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2008 09 17 Document Was Second Given By Board Member Fair
Date: September 17, 2008 THE FOLLOWING DOCUMENT WAS THE SECOND GIVEN OUT DURING THE SPECIAL MEETING BY BOARD MEMBER MARIA FAIR Page 1 of I Overview Atlanta Capital Management Company, LLC is an investment advisor focused on the management of high -quality domestic equity, fixed income and balanced accounts for institutional clients. Our minimum account size is $10 million. The company was founded in Atlanta, Georgia in 1969. The firm is owned by Eaton Vance Company of Boston, Massachusetts and the employees of Atlanta Capital Management. Executive leadership of the company is provided by: Bill Hackney, Chip Reames and Kelly Williams. The key distinguishing characteristic of Atlanta Capital's investment approach is our use of "high -quality" stocks and bonds. Our research indicates that high -quality securities provide attractive investment returns at modest levels of risk. Our investment process combines top -down economic analysis with bottom -up fundamental company analysis to construct diversified portfolios of high -quality securities. Atlanta Capital employs fifty-three individuals, including an investment staff of thirteen equity and three fixed income professionals responsible for evaluating individual securities and constructing portfolios. Sixteen employees hold masters degrees and eighteen hold the Chartered Financial Analyst (CFA) designation. Our assets under management are approximately $8.4 billion.We serve the following types of clients: Public Funds • Taft -Hartley Plans . Corporate Retirement Plans • Endowments & Foundations • Hospitals • Religious Organizations • Managed Account Programs (Wrap) . Mutual Fund Subadvisory We believe that the success of our firm is based on our history of achieving clients' objectives and providing superior client communication and service. If you would like any additional information, please feel free to Contact Us. I'ro iding Invcshrreyr! .11dinagcment fi r more than Tbrrc Decadrs ATLANTA CAPITAL htti)://www.aticap.com/ 180476.htm 9/ 17/2008 Stock Report I September 13, 2008 1 NYS Symbol: EV I EV is in the S&P MidCap 400 Eaton Vance Corp. S&P Recommendation GICS Sector Financials Sub -Industry Asset Management & Custody Banks Key Stock Statistics (Source S&P, company reports) STANDARD &POOWS Price 12-Mo. Target Price Investment Style $37.58 (as of Sep 12, 2008) $39.00 Mid -Cap Growth Summary This Boston -based holding company is primarily engaged in investment management. 52-Wk Range S50.03-26.94 S&P Oper. EPS 2008E 1.74 Market Capitalization(B) Trailing 12-Month EPS $1.75 S&P Oper. EPS 2009E 2.06 Yield (%) Trailing 12-Month P/E 21.5 P/E on S&P Oper. EPS 2008E 21.6 Dividend Rate/Share $10K Invested 5 Yrs Ago $23,217 Common Shares Outstg. (M) 116.0 Price Performance 30-Week Mov. Avg.• 12-Mo. Target Price 50 10-Week Mov. Avg. GAAP Eamings vs. Previous Year Volume Above Avg. STARS * Relative Strength - ♦ Up Down ► No Change Below Avg.'.'li; 1- 40 25': ♦ Ill.' r� Vol. Mil. 6 ���)�ll�ll�l)IIII))111)���)I))��►►��)�►)I���)����dli �������►►�����di�l��►)1����1���lll�►��1����i������►�����►���� ill l►►I��dl III I16� IIII III►►I►�i�dl►�IIIIIIIIII��I 5 3* as* A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N 2005 2006 2007 2008 Options: CBOE, P Analysis prepared by Matthew Albrecht on August 21, 2008, when the stock traded at $ 34.13. Highlights We expect assets under management (AUM) at EV during FY 08 (Oct.) to grow modestly versus FY 07, followed by 13% growth in FY 09. We be- lieve that equity fund assets should benefit from continued positive flows, and separately man- aged accounts should continue to see flows to its Parametric products. However, market con- ditions should make large gains in client asset balances unlikely, and we don't expect new closed -end fund introductions until at least FY 09. We believe the stock has been pressured due to bank loan, municipal bond and closed - end fund exposure. ► We see revenue growth of about 5% in FY 08 and 12% in FY 09, as an increase in average as- set balances outweighs pressure on the man- agement fee due to an unfavorable