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Home My WebLink About2007 03 08 Handout Regarding Tradewinds NWQ Global Investors March 8, 2007 HANDOUT GIVEN TO THE BOARD OF TRUSTEE MEMBERS AT THE SPECIAL MEETING ON MARCH 8, 2007. Tradewinds NVVQG B L iNV CITY OF WINTER SPRINGS EMPLOYEES' PENSION SYSTEM ROBERT S. SORAPARU Vice President Institutional Services Group ~' / ' j ~.>,. NUVEEN Investments TABLE OF CONTENTS <r TAB 1 <r TAB 2 <r TAB 3 <r TAB 4 <r TAB 5 <r TAB 6 . . . . . . Firm Overview . International Value Philosophy Et Process . International Value Characteristics Et Performance . Why Tradewinds . International Commingled Pool . . Professional Credentials <r APPENDIX ... Performance Results Explanations F1RM PROF1LE <r Los Angeles based global manager formed from an internal reorganization of affiliate NWQ Investment Management Company, LLC originally founded in 1982 - 53 total employees <r $32 billion 1 in assets under management by seasoned portfolio management and research professionals - Investment professionals average 10 years investment experience <r Our mission is to provide superior risk-adjusted returns through an opportunistic value-oriented process <r Consistent long term investment performance in varying market environments2 1As of December 31, 2006. 2Includes performance of the Tradewinds Portfolio Managers while at NWQ Investment Management Company, LLC, an affiliated firm, and for previous periods at prior firms unaffiliated with Tradewinds NWQ Global Investors, LLC. The accompanying performance and results explanationCs) are an integral part of this presentation. Past performance is not to be construed as a guarantee of future performance. 1 Tradewinds EQU1TY PORTFOL10S INTERNATlONAL GLOBAL ASIA VALUE ALL CAP PACIFIC BENCHMARK(S) MSCI EAFE MSCI ACWI MSCI All Country MSCI ACWI ex US Asia Pacific LEAD PORTFOLIO MANAGER Paul Hechmer David Iben Paul Hechmer INVESTABLE UNIVERSE $1 billion Et up $100 million Et up $100 million Et up NUMBER OF POSITIONS 35 - 50 40 - 70 30 - 50 MINIMUM ACCOUNT SIZE $10 million $10 million $10 million EXPECTED TURNOVER 30 - 60% 30 - 60% 30 - 60% FEE SCHEDULE First $5 million 0.90% First $25 million 0.85% First $5 million 0.90% Next $15 million 0.75% Next $25 million 0.70% Next $15 million 0.75% Over $20 million 0.65% Over $50 million 0.60% Over $20 million 0.65% Tradewinds' Client Service Department has information regarding qualifications and restrictions for investment. 3 EQU1TY PORTFOL10S SMALL/MlD CAP INTERNATlONAL GLOBAL VALUE VALUE RESOURCES BENCHMARK(S) Russell 2500 Value MSCI EAFE FTSE Basic Resources LEAD PORTFOLIO MANAGER David Iben Paul Hechmer David Iben INVESTABLE UNIVERSE $100 million $1 billion 8: up $100 million 8: up to $15 billion NUMBER OF POSITIONS 40 - 60 35 - 50 40 - 70 MINIMUM ACCOUNT SIZE CLOSED TO NEW $2 million CLOSED TO NEW INVESTORS (CLOSED IN INVESTORS MANAGED ACCOUNTS) EXPECTED TURNOVER 30 - 60% 30 - 60% 30 - 60% FEE SCHEDULE First $5 million 0.90% Next $15 million 0.75% Over $20 million 0.65% Tradewinds' Client Service Department has information regarding qualifications and restrictions for investment. REPRESENTAT1VE CL1ENTS s 7 CORPORATE FUNDS CHARlTABLE FUNDS -. Altria Corporate Services, Inc. Puget Sound Energy American Quarter Horse Susan G. Komen Breast Cancer !!S ~...., New York, New York Bellevue, Washington Foundation Foundation ~ Amarillo, Texas Dallas, Texas . Cemex, Inc. Houston, Texas Raytheon Company Genesis Health Care System United Methodist Foundation Waltham, Massachusetts National Fuel Gas Company Zanesville, Ohio of West Virginia Williamsville, New York Leggett and Platt Incorporated John C. Lincoln Charleston, West Virginia ONEOK, Inc. Retirement Pension Plans Health Network UNLV Foundation Endowment Tulsa, Oklahoma Carthage, Missouri Phoenix, Arizona Las Vegas, Nevada PUBLlC FUNDS TAFT-HARTLEY FUNDS City of Macon Fire and Police Macon, Georgia New Orleans Municipal Employees New Orleans, Louisiana Alaska Laborers Employers Retirement Trust Fund Seattle, Washington Arizona Pipe Trades Pension Trust Fund Phoenix, Arizona Carpenters Pension Trust for Northern California Oakland, California Painters Union Pension Fund Southfield, Michigan Luzerne County Employees Retirement Fund Wilkes Barre, Pennsylvania State of Idaho Endowment Fund Investment Board Boise, Idaho 'll "- ~ Monroe County ERS Monroe, Michigan Texas State Teachers Association Austin, Texas San Mateo County Electrical Construction Industry Retirement Plan San Jose, California Sheet Metal Workers' Pension Plan of Southern California, Arizona and Nevada Manhattan Beach, California Texas Iron Workers Pension Fund Houston, Texas Clients were selected for inclusion in this list to indicate the scope of clients served using the following criteria: category, investment style and name recognition. Only clients who consented to the use of their name have been listed, however, their inclusion is not to be construed as approval or disapproval by these clients of Tradewinds Global Investors, LLC or its advisory services. TRADEW1NDS OVERV1EW <>- PH1LOSOPHY <>- 0 BJE CT1VES <>- PROCESS <>- PEOPLE Tradewinds believes that the markets are not always efficient. It is possible to buy companies for less than their intrinsic worth. We believe by investing in high quality, undervalued companies, we can create value for our clients and outperform the markets. To add value by building a diversified portfolio of attractively valued opportunities: - Search globally for economic comparative advantages - Conduct bottom-up research to assess company/industry fundamentals . New management · Hidden assets . Restructuring · Excessive pessimism . Industry consolidation · Prospective supply/demand Tradewinds selects securities by conducting rigorous, independent, bottom-up fundamental analysis. We apply fundamental valuation metrics. Analysts also focus on qualitative factors such as industry supply and demand. Tradewinds' professionals exercise creative and independent thought... we are not closet indexers. Tradewinds' portfolio managers are experienced, having successfully managed money through both bull and bear markets. Our analysts have extensive knowledge of industry fundamentals. 1 lNVESTMENT TEAM David B. Iben, CFA Chief Investment Officer Paul J. Hechmer Managing Director Portfolio Manager TRADEW1NDS DEDlCATED RESEARCH TEAM SECTOR FOCUS Peter Boardman, Managing Director Mike Hart, CFA, Senior Vice President Michael Mullane, CFA, Senior Vice President Egor Rybakov, CFA, Senior Vice President Nathaniel Velarde, Senior Vice President Sally Yanchus, Senior Vice President Jae Chung, CFA, Vice President Bill Ditt, CFA, Vice President Alberto Jimenez Crespo, CFA, Vice President Drew Thelen, CFA, Vice President Ray Wicklander, CPA, CFA, Vice President Greg Padilla, Assistant Vice President Telecommunications, Consumer, Japan Global Fixed Income Client Portfolio Manager Technology, Financials Basic Materials, Capital Goods Healthcare Technology, Defense Generalist Basic Materials, Energy Media, Telecommunications Financials Utilities NWQ AFF1LlATED RESEARCH TEAM Jon Bosse, CFA, Co-President Phyllis Thomas, CFA, Managing Director Mark Morris, Managing Director Mark Patterson, CFA, Managing Director Jim Stephenson, CFA, Managing Director Gregg Tenser, CFA, Managing Director Darren Peers, Senior Vice President Marty Pollack, Senior Vice President Andy Hwang, Assistant Vice President SECTOR FOCUS Chief Investment Officer Portfolio Manager, Paper/Forest Products Technology Finance, REITS Media, Telecommunications Consumer, Healthcare, Retail Energy, Chemicals, Utilities Capital Goods, Autos, Electrical Equipment Technology, Environmental Services 2 