfolio. The Price/Earnings ratio is a weighted average of the price/earnings ratios of the stocks in the underlying fund's portfolio. The P/E ratio of a stock is calculated by dividing the current price of the stock by its trailing 12-months' earnings per share. In computing the average, Morningstar weights each portfolio holding by the percentage of equity assets it represents. The Price/Cash Flow ratio is a weighted average of the price/cash-flow ratios of the stocks in a fund's portfolio. Price/cash-flow shows the ability of a business to generate cash and acts as a gauge of liquidity and solvency. The Price/Book ratio is a weighted average of the price/book ratios of all the Page 42 of 44 stocks in the underlying fund's portfolio. The P/B ratio of a company is calculated by dividing the market price of its stock by the company's per-share book value. Stocks with negative book values are excluded from this calculation. The geometric average market capitalization of a fund's equity portfolio offers a measure of the size of the companies in which the mutual fund invests. Fixed-Income Portfolio Statistics The referenced data elements below are a weighted average of the long fixed income holdings in the portfolio. Duration is a time measure of a bond's interest rate sensitivity. Average effective duration is a weighted average of the duration of the underlying fixed income securities within the portfolio. Average effective maturity is a weighted average of all the maturities of the bonds in a portfolio, computed by weighting each maturity date by the market value of the security. Average weighted coupon is generated from the fund's portfolio by weighting the coupon of each bond by its relative size in the portfolio. Coupons are fixed percentages paid out on a fixed-income security on an annual basis. Average weighted price is generated from the fund's portfolio by weighting the price of each bond by its relative size in the portfolio. This number reveals if the fund favors bonds selling at prices above or below face value (premium or discount securities, respectively). A higher number indicates a bias toward premiums. This statistic is expressed as a percentage of par (face) value. Credit quality breakdowns are shown for corporate-bond holdings and depict the quality of bonds in the underlying portfolio. The report shows the percentage of fixed-income securities that fall within each credit quality rating as assigned by an NRSRO. Bonds not rated by an NRSRO are included in the not rated (NR) category. Turnover Ratio is a decent proxy for how frequently a manager trades his or her portfolio. The inverse of a fund's turnover ratio is the average holding period for a security in the fund. As turnover increases, a fund's brokerage costs typically rise as well. Operations Purchase constraints denote if a mutual fund has any of the following qualities: Qualified Access (A), Institutional (T), Closed to New Investments, (C) or Closed to All Investments (L). Because these qualities can all act as restrictions and/or requirements for investment, they are grouped together. Potential capital gains exposure is the percentage of a mutual fund's total assets that represents capital appreciation. Fees and Expenses Prospectus Gross Expense Ratio reflects the annual percentage of a fund's assets paid out in expenses. Expenses include management, 12B-1, transfer agent and all other asset-based fees associated with the fund's daily operations and distribution, with the exception of brokerage commissions. It does not reflect expenses that have been reimbursed by the investment advisor, reductions from brokerage service arrangements or other expense offset arrangements. Prospectus Net Expense Ratio reflects actual expenses paid by the fund as well as any voluntary waivers, reductions from brokerage service arrangements and any other expense offset arrangements. ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 Investment Risks International/Emerging Market Equities: Investing in international securities involve special additional risks. These risks include, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Investing in emerging markets may accentuate these risks. Sector Strategies: Portfolios that invest exclusively in one sector or industry involve additional risks. The lack of industry diversification subjects the investor to increased industry-specific risks. Non-Diversified Strategies: Portfolios that invest a significant percentage of assets in a single issuer involve additional risks, including share price fluctuations, because of the increased concentration of investments. Page 43 of 44 bank loans/senior debt are often highly leveraged, producing a high risk of return volatility. Exchange Traded Notes (ETNs): ETNs are unsecured debt obligations. Any repayment of notes are subject to the issuer's ability to repay its obligations. ETNs do not typically pay interest. Leveraged ETFs: Levered investments are designed to meet multiples of the return performance of the index they track and seek to meet their fund objectives on a daily basis (or other time period stated within the Fund objective). The leverage/gearing ratio is the amount of excess return that a levered investment is designed to achieve in comparison to its index performance (i.e. 200%, 300%, -200%, or -300% or 2X, 3X. -2X, -3X). Compounding has the ability to affect the performance of the fund to be either greater or less than the index performance multiplied by the multiple stated within the funds objective over a stated time period. Small Cap Equities: Portfolios that invest in stocks of small companies involve additional risks. Smaller companies typically have a higher risk of failure, and are not as well established as larger blue-chip companies. Historically, smallercompany stocks have experienced a greater degree of market volatility that the overall market average. Short Positions: When a short position moves in an unfavorable way, the losses are theoretically unlimited. The broker may demand more collateral and a manager might have to close out a short position at an inopportune time to limit further losses. Mid Cap Equities: Portfolios that invest in companies with market capitalization below $10 billion involve additional risks. The securities of these companies may be more volatile and less liquid than the securities of larger companies. Long-Short: Due to the strategies used by long-short funds, which may include but are not limited to leverage, short selling, short-term trading, and investing in derivatives, these funds may have greater risk, volatility, and expenses than those focusing on traditional investment strategies. High-Yield Bonds: Portfolios that invest in lower-rated debt securities (commonly referred as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility, and increased risk of default. Tax-Free Municipal Bonds: The investor should note that the income from taxfree municipal bond funds may be subject to state and local taxation and the Alternative Minimum Tax. Bonds: Bonds are subject to interest rate risk. As the prevailing level of bond interest rates rise, the value of bonds already held in a portfolio decline. Portfolios that hold bonds are subject to declines and increases in value due to general changes in interest rates. HOLDRs: The investor should note that these are narrow industry-focused products that, if the industry is hit by hard times, will lack diversification and possible loss of investment would be likely. These securities can trade at a discount to market price, ownership is of a fractional share interest, the underlying investments may not be representative of the particular industry, the HOLDR might be delisted from the AMEX if the number of underlying companies drops below nine, and the investor may experience trading halts. Hedge Funds: The investor should note that hedge fund investing involves specialized risks that are dependent upon the type of strategies undertaken by the manager. This can include distressed or event-driven strategies, long/short strategies, using arbitrage (exploiting price inefficiencies), international investing, and use of leverage, options and/or derivatives. Although the goal of hedge fund managers may be to reduce volatility and produce positive absolute return under a variety of market conditions, hedge funds may involve a high degree of risk and are suitable only for investors of substantial financial means who could bear the entire loss of their investment. Bank Loan/Senior Debt: Bank loans and senior loans are impacted by the risks associated with fixed income in general, including interest rate risk and default risk. They are often non-investment grade; therefore, the risk of default is high. These securities are also relatively illiquid. Managed products that invest in Liquidity Risk: Closed-end fund, ETF, and HOLDR trading may be halted due to market conditions, impacting an investor’s ability to sell a fund. Market Price Risk: The market price of ETFs, HOLDRs, and closed-end funds traded on the secondary market is subject to the forces of supply and demand and thus independent of the NAV. This can result in the market price trading at a premium or discount to the NAV which will affect an investor’s value. Market Risk: The market prices of ETF’s and HOLDRs can fluctuate as a result of several factors, such as security-specific factors or general investor sentiment. Therefore, investors should be aware of the prospect of market fluctuations and the impact it may have on the market price. Target-Date Funds: Target-date funds typically invest in other mutual funds and are designed for investors who are planning to retire during the target date year. The fund's target date is the approximate date of when investors expect to begin withdrawing their money. Target-date fund's investment objective/strategy typically becomes more conservative over time primarily by reducing its allocation to equity mutual funds and increasing its allocations in fixed-income mutual funds. An investor's principal value in a target-date fund is not guaranteed at anytime, including at the fund's target date. High double- and triple-digit returns were the result of extremely favorable market conditions, which may not continue to be the case. High returns for short time periods must not be a major factor when making investment decisions. Benchmark Disclosure BarCap US Agg Bond TR USD This index is composed of the BarCap Government/Credit Index, the MortgageBacked Securities Index, and the Asset-Backed Securities Index. The returns ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. Release date 09-30-2011 we publish for the index are total returns, which include reinvestment of dividends.The constituents displayed for this index are from the following ETF:iShares Barclays Aggregate Bond. BarCap US Universal TR USD BarCap U.S. Universal Bond Index: The U.S. Universal Index mirrors the increasingly popular “Core Plus” choice set used by many U.S.