asset mix. We expect EV's pretax margin to expand to about 31 % in FY 08 and 33% in FY 09 following its agreements with distributors to cease recur- ring distribution agreements, but costs associ- ated with the pending move to a new headquar- ters may continue to pressure that estimate. • We look for operating earnings of $1.74 in FY 08 and $2.06 in FY 09. Investment Rationale/Risk ► We believe the company will continue to bene- fit from strong investment performance, consis- tent net inflows, a balanced asset base, and low redemption rates. Furthermore, EV has sig- nificantly increased its mix of client assets un- der management in equities and non - redeemable closed -end funds, which we be- lieve will benefit its valuation. However, we view stock option grants as very generous. We look for compensation expense to remain high on increased headcount and higher marketing incentive compensation. ► Risks to our recommendation and target price include potential equity and bond market de- preciation in client assets, and reduced in- vestor confidence. Our 12-month target price of $39 is equal to 18AX our FY 09 EPS estimate, a slight premium to many peers that we attribute to strong in- vestment performance and continued net in- flows to equity products, which have helped AUM totals despite market weakness. $4.346 Beta 1.90 1.60 S&P 3-Yr. Proj. EPS CAGRM 13 SO.60 S&P Credit Rating NA Qualitative Risk Assessment LOW I HIGH Our risk assessment reflects our view of the company's long history of profitable growth and net client inflows, offset byweaker demand for closed -end funds in recent quarters and formidable competition from much larger peers. Quantitative Evaluations S&P Quality Ranking A- D I C I B- I B I B+ A I A+ Relative Strength Rank STRONG :I Revenue/Earnings Data Revenue (Million S) 1Q 20 30 4Q Year 2008 289.8 273.4 282.8 2007 243.2 260.2 286.9 293.8 1,084 2006 206.5 211.8 216.6 227.3 862.2 2005 181.8 182.5 190.8 198.1 753.2 2004 157.0 165.3 165.9 173.6 661.8 2003 124.9 120.9 133.9 143.4 523.1 Earnings Per Share ($) 2008 0.46 0.43 0.40 EO.45 E1.74 2007 0.02 0.17 , 0.40 0.47 1.06 2006 0.29 0.29 0.31 0.29 1.18 2005 0.27 0.27 0.29 0.31 1.13 2004 0.22 0.25 0.25 0.28 1.00 2003 0.19 0.18 0.19 0.21 0.76 Fiscal year ended Oct. 31. Next earnings report expected: Late November. EPS Estimates based on S&P Operating Earnings; historical earnings are as reported. Dividend Data (Dates: mm/dd Paymem Date: mMdd/yy) Amount Date Ex -Div. Stk. of Payment ($) Decl. Date Record Date 0.150 10/24 10/29 10/31 11/12/07 0.150 01/09 01/29 01/31 02/11/08 0.150 04/16 04/28 04/30 05/12/08 0.150 07/09 07/29 07/31 08/11/08 Dividends have been paid since 1976. Source: Company reports. Please read the Required Disclosures and Analyst Certification on the last page of this report Redistribution or reproduction is prohibited without written permission. Copyright ©2DO8 The McGraw-Hill Companies, Inc. Stock Report I September 13, 2008 1 NYS Symbol: EV Eaton Vance Corp. STANDARD &POOWS Business Summary August 21, 2008 Corporate Information CORPORATE OVERVIEW. Eaton Vance is engaged in the business of creating, marketing and managing Investor Contact open-end and closed -end funds and providing investment management and counseling services to high- R. Whelan (617-482-8260) net -worth individuals and institutions. The company believes it is a market leader in a number of invest- ment areas, such as tax -managed equity, value equity, equity income, floating-rate bank loan, municipal Office bond, investment grade, and high -yield bond investing. Its goal is to offer fund shareholders attractive risk- 255 State St, Boston, MA, USA 02109. adjusted returns over the long term. The company's principal marketing strategy is to distribute its retail products primarily through financial P P 9 9Y P P Y g Telephone 617-482-8260. intermediaries in the advice channel. Its distribution partners include national and regional broker/dealers, independent broker/dealers, independent financial advisory firms, banks and insurance companies. It Website serves institutional and high -net -worth clients through its majority -owned subsidiaries, including Atlanta http://www.eatonvance.com