lNVESTMENT PROCESS <r ATTRACTIVE ABSOLUTE VALUATION _ Apply a corporate finance perspective that emphasizes absolute valuation in addition to extensive cash flow and balance sheet analysis <r FRANCHISE QUALITY _ Identify companies with strong or improving fundamentals, sustainable competitive advantages, industry leading positions, etc. <r FAVORABLE RISK/REWARD _ Seek favorable risk/reward and downside protection in a portfolio context 3 RESEARCH PROCESS ell I'C II lJ ~ ~ <? Ideas generated by experienced investment team <? Identify investment candidate through industry knowledge and/or systematic and opportunistic screens <? Ongoing primary research <? Valuation _ undervalued traditionally/intrinsically, and/or specific situation _ Multiple metrics applied (PIE, PIB, PleF, PIS) - Downside protection analysis _ Sum-of-the-parts, Business segment analysis - Replacement value/liquidation value _ Discounted cash flow modelinglstress testing <? Franchise quality Porter's Five Forces: - Threat of substitutes _ Industry competitors - Bargaining power of buyers _ Bargaining power of suppliers - Threat of new entrants <? Value drivers/forces of change _ Restructuring opportunities, improving fundamentals _ Under-followedlMisperceived fundamentals _ Management change, MBA <? Investment meetings <? Rigorous equity review ~ <? Formal acceptance to approved list <? Purchase decision based on portfolio manager's acumen .. , ~ ; SELL D1SC1PL1NE <:r Stock appreciation ... _ Stocks typically trimmed as appreciation impacts the risk/reward trade off _ Stocks eliminated as price appreciates past fair value ... ... <:r Fundamental deterioration _ Generally stocks are sold when fundamentals deteriorate without a corresponding fall in share price <:r Better alternative identified _ Stock within the same industry identified with stronger fundamentals/ more compelling valuation 5 lNTERNAT10NAL VALUE GU1DEL1NES J?'s 11 ro - :-- . - CLlENT RESTR1Cll0NS ~ ~ ~ <;- 35 - 50 positions <;- No issue> 5% at cost <;- Expected turnover: 30 - 60% <;- Expected cash: < 10% <;- Industry/sector and country weights determined by stock selection In general: - Industry weights < 25% - Sector weights < 30% - Country weights < 35% - Emerging markets exposure < 20% <;- Systematic quality control _ Review process in place for client guidelines/mandates 1 Tradewinds lNTERNAT10NAL VALUE MODEL PORTFOL1O I MSCl Tradewinds Tradewinds Market MSCl Tradewinds Tradewinds Market EAFE Sector Allocation Portfolio Weight Cap Country EAFE Sector Allocation Portfolio Weight Cap Country ~ - 30.2% FINANCIAL 4.50/0 7.00/0 HEALTH CARE 2.0% Acorn Co Ltd. 1.0 $6.0B Japan Daiichi Sankyo Co Ltd. 2.0 $20.4B Japan Promise Co Ltd. 1.0 4.8 Japan TakeFuji Corp. 2.5 5.9 Japan 8.4% BASIC MATERIALS 23.5% Alumina Ltd. 2.0 5.8 Australia 7.8% CONSUMER STAPLES 4.0% Anglo American Pic. 1.0 69.2 Great Britain Kirin Brewery Co Ltd. 2.0 15.1 Japan Anglogold Ashanti Ltd. 2.5 13.1 South Africa Shiseido Co Ltd. 2.0 9.0 Japan Barrick Gold Corp. 4.8 25.6 Canada Impala Platinum Holdings Ltd. 2.0 16.0 South Africa I 1. 9% CONSUMER DISCRETIONARY 15.5% Ivanhoe Mines, Ltd. 1.3 3.6 Canada Dai Nippon Printing Co Ltd. 3.0 11.4 Japan Lihir Gold Limited 1.0 3.1 Papua New Guinea FUJIFILM Holdings Corp. 3.0 21.2 Japan Lonmin Plc. 1.0 9.0 Great Britain Magna International Inc 'A 3.0 8.5 Canada Newcrest Mining Ltd. 1.0 5.4 Australia Premiere AG 3.0 1.6 Germany Novagold Resources, Inc. 2.0 1.5 Canada Sega Sammy Holdings, Inc. 1.0 7.3 Japan Rio Tinto Plc 2.0 54.4 Great Britain Sankyo Co. Ltd. 1.5 4.8 Japan Stora Enso Oyj 3.0 12.9 Finland Wacoal Corp. 1.0 1.8 Japan 5.5% COMMUNICATIONS 18.80/0 6.9% ENERGY 10.50/0 Belgium Belgacom SA 2.0 16.3 Areva 1.0 28.2 France Chunghwa Telecom Co Ltd. 4.0 18.6 Taiwan Nippon Oil Corp. 2.0 9.8 Japan KT Corp. 3.8 12.8 South Korea Opti Canada Inc. 1.0 2.9 Canada Nippon Telegraph Et Telephone 2.0 78.3 Japan Royal Dutch Shell Pic. 'B 3.0 217.2 Great Britain Telecom Italia S.P.A. 4.0 54.5 Italy Suncor Energy Inc. 1.5 33.9 Canada Vodafone Group Pic. 3.0 154.9 Great Britain Technip SA 1.0 6.7 France Total SA 1.0 160.8 France 5.5% UTILITIES 6.0% Centrais Eletricas Bras 1.0 13.4 Brazil 11.4% INDUSTRIAL 2.0% Enel SpA 3.0 65.0 Italy Thales SA 2.0 10.3 France Korea Electric Power Corp. 2.0 29.0 South Korea 5.50/0 TECHNOLOGY 4.00/0 Gemalto 2.0 2.2 France Samsung SDI Co. Ltd. 2.0 2.9 South Korea Index Data Source: MSCI, calculated using Thomson Financial VESTEI< Software. Market capitalization figures and country designation using Bloomberg, L.P. Holdings of individual accounts may differ from this model. The recommended model holdings and weights are subject to change without notice. The specific securities listed above do not represent all of the securities Tradewinds NWQ Global Investors, LLC has purchased, sold, or recommended for clients in this strategy within the past year. The reader should not assume 3 that investments in the securities listed above were or will be profitable. Tradewinds I .-.. .~.. -. . ''',... . lNTERNAT10NAL VALUE PERFORMANCE PERFORMANCE VS. lNTERNAT10NAL VALUE EQU1TY STYLE GROUP PERFORMANCE FOR 12 QUARTER ROLLlNG PERlODS - 3 3/4 YEARS ENDED 12/31/06 50.0 40.0 30.0 I 20.0 VI z a: ~ tu 10.0 a: (lUO) 0.0 ,10) Iii .. A(l) ? ,. A (6~ B 73)~ A 1)~. . If.'. '7 191:7 2111B 75) I:~' J, 73)........... A (5) " 'I)' W B 711 ;ll: ................ A 4).o/..~......... A 6) I.."..... . · A 5) . II ;".(911::AO 95) (2UO) 3 Years Ending 12/31/06 9/30t!6 6/30t!6 3/31t!6 12/31/05 9/30/05 6/30t!5 3/31t!5 12/31/04 9/30/04 6/30t!4 3/31t!4 12/31/03 9/30/03 6/30tlJ 10th Pe rcent il e 25th Percentile Median 75th Percentile 90th Percentile Tradewinds International Value (Gross)' . A 23.4 MSCI EAFE US$ (Net Dividends) C B 19.9 25.3 23.0 21.4 19.8 18.3 27.6 28.8 37.1 29.6 30.3 17.8 19.6 21.8 18.4 13.1 13.8 8.6 4.8 25.1 27.2 35.9 28.1 29.5 16.1 16.8 18.6 17.3 10.9 12.1 7.1 3.0 23.5 25.1 33.0 25.2 26.0 13.7 14.7 16.2 14.2 9.0 9.2 2.8 (1.2) 22.5 24.0 30.6 23.4 24.4 12.6 12.4 13.1 11.5 5.7 6.0 0.6 (4.4) 20.4 20.8 27.5 20.5 22.6 10.5 11.3 11.8 9.7 4.6 2.8 (3.0) (7.6) 25.2 29.1 37.2 31.1 33.4 21.3 21.2 24.9 22.6 14.5 15.7 11.0 8.0 22.3 23.9 31.1 23.7 24.6 12.1 11.6 11.9 9.1 3.9 3.4 (2.9) (8.7) 1.2 (1. 6) (5.8) (8.3) (12.3) 1.9 (13.5) * Preliminary. Subject to change without notice. Final numbers are available upon request. Tradewinds NWQ Global Investors, LLC performance is gross of fees. Performance results from 3/19/01 through 2/28/06 represent the performance of the Portfolio Manager while at NWQ Investment Management Company, LLC, an affiliated firm. Performance results prior to 3/19/01 represent the performance of the Portfolio Manager at a prior firm, unaffil- iated with Tradewinds NWQ Global Investors, LLC. International Value performance inception date is 3/31/00. The accompanying performance and results explanation are an integral part of this presentation. Past performance is not to be construed as a guarantee of future performance. Source: Callan Associates, Inc. Style group rankings are based on separate account managers' performance gross of management fees and peer rankings on net of fee performance are not available. International Value Style Group managers invest predominantly in companies believed to be currently undervalued in the general market. International Value Style Group consists of separate account managers subject to broad market mandates with incidental exposure to emerging markets. lNTERNAT10NAL VALUE - CALENDAR YEAR PERFORMANCE / 6 PERFORMANCE VS. lNTERNAT10NAL VALUE STYLE GROUP 60.0 A (15) 40.0 B (1 ) -- C() . A ( ) C ( 1) ~ ..::.. ~ (100) .B( V'l 20.0 z B (1 ) " C( ) a: :::l tu 0.0 a: (20.0) (40.0) 2006 2005 2004 2003 2002 2001 10th Percentile 