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Home My WebLink About2007 01 31 Document Given to Board Members On 01/25/07 For Regular 302 - OppenheimerDate: January 31, 2007 THE FOLLOWING DOCUMENT WAS GIVEN TO THE BOARD OF TRUSTEE MEMBERS ON JANUARY 25, 2007 REGARDING REGULAR AGENDA ITEM 3 02. • • • ` • • • • • • • • • i • • • • • • • • • • • s • • • • • • Introducing OpCap All Cap Equity Fundamental investment approach Research-driven investment process Portfolios constructed bottom-up across entire opportunity set, to maximize alpha potential - Long-term outperformance record A company of Allianz cwn~ ice, ~ • ~ • • • • • i • r • • • • • • ~ • • • • • • • • • • • • • • About Oppenheimer Capital Who We Are ~ Leading institutional equity manager since 1969 Rich history of research-driven investing Independently operated investment unit with strong parent Discrete investment platforms focused on pursuit of alpha on clients' behalf What We Do Disciplined adherence to research-driven, insight-focused approach P Broad array of investment capabilities - Premier client service Quick Facts (as of ~2/3~/2006) $28.0 billion in firmwide assets under management; over $15.9 billion in U.S. value/core equity assets - 96 employees; 59 investment professionals A company of Allianz ~iy 2 Glomal In'mYDn ., , ; • • • • • • • • i • • • r- • ~ • • • • • • • • • r • • • i • • • Portfolio Construction Team Profiles Louis P. Goldstein Managing Director, All Cap Equity Portfolio Manager Mr. Goldstein is Portfolio Manager/Analyst for Oppenheimer Capital's All Cap Equity, All Cap Value and Mid Cap Value strategies and heads the Small/Mid Cap value/core team. He manages an open-end mutual fund managed in the multi-cap style for athird-party distributor. Mr. Goldstein was named to Baryon's list of "Top Gun" managers in 2003, which ranks managers on risk-adjusted performance. Mr. Goldstein brings 23 years of value-oriented equity investment experience to his current position, ranging from large to small capitalization companies in the U.S. as well as in Latin America. Prior to joining Oppenheimer Capital in 1991, he was an equity analyst at David J. Greene & Co. and Atalanta/Sosnoff Capital, and amergers-and-acquisitions investment banking associate at the Blackstone Group and Citibank. Mr. Goldstein earned both a BS in Finance, summa cum laude, and an MBA in Finance with honors from the Wharton School of the University of Pennsylvania. David Phillips, CFA Managing Director, Large-Cap Specialist Mr. Phillips is Director of Research for Oppenheimer Capital's Value/Core platform and a member of the Large Cap Value Porffolio Construction Team. In this capacity, he is one of the senior investment professionals whose input is used to construct Large Cap Value portfolios. He is co-manager of an open-end mutual fund managed in the mid cap value style and also serves as a large-cap specialist on the All Cap Equity portfolio management team. Prior to joining the firm in 1996, Mr. Phillips spent four years at Marakon Associates, a consulting firm that implements Value Based Management at Fortune 100 companies. He earned a BA cum laude from Princeton University's Woodrow Wilson School, and received an MBA from the University of Pennsylvania's Wharton School of Business. Mr. Phillips is a CFA charterholder. Nick Frelinghuysen Senior ice President, Smal%Mio'-Cap Specialist ,° ~ Mr. Frelinghuysen is a senior research analyst for Oppenheimer Capital's Small/Mid Cap value/core team. He is co-manager of an open-end mutual fund managed in the mid cap value style, as well as co-manager of the OpCap Premier VIT Mid Cap portfolio. He also serves as a small/mid-cap specialist on the All Cap Equity portfolio management team. Prior to joining the firm in 1999, he spent four years as an equity research analyst at Donaldson, Lufkin & Jenrette following the electric utilities and telecommunications sectors. Mr. Frelinghuysen graduated from Princeton University with a BA in English and holds an MBA in Finance from the Wharton School of the University of Pennsylvania. A company of Allianz ~ • • • • ~ • ! • • • • • +1 • • • • • • ~ • ~ • • • • ~ • • • • nvestment Tea m Structure supports the strategy Portfolio Manager Portfolio Construction Team Director of Research Louis Goldstein (z3/~a> Managing Director, Portfolio Manager/Analyst MBA, Wharton David Phillips, CFA (15/10) Nick FrelinghuySen (ta/» Managing Director, Large-Cap sptrralist MBA. Wharton trice President Smal!/Mid-Cap Specialist MBa Wharton David Phillips, cFa (is/io) Managing Director Director ofResearch MBA Wharton Sector Team Frank LeCates, CFA (36/11) Jonathan Adams (23/t> Leader MD, Portfolio Mgr/Anal}5t MD, Analysf MBA Harvard MA Wharton sector Team Giri Bogavelli, CFA (18/1) Michael Mathay, cFa pe/s> Anne Budlong (~a/~) Members MD,POrtfolioMgr/Analyst t~P,Analysr suP,Analyst MA Columbia BS Wharton BA Williams Col%ge Alok Chopra, cra pz/z) Scott Winters (e/» Brad Colton (9/s> UP, Analyst AIrG, Analyst ASP, Anatyst MBA Unie o1 Chicago MBA Columbia MBA Naruaid Karla Harwich (iz/>> Pawel Wroblewski, cFA (,o/e> Brad Holmes, cFa p3/13> VP, Anayst VP, Analyst SSG, Ana~st MBA, Columbia MS, Warsaw Schoolfconomics MBA, NYU Brad Holmes, CFA (13/13) lane Xia, CFA (13/5) John Lindenthal (3s/zz) SAP, Analyst frP, AnahSt MD, Portfolio Mgr/Analyst MBA, NYU MBA Wharton MBA Santa Clara Lia Levenson pa/s> David Phillips, CFA (15/l0) UP, Analyst MD, DiredorolResearch BS, Columbia MBA Wharton Miles Wixon, cFA (r r/r) SAP, Analyst M/A Columbia Equity Trading Gary McAnly, .ra ; ~ a/;; MD ~m[rorof T2drng or~y~:r^.v pit Altianz Ali Bryce Hill, CFA (12/7) John Rowley, CFA (17/15) SIrP, Analyst MD, Analyst MBA, Columbia MBA. Wharton Nick Frelinghuysen (ta/~) Thomas Browne, cFA (zi/3> SIrP, Analyst SSG, Porfolio Mgr/Analyst M8A WhaROn MBA, NYU Tom Hogan, cFa (a/t) Alok Chopra, CFA (lz/z) AUP, Analyst VP, Analyst MBA, Wharton MBA, Univ of Chicago Elisa Mazen (z3/iz> Andrew Gorczyk (z/>> MD, Portfolio Mgr/Analyst Analyst BA Rutgers eA Michigan Bill Mlynarick(tzrr> Colin Glinsman (ze/n> VP, Analyst C10, Port/olio Mgr,/Anal}at MBA SUNVat BuKalo BA Yale, MS, NYU Brett S. Pollack (9/r> VP, Analyst BS, Florida Pawel Wroblewski, CFAQO/a) UP, Analyst MS, Warsaw5choolofftonomics Nrmahev;r fn porenthe.rer reflertyearr of ~indnstry experience/years of tent>re at Oppenheimer Capitol. Robert Urquhart (zs/a) MD, Portfolio Mgr/Analyst MBA, Harvard Beatrice Barenboim (i ~/~) Lia Levenson (ia/s> !P AnanSt UP, Analyst MBA NYU B5, Columbia David Cassese, cFa (t ~/» Benjamin Parente (s/~> UP, Analyl7 Analyst BA Duke BS, Northeastern Kimberley Conroy (3o/a> Brett S. Pollack (e/i> VP, Analyst VP, Analyst MBA Columbia BS, Florida Louis Goldstein (z3/~ a) Daren Taylor, CFA (6/a) MD, Portfolio Mgr/Ana~Jsl ASP, Ana/ysl MBA, Wharton MBA, Columbia Risk Management Lillyn Teh, Pn-~. crn (ia/n Fox Ling, vn o, cra (i3/;si MO NeadorR~skManagcvnem VP Areryv 4 Investment Philosophy /ntrinsic ua/ue perspective sets Oppenheimer Capita/apart - Invest in stocks at a discount to intrinsic value Long-term, markets are efficient - a stock's price reflects its true worth Short-term, ample opportunities exist to capture individual mispricings Others own value or growth stocks; we own stocks that are undervalued Statistical profile (P/E, growth rate, etc.) does not fully reflect whether a stock is undervalued - Approach provides greater alpha potential Own undervalued stocks regardless of index membership Avoid overvalued stocks in value indexes Flexibility to profit in variety of market conditions __ V o .~ 0 J Company Quality company of AOianz ih 5 LOW AVG HIGH Determining Intrinsic Value Economic environment Over / underinvestment Product cycles Inventory build / workdown Truly nonrecurring items Positive developments Consolidation - Demand growth - Capacity constraints - Product development New management Negative developments New entrants - Demand slowdown - Additional capacity - Increasing competitive intensity - New management intrinsic value tstimate Construct financial model of normalized business performance Adjust model to incorporate impact of fundamental changes Incorporate assessment of how management will use discretionary cash flow Consider time frame in which 'normal' might be achieved 1 company of Allfanz ®i 6 Investment Process Structured to Maximize Return Potential - Research organized firm wide by sector Bottom-up stock analysis focuses on differentiated research insights - Team approach reflects supply chain dynamics across capitalization ranges Cap considerations addressed at portfolio construction level Common research platform enables comparability of opportunities - Macro views maybe used as check of bottom-up positioning - Structure aligned with source of alpha potential Integrated research structure supports emphasis on superior fundamental analysis Combination of sector and cap evaluation creates additional layer of alpha potential ompany of Allianz cwc~ i~~e~ Investment Process Translating research insights into a/pha Russell 3000 Index Detailed research Differentiated insight Thesis and milestones > $500 million market cap -Non-traditional primary research Exclusion of poor candidates Highest-interest ideas Screens to ensure optimal universe coverage Analysis of true worth Return expectations Risk assessment Peer review by sector team Recommended List Analyst rating Target price Buy Discipline PM confidence in thesis i Risk-adjusted upside to target> 30% ...... Risk management Sector Capitalization Alpha Tracking error Potential Sell Discipline Appreciation to price target Milestones not achieved b Better opportunity available d 7 ~Gr aumGecr .Gou~rt in wbi/e hjre nr drr dau~~um afiore rxj~rc ren! lL~e ly~ica! numGcr nJ .v[rk kr re~eunlied durm~+ !be inrestmenl pm~rc~. Al rrnp siren tame olGer ~ritrrr~! mrq~ u(Jeet for iirrr rtment ~rore~ r-. A company of Alllanz ih (.k 5a' lnrrsbr~ 8 r- • • • • • • • • • • • • • • • • • • • • • • • • i • • • • • • • Portfolio Risk Management Maximizing~isk-adjusted a/pha Identify company- specific risks Identify industry-wide and systematic risks Monitor sector and capitalization weighting parameters vs. benchmark Rigorous sell discipline Position size limits Analyze fundamental common-factors Security level r Portfolio level Analyze marginal contribution to risk for each holding Monitor tracking error Monitor macroeconomic and factor risk exposures 0 z n 0 z' n ~mpany of Allfanz A! 9 GIoDa7 tnrestnr•. • ~ • • • • • • • • • • • • • • • • s • • • • • • • • • • • • • Market Cap Distribution Al/Cap Equity Representative Portfolio - Strategy invests across cap spectrum 1 oooio Bottom-up stock selection from entire research universe Cap exposure will typically vary over time depending on where individual mispricings exist 80% - Portfolio capitalization targets < 25o/o small cap r < 60% mid cap 60% - Allocation as of 12/31/06: 45.8% large cap 40% 49.7% mid cap ($2-1 OBiI) 4.4% small cap (less than $2Bil) 20% Historical Market Cap Distribution ^ Small Cap ^ Mid Cap ^ Large Cap 0% Sep-O1 Jan-03 May-04 Aug-05 Dec-06 Ihrla ,iiurrr: 1 ~a~LSet. 7~Ge ~/~arallen~tz~. ahare reJZnt a~rlarn .h~rnn7erirlirr o~ the ~zu~rilir.r held ru a re fnr.renlutire~ar~Jiilt'n manq~ed nr the all ~aJ~ ey~ait}~ .+Yyle rrnr/ in~lHdr-d rn the : 1l1 Cep I~gr~i~y Gmnfn.rile (!be `Ref>rr~enta/ire PorlJbli~ J. Orr uny siren dale. ~rrep parlra~Gtr aaiiun! man~r~ed iu lbe a!! pup eguiq~ ~~7+1e may include ~e~xrr/iec iru! Gelr/ /~j~ !hr Kr~n-~enlalire Port/iilzo and ma}~ nn! bold eac/~ eecunly 1~eld in [Ge lteprr~eral~rFire Par!/irlin wrrl rarsequen!!y, mu7~ Garr j~or~/iikb diarur/en.+tir r lL~rt! dl~%r%rnm lhn.~x a~ lbe R~ fn~ienlatire harf~iilia. A company of Allianz ~ ~ ~ Globd Inve4SOt5 SUPPLEMENTAL INFORMATION Portfolio Characteristics Al/Cap Equity Representative Portfolio All Cap Equity Russell 3000 Rep. Portfolio Index Market Cap (wtd. avg., $bn) 44.6 83.3 P/E Rat10 (forward 1-year estimate) EarningS Grovuth (long-term EPSforecast) 14.8 16.2 12.5 12.5 Return on Equity (~-year> 15.8 19.0 Price/Book Ratio 2.1 2.8 InfOrnlatl0n Rat10 (5-year annualized) 1.1 n/a 11utu re/Ie~Y,c P/L reliar %m~a~zrd 1-year edimule Gu.red on I/B/1 s/.S %nre~avl.~ and I:urnintir GrnulG (land-lean 3- i; your I:P.S /iirr~u.~!) Gurerl nn l vrd Cie!! eslrmule.c 7 be Prue-m-Bonk ruhulalion rr arju.~led !n remnre exlremurrrce-to-Gook rulzre~ aJ j;mueer [Gun /UO ar Izr.r lbun Il.lll. "Tbe ~Gururteri.~lir; ubnre m%1e~7 ~rrtuirr J~urrnAri.dz~.r nJlGe ~rrzrri6ier Geld rn a rnrrereutulu~e~nrt%nlin mun~r,~ed in the all <uf eyuily~ ~Xplc and rmluded do dfie ~lll Cuf~ Lyuity Comprr~ile (lbe "IL fop rrntularr PmY/irlrn J. Ore urry duly, any purli~ul rr unvunt munu~ed in !Ge u!! ~uf eyurlp style may rnrlude ~nrnitrr r ran! held fiy tLk Krf~n ~orelulire Pnrt/irlio and mu}~ nn[ hok/ eu~lr ~e~urrty bold in the IZe~re renlulire PortJnlio trod mna~yurnlll+, muy~ bare pal/olio ~lrurarlerz tirr Thal diOer%rom tbo.re o~//~ Repre.rentulire PortJidio. Pleare tee da~ahuure rlalernent u! rear n/thtr bm~/rare Jiir imf>orlun! in/rrrmulinn. Part ~er/nrmuncr ar no! un indi~ulion o~%ulure per/nrmanie. lulu toun'r: l ~u~lS~rt. AlelGm . Inulytirul.Sukdiaru. A company of Allianz G111~IIi IIIYecIOf1 Example: Reinsurance Group of America /nsightaboutinherent earnings vo/ati/ity enabled us to capture substantial va/ue Largest pure play, public life reinsurance company with worldwide operations Poor mortality results in early 2005 represented normal, episodic underperformance, precipitated stock sell-off Normalized return on equity is 12-14%, versus early 2005 underperformance of 11-12% Consolidation in life reinsurance has resulted in positive industry pricing dynamics Primary life insurance companies may buy less reinsurance going forward RGA is beginning to penetrate international life reinsurance market, which has better growth prospects than North America Near-term U.S. premium growth of 8-10% before declining to 5-8% International premium growth rates are significantly higher than U.S. S58 $56 $54 $52 $50 $48 $46 $44 ~ $60 based on earnings power of $4.45 in 2006 $42 rceinsurance group or Hmenca: +~r~ro Russell 3000 Index: +15% $40 08-05 01-06 07-06 12-06 P/i r Jange. uri[lu[ruvhvrr mr aJ~rovmalr and do /ml take irvo a~~aort the m'/r,.t q/aAriro/y~ /en, Iran,udron zo;L or dirrr/eud;..A mnr/rlelr G37 ofa[I /rmmmendatia/u!n Ibe u[I nip egreu) ,ry'le /nrd~e j~rrarGng l2 no rlL r ~rulaGlr npmr reyunt Pa.'I prgnrmmr,r i, /rot inrlirvtirr n/,/irlrue prrJorniame Ihr //ynrnivt v/uri,'onl)n;ed to ilGr;trv/e oppr/rhUn/<'/Cu(rilul~r i/r/rr/ninrl (Un rrr unr/ir lalu/r,nmmenr/u/ion%ar'I/rep/u[hurr. /n/t/i/(e nria/r rlJ ua);zunt/J.The/r rr na'{/rarunter/hut unyfur9iur/ur'inlrilme/r/lli/l )'i /r!