-dollar investors. It is the union of the U.S. Aggregate Index, the U.S. High Yield Corporate Index, the 144A Index, the Eurodollar Index, the Emerging Markets Index, the nonERISA portion of the CMBS Index, and the CMBS High Yield Index. Municipal debt, private placements, and non-dollar- denominated issues are excluded from the Universal Index. BofAML US HY Master II TR USD The US High Yield Master II Index tracks the performance of below investment grade US dollar-denominated corporate bonds publicly issued in the US domestic market. “Yankee” bonds are included in the Index provided the issuer is domiciled in a country having an investment grade foreign currency long-term debt rating. 144a issues are not included in the index until they are exchanged for registered securities. Qualifying bonds must have at least one year remaining term to maturity, a fixed coupon schedule and a minimum amount outstanding of USD 100 million. BofAML USD LIBOR 3 Mon CM The BofA Merrill Lynch USD LIBOR 3 Month Constant Maturity Index represents the London intrabank offered rate (LIBOR) with a constant 3-month average maturity. LIBOR is a composite of the rates of interest at which banks borrow from one another in the London market. Citi ESBI Capped Brady USD The Emerging Market Sovereign Bond indexes cover US dollar-denominated external debt issued by sovereigns whose foreign debt is rated at or below BBB+/Baa1 by S&P/Moodys, together with Brady obligations of these issuers. In order to ensure relevance of the securities and to maintain a high quality of information, individual issues must have at least US$500 million outstanding to be eligible. Excludes defaulted sovereigns and limits the exposure to any one issuer by adopting a simple algorithm to cap at US$15 billion the total par amount of any single issuer's debt in the index. Citi WGBI NonUSD USD A market-capitalization weighted index consisting of the government bond markets of the following countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Italy, Japan, Netherlands, Spain, Sweden, Switzerland, and United Kingdom. Country eligibility is determined based upon market capitalization and investability criteria. The index includes all fixed-rate bonds with a remaining maturity of one year or longer and with amounts outstanding of at least the equivalent of US$25 million. Government securities typically exclude floating or variable rate bonds. Page 44 of 44 seek average exposure to equity market risk and returns. Morningstar Moderately Aggr Target Risk The Morningstar Moderately Aggressive Target Risk Index represents a portfolio of global equities, bonds and traditional inflation hedges such as commodities and TIPS. This portfolio is held in a static allocation appropriate for U.S. investors who seek a slightly above-average exposure to equity market risk and returns. MSCI EAFE NR USD This Europe, Australasia, and Far East index is a market-capitalizationweighted index of 21 non-U.S., industrialized country indexes. MSCI EM NR USD Description unavailable. MSCI World/Metals&Mining USD This index consists of a subset of the MSCI World Index covering securities whose primary operations are in industries related to metals and mining. Russell 1000 Growth TR USD Tracks the companies within the Russell 1000 with higher price-to-book ratios and higher forecasted growth values.The constituents displayed for this index are from the following ETF:iShares Russell 1000 Growth Index. Russell Mid Cap Growth TR USD Tracks the companies within the Russell Midcap Index with higher price-tobook ratios and higher forecasted growth values.The constituents displayed for this index are from the following ETF:iShares Russell Midcap Growth Index. S&P 500 TR A market capitalization-weighted index of 500 widely held stocks often used as a proxy for the stock market. TR (Total Return) indexes include daily reinvestment of dividends. S&P North American Natural Resources TR A sector index that includes companies involved in the following categories: extractive industries, energy companies, owners and operators of timber tracts, forestry services, producers of pulp and paper, and owners of plantations.The constituents displayed for this index are from the following ETF:iShares S&P Nor Amer Natural Res Sec Idx. USTREAS T-Bill Auction Ave 3 Mon Three-month T-bills are government-backed short-term investments considered to be risk-free and as good as cash because the maturity is only three months. Morningstar collects yields on the T-bill on a weekly basis from the Wall Street Journal. Morningstar Moderate Target Risk The Morningstar Moderate Target Risk Index represents a portfolio of global equities, bonds and traditional inflation hedges such as commodities and TIPS. This portfolio is held in a static allocation appropriate for U.S. investors who ©2011 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement. ...
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