30.9 21.6 26.1 49.4 (2.1) (7.9) 25th Percentile 29.7 16.7 24.9 43.5 (5.0) (9.7) Median 28.3 13.8 22.2 40.9 (10.0) (13.0) 75th Percentile 25.8 12.4 19.7 34.5 (13.4) (20.2) 90th Percentile 24.6 8.9 17.6 31.8 (16.3) (23.2) - Tradewinds International Value (Gross)* . A 22.4 16.1 32.3 46.7 0.4 (7.2) - ~- Tradewinds International Value (Net)* ~B 21.6 15.3 31.4 45.6 (0.6) (8.1) ~ MSCI EAFE US$ (Net Dividends) o C 26.3 13.5 20.2 38.6 (15.9) (21.4) - * Preliminary. Subject to change without notice. Final numbers are available upon request. Performance results from 3/19/01 through 2/28/06 represent the performance of the Portfolio Manager while at NWQ Investment Management Company, LLC, an affiliated firm. Performance results prior to 3/19/01 represent the performance of the Portfolio Manager at a prior firm, unaffiliated with Tradewinds NWQ Global Investors, LLC. International Value performance inception date is 3/31/00. The accompanying performance and results explanation are an integral part of this presentation. Past performance is not to be construed as a guarantee of future performance. Source: Callan Associates, Inc. Style group rankings are based on separate account managers' performance gross of management fees and peer rankings on net of fee performance are not available. International Value Style Group managers invest predominantly in companies believed to be currently undervalued in the general market. International Value Style Group 6 consists of separate account managers subject to broad market mandates with incidental exposure to emerging markets. .- - - ~ -- lNTERNAT10NAl VALUE COMPOS1TE STAT1ST1CS Bas n II {II R Turns () S n g () on VS. MSCI EAFE US$ (NET DIVIDENDS) Alpha Beta R2 Downside Risk Tracking Error Excess Return Ratio Information Ratio 3 Years 5 Years 2.59 8.10 1.03 0.89 0.91 0.91 1.15 1.38 3.30 5.22 0.88 1.27 0.73 1.61 VS. MSCI EAFE US$ (NET DIVIDENDS) Up Market Capture Ratio Down Market Capture Ratio 5 Years 127. 14% 57.73 3 Years 107.48% (278.79) SHARPE RATIO STANDARD DEVIATION BATTING AVERAGE+ 3 Years 5 Years 3 Years 5 Years 3 Years 5 Years Tradewinds International Value MSCI EAFE US$ (Net Dividends) 1.21 0.70 11.39 10.74 16.60 17.85 58.3% 65.0% 1.79 1.57 * Preliminary. Subject to change without notice. Final numbers are available upon request. Performance is gross of management fees; statistics based on results net of management fees may differ and are available upon request. Performance results from 3/19/01 through 2/28/06 represent the performance of the Portfolio Manager while at NWQ Investment Management Company, LLC, an affiliated firm. Results prior to 3/19/01 represent the perform- ance of the Portfolio Manager at a prior firm, unaffiliated with Tradewinds NWQ Global Investors, LLC. International Value performance inception date is 3/31/00. The accompanying performance and results explanation are an integral part of this presentation. Past performance is not to be construed as a guarantee of future performance. Source: Statistics calculated using Callan Associates, Inc.'s PEP Software. +Batting Average represents percentage of quarters that the composite return exceeded the benchmark return. 7 t WHY TRADEW1NDS <'r A disciplined, repeatable investment process _ Objective risk/reward analysis at the security and portfolio level based on fundamental security analysis _ A people driven process, undertaken by independent thinkers _ Sector and regional weights are a by-product of our bottom-up stock selection process, we are not closet indexers <'r A stable, experienced portfolio management team _ All portfolios managed by the same individuals since inception <'r Consistent performance 1 _ Tradewinds has not wavered from its value approach to investing 1 Refers to performance of the Tradewinds' Portfolio Managers at Tradewinds NWQ Global Investors, LLC, and for previous periods at prior firms unaffiliated with Tradewinds NWQ Global Investors, LLC. The accompanying composite performance and results explanations are an integral part of this presentation. Past performance is not to be construed as a guarantee of future performance. 1 ~- -=- ~ ~ TRADEW1NDS lNST1TUT10NAL lNVESTMENT TRUST TRADEW1NDS lNTERNAT10NAL EQU1TY PORTFOL10 <r- DELAWARE STATUTORY TRUST <r- THE NORTHERN TRUST COMPANY, CUSTODIAL TRUSTEE <r- MANAGED IN ACCORDANCE WITH OUR FULLY DISCRETIONARY INTERNATIONAL VALUE EQUITY STRATEGY <r- OFFERED ON A PRIVATE PLACEMENT BASIS ONLY TO PERSONS WHO ARE BOTH "ACCREDITED INVESTORS" AND "QUALIFIED PURCHASERS" <r- MONTHLY OPENINGS AND PRICING > First Business Day of the Month Investments > Last Business Day of the Month Withdrawals <r- THE CLIENTS AND/OR THE PORTFOLIO WILL BEAR BROKERAGE COMMISSIONS AND RELATED COSTS OF SECURITIES TRANSACTIONS <r- EXCEPTED FROM REGISTRATION UNDER THE INVESTMENT COMPANY ACT, BY VIRTUE OF SECTION 3(C)(7) <r- OTHER EXPENSES > Organizational, custodial, legal, accounting and offering expenses paid by Tradewinds An investment in the Portfolio entails certain risks that an investor should consider. For example, the Portfolio: invests in foreign and emerging market securities and may engage in other speculative investment practices; may be illiquid due to the Portfolio's monthly redemption limitation, minimum account balance requirements and the absence of a secondary market for interests in the Portfolio; is not required to provide daily pricing or valuation information to investors; accepts investors subject to ERISA; is not subject to the same regulatory require- ments as mutual funds; and may charge higher fees than mutual funds. The foregoing, as well as other risks, are explained in more detail in the Confidential Private Placement Memorandum <the "Confidential Memorandum") for the Tradewinds International Equity Portfolio ("Portfolio") of the Tradewinds Institutional Investment Trust (the "Trust"). Please read the Trust's Confidential Memorandum carefully before making an investment in the Portfolio. You are also encouraged to consult with your legal and/or tax adviser before making an investment in the Portfolio. This is not an offer to sell beneficial interests in the 1 Portfolio. The offer is made only by the Confidential Memorandum. Please keep this document confidential and do not distribute it. II ~~. ~ ,- - ~ - TRADEW1NDS lNST1TUT10NAL lNVESTMENT TRUST TRADEW1NDS lNTERNAT10NAL EQU1TY PORTFOL10 <r FEE SCHEDULE (payable by each beneficial owner) MARKET VALUE OF CAPITAL ACCOUNT BASIS POINTS FIRST $5 Million 95 NEXT $15 Million 85 NEXT $30 Million 75 BALANCE 60 Minimum Investment of $1 million. Minimum Capital Account balance of $500,000 Fees payable quarterly in arrears based on Capital Account balance at the last Business Day of the quarter. An investment in the Portfolio entails certain risks that an investor should consider. For example, the Portfolio: invests in foreign and emerging market securities and may engage in other speculative investment practices; may be illiquid due to the Portfolio's monthly redemption limitation, minimum account balance requirements and the absence of a secondary market for interests in the Portfolio; is not required to provide daily pricing or valuation information to investors; accepts investors subject to ERISA; is not subject to the same regulatory require- ments as mutual funds; and may charge higher fees than mutual funds. The foregoing, as well as other risks, are explained in more detail in the Confidential Private Placement Memorandum (the "Confidential Memorandum") for the Tradewinds International Equity Portfolio ("Portfolio") of the Tradewinds Institutional Investment Trust (the "Trust"). Please read the Trust's Confidential Memorandum carefully before making an investment in the Portfolio. You are also encouraged to consult with your legal and/or tax adviser before making an investment in the Portfolio. This is not an offer to sell beneficial interests in the 2 Portfolio. The offer is made only by the Confidential Memorandum. Please keep this document confidential and do not distribute it. c, '1~wr ~ w-~" . , ;.:<-..... I:-~.'