/rartire rnrUr Pluaie ,ee r/-['r eilatemr/I/oI l/re /eur'r/t/ii lrorl,/trr/o/ mij orfau ia(ormu/ion. Rice Garrsrr ,inre nri[tul Jrrrrdrvir arr a/rJnnemiulr ued r[o sol lvkr into arroJm[ Ibe ini~ud o/ vrlrrioq feel. /runrvdian rro;lr or rGridenrlr..1 ,anr/rlele Gr10/ u[I rcconmrcndvlram~ br Ibe rdl ruj~ eguil)~ il1'[eJor lir prrrr~uq l1 moalhr fr aruilvhle rrfrau reynerl. Plrate ,zr rlin'lvnar r[vienrent ul the rvar n%lti, /rn,//rrCJarto//,o/!u/r!i/IJor)nulio/r. Pdit/,rl/o/nl~fnre ri nal inflr/vlirT ~frrlnrerrrjor ~ ~Il~e irr%o/mvlian tl/rorrli onl)//;et/lo ill/UI/L!r()jlfrn{rimrl'C~//,ila['riurr'rmrn/prorrrr Jnd i,nn/u/eromme/rrlrninlr%ol'Ihr /orr/ 'e, ballGn_, rldlr a_%u/r)'rre>ar/)'. Tberr ii /ro ~uur'UU/re 7lru/urr)' pdrfiudm~irrrr,Mnul hill pFe[V lraritire rrrnl6. Tberc we ew Jflrr J munitie; held in Ihr pa/t%o/in uhrr I!e /rru11r Ar-rl naI }irll ,mb~ rune rrrn[G. lwvm~lri of ~) ,rue slier ever Gr prorided /rpon rryncr! A company of Allfanz ~~n~ 1~~~,,,~ 12 Ro~r,~~~r~r,~o r.rr,~~„ r,f er.,or~r•~ /or.e~ Client Service Approach Resourced to be Responsive - Understanding of client information needs Useful and timely written reports Useful formal and informal review meetings - Dedicated and capable relationship managers Frequency of personal contact Strong relationships with consultants, custodian banks and broker dealers Team based Access to investment professionals - Strong back office systems Compliance and Code of Ethics - Information technology - Business support A company of Allianz i6 ~ 3 c:bo~ ~~re,m„ ••••••••••••••~••••••••••••••••I Summary Intrinsic value investment approach Differentiated research insights - Long-term outperformance record A company of Alllanz l~ ~ q Lkv~ni ~rnrston • • • • • • • • • • • • • • • • • • • i • • • • • • • • • • • • Favorable Peer Rankings Across Annualized Periods A//Cap Equity Composite vs Broad Market Cap EquityPorlfolio Universe 25 0 v 0 v io v N .~ 7 C C Q Percentile Ranking 1 Year 20 --------------- ------- --- 5 0 (5) (10) ^ All Cap Equity Composite • Russell 3000 Index 3 Year 5 Year ^ s4.~~_ ~ No. of Portfolios in Peer Group 20 20 20 1'Ge ~l~ur~ uGorr di.~pluyr (i) !Ge urenuuli~zd rrlurn.r%orlGe _-111 Cup l~yuil7~ Cii~riri/e ({rn~ ~ of /ee.r) urrd !Gr Rrc~se!! 31IOIl lades arrd (ii) lf~e~crrrrlrle nr u~hi~h suds n7ron.r dull nxlGirr !Ge 1 ~mnk Kur~r!! Broad alurke! Crr~ l~yui<~r C'nirrr~e (lL~r 'T ~nirerre' J. 'I7~r ra~Gile line rxrnrcenl.r !Ge medi~rrrrer/inmun~'e oJ~lGe [ 'an~erce. 'I ~Gr ~Guded Glue urru uGo~r llie rt~Glle line reprr.~enl.c !be 2>/G~ert'enlile /o tGe i0lG~enirnlilr oJ'l/_~e 1'rrirerxr and IGe ~Gaded /clue urea GelowlGe u~Lite faire rYfmrenlo >0!G !o i!G ~err~entik+ rr/~[Ge f 'nirerce. "I7~e index in/irrnrulinn and lfie ['nirecre in/nnnution rGo~nz u.erc aGluined %mm A~IrI/nx %lrruly~li<•u1.Sen i~ec Plecr.+e ~nre di.rrliuarrr rlulemerr! u! the rear n/~lbi.~ Gro~lrure Jnr zmrnrlunt in/nrrnulion. Pu.rl~er~wmume i.r nnL indltu/n e o~/nFure Jeer jonnuni e. I hr4r S'nun e: A l ellan _~ Lrufptirul.S'nlutloru. A company of Allianz ® ~ 5 rwta+ i~~sr,~, SUPPLEMENTAL INFORMATION •••~~••••••••~••••••••••••••s~i•! Performance A//Cap Equity Composite Annualized 15.7% Quarter 1 Year Calendar ^ All Cap Equity Composite ^ Russell 3000 Index 11.2% '' ~.~, '~ 7.2% 6.3oPo 2, 3 Years 5 Years 7 Years Since Incep. (10/97) 20.9010 0.5~! "~~"~ (11.5)% (21.5)% 1999 2000 2001 2002 ~. ~ ~ ~' ~ ' ® 15.70!0 'a_ ®12.0% ~ ' ~ 6.1 2003 2004 2005 2006 Nelxrrtr uruanuli fed /br~rdodv o% I _ yrur or mnar. 7 Gr~erfnrmurue .hrnvn ahnt c a. Vim;. road dne.r rrol re%leo7 lhr dedar~tinn o/inrcrlmerr! ~idix~iiry /ree ,~ldu~r! n~lurrr.r urll Gr irdF~~ed /ry inre.rhnrn! uderrory~ /i•r.~. 7%r nr/ e~)e~! nJ~/hr dedu~lron o/%~~r nn unnuufi',ed~er(iramun~~e, im ludrr{~ the inm~ourrded e~%~~ orrr dime, rr deleaminrd h}~ llar Jer rand !lx- arrnun/'; ~rr/iarmunr~r. f ~im r.~umfk•, i% rrrr ua~nurr! Gu.r raar unnural /i-c o/~I1.,4 i'%> deluded yuurterly yard uunu~li~erl prr/rrrm~rnre (~rn.~:r o/'/re.~) rrrrr [eaa }~erus of 1 Q'%,, /he nanro relarrn (rte/ oll~•r r) tti!! he 7.11>%, U ardudlnn o/0. %1'% per~~edr. (~f~enGeimer (,~rJ~ilal'r ~ztm~ra/ ~l~ntdard iatredmenl arLrory l~•cr cur re! liarlh in Purl 11 0/ ilc 1 ~iia~n l1 D l '. Plr~rre ~~r lbe dLrrfu~ure ~Yaleancrr! ur lhr rr~rr n/lbu hrn~haan~ /iu~ imJ~arlun! ut/inmulion. Pint pet~nrmunre i.. nal indi~ulirr a%firture J~e>~inmranre. Du/u rrnrn~r: a19elbui _-Lra~~liral.Srnr~er A company of Alilanz Q ~ GbfW inreston • • • • • • ~ ~ • • • • • s • • • • • • • • • • • • • • • • • Outperformance Across All Rolling 5-Year Periods All Cap Equity Composite vs Russe//3000 /ndex 15 Measured quarterly since strategy inception (10/97), All Cap Equity has outperformed the Russell 3000 Index in 100% of rolling 5-year periods with an o to average outperformance of +747 by . N 0 a ;_ 0 v 5 . _ W a u 0 (5) (5) 15 Tba r/curt ubnre armJ~urer ear/i of the rri!lirr~ i-year unnrruli~ed returnr n/~lGr .~ 1!! Cirp l:yuil}~ (,iimfredle (r;rrir~ njJer.rJ and the Ku~rcrl! 3/lrl/I Index ~irrar ~nmf~rerrlr inrrf+lion nn O~~nber 1, 1 J'J7. 7~be diumrmdr ure~dn!!ed urairdirr~ !n Ibe illl (.ajr l:yuilp Cirmrnsile per/iumunee fy-u~z.+J mrd for Rune!! 1lI/10 /udc.~ rerfnr»runx (v-u.~ir). 1)rumnndr lGrd %r!!!n for !ej! nJ the di+r~anul fine rrj~n•rcnl.r~rrindc n/ nul~er/iirmunee uGi1e daumrmd+ !o the ri~lr! rrprrrenJrerirrd+ njrmderprrfirnnuner. 1)kummdrlGu! !ie nn Ibe rldrt~nnu!ldnr mrrr+rntr~errnde nj neulrul+•omJro.+rlerrrjnrmunre mkrlirr In !be indr.~: lrtdex injnrmutirm cboun urr.r obtained /rnm ,11r11nu _=Lrulplr~ul.Snlulurnr. Pfeuce err rlrrrlnarre ;tulemen6~ u! the rear n/ lbi.r bror/~urt jnr rm/rorlunt inlinnrutaon. Purt~erfinrnun<e i.~ nn! indrarlire nj/alum ferjammur. Dulu S'wure: rllellon _~nulyli~zd Snlarlia:.c A company of Allianz QQ 18 SUPPLEMENTAL INFORMATION 0 5 10 Russell 3000 Index (%) Research: The Key to Our Fundamental Investment Approach Primary focus is on deve%ping differentiated insightabout a stock's true worth - Emphasize superior ana/ysisof information h Normalize a company's performance - Visualize fundamental change in the business Quantify its future cash earning power - Focus on points of differentiation n~ Pursue insight into whether a stock is mispriced, and why: Temporary earnings weakness is being misperceived as permanent Sustainability of profitability is being underestimated Concentrate research effort on the part of the thesis that differs from market's view Sector team structure fosters research success - Rigorous peer review and collaboration - Insight on the entire supply chain mpany of Allfanz ~H ~ 9 Stock Recommendation Criteria Firmwide research standards and requirements - Clear, written investment thesis Target price, analyst rating Specific factors driving the realization of value Operating milestones to monitor Comparability across analyst, sector, region and capitalization tier - Return expectation framework Industry structure/competitive position Normalized earnings/returns End demand drivers/growth projection Assessment of management/incentives Historical, current valuation metrics Financial checkup - Risk assessment Standard risk template Largest risks highlighted Multiple risk models used A company of A1lianz d~ 20 Dedicated Portfolio Implementation Team - Placing research efforts into action r Order creation - Adhering to client mandates (Sentinel compliance module) > Managing position sizes - Maintaining optimal cash levels Experienced and knowledgeable trading professionals Global reach Multi-asset class capabilities - 19 years average experience - Team based approach Proficient back office operations Seamless integration with internal trading desks Timely clearance and settlement d Deep relationships with broker counterparts A company of Allianz cdon~ i~.esvu, Gary McAnly (,4iv Mann; ~~ ~~ ~ ~ ~ ~~i Trading Terence Duggan c~z/n John Guccione av14~ ~~,,; Bob Malone (za/z» Matthew Milazzo ~„/,~ Mary Quinn czz~,6) Vice ' ~ ~~~ ~~ ~~~,tat~on Manage Maryann Hom rya/,>> ~~on Manages - Kristen Koziak ca/s> ~~~: ~• ~ ~ ~~• ~,~on Associat, '~urnGen in /~un•utGerer n•/Tec! peurr n/ iudre~try r.~renernz/)eurc n/ Ienure ut OfferrGermer C<rpitul. 21 <~~~n - - • • • • • • • • • • • • • • ~ • • • • • • i • • • • • • • • • • Trading Implementation Identify stock specific variables Liquidity Profile Volatility distribution Spread profile Price trends (momentum) Correlations Company information Sector Market capitalization Fundamentals News flows Expelled costs Generate Cost Curves Rationale for trading decision Active vs. Passive Portfolio management return expectations Intrinsic Value research Define acceptable: Costs (market impact) Risks (opportunity cost) Participation rate - Leverage global broker network Leverage technology Crossing networks Direct market access Algorithms Real-time execution management Monitor executions Portfolio management updates Adjust strategy accordingly Benchmark analysis Implicit costs Market impact Timing risk Market drift (momentum/random walk) Explicit costs Commissions Taxes, fees Broker performance Refine trading strategy 1 company of Allianz ~h 22 Oppenheimer Capital Timeline Oppenheimer & Co., Inc. (OpCo) is formed, with what is now Oppenheimer Capital operating as the investment management division 1969 OpCo restructures and forms three operating subsidiaries: Oppenheimer Capital, an institutional investment manager • Oppenheimer Management, a mutual fund company now known as OppenheimerFunds Oppenheimer & Co., a retail brokerage firm Oppenheimer Capital reorganizes as Oppenheimer Capital LP, a limited partnership still majority-owned by the parent of OpCo i The partners that founded Oppenheimer sell their business, including the three subsidiaries, to Mercantile House Holdings ~ooc The managements of Oppenheimer Capital and OpCo buy a majority interest in the firms back from Mercantile, thus separating their businesses from OppenheimerFunds (In 1990, OppenheimerFunds is bought by Mass Mutual, its current parent company) Oppenheimer Capital sells Quest for Value mutual funds to OppenheimerFundscnd enters into an exclusive 10-year agreement to subadvise certain funds Oppenheimer Capital LP's senior personnel acquire a majority interest, thus separating the firm from OpCo (In 1997, OpCo is bought by CIBC, and again in 2003 by Fahnestock Viner Holdings, which now operates under the OpCo name) ~ ~ ~ ~ Same Name, Different Company - OppenheimerFunds InG (OFI). Retail mutual fund company owned by Massachusetts Mutual Life Insurance Company. Affiliates include OFI Institutional Asset Management, Babson Capital, Baring Asset Management, Tremont Capital Management, Trinity Investment Management, Gulf Investment Management, and HarbourView Asset Management. - Oppenheimer & Co., Inc (OpCo). Brokerage firm formerly owned by CIBC and recently acquired by Fahnestock Viner Holdings, (now doing business as Oppenheimer Holdings, NYSE: OPY). Oppenheimer Holdings includes Chicago- based investment management division Oppenheimer Asset Management, and high net-worth division Oppenheimer Investment Advisers (OIA). PEA Capital is created because of Oppenheimer Capital is in non-compete Oppenheimer Capital PIMCO Advisors acquires integration of PEA Capital Oppenheimer Capital I formally implemented Allianz Group acquires PIMCO Advisors. Oppenheimer Capital LLC becomes an independently operated investment unit of Allianz Global Investors (formerly Allianz Dresdner Asset Management) Affiliates include PIMCO, RCM, Nicholas-Applegate and NFJ Subadvisory agreement with OppenheimerFunds is restructured, giving Oppenheimer Capital the ability to launch its own mutual funds 2006 A company of Allianz 0 23 Disclosure For use in one-on-one presentations onty. Firm: nppanh~un,r C.rprr.J (°UPCep") aa.s rsr hhshrd in 1969 :uui u . uu4pendonr un-rsnncnr ed. ~,.~n nm, mpsrcrral under rhr Imrsmaenr \dcurn _\cr nfrl7ln. UPCep spcn,Jin> m minnsv cJuc-sr}'Ic inccshncnr man:~cmcnt. Compliance Statement: Up(:ep has prapered .u,d prascnrod this npnrt m enmph:mee ,euh the l ~L~L:J Ira a,rnx'nr 1'crt~,mr,uxe >ruxl,vds rGll'vq. SeleRion Criteria: 1hr \II C:rp I':yuin (' ~n,pn,in, an:vcd in 21X1,, i< cnmpn,ui of :JI dis r r , n ua,~unn (naludu,g nwtuJ t i) wlrl krr v:Jms ..t Si milh•,n ur gn.urr 1 1 UI ( p r All ( P I.y r, (( rt) nl I r pan~,ds poor n. 1:1/2111 h, n r. r nl rand ~ubed suf hr Up(.y. \cm aao,unn uc uuludrd m rhr ( rcnp •urr I a4 nnh,4 rth rha her hull nu ntd, undar men rgrmcnr .,ttcr rhay h:nc 6cu, fulls nn o,rvd !a+ dcrrrmnu'd by l)p(:.rp) .uxi rrrmmered enounrs .vr remoecd ,rr nc~ end of nc~ Lur toll nnnvh under m:m,rgemcnr. COmpOSde Returns:. The Cumry airs rcrunn arc b,o'cd upon trade date xeownring .uxi urcludc nc~ rrm,rrrmcnr "f dnuiends and uucresr. G~mp~nrtc rcrums .rrc .user arcrghn'd usu,g Ix}nnnn,} •.i month marker c.,lucs. 1'nrtrohos art c:Jued duly .md mnnrhic cues ..f n•mm :uc ralcuLVcJ 6c gcona'mcdly hnku,g d>ul}~ tan's of rcmm. c>unrrerla, ., uel ,rnJ .mnu.Jrecd rrrnns .va c.daJan'd by ga ~ nerneally Imkmg mnnrhh~ .md yuarn'rlc reres of reran,, aspcrncrlr. Prrh ~nn.mcr result, arc csprtsscd in C.S. doll.vs. \JJvn ~n.J mfi~r manun rcganhnG pnhars F ~r c:J vlengG end rcp~ mu,g n-rams is .n-ailaLlc ups m reyucsr. Fees: Pcrthm,ancc rt'sulrs sran:d n. 6r';rm ~.' du our retlccr nc~ deduernm ..f mcrsrmcnr edcrun fees. the ncr efhrr of nc~ deduction ~•i free nn ,mnuahzed prrM1~mcma', uxlud~ mG nc~ compoundeJ eRi'cr •,crr nme, uden-mined by the ter end nc~ eca~unr's pert~~m,- .uue. Pot c.. mple, u , , >len rant hay .rn :mnual fee oaf (LRS" ~~ deducted yu.rrn'rly .vul .mnu:Jved er6 mn.mu„lgrnss fees) Herr ten ec:rrs ref III°°rhr s,rme ratan (net of fees) P II ha 7U9°°, a nduaroan .d 1191' ~• per }tar A r p rt~nnen ~ J~ :I uaaa, below m rl is DixL.~sun aevunenr \rt pertnrm.mar r a J I u d 6c da luanng rha aanrd ada wort tee from rrch p•~rrfoGn m rhr Comp~avr. It .n.rila6le, mutual fund mnnrhlc ryes of n- mm Inctl .vc erkulered unlieing the funalb 6etinnnu,g ncr :user celue :uul endinG ncr .rsscr veluc and ino ano .md cepu.J guns drrnbununv. ISrc such fwxis, gnus •~f fee perfiarnr .uua. r r:Jaulenxi by raking prrharm uu'a eduJarui a ncr :r,cr .Jac :md >uidmg hack the pn~-curd munrhlc prrcant,gr .af nc~ total Her :mnu,d espensr rain ~ (mcludmg mcrsmn'nr me regcmcnt h-c. fun) scn~icc hc, 126-I trc anJ other cspcnses}. \cm.d ecmunr prrn ~rm.mcr wdl can dcprndmq ~ m nc~ svc ~.t e p. ~ttfi .li... ,md rho- .tpphcrblc hr schedule. UPC.y, una,rmrnr uirr~~r\ hc, a usu:Jh p:uJ yu.rttcrl} a .rm': r, ba,ad nn the marker r:Jm .d nc~ aascrs m e putth diu, maludmg csh ur rts ryunr.Juv, bald hit u,ccsrmcnr, er rhr end of each yu:vrre Grnrmllc, Up(:ap drn'munos nc~ merkrr r:duo ~.f nc~ pottfnhn .rr rhr end ~~i tech yu:u-rcr applying rhr s:rmc r.damun pn ~ccdun's and nu~rhnds. .chrch it unlYnm,h u,a s m n, yvarterly :rppn, ah nt mecsnnent m:m 6 nt Ji r au >unn I he he for enr urhar prrind Ir„ than e full yvu-rcr i, pmmrcJ n .r deJ} ba i~. It .r alunr h:u pad .r fee m nicenac .rod rts .au nrnr is rarmmend pn r r ~ rl 1 t , yuarter, rh:u J,ent null be reimbuna.ai p r'd pr n t rhr t puJ ncr rh,r yuarter Op(.ep's ,rendanl ulcknn ter,, .,. rep rn.J , I'.rrr II f rts F" \D\ bar rha unasrmcnr snlr drxrihed hcn-in, :ve: ILHi" ° ennu.Jlc ~ m the tint S2i milh• n,, 11.70" ° nn rhr near S2i nulhun, O.GO° ° . i nu.dlr nn nc~ nest SXI mJL~. m, IL iU°° .,nnuellc nc~mefrcr. \luwnum I'nrrn~ho ?uc: Slll mdh~ m. Index: the Russell 3(100 Indcs mc:uures nc~ pcrt„m,.mcc of nc~ 1,1X10 Lvgrsr C.~. n~m- p.uuas h:ned nn reed m,rrker capu.diranon, whnh rapn>enrs .,ppm. m.uclc 98°° of nc~ u,. csrablr C.>. cywry market. 'Chic unm:u,egcJ marker indcs r pnroxicd n. n•pn•scnr nc~ csrmcnr encvnnmrnt ezisriqu dunq¢ the nnx' pe a-ids shown. the uuies Is referred r.. f'a cump.,eurer purp~~sr, „nh~ .md is rort mrrndcd n. p.reJlcl rhr nsk •~ acsmunr sn'Ic of the ry,rtt~~hns m rhr G~mposuc.'Ihc uule~ a .r fully Im~csn•J mdrs and ns prrrhm,.uar nu-ludcs rcincrsnncnt of inn ~mc. 'Ihc n°tums h.u rhls unmen:tgcd indcs du not include ens tcuu.vnnn a ~srs, m:m:recmcnt fees ..r other c. ~srs. Prank Russell Cnmp.my ("1'R( "1 r nc~ ,nurcc .u,J •~arner of rhr Russell Index data cuneunrd herein (.md :JI mrdvm.vks oleo) thrnanl, ahiah m.n non br redisrrihurrJ. the mti,munon hcran Is nor .,ppmccd by PRC. Standard Deviation: lhr ,rend>ad deciannn is :r Jispcrshm mc.asurr that cspLuns rhr dccu- n n •,f ~R „ .u u.J eco •unr n•rums hnm the (:nmlx~sire .uuw:d aa:cnunr rerun. \ssum- n I di<rnbum. a, d rrmms, plu, x moor nor sruuLrrd drai:,nnn from nc~ nx:m rarurn I.rssrs GA°„nf .ell po,ablc ,nrtu+mcs. RepreselltatNe Account: (:ort,un d,aracrensncs nF nc~ srcunncs held m a rcpre,cnr.mvc as „unr mang4cJ m nc~ \II (:.rp I(yuup sole br UPCap (nc~ "Rcprcscnr:mcc \ccrnmt"i (.uui maludad m rha G,mp pure) niy I a Jispla}ul m rhr pre+uv,non (h, am },m u, Date, .mr pamrul:v pnrtfi~lio m.u,.rgrd m nc~ \II Cap I?yam \~.Jur srrlc mar indudc scamrics our held 6c nc~ Rcpa'sen r.mce -\ccnunr .uxl m.a nor hold tech sacunn held m the ~ ~ ~ ~ ~ Rrprosenunce \ecnunt. \ saeunn ~rduded i, nc~ Reprezenernce \rcounr meq nor he . r.ul:,hie firt purch,ur .u .I nme m du' future, ur if .rc.ul.,ble, the Prices ur nrhrr cheracrrnstics trt tha ,uunua, m.rc ban ah.mged. (~nucyuuvh, any ParriruFv aaa rtmt m,rv hacc pnrrfnhn d,.~raan n.na .ind pcrF~m,anac that differ tn:~m rhnsr of rhr Rcpnzeneunc \ca unr Estimated Data: Crrre,n pn gracd ch:veacnsnce {such :u rhr fi~neenl I'/I( rand) of rha- 12aprc- xnr r ~ \-~. ,unr :md uuliar.. h. , n ~+ h:nc hero rsnmara,al in rhl~ I r. I urr I~anm:vui J. c~ ctlr.r vuhµ'ama juJKrrann and :o,umptirns .mal um~pacad r.utts m:,y .. ihrn i~ as theta cm ha nn ,u,unmu' rh:u Jccrlopma'rus wdl rrenspvr -u tnrcca,n'd in rha hn ~ahura Composdes: \ a. mplcra list .uui dr,cnption ..f .,II of OPGep's a,mpoune a aa:ulahla upon i a yuo, r. Recommendations: \ list ..f :JI n•o ~mmcndanuns made h} UPCap 6a rhr 111 Cap P:qurp' srnnrgo f"r nc~ prcrrdmg IS mrn,ds a ac:rilahlu upon reyucsr. Past Performance: P,ur pcrfnrtn.mcc Is nor :m indicanun of future pcrt~,nn.mcc. the mfi+rn,.m,m presenn'J m this pnsenranon h,u been dcat'loprd Inn•mall}~ and/or nbraux•d fn+m sources which OpCep belicccs rn be n•liablr; hnwrecr, OpCap Jncs nor }n,aemrcr nc~ .,ccucrcc, .xlcyuacc ...r complen'ness of wch mh,nnen+m n~u do we tinraemrrc nc~ eppro- prtercncss of .urv srnuc:47 nfcrrrd n~ 6 v .my p.rmcular un-esror. 'lhcm rs nn gu:vmnr that anc opn a n, nm'rest, cmmatc ~ ~ nbµ'cncc avill hr achx•ocd. Farceurs and csnm:,rrs hacc cerr:un mhrrrnr hmierrinns, .uui unlike ecrual data, do our retlccr acru:J m.vker unulirinns. 'Phis prescnrvnm Is pn,eulyd for mr,m,.rnnmJ purposes nrly ,md should rn~r Ire unurmrd .u a n u,mmendenun ..r offer ~ ~f :me pemcul.rr secunn, srrnrtgy o m esmunr produce lhis pre- scnranon rcth'rn nc~ upuunn of rhr cnmmcnran v(s) on the dart' made oral is subject n ~ ch:mgc .,t any nmr wrchuur Hunt' and does our omstiturr has. Irg.J or mcesm,rnt wince hr, ur p.,mrul:v rcu unmcndam m fur, :mr mccsn a. l'ha GIn6al huiu,m Cl,.,daari ~ru J d ((I( ~-) rh. - I i p p m' uui ,aniu m•vk of \Ir ug•Jn ~ranle} (. rpval Innmarr al Ina and ~ruula d tl I net a die neon of the \IrG re..-1 hll Cumpames, Inc. ]u esprcss nr unphed w:unuv,es o nprracnrmons ,trc made wnh msprer r. ~ GIC>' ~ ~r nc~ results nbruncd be nc~ use thereof, :md nu p:u-n' sh:Jl hacc :mc habdiry tnr .+ny dvact, uuiinat, spcrc,l, pmum r, umsayuum J ..run, ,rhrr damage (nsluaiing Inxr pmtirs) wuh nspcer o. G I(S dere ..r rasuits n6r med nc~retrom. :Annual'I'utal Annual'1'oml Russell iun(I Number of Vnrtfolios m the Asset-Al'cighted titandard C.nnpositr "horal :Asscrs at Percentafn' of ~fotal I~irtn :Assets 1"enr Ketum Gross (" ~~) Rerun Net (" ~~) InJcs Rctum (" ~~) Comlx,sih' at the Scar I (nd Dcciation (" •~) }'enr I ind (L~tiD millions) firm assec~ (l'SD millions) 1798 2LH 211? 2~J I A'/AI 2')3.R U,i 022030 1999 - i.ri 211.7 I \; \I 22 i.(~ 0.; -2,2)3.7(1 201X1 10.9 liel 75) I A/Af IRi.G Il.i 37,311.111 211111 u.5 U-a) !IL>) I V/AI 32-l.R LLG 37,292.8U 2(10? 113._ 'N'1 ('_Li) I A'/AI _'19.11 Ll 19,Gi290 2nn3 40.a 2R.( 31.1 I A/AI 31IG.1 LA '~i1i.i11 21111) IRi IG.7 119 I A/At d(13.i 1.7 21,160.11 ?1101 l l r' 9.2 6.1 _ \' / \I 1117.9 2.11 2; ttttl ill 1~'1A1: The Aernrlurr! zlelzae!lorr meu.arm nnry nol /ze mew»rr fir! ("NlA7) lilt airir/~ari/er rorzrirlin{ rzl llee ar/rmrr/trnY/iilinr nl lin~perind+ n/7r.r~ lG~rn one,lu!! y'eur. A company of Allianz ~h 24 ~~ • I. FIRM BACKGROUND . 1. Please provide the following contact information: Name: Donald Curran Title: Senior Vice President (Sales) Address: ] 345 Avenue of the Americas, New York, NY 10105 Email Address: donald.curranC>opcap.com Phone Number: +] (212) 739 3023 Facsimile Number: +1 (212) 739-3924 Firm's Internet (www) Address: www.opcap.com • 2. Please give a brief history of the firm. Include the date the firm was founded, and how long the • current portfolio management team has been together. Include any special expertise or experiences that would be relevant to the board. Oppenheimer Capital is amulti-strategy investment manager in multiple channels, with a presence in • institutional, retail and non-U.S. markets. Founded in 1969, we adhere to a fundamental, research-driven investment approach across all strategies, and invest in stocks that are selling at discounts to what we • believe they are truly worth. In our view, owning high quality businesses at a discount to their true worth is the most effective way to achieve superior long-term investment returns. Mr. Louis Goldstein is Portfolio Manager/Analyst for Oppenheimer Capital's All Cap Equity, All Cap . Value and Mid Cap Value strategies and heads the Small/Mid Cap value/core team. He manages an open- end mutual fund managed in the multi-cap style for athird-party distributor. Mr. Goldstein was named to Barron's list of "Top Gun" managers in 2003, which ranks managers on risk-adjusted performance. Mr. Goldstein brings 23 years of value-oriented equity investment experience to his current position, ranging from large to small capitalization companies in the U.S. as well as in Latin America. Prior to joining Oppenheimer Capital in 1991, he was an equity analyst at David J. Greene & Co. and Atalanta/Sosnoff Capital, and amergers-and-acquisitions investment banking associate at the Blackstone Group and Citibank. Mr. Goldstein earned both a BS in Finance, summa cum laude, and an MBA in Finance with honors from the Wharton School of the University of Pennsylvania. • Complete biographies for our investment professionals are attached, as is performance for our All Cap • Equity composite. 3. State whether the firm is a subsidiary of, or related in any way to a brokerage firm, insurance company, bank or other entity. If applicable, please describe any material relationship (financially • or otherwise) with any other entity. Oppenheimer Capital is an independently operated investment unit of Allianz Global Investors, the asset management arm of Allianz S.E. As a member of Allianz Global Investors we arc affiliated with PIMCO, the U.S. leader infixed income management, as well as equity managers RCM. Nicholas Applegate Capital Management, and NFJ Investment Group. We are affiliated with broker/dealers through our parent • company. It is our policy not to trade with these affiliates. • Our relationship to our parent company has enabled us to enhance the efficiency ol~ our business structure ' and breadth of our distribution capabilities. Oppenheimer Capital s support functions, including legal, • operations, human resources, and accounting are handled by our parent organization. This infrastructure enables us to focus almost exclusively on investment matters. 4. Explain in detail any potential conflicts of interest that would be created by your firm's serving the • Pension Fund. We believe no potential conflicts of interest would arise by our serving the Pension Fund. ~~ ~~ 5. Please state the percentage of the firm owned by the employees. List the owners of the firm (from • largest to smallest with respect to ownership) and their ownership percentages. • Oppenheimer Capital is an independently operated investment unit of Allianz Global Investors. None of our employees has direct ownership in Oppenheimer Capital. 6. Please provide an organizational chart of your firm. Please see attached. . 7. List the key management people within the firm, along with the number of years with the Firm and the number of years of investment industry experience. Employee Title Years with Firm Industry Experience Bruce Koepfgen CEO 4 32 Colin Glinsman CIO 17 26 Taegan Goddard COO 1 18 8. State the number of investment managers employed by the firm. There are l9 investment managers employed at Oppenheimer Capital. 9. How are the portfolio manager (s) and analyst team compensated? On what basis are bonuses determined? Oppenheimer Capital believes that its compensation program is competitively positioned to attract and i hi h reta n g -caliber investment professionals. Portfolio managers and analysts receive a base salary, a variable bonus opportunity, equity incentive units and a benefits package. Total cash compensation, as described below, is set for each professional relative to his or her performance and the market. This compensation is reviewed and modified each year as appropriate to reflect changes in the market, as well as to adjust drivers of compensation to promote good sustained fund performance. . Each investment professional's compensation consists of the following elements: • • Base salary. Each investment professional is paid a base salary that is set at a level determined by Oppenheimer Capital In setting the base salary, the firm's intention is to be competitive in light of the particular professional's experience and responsibilities. Management of the firm evaluates competitive market compensation by reviewing compensation survey results conducted by an independent third party of investment industry compensation. • • Annual bonus opportunity. Bonuses are designed to reward sustained high performance by linking pay to two core elements: quantitatively measured investment results, and firm profitability. • At the start of the year, each participant receives an allocated target percentage of the pool. The initial target allocation is a measure of past performance, current job accountability and expectations, and competitive market practice. At year-end the firm's CEO and CIO determine the size of the pool based on overall investment results, firm profitability, asset flows and external market compensation levels. • • Equity incentive units. Portfolio managers and analysts participate in the Allianz Equity Incentive Plan. This plan identifies a substantial pool of funds for the benefit of participating Oppenheimer • Capital employees, each of whom receives shares in the pool. The value of the pool is determined by the cumulative revenue growth of Oppenheimer Capital over rolling three-year periods. Shares in the pool vest three years after they are awarded provided the employee remains with the firm. 10. Over the last twelve months, has there been any change in the management team? Over the last 24 months. There were no changes to the management team over the last twelve months. Mr. Goddard assumed the responsibilities of Chief Operating Officer for Oppenheimer Capital in July 2005. He had fulfilled this role for a former affiliate for a number oi~ years. 11. Are there changes in the ownership of the firm anticipated over the next twelve months? No ownership changes are anticipated over the next twelve months. 12. During the last three years how many professional employees have left the firm? Please state the reason. Over the past three years, 12 investment professionals left the firm. One employee completed an internal transfer while the other eleven resigned. During that period we hired 17 investment professionals. 13. Please provide the number of institutional accounts lost in the past five years and the reason for the loss. Additionally, how many clients does the firm have as of the most recent quarter-end? We lost 231 accounts in the past five years, predominantly in our large cap su~atcgy. Several clients terminated our relationship and moved to passive investment. A move to self-direction also was a factor, as were plan mergers and consolidations. 14. Provide the coverage amount of your Errors and Omission (E&OI insurance policy and the name of the insurance carrier. We carry an aggregate $75 million in Investment Advisers Errors and Umi..um. ui.ur;uiee coverage. Coverage is provided by the following companies: • First $l5 million St. Paul Surplus Lines (594CM1277) • Next $15 million Zurich American Insurance (EOC374062305) • Next $10 million Continental Casualty (286973432) • Next $10 million Indian Harbor Insurance (ELU090527-OS ) • Next $l0 million Federal Insurance (6801-8524) • Next $l0 million Arch Specialty Insurance (OODOXOI 12000-I03 • Last $5 million Twin City Fire Insurance (OODC014659005) We maintain Fidelity insurance through St. Paul Mercury Insurance Cumpan~ i ~ I ' s n~~ll~~~n. =190PB0568) and Federal Insurance Company ($12.5 million, 8]999352). The policies cover Oppenheimer Capital and a number of related entities. l.nnu..ui~l deductihlcs arc aggregate. 15. Have there been any claims paid against the E&O policy in the last lt3 month? If so, please state the amount paid and the nature of the claim. There have been no claims against the E&O policy in the last 18 months. 16. Has your firm ever been cited by any regulatory agency that resulted in a fine, cease & desist order or other disciplinary action? If so, please explain. Oppenheimer Capital has never been cited by any regulatory agency. 17. List all office locations and the number of individuals working in each office. Specify which office would primarily serve the Pension Board. Our only office is at 1345 Avenue of the Americas in New York City. We have 77 employees, including 40 investment professionals. 