..~ . l ~~ F~.'.; ""$ J J: ..A ORGAN1ZAT10NAL CHART RESEARCH TEAM David Iben, CFA*+ Chief Investment Officer Portfolio Manager Paul Hechmer*+ Managing Director Portfolio Manager Peter Boardman Managing Director, Equity Analyst Mike Hart, CFA Senior Vice President Fixed Income Analyst Michael Mullane, CFA Senior Vice President Client Portfolio Manager Egor Rybakov, CFA Senior Vice President, Equity Analyst Nate Velarde Senior Vice President, Equity Analyst Sally Yanchus Senior Vice President, Equity Analyst Jae Chung. CFA Vice President, Equity Analyst Bill Ditt, CFA Vice President, Equity Analyst Alberto Jimenez Crespo, CFA Vice President, Equity Analyst Drew Thelen, CFA Vice President, Equity Analyst Ray Wicklander, CPA, CFA Vice President, Equity Analyst Greg Padilla Assistant Vice President, Equity Analyst *Investment Oversight Committee Members +Executive Committee Members PORTFOLIO TEAM David Iben, CFA*+ Chief Investment Officer Portfolio Manager Paul Hechmer*+ Managing Director, Portfolio Manager Michael Mullane. CFA Senior Vice President Client Portfolio Manager Isabel Satra* Vice President Institutional Portfolio Management Todd Heine Assistant Vice President Assistant Portfolio Manager Rui Matos, CFA, FRM Assistant Vice President Assistant Portfolio Manager Nga Nguyen Assistant Vice President Assistant Portfolio Manager Larry Young, Jr., CFA Assistant Vice President Institutional Administration Daniel Furman Portfolio Management Associate Diane Maiden Portfolio Management Associate Peter Schuchart Institutional Portfolio Management Associate EXECUTIVEI ADMINISTRATION Michael Mendez+ President Jane CristO Senior Vice President General Counsel 8: Chief Compliance Officer Jenny Castro Executive Assistant Cheryl Mendez Executive Assistant Kelly Stacy Executive Assistant Jennifer Lien Administrative Assistant INSTITUTIONAL TRADING Steve Smith* Senior Vice President Institutional Trader Sandra Alvarenga Vice President,. Institutional Trader Norlynn Dela Cruz Vice President, Institutional Trader Herman Barber Vice President, Institutional Trader Troy Ainsworth Assistant Vice President Institutional Trader T. C. Chioffi Trade Coordinator Olivia Ko Trade Coordinator MANAGED ACCOUNTS Carl White, CFA* Vice President Managed Account Programs Lafayette George Assistant Vice President Managed Account Programs Douglas Fillin Senior Managed Accounts Specialist Ryan Luna Senior Managed Accounts Specialist Jennifer Okutake Senior Managed Accounts Specialist Jeffrey Hwang Managed Accounts Specialist Tamara Keleshian Managed Accounts Specialist Cary Kim Managed Accounts Specialist Viraaj Kumar Managed Accounts Specialist Rikki McDaniels-Adams Managed Accounts Specialist Tammy Patterson Managed Accounts Specialist Ira Prochko Managed Accounts Specialist Sheldon Saito, CFA Managed Accounts Specialist Sean Samarasekara Managed Accounts Specialist Hye Yong Yun Managed Accounts Specialist Darrell La Montre Managed Accounts Coordinator Francisco Ramos Managed Accounts Coordinator Anju Prasad Trade Coordinator{Trade Support Samantha Yu Trade Coordinator{Trade Support Sam Ahn Managed Accounts Trade Support Kaine Nicholas Managed Accounts Trade Support NUVEEN lNVESTMENTS KEY SHARED PERSONNEL CLIENT SERVICE! ADMINISTRATIONI OPERATIONS Patrick G. Goshtigian. CFA Managing Director Head of Institutional Operations and Administration CLIENT SERVICE Patrick Schloss Senior Vice President Institutional Client Services Jim Galbreath. CFA Managing Director Portfolio Advisor Brian Morandi Senior Vice President Portfolio Advisor Raymond Urban. CFA Senior Vice President Portfolio Advisor Usa George. CFA. CFP. CIMA Vice President Portfolio Advisor Thomas Eggen Assistant Vice President Institutional Client Services COMPLIANCE Mary Keefe Chief Compliance Officer Kathleen Hendriks Assistant Vice President Compliance Officer OPERATIONS Sally Case Vice President Director of Operations Darcy Gratz Vice President Director of Institutional Account Adminstration Hazael Meza Vice President Director of Information Technology Marcella Ordaz Assistant Vice President Performance Analysis ADMINISTRATION Sandy Shapiro Vice President Director of Corporate Administration 8: Human Resources Helen Aronova Assistant VICe President Corporate Administration 8: Human Resourees Philip Newmarch. CFA . Assistant Vice President, Controller INSTITUTIONAL MARKETlNGI DISTRIBUTION Michael Henderson Vice President Private Client Services (Canada) Dan Linehan Vice President Client Services est) Anthony Mayorkas. CFA Vice P . nt Priva t Services (Sout ia) Jeffrey Rosser. C1MA. CFP Vice P t Private nt Services (North ) Robert Soraparu Vice President. Consultant Relations Jamshaud love in Miehael Wolpert Assis e President lnsti Product Development 2 N B10GRAPHY I~ s. R Mr. Soraparu, Vice President of Nuveen Investments Institutional Services Group, is responsible for marketing Nuveen's investment solutions to consultants and institutional investors. Prior to joining the team in 2006, Mr. Soraparu served in a Consultant Relations capacity for Northern Trust Global Investments. Before that he was responsible for marketing directly to plan sponsors in the Midwest. Prior to joining Northern Trust, Mr. Soraparu was Purchasing Manager at Florsheim Group Inc. Mr. Soraparu received his Bachelor of Science in Business Administration from Miami University (Oxford, OH) and his M.B.A. in Finance, Strategic Management and Entrepreneurship from the University of Chicago Graduate School of Business. He serves as Treasurer for the Associates Board of the University of Chicago Cancer Research Foundation. 3 B10GRAPH1ES DAVlD B. lBEN, CFA Chief Investment Officer, Portfolio Manager Tradewinds Chief Investment Officer David Iben directs the firm's equity and fixed income investment activity, including portfolio management, research, trading, and risk management. In addition to serving as the lead portfolio manager of several of the firm's strategies, Dave is a member of the Tradewinds executive committee. As CIO, he also chairs the investment oversight committee. Dave helped launch the Tradewinds international investment platform after six years at NWQ. He was previously chief executive officer, lead portfolio manager, and founding member of Palladian Capital Management and, prior to that, senior portfolio manager at Cramblit Et Carney. Dave began his career with Farmers Group Inc. where over the course of 14 years he served as senior analyst, lead portfolio manager, and director of research for both equity and fixed income strategies. At the time of his departure in 1996, Dave was acting as Farmers' chief investment officer responsible for $16 billion of investable assets. Dave received a bachelor's degree in economics from University of California, Davis, and an MBA from USC Marshall School of Business. He earned the chartered financial analyst designation in 1984 and is a member of CFA Institute and CFA Society of Los Angeles. Ml CHAEL C. MENDEZ President Twenty-year investment industry veteran Michael Mendez is the president of Tradewinds Global Investors, the specialist international investment firm he helped found in 2006. In his capacity as president, Mike's primary responsibilities encompass all of Trade winds' non-investment functions including strategy, compliance, and marketing, as well as day-to-day operations. Mike also chairs the firm's executive committee. Prior to his involvement at Tradewinds, Mike was the key architect of the business model that transformed NWQ from a single-product organization with $5 billion in assets under management to two highly respected, institutional-quality, multi-product investment platforms with more than $60 billion of assets under management. Joining NWQ in 1989, Mike was named the firm's president and chief operating officer in 1999 and its chief executive in 2001. In a prior position, Mike was responsible for marketing and client service at Morison Asset Management. He began his career with General Electric Company. Mike earned a bachelor's degree in industrial technology from San Jose State University. While at General Electric, he completed the firm's corporate marketing/finance programs. He earned the certified investment management analyst designation from the Wharton School. 