18. Please provide by calendar year for the trailing five years the firm's total assets under management (AUM), the total number of accounts and the percentage of assets by strategy and client type (i.e., public, corporate, high net worth)? What is the firm's total AUM as of the most recent quarter-end? Total AUM as of 12/31 /2006 $28,033.5 AUM by Strategy Year 2002 2003 2004 2005 2006 Total AUM 21,875.0 22,543.1 24,343:6 25.86 ] .9 28,033.5 # Accounts 560 487 21 1 184 210 Large Cap Straugies 35.2% 60.0% 55.3% 55.2% 52.3°k All Cap Equity (formerly Value Equity) ] 3. ] %n 0.8°Io 0.9% 2.5% 2.8% Mid Cap Value 3.6% 5.3% 7.7%0 6.6°A0 17.1% Small Cap 1.4%n 1.9%n 0.6% 0.4% 3.0% International Equity 0.4°k 3.3% 6.7% 8.1 °Jo 8.89'0 Global Equity 4.5%r, 3.3%- 5.7% 5.2% 3.9% Balanced value 30.60 4.1% 3.2% 3.0% 0.8% Fixed Income ] 0.1 %r, 20.3~~b 20.0% 18.9%r. 11.3% Total 100.{)% 100.0% 100.0°k' 1 ~.0% 1.00.0% AUM by Client Type Year 2002 2003 2004 2005 2006 Total AUM 21,875.0 22,543.1 24,343.6 25,861.9 28,033.5 # Accounts 560 •187 2l 1 184 210 Corporate 7.7% 5.2% 6.6% 5.5%a' 6:0% Taft-Hartley 14.0i'o 10.3% 8.2% 6.8%r 6.0% Public 1 ~,f% 22.4% 20.7 '' 17.0%. 17.8% E&F/N.P. 1.7%r. ?.OBI 1.6% 1.2% 1.3% Subadvisory 7.5% 6.5% 5.2% 8.29'x' 7.5% Taxable 49.7% 53.7% 56.7% 61.3% 61.4% Total >. 100.0% 1'00.0% 1.00.0% 100.09b i 00.0% ~ II. The Investment Product/Process • Name of the Investment Product :All Cap Equity • 1. What index is the best performance benchmark for the strategy and why ? • The All Cap Equity product uses the Russell 3000 Index as its primary benchmark. We believe this index • is the appropriate benchmark for portfolios that include stocks with a range of market capitalizations. • 2. State whether the firm offers a commigled fund for any or all of your products. If yes, please indicate which products have a commingled fund and the fee associated with that product. We offer commingled funds in several products. i Large Cap Value is offered at an annual fee schedule of 70 basis points on the first $5 million, 50 basis • points on the next $15 million, and 40 basis points thereafter. • International Equity is offered at an annual rate of 85 basis points on the first $10 million, 75 basis points i i h f s po nts t erea ter. on the next $10 million, and 65 bas We offer a fixed income Total Return II Trust at an annual rate of 50 basis points. In addition to these offerings, we are willing to open commingled vehicles for other large cap, concentrated, all cap, mid cap, and small cap strategies. 3. How would this product be delivered (i.e., seperate account or commingled) ? In addition, please provide the fee schdule This product would be delivered through a Securities Investment Trust. The annual fee schedule for the Trust is annual rate of 85 basis points on the first $]0 million. 75 basis points on the next $]0 million, and 65 basis points thereafter. 4. Provide a brief statement describing the firm's approach to this engagement. • We have a long history of service to Public funds, and we would be honored to he o1~ service to your plan. • 5. Indicate who will be managing the account and provide the number of years managing the strategy, the number of years with the firm, and the number of years of investment industry experience. • The portfolio will be managed by Mr. Louis Goldstein. Mr. Goldstein has been with Oppenheimer Capital • since 1991, and has 24 years of investment experience. • 6. State the number of accounts and asset size of the accounts run by the manager (s). • Mr. Goldstein is responsible for 35 accounts with total assets of $2.1 billion. Fund management responsibilities are leveraged through the use of model portfolios. Each model portfolio ret7ects a specific benchmark and all clients managed to that benchmark have the same portfolio (within the limits of client- specific guidelines). • 7. Please provide (in a spreadsheet) the GICS equity sector allocation for the product by quarter • relative to the benchmark index for the trailing three-year period. • Please see enclosed spreadsheet. • 8. Please provide (in a spreadsheet) the market capitalization allocation of th eequity portfolio by quarter for the trailing three-year period, using the following breakpoints : <$IB, $IB to $SB, $5B to • $IOB, $lOB to $20B, $20B to $50B and >$50. Additionally, please provide the product's weighted- average market capitalization for each period. Please see enclosed spreadsheet. 9. Please describe the investment process for the product. Include specifics, such as how the initial universe of investable securities is defined, the screening process (fundamental, top down, quantitative), the buy and sell decision process, whether there is a targated tracking error to the • benchmark, number of holdings, and maximum sector and security positions, the use of leverage, etc. The investment process consists of four major phases: research prioritization, fundamental research, • portfolio construction, and sell discipline. • Research Prioritization We initially prioritize research by screening for companies with a market capitalization greater than $500 • million. From this group of companies, research is further prioritized to exclude stocks that either are prohibitively expensive. feature poor business models, or are insufficiently shareholder-friendly with regard . to financial transparency and capital allocation. Analysts have the scope to pursue compelling investment theses outside this broad research universe, often generating unique ideas insmall- or mid-sized stocks • outside a typical global manager's coverage. Fundamental Research From this opportunity set, analysts meet with company management and third-party sources such as • suppliers, customers and competitors; analyze financial statements; and evaluate industry trends. Analysts' efforts are concentrated on points of divergence prom widely available research. The analysts identify attractive investment opportunities and present them for inclusion on the firm's Recommended List. The analyst's presentation must identify a rationale for the stock's mispricing, the likelihood of its correction and the risks associated with the failure of any of the underlying assumptions. We generally seek risk-adjusted upside to intrinsic value of at least 30~~ at the time it is recommended. The analyst provides a target price, based on normalized earnings, that represents his/her estimate of the stock's intrinsic value. Investment ideas are presented for peer review and are suhject to approval by the sector team leader or the product's portfolio manager. An approved stock is ascrihcd a rating from 1 to 3 based on its discount to intrinsic value and the analyst's level of conviction that the value will be captured in the prescribed time horizon, normally six months to two years. The culmination of this process is the Recommended List, affirm-wide listing of our analysts' highest confidence research ideas. The portfolio manager constructs portfolios from this list based on conviction level, degree of mispricing and risk control considerations. Portfolio Construction • The portfolio manager ultimately decides whether a stock is added to or removed From the portfolio. The criteria the portfolio manager uses when constructing portfolios are conviction Icvcl ghoul an investment • thesis, degree of intrinsic value discount, and risk control considerations. We aim to capture the widest individual discounts to intrinsic value available in the market and aggregate them into an efficient, risk- ` controlled portfolio. • For All Cap portfolios we monitor the entire universe of approximately 3,000 stocks. We exclude stocks with market capitalizations less than $500 million, and screen out securities with limited liquidity, • prohibitive valuations, or poor business models, which narrows the list to approximately 1,000 companies. We then apply affirmative screens using criteria such as valuation, price changes and earnings estimate changes to identify candidates for deeper fundamental analysis, in an effort to prioritize our research around the most interesting stock ideas. This evaluation typically narrows the list to roughly 400 securities. The • Recommended List includes approximately 200 stocks, and portfolios hold 60 to 70 securities. • To solidify our risk controls, we apply a quantitative risk measurement overlay to ensure that metrics such as tracking error and marginal contribution to risk are appropriate. Using factor model software, we • monitor risk-adjusted performance measures to ensure a full .understanding of the risks we are taking and how well we expect to be compensated for taking them. We calculate the marginal contribution to risk that • each stock makes to total portfolio risk. We also ensure that specific risk represents the majority of total risk, and that systematic risk is the minority portion. r~ ~~ Sell Discipline Our sell discipline entails a review process that considers whether we would buy the stock today if we did not already own it. A sell review will be triggered (a) if the stock's price approaches full intrinsic value; (b) in anticipation of changes to the company's fundamentals or risk profile; or (c) if its price moves sharply in either direction. A stock may also he sold as a more attractive investment opportunity becomes available. Leverage is not used in the portfolio. Our targeted tracking error for All Cap Equity is 4% to 8% versus the Russell 30001ndex. 10. How long has the investment tstyle stated in the above questions been in place without deviation ? This style has been in place since the inception of the product in 1997. • 11. Describe the investment environments in which your approach can be expected to outperform its benchmarWstyle peers, and under-perform its benchmark/style peers. • We believe our fundamental, research-intensive approach is flexible enough to achieve investment success • in a variety of market conditions. However, we are periodically subject to less i~avorable market cycles. During periods of strong and narrow market momentum, such as "bubbles", when price movements are less • reflective of underlying company fundamentals, our approach tends to be out of favor. We are more likely to maximize excess returns when the market rewards careful stock selection and thorough research. • We remain fully invested at all times and consistently adhere to our investment approach. Portfolio • management techniques to limit downside volatility include a bias toward higher-quality stocks and afull- market-cycle time horizon. High-quality companies, most notably characterized by strong balance sheets . and capable management teams, tend to produce less volatile returns, especially during periods of market transition. While short-term relative underperformance could ensue during periods of speculation on lower- . quality names, we believe that over a market cycle, this approach is best positioned to outperform on a risk- adjusted basis. 12. Are model portfolios incorporated in the management of the strategy ? Yes. 13. Describe the use of cash in the investment process. What range of cash is typical ? Do you uquitize • the cash holding to enhance returns ? Do you have a policy for staying fully invested ? If so, what is your definition of fully invested ? If you are not always fully invested, what factors lead you to hold cash ? Is there a maximum amount of cash you are likely hold ? • Oppenheimer Capital manages its discretionary equity portfolios fully invested. We will adjust this allocation to meet client specific restrictions or guidelines, but we do not use cash as a strategic asset class or attempt to "time" markets. 14. Is there a policy regarding industry or sector diversification ?What is the maximum concentration allowed in a single industry or sector ? To what extent might youhave large concentrations in specific industries ? Our bottom-up security selection process seeks to identify undervalued opportunities, regardless of industry • or sector. The weightings that may occur in any one sector are a result of our security selection process, and not the result of a top-down sector bet. Since sector/industry weightings do not drive our investment decisions, we may be overweighted in sectors that contain high-conviction securities. Benchmark risk is continually monitored to ensure that any residual sector bets are at appropriate levels. We also monitor sector exposure to ensure adequate diversification. Our internal guidelines set a • maximum/minimum sector weighting of plus or minus ] 0 percentage points from that of the appropriate benchmark. This is not an absolute rule, but as we approach these levels we evaluate whether we are taking • too much systematic risk. • On occasion, our portfolio managers will hold a larger position in ahigh-conviction stock. The maximum portfolio weighting in any one company is ]0%, although we rarely would exceed 8% at market. 15. Detail the account turnover and trading costs. Does the firm employ a specialized trading procedure ? If so explain. Our order management organization includes Portfolio Management. a Portfolio Implementation Team, Compliance, Trading, and Portfolio Accounting. Portfolio managers and the Portfolio Implementation Team enter trades through MOXY, our electronic trading system. MOXY provides portfolio modeling and decision making functions, dispersion control features, a trade blotter, and trading tools. MOXY is interfaced to Sentinel, our compliance system. • Sentinel provides pre-trade compliance testing of proposed trades, post-trade (end of day) compliance testing of holdings as well as surveillance tools and reporting. Orders generally arc entered as changes to a "leader" portfolio. The Portfolio Implementation Team then ensures that all changes are implemented in client portfolios associated with the model. This team serves as a leveraging agent for all our portfolio managers, enabling them to focus more on alpha creation, not trading • or administration. • All proposed trade orders are passed instantaneously from MOXY to Sentinel: where they are compared against the client restrictions, house rules and regulatory rules associated with the portlolio. The results of • these tests are passed from Sentinel back to MOXY, where they are Ilaggcd as resu-ictcd. Any proposed trade orders that arc flagged as restricted are brought to the attention of the portfolio mana~cr and cannot be • approved for execution. In a few cases, where the restriction specifically allo~~ s portfolio manager discretion, the restriction may be overridden by the Portfolio Manager and appm~ ed for execution. Sentinel • stores the results of all tests of proposed trade orders. • The Compliance department is responsible for maintaining the rules coded in Sentinel. as well as liaising with Portfolio Managers and the Portfolio Implementation Tcam over order. th;u ~~ rrr restricted or • overridden. Sentinel provides the Compliance department with the surveillant: tool. to monitor the compliance status of trades. Following the compliance review in Sentinel, approved trade orders arc sent ~~ uhm ~1t)\1' to our trading • desk for execution. Similar trade orders are grouped together into block u•adr~ Ian thr nu~st ef•lective execution. Execution of trades with brokers is made either verbally or h~ rs:lt:rn_:.•I :Irtu-onic messages over a secure network. All block trades are allocated back to the portfolio. .lk~, rtrt ~l m their associated trade orders. Where a block trade is not fully executed in one tradin~_ day. rt t~ .rll,ti,rt:~l hro-rata to the • portfolios specified in trade orders, and any remainder is used to create a nt.. hl~ .. l ~ a d: r. ,fit the end of each trading day, all trade allocations are downloaded from MOXY into our h~~rrl~~lr~~ ,r,~~~untin« system, • AXYS. • In addition to the pre-trade check that occurs prior to the trade execution. po.t u.nl: t~nnplianee verification occurs daily. If a violation is detected an email alert is generated and sent to the Iti~nt~~ho manager and the • account manager. The Compliance department also reviews daily the po.t-traJ: r:tw~rt m Sentinel. The compliance analyst confirms that all violations arc resolved as soon as pu..rhl: ,ur,l la~q~:rl~ durumented. 16. To what extent are derivatives utilized. We do not use derivatives. 17. What methods do yo use to insure `best price and execuation' in tradint; :' In selecting brokers and dealers, our primary objective is the most fa~orahlt nrt pntr :u~d hest execution consistent with fiduciary duties and applicable law. Best execution requires anal~.r. of factors such as research capabilities, credit worthiness, settlement procedures, and conl'identiaht~. t )ther factors include transaction's size, the nature of the market for the security, timing of the tramatuun. and the experience of the broker involved. In arranging Tor the purchase and sale of securities, we eonsider numerous factors including legal restrictions such as those imposed under federal or state securitie. I:n~ s and under ERISA, client-imposed restrictions and brokerage directions, and the allocation of brokerage in return for research services. Within these constraints, Oppenheimer Capital will use its hest judgment to implement the policy • of obtaining best execution for transactions made in client portfolios. • Oppenheimer Capital's Trading Desk utilizes a number of low cost direct market access platforms that assist in lowering the overall implicit (market impact) and explicit (commission charges) costs associated with active management. In addition, our traders monitor and analyze each transaction on a real-time basis to ensure best execution. 18. What criteria does your firm use to determine that there is sufficient liquidity for the firm's total position in a stock ? Oppenheimer Capital makes investment decisions based on analysis of long-term risk-adjusted return potential. We are not atrading--based firm. Our consideration of liquidity risk is centered around percentage ownership limits rather than days of trading. 19. Please provde, by calendar year for the trailing five years, the assets under managemnet and the number of accounts in the investment product. 2006 2005 2004 2003 2002 Assets under Management $596.2 $508.4 $191.7 $166.3 $146.9 # of Accounts 20 2* 3 2 2 x We subudrised Prirate Client Sen•ic•es.Jrnm nn c~jJiliute Ic•ounted us nne reluiionship) : in 2006. rre assumed nuaurkemern Jbr these urruuuls. 20. State whether your firm participates in any brokerage wrap programs. State whether the firms proposed product is included. Oppenheimer Capital participates in Wrap programs, but does not participate in any that use our All Cap Equity strategy. ~ III. Research • 1. How do you obtain your resaerch (in-house or third party) ?What percentage of research is generated internally ? • All investment decisions are made based on internal, proprietary fundamental research. Our capabilities are structured to provide broad coverage of the research universe, with sector and regional expertise to provide • added depth of insight. We maintain a proprietary research database to monitor the progression of the investment theses, with standards for firm wide research set by the Director of Research. • We use external research largely as a data source. It provides a broad range of information, including • macroeconomic overviews, consensus earnings estimates, regional and country updates, and financial analyses. Our research effort is concentrated on points of divergence from widely available external • research. • Our investment process is designed to produce actionable investment insights based on superior fundamental analysis of publicly available information, and then translate our proprietary insights into . portfolio outperformance. . 2. Please describe how your firm obtains and pays for outside research reports. • We receive reports and analyses concerning particular securities, classes of securities or securities or securities markets; economic, industry or technical analyses; analyses of national and international trends; • and statistical compilations of various data. External sources are never used for opinions, recommendations or investment theses. The quality of unbundled research and third party services is actively evaluated on a continuing basis. • Yearly, all research sources and services arc reviewed to determine their usefulness for the upcoming • year. • Our Legal department evaluates third party research services for soft dollar vs. hard dollar payment in • accordance with regulatory guidelines. • Subject to best execution, research services paid for in soft dollars are effected through brokers that we • use in the normal course of transacting for clients. Services paid for in hard dollars arc handled through our accounting department. 3. Please name the three primary sources of data and/or analyses upon which your firm relies. For data inputs, analysts use databases including StockVal, Lexis-Nexis, Bloomberg, Standard & Poor's, Gartner, and International Data Corporation. We use FactSet for security analytics and security-level performance attribution. [~ ~~ ~~ ~~ IV. Miscellaneous 1. Please state whether you are willing to acknowledge that you are a fiduciary of the fund as defined in the Employee Retirement Income Security Act of 1974 ("ERISA") and Section 112.656, Florida Statutes. Yes, we are willing to acknowledge that Oppenheimer Capital would be a fiduciary of the fund as defined in ERISA and Section 112.656 of the Florida Statutes. 2. Please state whether you agree that the agreement shall be construed under the laws of the State of Florida and federal law where applicable. We are willing to make this statement assuming that the client has the obligation to provide us in writing of any specific restrictions governing their account under the current or future laws of Florida. 3. Please state whether you agree to venue for any judicial proceeding to be in the county in which the Board sits. We could agree to venue in Florida provided that we do not agree that Florida courts have exclusive jurisdiction. Our preference is to be silent on venue for judicial proceedings in order that both parties preserve the ability to have any disputes adjudicated in the most appropriate venue. • • • s • • • • • f • • • ~ ~ • • • s • • ~ • i ~ • • • • • • • Investment Management Bruce Koepfgen ~32/a~ Colin Glinsman ~z6~n> David Phillips ~~s/~o> •~ ~ Jonathan Adams ~z3;~, ~ Kimberley Conroy t3o,,~s, Frank LeCates fse;, n Christine Schneider ss, William P. McDaniel ~36~z3~ Beatrice Barenboim i>>; %~ Nick Frelinghuysen na;~> Lia Levenson nos Daren Taylor,6;e, Matthew Greenwald ~zo; n. Giri Bogavelli sip, Louis P. Goldstein,z3;,6~ John G. Lindenthal ~sa;zn Robert Urquhart as;e~ Ben Gutstein s;,3, Thomas Browne tzs Andrew Gorczyk ~zn, Michael Mathay s;s, Scott Winters ~s;u Anne Budlong sn~ Karla Harwich nz~u Elisa Mazen rz3/~z~ Miles Wixon o,;, ~ David Cassese mn, -Bryce Hill nz;» Benjamin Parente sa> Pawel Wroblewski s;b~ Alok Chopra s;z~ Tom Hogan ~e;„ Brett S. Pollack s9~ Jane Xia ss, Brad Colton ~9;.~ Brad Holmes~,3;~5~ John Rowleys;,5~ Gary McAnly na;i Terrance Duggan ~,zs John Guccione a,nz~ Keith Lichtman as;zs~ Bob Malone as;z» Matthew Milazzo ~~ un Lillyn Teh nzr, Dr. Fox Ling i~s3~ • • • • • • • i • • • • • • • • • • • • • • • • • • • • ~ • • • Investment Management Team Jonathan Adams, ManagingDiredor Mr. Adams is a senior research analyst at Oppenheimer Capital and head of the finance sector research team within the Value/Core platform. Prior to joining the firm in 2005, Mr. Adams spent five years at Brown Brothers Harriman, where he was a senior vice president and head of financial services equity research. He previously spent four years as a finance- sedor analyst at Prudential Securities, where he was selected as one of the Wall Street Journal's 1998 All-Star Analysts for Estimate Accuracy in the category of brokerage and finance. Also at Prudential Securities, he spent three years in fixed income research, specializing in commercial mortgage-backed securities. Mr. Adams' experience also includes four years as chief economist for the Real Estate Board of New York, during which time he served as an adjunct professor of economics and real estate investment at New York University's Real Estate Institute, as well as a mayoral appointment to the New York City Economists Roundtable. Earlier in his career, Mr. Adams was a senior financial analyst for the Office of the Mayor of Philadelphia and a research associate for the Pennsylvania Economy League. He is a contributing author to the Mortgage Bankers Association of America's Handbook of Commercial Finance: Primary and Secondary Markets and Frank J. Fabozzi Associates' Asset Backed Securities, and has published numerous articles on mortgage-backed securities and other subjects. Mr. Adams holds a BA from St. John's College in Annapolis, Maryland, and an MA in real estate finance and policy analysis from the Wharton School of the University of Pennsylvania. Beatrice Barenboim, !/ice President Ms. Barenboim is a research analyst on Oppenheimer Capital's International Equity and Global Equity teams, with emphasis on consumer products, retail and building materials sectors. She also serves as a non-US regional specialist on the Global Value portfolio management team. Ms. Barenboim joined the firm in April 2000, having worked for ABN Amro and Neuberger Berman for three years. She is fluent in Russian, and holds a BA in Economics and MBA in Finance and Management from New York University's Stern School of Business. Arthur Bascomb, Research Analyst Mr. Bascomb is a research analyst for Oppenheimer Capital's small-cap growth equity strategy, specializing in the consumer research sector. Prior to joining the firm in 2005, he spent three years in equity research at CIBC World Markets, covering the consumer & household products sector. In addition, he spent six years in institutional sales for Fidelity Management & Research and AIG SunAmerica. Mr. Bascomb earned an MBA from the Zicklin School of Business at Baruch College and a BA in Organizational Communication from Arizona State University. Giri Bogavelli, CFA, ManagingDiredor Mr. Bogavelli is a senior portfolio manager at Oppenheimer Capital focusing on the institutional Large Cap Value strategy. He is a member of the firm's Portfolio Construction Team, the committee of senior large-cap portfolio managers who share insights on management of the firm's large-cap value/core equity strategies. Prior to joining OpCap in 2005, Mr. Bogavelli was a managing director and head of the US large-cap value team at Citigroup Asset Management. He previously was co-Chief Investment Officer at Smith Barney Capital Management, as well as partner, portfolio manager and Director of Research at institutional investment manager Spare Kaplan Bischel & Associates. He began his investment career as an equity research analyst at Bodri Capital Management. Mr. Bogavelli holds a BA from the University of Delhi's St. Stephen's College in Delhi, India, and a Masters in International Affairs from Columbia University's School of International and Public Affairs. He is a CFA charterholder. Stephen Bond-Nelson, Co-Portfolio Manager/Senior Ana/yst Mr. Bond Nelson is portfolio co manager of the closed-end S&P Covered Call Fund and the Enhanced S&P 500 Covered Call Fund, as well as an open-end covered-call mutual fund, all subadvised by Oppenheimer Capital. His 13 years of investment experience also includes managing an open-end large-cap core equity mutual fund. Prior to joining the firm he spent five years at Prudential Mutual Funds as a Research Analyst /Associate. Mr. Bond Nelson holds a BS from Lehigh University and an MBA from Rutgers University, as well as NASD Series 7 and 63 licenses. • • • • • • ~ • • • ~ • ~ ~ • • • • • • • • • • • • • • s • ~ • Investment Management Team Thomas E. Browne Jr., CFA, Senior Vice President Mr. Browne is Portfolio Manager/Analyst for Oppenheimer Capital's Small Cap Value and Small Cap Core strategies. Prior to joining the firm in 2003, he held poBfolio management and equity analysis positions at SEB Asset Management and Palisade Capital Management. For six years prior, Mr, Browne served as an analyst at Prudential Securities primarily covering the information technology sector, and was honored as a Wall Street Journal All- StarAnalyst in 1998 and 1999. Previously he spent six years as a financial representative at Fidelity Investments. Mr. Browne holds a BBA from the University of Notre Dame and an MBA from New York University's Stern School of Business. He is a CFA charterholder as well as a member of both the Association for Investment Management and Research and the New York Society of Security Analysts. Anne Budlong, Senior !