4 J' B10GRAPHlES PAUL J. l1ECl1MER Managing Director, Portfolio Manager Paul Hechmer serves as the lead portfolio manager for Tradewinds' international strategies. He is also a member of the firm's investment oversight and executive committees. Prior to joining NWQ in 2001, and forming the affiliate Tradewinds in 2006, Paul was portfolio manager and senior equity analyst for international value portfolios at Palley-Needelman Asset Management. Paul was previously a senior international equity analyst at Founders Asset Management and, prior to that, an international equity analyst at Farmers Group Inc. where he was mentored by David Iben. Paul graduated from University of Notre Dame with a bachelor's degree in business administration. He received his MBA from UCLA Anderson School of Management. PETER BOARDMAN Managing Director, Equity Analyst Peter Boardman is a senior research analyst overseeing the telecommunications and consumer sectors. Prior to joining NWQ and transitioning to the affiliate Tradewinds, Peter was a senior analyst with USAA Investment Management managing the Japan portion of the firm's international fund while covering automobiles, pharmaceuticals, and semiconductors on a global sector basis. He spent eight years with UBS Warburg as a sell-side analyst following the automobile and auto parts industries in North America, Japan, and Asia. Prior to that, he was with Credit Lyonnais (Japan) in charge of Japanese research of automobiles, machinery, and consumer electronics. Peter was also an institutional equity salesman with Citicorp Vickers DaCosta in both Tokyo and New York. Peter earned a bachelor of arts degree in economics from Willamette University and a masters degree in international management from Garvin School of International Management (Thunderbird). A fluent Japanese speaker, Peter has also been highly ranked as an analyst in the surveys of Greenwich Associates, Institutional Investor magazine, and by Nihon Keizai Shimbun (Nikkei) newspaper. B10GRAPH1ES M1CHAEL A. HART, CFA Senior Vice President, Fixed Income Analyst Mike Hart is a global fixed income analyst at Tradewinds. He was formerly the chief executive of Hemisphere Asset Management, a global investment management firm he established in 2001. Prior to founding Hemisphere, Mike was a senior portfolio manager at Scudder Kemper Investments. At Scudder, his responsibilities included managing a $500-million emerging market debt portfolio as well as team-managing a $ 16-billion fixed income portfolio for an affiliate of Zurich Financial Services. Throughout the 1990s, Mike was a portfolio manager and securities analyst at Farmers Group Inc., where he managed global fixed income and international value equity portfolios. Mike was a member of Farmers' fixed income and equity investment committees. Mike began his career on the options floor of the Pacific Stock Exchange in San Francisco. Mike earned a bachelor of science degree in agricultural economics from the University of California, Davis, and an MBA in finance from San Francisco State University. Having earned his CFA designation in 1995, Mike is a member of CFA Institute and CFA Society of Los Angeles. MlCHAEL MULLANE, CFA Senior Vice President, Client Portfolio Manager Michael Mullane is a senior investment professional whose responsibilities include portfolio management, product management, and client communications. Prior to transitioning to Tradewinds from NWQ, Michael was an international and global equity analyst at Merrill Lynch, responsible for selecting international managers and offering investment advice to the financial advisor community. Michael also spent three years as a sell-side equity strategist at Commerzbank Securities in London, covering first Japan and then U.K. and European markets. Additionally, he spent five years in Hong Kong as an assistant portfolio manager for Rothschild Asset Management and as an equity trader at Caspian Securities. Michael graduated from University of East Anglia in the U.K., with a bachelor of science degree in mathematics with economics. He received his MBA with distinction from Warwick Business School. He earned his chartered financial analyst designation in 1999 and is a member of CFA Institute. Michael is fluent in Spanish. B10GRAPH1ES EGOR N. RYBAKOV, CFA Senior Vice President, Equity Analyst Egor Rybakov is a senior research analyst who follows the technology and financial services sectors. Prior to joining NWQ and transitioning to the affiliate Tradewinds, Egor was an associate portfolio manager/equity analyst with Thornburg Investment Management responsible for U.S. and international value funds. Prior to 2000, he was an equity analyst with U.S. Global Investors where he provided research for U.S. and international mutual funds. A native Russian speaker, Egor graduated from the Moscow State University with a bachelor of arts degree in economics and management. He earned his MBA from the University of Illinois at Chicago. In addition, he received his chartered financial analyst designation in 2000, and is a member of CFA Institute and CFA Society of Los Angeles. NATHAN1EL R. VELARDE Senior Vice President, Equity Analyst Nate Velarde is a senior research analyst responsible for covering the basic materials and capital goods sectors. Prior to joining NWQ and transitioning to the affiliate Tradewinds, Nate spent three years with Trust Company of the West, covering industrial, basic material and business services sectors for the u.s and Europe. Prior to that, Nate was an equity research analyst with Goldman Sachs, and with Morgan Stanley's strategic planning group where he completed extended assignments in London and Tokyo. Nate graduated from the University of Chicago with a bachelor of arts degree in economics. He received his MBA in finance and strategic management from the University of Chicago Graduate School of Business. SALLY A. YANCHUS Senior Vice President, Equity Analyst Sally Yanchus is a senior healthcare analyst. Sally joined Tradewinds from Bessemer Investments, where as a principal she covered U.S. and European health care equities for all-cap portfolios. Prior to that, she was a principal at hedge fund The Galleon Group in New York, covering global healthcare and U.S. biotechnology stocks. Sally was also a global healthcare equity analyst with Zurich Scudder Investments, where she co-managed Scudder's global healthcare sector fund. She began her career in 1991 as a sell-side research analyst covering pharmaceuticals at Morgan Stanley; medical devices at Lehman Brothers; and health care services at Oppenheimer. Sally Yanchus graduated magna cum laude from Wellesley College with a bachelor of arts degree in pre-medicine and economics. While at Wellesley she gained fluency in French and was elected to Phi Beta Kappa. She earned her MBA with a concentration in finance and accounting from Columbia Business School. 