/ice President Ms. Budlong is a senior investment professional on Oppenheimer Capital's International Equity and Global Equity teams, specializing in European financials equity research. Prior to joining the firm, Ms. Budlong was a portfolio manager at Credit Suisse Asset Management, where she managed international equity strategies for institutional, retail and wrap accounts. Prior to Credit Suisse, she served as a fund manager at Baring Asset Management, and as a vice president and research analyst at Clay Finlay. Ms. Budlong began her career with Oppenheimer & Co. as a financial analyst. She holds a Bachelors of Arts degree with honors from Williams College. David J. Cassese, Uice President Mr. Cassese is a senior research analyst for Oppenheimer Capital's large-cap value/core equity strategies, focusing on media & communications and consumer stocks. He also serves as a US regional specialist on the Global Value portfolio management team. Prior to joining the firm in 2000, he worked as an associate analyst at T. Rowe Price, as well as at Gabelli & Co. Mr. Cassese, a CFA charterholder, holds a BA in Economics from Duke University. David Chamberlain, CFA, Research Ana/yst Mr. Chamberlain is a research analyst for Oppenheimer Capital's small-, mid- and large- cap growth equity strategies, specializing in the financial services sector. Prior to joining the firm in 2005, he spent over two years in equity research at Goldman Sachs & Co., covering the capital markets sector. In addition, he has worked as a research analyst for Archimedes Capital and Trafelet & Co., covering the financial services and insurance industries. Mr. Chamberlain is a Chartered Financial Analyst and earned a BA in History/Economics from Dartmouth College. Alok Chopra, CFA, Uice President Mr. Chopra is a research analyst for Oppenheimer Capital's Small/Mid Cap value/core team specializing in the technology and industrial sectors. Prior to joining the firm he spent two years at MFP Investors, six years at Franklin Templeton funds as an Assistant Portfolio Manager and four years at GE Consulting Services. Mr. Chopra, a CFA charterholder, holds a BS in Electrical Engineering from Cornell University, an MS in Electrical Engineering from Northeastern University and an MBA in Finance from the University of Chicago. Brad Colton, Ana/yst Mr. Colton is a research analyst for Oppenheimer Capital's large-cap value/core equity strategies focusing on industrial and financial stocks. Prior to joining the firm in 2002, he worked for four years at J.P. Morgan as a credit portfolio associate, where he assisted in portfolio management decisions, and as a corporate finance analyst. Mr. Colton, who is fluent in Japanese, holds a BA in Economics from Brigham Young University and an MBA from Harvard Business School. a • • • • • • • • • • • • ~ • • • • • • s • • • • • ~ • • • • • Investment Management Team Kim Conroy, Uice President Ms. Conroy is a senior research analyst at Oppenheimer Capital focused on non- traditional proprietary research in support of the firm's value/core equity strategies. Prior to joining the firm in 1999, she managed institutional portfolios at J.P. Morgan and Lloyds Developmental Capital, and brings almost 20 years of experience and knowledge of emerging markets and private equity investing to her role at Oppenheimer Capital. Ms. Conroy has been an investigative journalist for AP-Dow Jones and ABC News, where she specialized in financial and political reporting. She has served as anon-executive director on three corporate boards, is fluent in Spanish and Portuguese, and has worked and traveled extensively in Europe, Latin America and Asia. Ms. Conroy graduated from Dartmouth College with a BA in Latin American Studies/Economics, and received her MBA in Finance with honors from Columbia Business School. Michael Corelli, Portfo/ioManager/Senior Research Ana/yst Mr. Corelli is portfolio manager for the Oppenheimer Capital's Small Cap Growth strategy, as well as portfolio manager of an open-end mutual fund managed in the small-cap growth style. Prior to joining the firm in 1999, he spent six years at Bankers Trust working on the small and mid cap growth strategies. Mr. Corelli earned a BA from Bucknell University. Terrence Duggan, Equity Trader Mr. Duggan is an equity trader at Oppenheimer Capital and brings nine years of industry experience to his position. Prior to joining the firm, he spent four years at Bankers Trust as a domestic and international equity trader. Mr. Duggan earned a BS from Lehigh University, and holds his NASD Series 7 and 63 licenses. Nicholas Frelinghuysen, Senior Vice President Mr. Frelinghuysen is a senior research analyst for Oppenheimer Capital's Small/Mid Cap value/core team. He is co-manager of an open-end mutual fund managed in the multi- cap value style, as well as co-manager of the OpCap Premier VIT Mid Cap portfolio. He also serves as a small/mid-cap specialist on the All Cap Equity portfolio management team. Prior to joining the firm in 1999, he spent four years as an equity research analyst at Donaldson, Lufkin & Jenrette following the electric utilities and telecommunications sectors. Mr. Frelinghuysen graduated from Princeton University with a BA in English and holds an MBA in Finance from the Wharton School of the University of Pennsylvania. Colin Glinsman, Chief/nvestmentOfficer Mr. Glinsman is Chief Investment Officer of Oppenheimer Capital's Value/Core equity platform. He is lead manager of Oppenheimer Capital's Large Cap Focus strategy, as well as portfolio manager of an open-end mutual fund managed in the large-cap value style. Mr. Glinsman also manages an open-end mutual fund managed in the balanced style for a third-party distributor. He brings 26 years of experience to his current position, including 17 years at Oppenheimer Capital as a Portfolio Manager/Analyst. From 1984 to 1989 Mr. Glinsman provided merger advice to clients, first with Morgan Grenfell and later with Prudential Securities. From 1980 to 1984 he worked with Coopers & Lybrand, during which time he received the CPA designation. Mr. Glinsman earned a BA in Economics from Yale University and an MS in Accounting from New York University. David Fossella, Research Analyst Mr. Fossella is a research associate for Oppenheimer Capital's small-cap growth equity strategies, specializing in the energy and gaming sectors. Prior to joining the firm in 2004, he spent one year in Institutional Equity Sales at Sidoti & Company, LLC. He holds NASD series 7 and 63 licenses. Mr. Fossella earned a BA from Pennsylvania State University. Investment Management Team Louis P. Goldstein, ManagingDiredor Mr. Goldstein is Portfolio Manager/Analyst for Oppenheimer Capital's All Cap Equity, All Cap Value and Mid Cap Value strategies and heads the Small/Mid Cap value/core team. He manages an open-end mutual fund managed in the multi-cap style for athird-party distributor. Mr. Goldstein was named to Baryon's list of "Top Gun" managers in 2003, which ranks managers on risk-adjusted performance. Mr. Goldstein brings 23 years of value-oriented equity investment experience to his current position, ranging from large to small capitalization companies in the U.S. as well as in Latin America. Prior to joining Oppenheimer Capital in 1991, he was an equity analyst at David 1. Greene & Co. and Atalanta/Sosnoff Capital, and amergers-and-acquisitions investment banking associate at the Blackstone Group and Citibank. Mr. Goldstein earned both a BS in Finance, summa cum laude, and an MBA in Finance with honors from the Wharton School of the University of Pennsylvania. Andrew Gorcryk, Analyst Mr. Gorczyk is a research analyst for Oppenheimer Capital's large-cap value/core equity strategies, focusing on the technology sector. Prior to joining the firm in 2006, he was an investment analyst with the Lincoln Financial Group. Mr. Gorczyk earned a BA in Economics from the University of Michigan, holds a NASD Series 7 license and is a member of the American Economic Association. government clearance area for CIBC. Mr. Guccione attended Baruch College and holds his NASD Series 7. Benjamin Gutstein, Vice President Mr. Gutstein is a Portfolio Manager/Analyst in Oppenheimer Capital's fixed income group. He currently manages separately managed client portfolios. Prior to joining Oppenheimer Capital in 1993, he worked in the fixed income analytics department at Lehman Brothers. Mr. Gutstein holds a BA in political science from Vassar College and an MBA in finance from the Fordham University Graduate School of Business. He is a member of the New York Society of Securities Analysts. Karla Harwich, Uice President Ms. Harwich is a research analyst on Oppenheimer Capital's International Equity and Global Equity teams, with emphasis on metals & mining and utilities. Ms. Harwich joined the firm in 2006, having previously worked for Clay Finlay Inc. where she managed equity investments in Latin America and South Africa, as well as recommending investments in the United States. She specialized in the financial and commodity sectors. Ms. Harwich is fluent in Spanish and French, and holds a BA in Philosophy and MBA in Finance and Investment from Columbia University. Bryce Hill, CFA, Senior Uice President Matthew Greenwald, Senior !/ice President Mr. Greenwald is a Portfolio Manager/Analyst in Oppenheimer Capital's fixed income group. He currently manages the Municipal Advantage Fund and separately managed fixed income portfolios. Prior to joining Oppenheimer Capital in 1989, Mr. Greenwald was with PaineWebber-Mitchell Hutchins Asset Management, where he was a portfolio manager for various mutual fund portfolios. Mr. Greenwald holds a BA from Pennsylvania State University and an MS and an MBA from Columbia University. John Guccione, Equity Trader Mr. Guccione is a Vice President and equity trader at Oppenheimer Capital. A member of the firm's trading desk since 1992, he brings more than a decade of experience trading for various Oppenheimer Capital equity strategies. Prior to joining the firm, he worked in the Mr. Hill is a senior research analyst for Oppenheimer Capital's large-cap value/core equity strategies and Portfolio Manager for Oppenheimer Capital's Disciplined Value strategy. He leads the firm's health care sector team under the Value/Core Platform and also covers technology stocks. Mr. Hill, a CFA charterholder, holds a BS in Business Administration from the University of Southern California, where he graduated summa cum laude, and an MBA from Columbia University. Thomas Hogan, CFA, Assistant !/ice President Mr. Hogan is a research analyst for Oppenheimer Capital's Small/Mid Cap value/core team, specializing in the raw materials, utilities, financials and health care sectors. Prior to joining the firm in 2005, he worked as an equity research associate at William Blair & Co., and held consultant and analyst positions with Ibbotson Associates. Mr. Hogan holds a BA degree from the University of Notre Dame and an MBA from the University of Investment Management Team Pennsylvania's Wharton School. He is a CFA charterholder and a member of the CFA Institute. Bradley Holmes, CFA, Senior Vice President Mr. Holmes is a senior research analyst for Oppenheimer Capital's Small/Mid Cap value/core team. He is Portfolio Manager for Oppenheimer Capital's SMID Cap Equity strategy, as well as co-manager of an open-end mutual fund managed in the multi-cap value style. He joined the firm in 1993 following graduation from the University of Michigan with a Bachelor of General Studies. Mr. Holmes, a CFA charterholder, also holds an MBA in Finance and Accounting from New York University's Stern School of Business. Valentin Ivanov, Quantitative Ana/yst Mr. Ivanov is a quantitative analyst for Oppenheimer Capital's Structured Products team and brings seven years of industry experience. He previously served as a portfolio administrator and trader with Allianz Global Investors Managed Accounts and Nicholas Applegate Capital Management. Mr. Ivanov holds a BA from the University of San Diego. Roy Johnston, CFA, Research Analyst Mr. Johnston is a research analyst for Oppenheimer Capital's small-, mid- and large-cap growth equity strategies, specializing in the industrial and basic materials sectors. Prior to joining the firm, he spent over four years in equity research at Morgan Stanley, covering capital goods companies and worked for SAC Capital Management and Exis Capital covering a wide range of industrial and basic materials companies. Mc Johnston is a Chartered Financial Analyst and earned a BS in Economics from Texas A&M University. Francis A. LeCates, Jr., CFA, ManagingDiredor Mr. LeCates is a senior Portfolio Manager/Analyst at Oppenheimer Capital. He is a member of the firm's Portfolio Construction Team, the committee of senior large-cap portfolio managers who share insights on management of the firm's large-cap value/core equity strategies. In addition, he heads the energy, materials and industry sector research team within the Value/Core platform. From 1995 to 2003 Mr. LeCates served as Oppenheimer Capital's Director of Research. Formerly with Donaldson, Lufkin & Jenrette for 18 years, he served in several capacities including head of institutional equity sales, director of research, and securities analyst. His previous eight years were spent as an analyst, with Faulkner, Dawkins & Sullivan, Anchor Corporation, and Blyth & Co. Mr. LeCates, a CFA charterholder, is a graduate of Princeton University and holds an MBA in Finance from Harvard Business School. Lia Levenson, Vice President Ms. Levenson is a senior research analyst on Oppenheimer Capital's International Equity and Global Equity teams, specializing in oils, autos and media sectors. Prior to joining the firm, Ms. Levenson was as an Asian-equity analyst for Zurich Scudder Investments in New York and an oil-industry analyst at Brunswick Warburg in Moscow. She previously served as a research associate at Sanford C. Bernstein & Co. in New York. Ms. Levenson is fluent in Russian and holds a BS in Operations Research from Columbia University. Fox Ling, Ph.D., CFA, Vice President Mr. Ling is a member of Oppenheimer Capital's Quantitative Research & Risk Manage- ment team, a capacity in which he conducts quantitative and fundamental common-factor analysis as a resource to the firm's portfolio managers. Prior to joining the firm in 1993, he was a research scientist at the Chinese Academy of Sciences. Mr. Ling holds an MS from the Graduate School of Chinese Academy of Sciences, a Ph. D. from the University of North Carolina at Chapel Hill, and an MBA from Columbia Business School. He is a CFA charterholder, and a member of both the CFA Institute and the New York Society of Security Analysts John Lindenthal, ManagingDiredor Mr. Lindenthal is a senior Portfolio Manager/Analyst at Oppenheimer Capital and manager of a number of large-cap value client accounts. He is a member of the firm's Portfolio Construction Team, the committee of senior large-cap portfolio managers who share insights on management of the firm's large-cap value/core equity strategies. Mr. Lindenthal joined the firm in 1979 from Bank of America, where he was a senior portfolio manager responsible primarily for pension assets. Prior to this, he served as a portfolio manager for Crocker Investment Management providing equity management services to pension and profit sharing plans. Mr. Lindenthal graduated from the University of Santa Clara in California with a BS in Economics and an MBA in Finance. Investment Management Team Keith Lichtman, Equity Trader Mr. Lichtman is a Vice President and equity trader at Oppenheimer Capital. A member of the firm's trading desk since 1981, he brings more two decades of experience trading for various Oppenheimer Capital equity strategies. Mr. Lichtman is a graduate of Kingsborough College, and holds NASD Series 7 and 63 licenses. Robert Malone, Equity Trader Mr. Malone is a Vice President and equity trader at Oppenheimer Capital. A member of the firm's trading desk since 1979, he brings more than 25 years experience trading for various Oppenheimer Capital equity strategies. Mr. Malone holds a BS from St. Francis College and an NASD Series 7 license. Michael Mathay, CFA, Uice President Mr. Mathay is a senior research analyst for Oppenheimer Capital's large-cap value/core equity strategies, focusing on the industrial and media & communications sectors. Prior to joining the firm in 2001, he spent 10 years as a