1 INVESTORS B10GRAPH1ES JAE 1-1. CHUNG, CFA Vice President, Equity Analyst Jae Chung is a research analyst whose responsibilities include the technology and defense sectors. Prior to joining Tradewinds, Jae was a senior consultant with BCG ValueScience, where he helped Boston Consulting Group clients assess and value strategic corporate actions such as acquisitions, divestitures, capital structure changes, and operational changes. Before that, Jae was an investment banking analyst with JPMorgan in the consumer/retail sector. Jae graduated from Claremont McKenna College with a bachelor of arts degree in economics. He received his MBA in finance and economics from the University of Chicago Graduate School of Business. In addition, he received his chartered financial analyst designation in 2006 and is a member of CFA Institute and CFA Society of San Francisco. Jae is a proficient Korean speaker. W1LLlAM A. DlTT, CFA Vice President, Equity Analyst Bill Ditt is a research analyst (generalist). Prior to joining Tradewinds, Bill was a principal in a consulting firm where he developed and implemented strategic operating plans for corporate and non-profit organizations. He was previously with Bank of America for eight years, where he built financial models, selected investment sub-advisors, developed new investment products, and negotiated strategic alliances. Bill also possesses expertise in audit and financial analysis. Bill Ditt graduated from the University of California, Santa Barbara, with a bachelor of arts in business economics. He received his MBA in finance from USC Marshall School of Business. In addition, he earned his chartered financial analyst designation in 1995, and is a member of CFA Institute and CFA Society of Los Angeles. - ~- ............ ~ ~ ALBERTO J1MENEZ CRESPO, CFA Vice President, Equity Analyst Alberto Jimenez Crespo covers the basic material and energy sectors. Alberto joined Tradewinds from Merrill Lynch, where as an equity analyst in the private client group he provided investment advice to financial advisors pertaining to commodity trends, and the basic materials and energy sectors. Alberto also spent three years as a sell-side equity analyst at Salomon Smith Barney in New York, covering steel, pulp Et paper, and metals Et mining stocks. Prior to that, he was a financial analyst for Enron and Shell developing financial models, structuring deals and valuing investments in a wide variety of industries within the energy and basic materials sectors. Alberto graduated from Colorado School of Mines with a master's degree in economics. A native Spanish speaker, he earned both bachelor and master of science degrees in mining engineering from Universidad Politecnica de Madrid (Spain). He received his chartered financial analyst designation in 2004 and is a member of CFA Institute and New York Society of Security Analysts. 8 B10GRAPHlES ANDREW THELEN, CFA Vice President, Equity Analyst Andrew Thelen is an equity analyst covering the telecommunications and media sectors. Prior to joining Tradewinds, Drew was an equity analyst with Concord Investment Counsel where he focused on fundamental company analysis and special situations. Previous to that, he was chief financial officer for an international marketing services firm specialized in on-line advertising and communications. Drew also worked for publicly traded leisure company Sunterra Corporation as an acquisitions analyst, and for Arthur Andersen as a financial valuations consultant. Drew graduated from the University of Texas with a bachelor of business administration in accounting. He attended Harvard Business School, earning an MBA with concentration in corporate finance and strategy. He received his chartered financial analyst designation in 1998 and is a member of CFA Society of Los Angeles. He received his certified public accountant designation in 1992. RAYMOND O. WlCKLANDER, CPA, CFA Vice President, Equity Analyst Ray Wicklander is an equity analyst covering the financial services sector. Ray joined Tradewinds from Pembroke Capital Management LLP, a market-neutral global equities firm in London. At Pembroke, Ray was responsible for the firm's global financial services holdings. He began his career with Northern Trust in Chicago as an associate on the large-cap equities team. Ray earned his bachelor's degree in accountancy/economics from the University of Notre Dame. He later attended London School of Economics, earning an MSc, with merit, in finance. Ray is a CFA charterholder and a certified public accountant. GREGORY D. PADlLLA Assistant Vice President, Equity Analyst Gregory Padilla is a research analyst covering the utilities sector. He has been with Tradewinds since graduating from USC Marshall School of Business where he received an MBA with honors in investments and financial markets. Gregory earned his bachelor of science degree in finance from Arizona State University. He is a chartered financial analyst candidate, having recently passed level three of the CFA exam and is an affiliate member of CFA Institute and a member of CFA Society of Los Angeles. 9 B10GRAPHlES STEPHEN A. SM1TH Senior Vice President, Trading Stephen Smith oversees institutional trading at Tradewinds. He has 12 years of financial industry experience induding more than eight years with Morgan Stanley. He was most recently head equity trader of emerging markets with Morgan Stanley Investment Management in New York. In this position, he implemented the firm's trading strategy for its global emerging markets equity product and executed FX requirements for equity trades. Prior to that, he spent one year each in Hong Kong and Singapore as a senior emerging markets equity trader, executing orders throughout the Southeast Asia region. He began his tenure with Morgan Stanley in New York as a sell-side equity domestic trader. Stephen is a graduate of Bucknell University, where he earned a bachelor of arts degree in economics with a minor in East Asian studies. JANE K. CR1ST Senior Vice President, General Counsel, Chief Compliance Officer Outside counsel to Tradewinds affiliate NWQ for 20 years, Jane Crist joined Tradewinds as the firm's general counsel and chief compliance officer in 2007. Jane commenced her private legal practice in 1985, focusing on securities matters. Prior to that, she spent eight years with the Los Angeles office of the Securities and Exchange Commission. At the SEe, she served in several capacities induding heading up one of the commission's regional enforcement branches as well as the regional office branch that oversees investment company and investment advisor examinations. Jane holds a B.A., cum laude, in economics from Mount Holyoke College. She earned a master's degree in education from Harvard University, and her J.D. from Loyola University School of Law in Los Angeles. She is a member of the State Bar of California. lSABEL SATRA Vice President, Institutional Portfolio Management Isabel Satra is a senior manager at Tradewinds overseeing a team of professionals responsible for institutional portfolio management, execution, and administration. Prior to joining NWQ and transitioning to the affiliate Tradewinds, Isabel was an independent consultant providing research, analysis, and performance reporting services for financial advisory firms. Previous to that, Isabel served as manager of operations at Ceramic Solutions, a successful start-up engineering firm. Isabel began her career with 12 years as an engineer with Boeing, where she eventually managed a research and development laboratory. Isabel earned her bachelor of science degree in engineering from Rutgers University. She received her MBA from University of California, Irvine. She is a member of CFA Institute and CFA Society of Los Angeles. 