senior consultant and manager at Marakon Associates, helping client companies develop the strategies and capabilities to manage for shareholder value. Mr. Mathay, a CFA charterholder, holds a BS in economics from the Wharton School of the University of Pennsylvania. Elisa Mazen, Managing Director Ms. Mazen, a Portfolio Manager/Analyst at Oppenheimer Capital, manages Oppenheimer Capital's International Equity strategy and serves as a non US regional specialist on the Global Equity portfolio management team. She also manages an open-end mutual fund managed in the international core style, as well as the PIMCO Variable Insurance Trust. In addition, she previously was executive vice president and manager for the Central European Value Fund, aNYSE-listed closed-end fund. She has been a member of the firm's non U.S. investment team since its inception in 1994, and has headed the team since 2000. Prior to joining the firm in 1994, Ms. Mazen was an international portfolio manager at Clemente Capital, with analyst responsibilities for the United States, Canada, Turkey, and Israel. She was also a Vice President at Mitchell Hutchins Asset Management, where she served as a junk bond analyst. Ms. Mazen holds a BA in Economics from Rutgers University. Gary McAnly, CFA, Managing Director/Director of Trading Mr. McAnly heads Oppenheimer Capital's trading desk and brings 13 years of industry experience to his position. Prior to joining the firm, he spent five years as a senior equity trader at Eagle Asset Management. He also served as an investment advisor at Equitable Financial. Mr. McAnly earned a BA from Florida State University, and holds NASD Series 7, 63, and 65 licenses. He is a CFA charterholder and a member of the CFA Institute William P. McDaniel, CFA, Managing Director Mr. McDaniel is Director of Fixed Income Management for Oppenheimer Capital and a Portfolio Manager/Analyst in Oppenheimer Capital's fixed income group. He joined the firm in 1983 from Comerica Bank Detroit, where he was Vice President and officer in charge of the fixed income group. Mr. McDaniel, a CFA charterholder, earned a BA from the University of Michigan and an MBA from Wayne State University. He is a member of both CFA Institute and the New York Society of Securities Analysts. Martin Mickus, CFA, Co-Portfolio Manager/Senior Research Analyst Mr. Mickus is co-portfolio manager for Oppenheimer Capital's Mid Cap Growth strategy. He is also co-pofffolio manager for an open-end mutual fund managed in the mid-cap growth style, as well as the technology analyst for an open-end mutual fund managed in the large-cap growth style. Prior to joining the firm in 1999, he was an assistant portfolio manager and research analyst for the InterGroup Corporation from 1995 to 1997. Prior to that, he worked as a Research Analyst for Brentwood Equity Corporation from 1992 to 1995. Previously, Martin worked as a registered representative for Drake Capital Securities. He received his MBA from Vanderbilt University and his BS from Syracuse University. Matthew Milazzo, Equity Trading Mr. Milazzo is an equity trader at Oppenheimer Capital and brings eight years of investment experience to his position. Prior to joining the firm, he spent two years as a trader for a market neutral utility fund at SAC Capital Management, as well as two years in institutional sales at Jeffries & Co. Mr. Milazzo holds a BA in International Business from Lehigh University. Investment Management Team Benjamin Parente, Analyst Mr. Parente is a research analyst for Oppenheimer Capital's large-cap value/core equity strategies, focusing on consumer stocks. Prior to joining the firm in 2006, he was in the Corporate Properties & Securities area of General Electric's Financial Management Program. Mr. Parente earned a BS in Business Administration from Northeastern University. Jeffrey D. Parker, CFA, ManagingDiredor/Senior Portfolio Manager Mr. Parker heads Oppenheimer Capital's Growth Platform. He is lead manager for Oppenheimer Capital's Mid Cap Growth strategy and heads the Small/Mid Cap growth team. He is also portfolio manager for an open-end mutual fund managed in the mid-cap growth style. Prior to joining the firm in 1999, he was an Assistant Portfolio Manager at Eagle Asset Management. Additionally, he was a Senior Consultant specializing in health care and technology at Andersen Consulting. Mr. Parker is a Chartered Financial Analyst. He earned an MBA from Vanderbilt University and a BBA from the University of Miami. David S. Phillips, CFA, ManagingDiredor Mr. Phillips is Director of Research for Oppenheimer Capital's Value/Core platform and a member of the Large Cap Value Portfolio Construction Team. In this capacity, he is one of the senior investment professionals whose input is used to construct Large Cap Value portfolios. He is co manager of an open-end mutual fund managed in the multi-cap value style and also serves as a large-cap specialist on the All Cap Equity portfolio management team. Prior to joining the firm in 1996, Mr. Phillips spent four years at Marakon Associates, a consulting firm that implements Value Based Management at Fortune 100 companies. He earned a BA cum laude from Princeton University's Woodrow Wilson School, and received an MBA from the University of Pennsylvania's Wharton School of Business. Mr. Phillips is a CFA charterholder. Infrastructure Software sectors. Mr. Pollack earned a BS in Finance from the University of Florida. Michael Purcell, Research Ana/yst Mr. Purcell is a research analyst for Oppenheimer Capital's Structured Products team and brings three years of industry experience to his position. Prior to joining the group he served as an associate portfolio specialist and marketing analyst with Allianz Global Investors. Mr. Purcell earned a BS in Finance and Accounting from Fairfield University's Dolan School of Business, and holds NASD Series 7 and 66 licenses. John Rowley, CFA, ManagingDiredor Mr. Rowley is a senior research analyst at Oppenheimer Capital and head of the global technology sector research team within the Value/Core platform. He joined the firm in 1992, and has since 1996 focused primarily on investments within the technology sector. Prior to joining the firm, Mr. Rowley was an associate at Greystone, an investment management firm in Greenwich, Connecticut. Prior to that, he served as a financial analyst in the corporate finance department of Smith Barney in New York, where he worked on a variety of equity underwriting and merger transactions. Mr. Rowley, a CFA charterholder, holds a BA in Economics from Yale University and an MBA from the Wharton School of the University of Pennsylvania. William Sandow, Research Ana/yst Mr. Sandow is a research analyst for Oppenheimer Capital's large- and mid-cap growth equity strategies, focusing on the health care sector. Prior to joining the firm, he was a senior health care analyst and portfolio manager at Exis Capital, amulti-strategy hedge fund based in New York. He was also an analyst and co-manager of a health care-focused mutual fund at RCM Capital Management. Mr. Sandow holds a BS in Accounting from Boston College and an MBA from Indiana University's Kelley School of Business. Brett S. Pollack, Uice President Mr. Pollack is a research analyst for Oppenheimer Capital's small-cap value/core equity strategies. Prior to joining the firm in 2006, he was a senior analyst at Computer Associates working on Mergers & Acquisitions and Competitive Intelligence. Previously, he spent over six years at Prudential Equity Group working on the IT Services, Semiconductors and Eric Sartorius, Senior Research Analyst Mr. Sartorius is a senior research analyst for Oppenheimer Capital's small-cap growth equity strategy, specializing in the information technology, medical technology and health care sectors. Prior to joining the firm in 2001, he spent two years as a research associate Investment Management Team covering the technology sector at Fred Alger Management. He earned a BA from Williams College and is a CFA candidate. Christine Schneider, Senior Vice President Ms. Schneider is a Product Specialist for Oppenheimer Capital's International Equity and Global Equity strategies, representing investment portfolios to clients and prospective clients in various markets. Prior to joining the firm, she spent 14 years as an international economist and product marketer at Donaldson, Lufkin & Jenrette. She holds a BA in Mathematics and Computer Science from Potsdam College and an MBA in Finance from New York University's Stern School of Business. Ms. Schneider is the chair of NYU's Stern Alumni Advisory Council and is also a member of the Financial Women's Association and Women in Asset Management. Daren Taylor, CFA, Assistant Uice President Mr. Taylor is a research analyst for Oppenheimer Capital's large-cap value/core equity strategies, specializing in the finance and consumer sectors. He joined the firm in 2000 after graduating cum laude with a BS in Finance and Economics from New York University's Stern School of Business and holds an MBA from Columbia Business School. He is a CFA charterholder. Lillyn Teh, Ph.D., CFA, ManagingDiredor Ms. Teh is the head of Quantitative Research & Risk Management at Oppenheimer Capital, a capacity in which she leads the quantitative research and analysis efforts to supplement and enhance the investment processes of the firm's portfolio managers. Prior to joining the firm in 2006, she was Director of Research for a quantitative equity strategies group in Citigroup Asset Management. She has also held various senior quantitative research manager positions in asset allocation and was a member of Citigroup's Global Asset Management Committee. Ms. Teh holds an MBA, MS and Ph.D. in Finance from the University of Wisconsin. She is a CFA charterholder and a member of the CFA Institute. Greg Tournant, ManagingDiredor/Portfolio Manager Mr. Tournant heads Oppenheimer Capital's Structured Products team and is the primary architect of OpCap's proprietary approach to option-based investment. He is portfolio manager of the Absolute Yield and Structured Equity institutional strategies. In addition, Mr. Tournant is one of the portfolio managers of the closed-end NFJ Dividend, Interest and Premium Strategy Fund and Nicholas Applegate International & Premium Strategy Fund, which are subadvised by Oppenheimer Capital. He is also the portfolio manger of the closed-end S&P Covered Call Fund and the Enhanced S&P 500 Covered Call Fund, as well as an open-end covered-call mutual fund also subadvised by Oppenheimer Capital. Mr. Tournant's 10 years of experience include managing an open-end large-cap growth equity mutual fund, an equity index option-based hedge fund, and option programs on several open-end mutual funds. He previously served as a senior research analyst at Eagle Asset Management, and also spent three years as a strategy consultant for McKinsey & Co. and two years as a sell-side research analyst for Raymond James. Mr. Tournant holds a BS from Trinity University in San Antonio, Texas, and an MBA from the Kellogg School of Business at Northwestern University. Robert K. Urquhart, ManagingDiredor Mr. Urquhart is a senior Portfolio Manager/Analyst for Oppenheimer Capital's Large Cap Growth and Strategic Equity strategies. He also manages an open-end mutual fund managed in the large-cap growth style, as well as an open-end mutual fund managed in the large-cap core style. Mr. Urquhart is also the lead equity portfolio manager of an open-end mutual fund managed in the large-cap core style that utilizes a covered call writing strategy. He is a member of the firm's Portfolio Construction Team, the committee of senior large-cap portfolio managers who share insights on management of the firm's large-cap equity strategies. In addition, he heads the Consumer and Communications sector research team. Prior to joining the firm in 1999, he was a portfolio manager at Pilgrim Baxter & Associates and a portfolio manager and managing director at PNC Equity Advisors. He worked for eight years at RCM Capital Management, where he was a partner, portfolio manager, and senior equity analyst. Mr. Urquhart began his career as a sell-side analyst for Sanford C. Bernstein & Co. Inc. and subsequently worked as an equity analyst at J. P. Morgan Investments. Mr. Urquhart has a BS from the University of Colorado and an MBA from Harvard Graduate School of Business Administration. Investment Management Team Scott Winters, Analyst Mr. Winters is a research analyst for Oppenheimer Capital's large-cap value/core equity strategies, specializing in the technology and industrial sectors. Prior to joining the firm in 2005, he held managerial and engineering positions with Lyondell Chemical and wireless research firm Telephia. Mr. Winters graduated summa cum laude from the University of Pennsylvania with BS degrees in Economics and Chemical Engineering, and holds an MBA from Columbia Business School. Miles Wixon, CFA, Senior Vice President Mr. Wixon is Portfolio Manager/Analyst of Oppenheimer Capital's Global Equity strategy and a senior investment professional on the International Equity team. In his capacity as a research analyst, he specializes in financial services equity research. Prior to joining the firm, Mr. Wixon was a senior portfolio manager and analyst at Rockefeller & Co., where he co-managed global, international and US equity strategies, and covered the global financial services sector. He also previously covered the Japanese financial sector as a Tokyo-based analyst for Nikko Salomon Smith Barney. Mr. Wixon holds a Master of International Affairs degree from Columbia University and a Bachelor of Arts degree with honors from the University of Wisconsin-Madison. He is fluent in Japanese and is a CFA charterholder. Pawel Wroblewski, CFA, !