1 B10GRAPHlES CARL C. WH1TE, CFA Vice President, Managed Account Programs Carl White oversees the firm's managed account programs: risk management, operations, systems, and trading. Prior to joining Tradewinds, Carl spent 14 years at Engemann Asset Management in various roles most recently as vice president and manager of portfolio analysis, statistics and portfolio analytics. Prior to that, Carl was a partner with Accel Investments, where he managed client investments in real estate income properties and specialized in distressed or turnaround properties. Carl has more than 20 years of investment management experience. Carl graduated from USC Marshall School of Business with a bachelor of science degree in corporate finance with a minor in real estate finance. He earned the designation of chartered financial analyst in 1999. He is a member of CFA Institute and CFA Society of Los Angeles. 1 B10GRAPHlES II ~...-....-........... -" . .~ JON D. BOSSE, CFA Chief Investment Officer, Co-President Prior to joining NWQ in 1996, Mr. Bosse spent ten years with ARCa Investment Management Company where, in addition to managing a value-oriented fund, he was the Director of Equity Research. Previously, he spent four years with ARCa in Corporate Finance. Mr. Bosse received his B.A. in Economics from Washington University, St. Louis, where he was awarded the John M. Olin Award for excellence in economics, and graduated summa cum laude. He received his M.B.A. from the Wharton Business School, University of Pennsylvania. In addition, he received his Chartered Financial Analyst designation in 1992 and is a member of the CFA Institute and the Los Angeles Society of Financial Analysts. PHYLLlS G. THOMAS, CFA Managing Director, Portfolio Manager Prior to joining NWQ in 1990, Ms. Thomas held the position of Vice President and Senior Portfolio Manager with The Boston Company where she managed institutional portfolios for three years. Previous to this, she spent seven years at Beneficial Standard Investment Management Company as a Senior Portfolio Manager for the company's equity funds and outside advisory accounts. Ms. Thomas graduated from Northern Illinois University and received her M.B.A. from the University of California at Los Angeles. She earned the designation of Chartered Financial Analyst in 1979. Ms. Thomas is a past president of the Los Angeles Society of Financial Analysts, co-chairman of the FIM-West Conference and past chairman of the Long Range Planning Committee. She is also a member of the CFA Institute. :I - MARK A. MORR1S Managing Director, Equity Analyst Prior to joining NWQ in 2001, Mr. Morris held the position of Director and Portfolio Manager with Merrill Lynch Investment Managers where he managed value oriented institutional portfolios for three years. Previous to this, he spent seven years at Trust Company of the West as a Senior Vice President and Analyst, covering primarily technology companies. Previously, he was Vice President at Hanifen ImhoffInc., where he served as the firm's Technology Analyst. Before entering the investment business, Mr. Morris held positions in the computer design field with NCR and Gould Electronics. Mr. Morris earned his Bachelor of Science degree in Computer Science from California State University, Chico. He received his Master of Science degree in Electrical Et Computer Engineering from the University of California, Santa Barbara, and his M.B.A. from the University of San Diego. 2 B10GRAPHlES I !\N I P NY II I MARK R. PATTERSON, CFA Managing Director, Equity Analyst Prior to joining NWQ in 1997, Mr. Patterson spent six years at U.S. Bancorp, where he last served as Vice President of Investor Relations. Mr. Patterson graduated cum laude from Linfield in Oregon, B.S., and received his M.B.A with academic honors from The Anderson School at the University of California, Los Angeles. In addition, Mr. Patterson earned the designation of Chartered Financial Analyst in 2000. JAMES T. STEPHENSON, CFA Managing Director, Equity Analyst Prior to joining NWQ in 2006, Mr. Stephenson spent seven years at Bel Air Investment Advisors, LLC, a State Street Global Advisors Company, where he was a Managing Director and Partner. Most recently, Mr. Stephenson was Chairman of the firm's Equity Policy Committee and the Portfolio Manager for Bel Air's Large Cap Core and Select strategies. Previous to this, he spent five years as an Analyst and Portfolio Manager at ARCO Investment Management Company. Prior to that, he was an Equity Analyst at Trust Company of the West. Mr. Stephenson received his B.B.A and M.S. in Business from the University of Wisconsin-Madison, where he participated in the Applied Security Analysis Program. In addition, he earned the designation of Chartered Financial Analyst in 1994 and is a member of the CFA Institute and the Los Angeles Society of Financial Analysts. GREGG S. TENSER, CFA Managing Director, Equity Analyst Prior to joining NWQ in 2001, Mr. Tenser spent two years at Sturdivant & Company, a Value-oriented institutional money manager. Previous to this, he held the position of Vice President and Senior Analyst at Federated Investors, where he also served as Director of Equity Research. Prior to that, he was a Senior Analyst at First Chicago Investment Management Company. Mr. Tenser received his AB. in Economics and Psychology from Duke University and his M.B.A with high distinction from the University of Michigan. In addition, he earned the designation of Chartered Financial Analyst in 1998. 13 B10GRAPHlES N , N ';" F I [. rvl F, N" fV1 PAN H ':, I~ II ~ '~ DARREN T. PEERS Senior Vice President, Equity Analyst Prior to joining NWQ in 2003, Mr. Peers spent five years at Putnam Investments in the Equity Research Group. He first served as an Investment Associate covering health care and waste management stocks, and later as an Analyst covering the pulp and paper stocks. Most recently, Mr. Peers served as Putnam's Energy Analyst. Prior to this, he was in the corporate finance division ofRBC Dominion Securities in Toronto for six months. Mr. Peers graduated from Dartmouth College with a B.A. in Economics, and received his M.B.A. from the Tuck School of Business at Dartmouth. MART1N POLLACK Senior Vice President, Equity Analyst Prior to joining NWQ in 1985, Mr. Pollack spent close to five years with First Manhattan Company in New York where he was a member of a group managing portfolios for high net-worth individuals, as well as ERISA and endowment funds. Mr. Pollack graduated from Yeshiva University in New York and received his M.B.A. from Barnard Baruch College of the City University of New York. .- - - ~ ANDREW C. HWANG Assistant Vice President, Equity Analyst Prior to joining NWQ in 1998, Mr. Hwang spent three years with InterGlobal Financial Corporation, a boutique futures dealer, where he headed research and trading strategies. Previous to this, Mr. Hwang spent two years as a Senior Account Executive for individual futures clients. Mr. Hwang graduated from the University of California, Los Angeles with a B.A. in Economics/International Area Studies, and received his M.B.A. in Finance at the Marshall School of Business at the University of Southern California. ~ 1 lNTERNAT10NAL VALUE PERFORMANCE COMPOSlTE PERfORMANCE DATA Firm and composite information presented for the period March 19,2001 through February 28,2006 is for NWQ Investment Management Company, LLC, an affiliate. International International MSCI EAFE US$ Value Returns Value Returns (Net Dividends) # of Composite Firm 0/0 of Annual Internal (Gross) (Net) Returns Accounts Assets Assets Assets Standard Deviation YTD 2006' 22.4% 2 \.6% 26.3% 24 $1.2B $32.0B 3.9% 0.6% 4TH QTR' 9.9 9.7 10.4 24 \.2 32.0 3.9 3RD QTR' 2.8 2.7 3.9 21 964.8M 28.6 3.4 2ND QTR (0.9) (1.0) 0.7 18 749.2 26.6 2.8 1ST QTR 9.2 9.0 9.4 16 592.9 22.9 2.6 Annual Returns 2006' 22.4% 21. 6% 26.3% 24 $1.2B $32.0B 3.9% 0.6% 2005 16.1 15.3 13.5 11 36\.IM 45.9 <1.0 N.A. 2004 32.3 31.4 20.2 Five or Fewer 80.4 30.9 <1.0 N.A. 2003 46.7 45.6 38.6 6 6.4 13.6 <1.0 N.A. 2002 0.4 (0.6) (15.9) Five or Fewer 0.7 7.6 <1.0 N.A. 2Q-4Q2001+ (2.2) (2.9) (9.0) Five or Fewer 0.7 6.5 <1.0 N.A. CALENDAR YEAR PERfORMANCE+ 2006' 2005 2004 2003 2002 2001 2Q-4Q 2000++ INTERNATIONAL VALUE RETURNS (GROSS) 22.4% 16.1 % 32.3% 46.7% 0.4% (7.2)% 2.7% INTERNATIONAL VALUE RETURNS (NET) 2\.6 15.3 31.4 45.6 (0.6) (8.1) 1.9 MSCI EAFE US$ (NET DIVIDENDS) RETURNS 26.3 13.5 20.2 38.6 (15.9) (21.4) (14.1) - ANNUALlZED PERfORMANCE+ (as of 12/31/06)' .. ~ 1 Yr 2 Yrs 3 Yrs 4 Yrs 5 Yrs 6 Yrs 6 Yrs El: 3 Qtrs ~ INTERNATIONAL VALUE RETURNS (GROSS) 22.4% 19.2% 23.4% 28.9% 22.6% 17.0% I 5.4% INTERNATIONAL VALUE RETURNS (NET) 21.6 18.4 22.6 28.0 21.7 16.1 14.5 MSCI EAFE US$ (NET DIVIDENDS) RETURNS 26.3 19.8 19.9 24.3 15.0 7.9 4.6 * Preliminary. Subject to change without notice. Final numbers are available upon request. +Performance results from 3/19/01 through 2/28/06 represent the performance of the Portfolio Manager while at NWQ Investment Management Company, LLC, an affiliated firm. Performance results prior to 3/19/01 represent the performance of the Portfolio Manager at a prior firm, unaffiliated with Tradewinds NWQ Global Investors, LLC. ++Inception date: 3/31/00. N .A. = Information is not statistically meaningful due to an insufficient number of portfolios for the entire year. lNTERNAT10NAL VALUE PERFORMANCE RESULTS EXPLANAT10N Past performonce is not indicative of future results. Trodewinds NWQ Globollnvestors, LLC ("Tradewinds") is 0 registered investment odviser and is a subsidiary of Nuveen Investments, Inc. Tradewinds manages International, Global All Cap and Small/Mid Cap Value investment strategies. Tradewinds was formed fram the international equity and small mid cap equity teams of its affiliate NWQ Investment Management Company, LLC ("NWQ") through an internal reorganization. Tradewinds has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS@). Tradewinds and NWQ both claim campliance with GIPS@. NWQ's campliance with GIPS@ has been verified firm wide by Ashland Partners & Company UP from January 1, 1990 through December 31, 2005. In addition, a performance examination was conducted on the International Value Composite from April 1, 2000 through December 31, 2005. Tradewinds' claim of compliance is pending verification. The International Value Composite was created in March 2006 from the NWQ International Value Composite cre- ated in March 2001. The inception date of this compos- ite is April 1, 2000. The International Value Composite contains fully dis- cretionary International Value accounts with at least $2 million under management. These accounts are primari- 'y invested in ordinary shares of foreign issuers ("ORDS") and may also invest in American Depository Receipts ("ADRs") or equivalent securities. Prior to January 1, 2004, the composite included accounts under $2 million. In addition to paying an investment management fee to Tradewinds, some accaunts pay a fee based an a per- centage of assets under management to a brokerage firm for transactions, portfolio monitoring, consulting services, and in some cases, custodial services. The com- posite includes accaunts thot poid brokerage firms a moximum annual fee of 0.40%. As of December 31, 2006, these accounts represent approximately 5% of the composite. The benchmark for this composite is the MSCI EAFE@ Index (Europe, Australasia, and Far East). The MSCI EAFE@ Index is a free float-adjusted market capitalization index .~ ... - .lIIl!!!!I!!!!! I ~ -3 that is designed to measure developed market equity performance, excluding the US & Canada. As of June 2006 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. As of December 31, 2006, approximately 29.5% of the portfolio is invested in countries not included in the benchmark. Benchmark returns include reinvestment of income, but do not reflect taxes, investment advisory and other fees that would reduce performance in an actual account. It is not possible to invest in an index. Performance from March 19, 2007 through February 28, 2006 represents the performance of the Portfolio Manager while at NWQ Investment Management Company, LLC, an affiliated firm. Performance prior to March 79, 2001 occurred while the Portfolio Manager was affiliated with a prior firm, unaffiliated with Tradewinds, and was the only individual responsible for selecting the securities to buy and sell. The results prior to March 19, 2007 are based on one account managed with a substantially similar investment style and tech- nique as the accounts comprising the International Value Composite with assets of $0.7 million as of Februory 28, 2001, and should not be interpreted as the historical per- formonce of Tradewinds or NWQ Investment Management Company, LLC. As of December 31, 2000, the composite contained one account with $0.7 million in assets. Tradewinds maintains or has access to the records supporting the performance for all time periods and will provide these records upon request. Ashland Portners & Company UP performed an examination of this trock record; an Independent Verifier's Report is ovoilable upon request. Composite returns include the reinvestment of all copital gains, dividends, and income. Totol returns of composite and benchmark are presented net of estimat- ed foreign withholding taxes on dividends, interest, ond capital gains. MSCI uses withholding tax rotes applica- ble to Luxembourg holding companies, as Luxembourg applies the highest rotes. The composite and benchmark use WM Reuters as the foreign exchange rate source. The composite uses 4 pm EST ond the benchmark uses 4 pm GMT. The u.s. dollar is the currency used to express performance. Gross returns will be reduced by invest- ment advisory fees and other expenses that may be incurred in the management of the account. The actuol investment monagement fee was used to calculate net of fee performance. The annual Institutional client fee schedule for International Value portfolios is as follows: first $5 million is 0.90%, next $15 million is 0.75%, and over $20 million is 0.65%. Actual fees charged may vary by client due to various conditions including account size. Refer to Schedule F of the firm's ADV Part II for additional information. A complete list ond description of composites and additional information regarding policies for colculating and reporting investment returns are available upon request. The annual standard deviation presented is col- culated using an asset-weighted colculotion of perform- ance dispersion of all accounts in the composite for the entire year. Composite policy allows for the temporary removal of any portfolio incurring 0 client initiated significant cash outflow greater than or equol to 50% of portfolio assets or inflow greater than or equal to 100% of portfolio assets. The temporary removal of such an account occurs at the beginning of the measurement period in which the significant cosh flow occurs, and the account re-enters the composite the first quarter ofter the cash flow if the account is in line with the composite strate- gy. Additional information regarding the treatment of significant cash flows is available upon request. 2