/ice President Mr. Wroblewski is a senior research analyst on Oppenheimer Capital's International Equity and Global Equity teams, with an emphasis on industrials, technology and telecom companies. A native of Poland, Mr. Wroblewski previously worked for Credit Suisse first Boston and Bank Austria Creditanstalt as an equity analyst, covering the Polish, Czech and Hungarian equity markets. A graduate of the Warsaw School of Economics, Mr. Wroblewski earned a Masters Degree in Finance and Banking and is a CFA charterholder. He is fluent in several languages. Jane Xia, CFA, Vice President Ms. Xia is a research analyst for Oppenheimer Capital's large-cap value/core and global equity strategies, specializing in the finance, raw materials and utilities sectors. Prior to joining the firm in June 2002, she spent six years as a vice president for Crimson Asia Capital, a venture capital and private equity investment firm. Before that, she worked as a business consultant with a major accounting and consulting firm and as a credit analyst with Shanghai Investment & Trust Corp. Ms. Xia, a CFA charterholder, holds a BS in management from Shanghai Jiao Tong University and an MBA in finance and accounting with honors from the Wharton School of the University of Pennsylvania. Catherine Wolfe, Research Ana/yst Ms. Wolfe is a research analyst for Oppenheimer Capital's large- and mid-cap growth equity strategies, focusing on the consumer sectors. Prior to joining the firm in 2005, she was a research analyst at Jennison Associates, a New York-based asset management firm. Ms. Wolfe holds a BA in Mathematics from Rutgers University and an MBA from New York University's Leonard N. Stern School of Business. Calendar Year Report: Annualized Return Period: 01/2002 to 12/2006 Benchmark: Russell 3000 -Total Return Description 2002 2003 2004 2005 2006 YTD All Cap Equity composite Russell 3000 -Total Return -13.26 -21.54 30.57 31.06 18.35 11.95 10.64 6.12 15.04 15.72 15.04 15.72 Multi-Horizon Report: Annualized Return Period: 01/2002 to 12/2006 Benchmark: Russell 3000 -Total Return Description 1 Month QTD 1 Quarter YTD 1 Year 2 Year 3 Year 4 Year 5 Year All Cap Equity composite 2.09 5.98 5.98 15.04 15.04 12.82 14.63 18.42 11.28 Russell 3000 -Total Return 1.20 7.12 7.12 15.72 15.72 10.81 11.19 15.85 7.17 Percent of Total Holdings Ending Weight Portfolio All Cap Equity Representative Portfolio U.S. Dollar Market Cap MC Bin 1:50000.0 - 311755.4 MC Bin 2: 20000.0 - 50000.0 MC Bin 3: 10000.0 - 20000.0 MC Bin 4: 5000.0 - 10000.0 MC Bin 5: 1000.0 - 5000.0 MC Bin 6: 0.0 - 1000.0 [N/A] Total Average Market Cap 3/31/2004 6/30/2004 9/30/2004 12/31/2004 3/31/2005 6/30/2005 9/30/2005 12/31/2005 3/31/2006 6/30/2006 9/30/2006 12/31/2006 4.88 7.13 11.16 16.51 18.64 18.10 15.00 15.40 16.98 18.36 15.95 16.91 2.59 2.68 2.99 0.53 0.61 0.61 3.08 3.21 2.69 6.78 7.33 9.75 15.98 13.96 20.16 16.56 11.81 7.95 10.32 13.46 14.32 16.31 16.55 17.45 23.06 21.80 20.30 21.76 17.78 17.85 19.22 16.66 16.66 18.17 18.09 12.70 44.36 45.52 35.68 35.01 39.43 42.29 39.07 41.66 38.23 32.47 35.82 33.73 7.79 7.16 6.01 6.13 7.64 9.17 11.87 8.69 10.85 7.90 5.23 5.26 1.35 1.75 3.70 3.51 4.10 4.02 1.44 0.93 0.26 -- 1.03 4.20 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 3/31/2004 6/30/2004 9/30/2004 12/31/2004 3/31/2005 6/30/2005 9/30/2005 12/31/2005 3/31/2006 6/30/2006 9/30/2006 12/31/2006 19,245 22,127 30,401 39,921 41,013 38,044 30,450 34,933 37,573 41,941 40,174 44,587 All Cap Equ6y Repnaenbtlve PoMdb U.9. DoIW 12!3112005 to 31]1(3 006 ', v alteuw ro wawetnn All Cap Equky Rueasll ]000 '. ' VarlsOa n ANIEwIbn Anslysls C Mb [w All Lap Equ6y ' RuuNl ]WO ~ Vsrlatbn AIIHbNbn Ana Lontdbulron hals '. . ' on u n tc Selettion Contdbution '~ to Sekdgn Contd6utan ' Enoing Total Contnbution ~, Enoing Total ConbiDUbon', Entling Total contribution, Albration Effect Total To Active '. Entling Total Conmbutwn Ending Total ~ ConlnbNwn ~. EMing Total Contdbution Albcatan Efect Total To Actve FxlSet~GICS Sector Weght Retum Te Retum ', Weght Retum To Retum Weight Retum To Retum Etlect (HdOings Only I Etfecl Retum ~, Weght Retum To Re1u m ., Weight Retum To Retum : Weight Retum To Retum Ettea (HdOings Only I EOed Re[um Lonaumer Diacntlmary 1693 6.96 139 ', 1105 303 046 5.08 3.13 -2dd -0.12 054 040 024 1].22 -9.St 165 11 fig -325 -040 553 4i 26 160 -007 -1.11 -1.16 -134 EnsrOy 6.95 2.36 0.19 ', 8.55 747 0.60 ': -1 fit -5.12 -128 -0.01 -020 -025 -0.04 ~. 492 150 013 902 4.59 040 ' J.10 -305 J46 -01] -0.15 -0.34 023 Fbancbls 32.12 274 090 2155 488 10] ', 105] -2.14 -399 -0.04 -0.]1 -0]6 -0.89 ', 35.35 -025 -0.23 21.86 440 -0.13 1349 0.15 01] 0.19 002 0.21 054 ReaM Can 1368 12./8 165 ', 1293 2.25 0.31 0I5 1053 -0fi0 -000 133 1.30 0.96 13.60 -0.t] -003 '~. 1242 -535 -0.68 122 St] 532 -001 065 066 021 InJUrtHSb 15.]3 15.14 228 ''. 1136 9.91 106 '. 0.35 524 -1fi2 0.23 0]3 095 149 ': 996 -].1] -0.]3 ~. 1159 -0.]] -0.t0 '. -161 4i 40 000 0.05 -0bfi dfi3 -048 Idormatbn Tachnobgy '. 8.92 9 8! 0.79 '. 15 B6 5 7] 0 91 :690 d 07 J 9fl -0.01 029 0.30 0.35 '. 9 65 -1fig -0.78 14.85 -9.09 ~1 41 5.20 1 39 8 31 0 3B 010 0 55 -0.56 6bbMb T22 -4.23 -007 ! 340 10.01 032 -2.1] -1421 -10.08 -0.09 -0.19 -0.28 -0.14 146 -19.30 -031 3.3] -1.72 -00fi -191 -1762 142 4).00 -0.27 -0.2fi -0.2] Tsbcommunlcatbn Servlac 0.95 3 20 0 03 ~ 3 0] 14 87 042 ~, -2.12 -11.63 -16.84 -0.10 -0.10 -0.28 -O o2 ', 096 -0 79 -0 W 3.15 -0.33 -0.00 -2 20 -0 d] 0.32 -0 03 0 00 -0.02 0 01 U611tlev 349 643 024 360 -0.12 -000 I 0.09 6.55 036 -000 024 026 000 ', 601 190 ~ 0.13 - 3.]1 544 0.19 3.10 -3.Sd -5.31 000 -009 -0.05 O.1B TWI 100.00 7.36 ]36 100.OO 530 S.M ''., -- 202 -5].58 0.05 1.90 202 2.00 ~'.. 100.00 -S.3B J.36 '., 100.00 -1.95 -1.95 - ~1A2 4.6T 0.01 -143 -1.02 -1.47 61]012006 to 913012 008 ~' 9130/200fi to 121]112006 All Cap Equky ~ VsrWbn , Ruuell ]1100 Altrlbulbn Analyab All Cap Eqully Rugall ]000 VaHatlw Atblbutbn AnaNsia '. ContODUtlon I ~ Contnbuticn ro selecda, comdbution.. ' :o sebaian conmbueon Entling Tdal Cn b n Entling Total Cn b t n', Endity Total cony DUt on. Albcatan Effect Total To Active E d g Total C 'b I End'tg Total C t b f Endiy Total Contnb t NI tron ERect Total To Actve '. Wegm Retum To Retum ~ Weght Retum To Retu m ', Weght Retum To Retum Efect I Hddings Onry I Efect Retum '. We ght Retum T Retu m i Weight Retum To Retum '~, Weght Retum To Retum EOec1 t Hddings Only 1 ERect Retum Consumer DlvcMlonary 1fi.]2 9fi5 159 ~ 1t 6] 360 062 '. 505 5.81 -2.25 -005 0.99 0.92 083 ~', ~ 15 B1 468 0]B '. 12.03 1049 124 ~.; 318 -5.81 -9.]1 O.tfi -094 -0.]] -041 Energy 365 6.63 -0.15 ~. 8.23 -334 -0.31 ~ J.58 -t 69 3.19 039 -0.00 0.35 -035 '. 421 16.18 0.59 ~ 8.62 1167 ~ 096 '. Ad1 4.51 -110] -021 0.15 -0.OS 033 Fbancbh 3245 290 099 '. 2242 7.15 1.59 '~, 1003 J.21 4i.1fi 026 -138 -109 -0.55 '. i 34.04 7.46 260 I 2246 709 15] tT56 030 J69 41.01 0.10 OOB 0.11 Mea6h Caro 1367 397 0.59 '~ 1286 8.15 1.06 0.01 J.1B -].56 0.06 -05] -0.52 -008 ', 11.89 443 0.59 112.15 1.94 0.24 ', -0.2fi 250 -1.35 -006 0.31 026 -040 IMuvmlala 1023 -0.12 -0.05 '~ tO B] -121 -020 I -0.fi4 109 1.16 0.12 D.OB 0.21 -047 11.01 9.]9 tOfi ! 1093 6.89 ~ 0.]6 ~. OBB 290 -5.83 -002 035 032 033 IMOrmatbn TecDrrobgy 1286 13.04 1.55 ', 1529 7.19 10] ~ -244 505 565 000 0.5] Ofi0 0.93 1138 A]2 ~ -001 ~ 1508 645 101 '~ -370 -].16 E46 0.04 -0.6B -0.BO -0.9B ' Mtlerbla 1.51 230 0.03 ' 3.19 -099 -0.OS '. -1.69 3.3] 102 ' 0.10 0.05 0.15 -003 ~ 1.39 -5 ]1 -0.09 '. 336 12.68 040 -19] -1839 -12.]6 -010 62] -0.37 -0.20 Tebcommunlulbn 9srvlaa 106 9.53 0.13 '~.. 3.31 1051 0.34 -145 -098 -1038 -0.10 -006 -0.1d 0.05 1.98 950 0.16 3.35 8.36 0.2] ~' -1.3) 1.12 -021 -0.02 002 0.00 005 UtI161ea 705 3.90 0.30 '' 3.]d 556 0.22 ~i 3.31 ~16fi -526 O.Od -0.12 609 -0.OS ~. '~ ]50 9T1 069 ' 3.83 948 0.?fi ', 36] 023 -0.80 00] 002 O.OB Ot8 Tdsl 100.00 4.94 4.90 1100.00 4.&/ 6-64 ', -- 0.30 -37.55 0.71 -0.N 0.30 0.28 ~' 100.00 6.14 6.14 '~, 100.00 7.12 ].12 - -0.9B -72.18 0.13 -1.10 6.98 -0.W --,_ - - PesfwmaMa AntldNOn All Cap ERuly Rapraaantathro Portbllo U.S. Dollar Eac15e1-GIGS 5 Lonwmar DlauNbnary Consumer StapMs Enaryy FlnanGala Maehh Care Intlua4iala Infarmrtlon TKhnob9y Matarlah TaNCOmmunlutlon Sarvlw UXllllu TNaI Consumes DlacraUoury Consumes S1apMa Eurpy Flnanclala RuXh Lan IrWUalrlala Inlamrtlon T4chndo0y Matarlala TaNCOmmunlull0n 5arvlua 1H11X1u Total 1273112004 to 31312005 '. All Lap E9uXy ' RuaaNl 3000 '~ Varlatlon '~. AXrlbtrtlon Anayala ' Cminbulion to Selection EMirg Total ConVibuW nErding Total Cminbu0 on ErMlrg Total Cminbutron Albcalwn Effect Total Weigh) Rewm To Realm Wcghl Rewm To Re1u m Welghl Rewm To Rewm Efled I Hddings Only 1 EXec1 1fi 9fi 469 O7S 12.5] -02fi -056 439 095 SOt -0.1D 1.58 148 550 d 08 0 25 0.94 t 18 0 11 -3.35 2 08 -0 93 -0 13 O t 7 004 t060 1746 159 809 1817 t23 252 -071 -165] 045 -003 040 td.23 -/62 109 2062 b60 -144 639 -t 01 5.51 0.32 -014 016 1].50 256 049 13.35 -103 -013 4.23 3.59 152 '. 003 052 D.57 2261 104 033 ' 11.20 -126 -0tS 11 d0 230 159 0.11 069 081 fi01 -059 OP0 152J 171 .126 -9.2fi ]12 7/S 063 041 106 314 -t 68 -03t 35] 138 004 -043 -306 -169 -00] -0t7 030 142 t/63 036 209 .72t -022 -14] 2404 IS7 010 039 OS9 186 -t 51 -003 3.50 4S0 O1S -164 60t -053 -0.10 -012 -022 100.00 2.17 2.17 100.00 -2.21 -2.21 - 4.59 5.23 114 3.29 4.59 6!302005 to 91302005 All LaP ERUXy RuaaNl 3000 VaMtbn Altribrlbn Anaysh Conlnbution to Seleclim Ending Total Convibuuo n'i ErMing Total Conlribul an , Ending Total Cmldbueon ~,, Allocation Effect ToUI Wegg1 Retum To Rewm ~. Weight Return To Real m ~ Weight Retum To Realm EXed I Hddings Only 1 EXact 2108 ~30] -0 ]0 1t 99 -136 -0tS '. 9.90 171 067 -047 -041 094 1.79 2027 -0S3 845 321 027 ~' b66 -2341 -373 004 -0S7 054 11.2fi 2fi.S4 2.50 9.20 20 66 1 62 '~. 2Ofi S BB -18 00 ", 0.37 0 50 0 88 23.53 049 009 2060 090 020 ~ 293 -040 -081 000 -003 005 1568 -043 -006 1341 236 032 227 -279 -242 -007 -042 -050 124] 571 099 1077 379 041 1.70 192 ~2 B0 -001 030 025 775 31d 020 1564 631 D.9] -789 -316 -610 -020 -0.21 -D d0 ~'. 1.94 Ot7 018 '~~ 320 367 0.12 -126 -350 -3.50 OOS 002 ODS - 100 001 '. 288 046 001 -208 050 -045 010 -000 Ot0 368 OS] 003 3.86 710 026 -018 653 -101 001 020 -010 1%.% 2.79 2.79 100.% 4.03 4.03 - -1.23 J4.29 -0.i7 -1.08 -13] 131/2005 to 811012005 '. All LaP ERUIy RuuNl 1000 Varlatlo n ~, AttrIM0lon M ayals CanwWlron ConNbuOan to Selection Conwbulwn To AC4ve EMirg Total Cmwbulw nErbirg Total Cminbuu on EnOmg Total GminWtron Alloralwn Efled Total To ACave Realm Weigbl Re1um To Retum ~ Weight Rewm Ta Real m Weigh Rawm To Retum Eflecl 1 Moldings Only) Erect Realm 119 20.83 -3 t3 -061 1264 014 007 8.19 -381 -t 35 -000 -O fi] -075 -094 034 264 -S ]2 -030 852 -006 001 588 -566 -024 011 -034 -02S -044 101 1009 0]0 002 795 230 Ot3 2t4 -153 -228 002 -0t0 -016 015 -0.717 16.30 431 062 2121 538 113 -091 101 <Ib -0.15 -016 -031 030 0.70 1]63 136 026 13 fit ~ Stl 012 401 382 <91 007 -067 -0.59 025 09D ~ 1921 344 -0 ]2 . 10.77 146 -015 844 198 014 040 -052 -080 -t 36 Ott 613 fid3 033 1535 19/ 032 -922 4d6 -164 OOt 02] 027 022 -010 392 -t178 -074 320 b60 -032 071 -9 t8 706 -004 -043 -045 -0 BS 033 056 -363 -0OB 300 d31 Ott ~2 d4 -794 -038 -003 -010 -013 -008 0.02 269 11 ]9 024 3.14 945 0.33 -105 234 -9.21 '. -0.OB 006 -0.02 022 t.53 100.% -0.B2 0.93 ' 1%.00 2.1e 2.38 - J.29 -20.12 ~' -0.50 -2.72 J.2B J.32 &10710 0 5 10 1 213112 0 0 5 ' All CaP ERUiy RuuN1 1000 Varlatlon AliriEU[lan AnayNe CmwbuBOn Conwbulron 1o Selection Cmlribulian To Active E1Mi1g Total Conwbuli on ~: E1Ming Total ConOibulion I, Ending Total Conlribu0on i. AllouOOn EXOCI Total To Active Retum Weigbl Re1um To Real m Weight Ratum To Real m '~ Weigbl Retum Ta Realm Efled 1 Holdings Only 1 Effect Retum -163 1989 768 t49 1202 136 Ot6 701 632 Ot3 005 t2fi 123 tt3 -0bt - -82d -0t5 831 026 002 -8.31 -8 St -04t 020 -000 009 002 2.22 '. 546 -532 -0.95 826 -8 d9 -084 -2.79 3t8 ]55 -003 024 0.14 -O Bt -0 60 ~' 31 79 8 d6 2.78 21 58 7 10 t 56 '. 10 2t t 20 -0 41 0 32 0.39 0.12 1 80 -073 1431 208 025 1332 160 019 100 040 135 -002 008 007 -001 022 1451 1243 tt 08 481 053 343 762 -309 ~ 008 10d 141 -008 794 1068 OB2 t5. ]6 245 04t -782 823 -163 ~. -003 062 060 066 005 141 3885 04t '. 3.29 8.82 028 -1.88 30.03 -841 ~, -011 032 0.23 041 -001 ~. 1.02 418 005 ' 282 039 OOt -1.80 379 -034 004 001 0.0] 000 -0OB 3.66 -389 -0 tb 3.56 -600 -026 010 211 584 003 OOB 012 -023 -136 100.00 BA2 6.12 100.00 2.% 2.% _ 4.]8 -5.% 0.42 /.01 4.16 4.19 p..lpm,.n<. Almbptlpn ul Cap EpuRy Rapnaargatlw poM1lda 1L312000 m nv39w v311z/a l0 6]2/rzaod AIICy EWRY RuasNl b00 VarlNlo ' n AMbWan Arulyah LonfrlWlm to Selemron Contribution All Lap Epulry RuaaNI b00 Vanatlpn AIMbuOpn Arulyah Comr~putwn t S l tro C t b t 6an5e;-GIGS Sart« EnOing Tohl ConvitlWronEnOing Weg6t Return Io Retum Wegm Toler Contribulion Return To Return EnClrg Idal Wag6t Rerurn Lontribumn TU RNUm P34raYwn ERect ERac1 IyolUngs Onlyl Ertec. rve IRe rn EnOing Wegm Cmrtdulwn Return To Return En01ng Conhibutwn Weg6l He•.urn io Return EnOing iohl Conhibdion Wegm Retum io Return A ERec. o e ec n on ri u wn ERect total io ACtrve 14dOnys only) ERec• Return Conwmar dacratlonary 1956 5]6 101 1256 230 029 ]02 005 069 O6] 2129 359 044 12.3] tOB -0 td 091 -151 065 020 ] -07] Conwmar 9hpaa 930 o 520 -9.38 -53] -0.27 -0Od Olt 00] -. 906 014 906 -16t -001 - 001 Ensrpy Flrunciala )80 13.0) 0fi 563 319 160 0.38 222fi 497 02d 556 115 225 010 90] 396 391 518 006 061 019 -053 U]2 -0 ]3 064 003 024 12)0 8.58 3W 051 5.98 049 3t 26 253 -053 1.26 -0.28 0.22 85] 613 304 0.16 035 003 013 056 082 t19 019 Ihatltl Care IMUa1nNf 1635 130] 135 1389 2931 090 905 102 O1] -0 ]1 3105 245 205 1946 0107 -005 142 -063 052 139 011 122 Odt 1350 3130 6]d 102 ]42 210 13.9] 260 033 10)2 020 083 OJ] 1.58 2050 009 12) 054 077 -017 0103 Inlprnlatlon T4rMdo0y t42 01T 1693 1 -021 E53 J16 192 025 029 051 0.11 95o OBO 050 1715 136 014 -765 351 -086 001 010 OJO 037 MaYriala 135 031 006 J.11 -002 002 1 ]6 51] 008 Ot0 0.06 015 006 175 -04) 002 320 351 O.tt 1J4 J01 356 003 006 -0.1t 003 Tslecpmmunlullon Sarvlua dllln.a TNaI - - 3.1) 011 331 10000 4.d9 4.49 100.00 U.t2 4% 015 2.26 2.M -3.t] 402 -128 t22 - 3.2] J03 1]] 2035 -005 - OOd 000 d.]] t95 005 -001 3.30 003 3.19 100.00 -591 012 d.22 d.22 3.t2 -U 89 -0.M -0Ot 100.00 10.4] 1.d1 1.t2 009 143 545 034 - 3.19 1100 008 002 1.tt - 0.08 011 008 015 1.02 2]9 3]5 Nbrz004Ip 9 V lWon /lOrz00d 9/]M200d Ip 12A113000 All Cap EpuRy Ruaaall 1000 n Convibutwn AmibWpn Anayaia All Cap Epuily RuaaNl 3000 Varlatlan AMbu00n Analysis Contribu!wn Eneing ContriWtwn EMmg a C.Onhlbmwn l Erging Conhlbmron ~n sNadwn Allocatron ERen total conmwtwn iu Adrva emg Confrtutron l Ending total ComriOmion EMing TU1al ComribuOOn AYODUOn m salenwn colm~b~nwn ERect Total To ACUVe WagM ReYU rn To Return Wegm Relur n To Return WegM Return To Helum Effect 1 Molengs Only I ERact Return WNgfrl n To Relum Ralur Weigm Return to Ralurn Wegtlt Rerurn lc Return ERect (MoNings Only I ERect Rerurn Conwmer dacntlorury Conaumr 9faWN E 2047 -510 115 12 dJ 083 1916 -020 e]0 1155 Bt7 082 677 106 023 599 -055 110 067 1 8.01 32] -).0B 4]9 1293 069 5]9 102] -001 080 035 O1] 045 032 0~ 014 0 i0 021 092 1)65 512 B]9 99] 101 ]1fi ODB 1290 180 864 895 079 460 0 32 d]5 125] 352 A]0 -08) 232 036 J 06 02d 00) 019 OBO 051 -U 00 015 -007 -019 000 016 056 nx9y Flrunchla IMaXb Can 1391 026 0.05 2184 YBS 206 0.35 1345 1.St 035 -079 ).93 1.]] -J.60 84d 592 -028 0.29 010 103 055 119 01) 062 1429 1319 03J 124 1309 . 2161 90] 1.96 13.08 O.Bt - . ].35 -0]I -)83 665 J)4 1 - 009 Ot6 - 009 OUt 0.15 075 092 Od5 IrMlamala Inlomutlon Tachrolo9y M hl 2911 0 ]6 028 1090 ]96 -1 ]t 15)2 451 1572 074 3d1 010 001 10]0 t 93 416 015 101] 005 -)P 542 110 1156 -03] 099 34t 04t -029 O6B -056 005 010 0 13 009 050 139 62 2681 491 5 6 1501 4J8 156] 113 1106 1051 11] 16.26 td 29 230 15] 9 5b fi 13 tt ]3 -13.16 OOB -031 135 1d5 15] -017 Od9 alar a TN4<ommunlcalbn 9aMCx - - 335 5]9 0.20 -335 579 -5 )9 -025 - 035 U 1 t9fi -0M ofi3 016 3d2 920 031 3D5 Bfil 0.2] 964 -932 1108 -099 BIS 002 -000 Od5 940 -052 U.t3 011 009 d1111ha Tpbl 102 549 010 340 10000 -1.b 1.40 100.00 591 0.20 -1./9 -1./9 -1.58 Od5 - 0.49 503 -5.89 -012 000 t.b -t W 013 Od8 0.13 Od6 206 10000 62) 011 11.0] 110] 349 124) 100.00 10.16 10.16 143 6.20 -1233 - 0.91 JI].6) 005 0.08 011 0.1] 009 071 091 0./9