Capital Management Company, Fox Asset Management and Parametric Portfolio Associates. EV's revenue is derived primarily from investment advisor, administration, distribution and service fees re- Officers ceived from Eaton Vance funds and investment advisor fees received from separate accounts. Its major expenses are employee compensation, the amortization of deferred sales commissions, and distribution-relat- Chrmn, Pres & CEO Chief Admin Officer ed expenses. Revenues for FY 07 (Oct.) totaled $1.1 billion, up 26% over FY 06, led by improvements in in- T.E. Faust, Jr. J.P. Beale vestment advisor and administration fees and service fees, offset by a decline in fees from distribution and underwriting activities. CEO Chief Acctg Officer CORPORATE STRATEGY. EV has completed several strategic acquisitions in an attempt to broaden its M. Witkos L.G. Hylton product line, client base and distribution channels. EV has expanded beyond mutual funds by targeting CFO both institutional, including pension plans and endowments, and high -net -worth clients. In 2001, in an of fort to build a leadership position in the institutional and separately managed account business, the com- R.J. Whelan pany acquired a 70% stake in Atlanta Capital, for $70 million in cash and stock, and an 80% interest in Fox ---- - -- — Asset Management, for an initial price of $32 million in cash and stock, with up to $30 million in contingent Board Members future payments. Atlanta and Fox, focusing on growth and value investment, contributed $7.9 billion in as- A. E. Berman sets under management. EV also acquired an 80% interest in Parametric Portfolio Associates, based in J. G. Cabot Seattle, in FY 03, adding about$5.3 billion in assets. T. E. Faust, Jr. FINANCIAL TRENDS. At October 31, 2007, EV had assets under management (AUM) of $161.7 billion, up L. I. Higdon, Jr. 25% compared to $128.9 billion at the end of FY 06. AUM by asset class at the end of FY 07 was as follows: V. M. O'Reilly equity funds, 47%; fixed income funds, 15%; bank loan funds, 13%; money marketfunds, 1%; and separate D. E. Puhy accounts, 24%. Long-term fund net inflows totaled $19.2 billion during FY 07, compared to $8.1 billion in the W. H. Smith, Jr. prior year. Fund flows during the year were helped by the introduction of a number of closed -end funds, as — well as strong fund performance, which attracted client assets. We look for continued fund flows in FY 08, aided by improvements in its institutional sales force and the company's focus on offering new funds that Domicile are not focused on tax management strategies, but a lack of new closed -end fund introductions will proba- Maryland bly result in slower flows that FY 07. Founded We believe that clients have increasingly been drawn to EV's class A shares, which carry a front-end load 1944 commission (waived when sold under a fee -based broker/dealer program), rather than its class B shares, which carry a spread -load commission. As a result, distribution income has declined, and revenues as a Employees percentage of average assets under management has declined. The amortization of deferred sales com- 953 missions has declined at a faster rate, however, aiding the bottom line. Stockholders 1,600 Redistribution or reproduction is prohibited without written permission. Copyright 02008 The McGraw-Hill Companies, Inc. Pace 2 of 9 FltchRatin s KNOW YOUR RISK Financial Institutions Fund & Asset Manager Florida Municipal Investment Rating Group Credit Analysis Trust Ratings ■ Summary One- to Three -Year High -Quality The Florida Municipal Investment Trust One- to Three -Year, Bond Fund .................................... AAAN2 Intermediate and Broad Market High -Quality Bond Funds Intermediate High -Quality (collectively, the funds), all local government investment pools Bond Fund....................................AAAN3 (LGIPs), are rated `AAAN2', `AAAN3' and `AAN4', respectively, Broad Market High -Quality by Fitch Ratings. The ratings reflect the fluctuating nature of the Bond Fund .................................... AAN4 funds' mark -to -market unit value, or net asset value (NAV). Analysts LGIPs and similar bond funds rated `AAA' meet the highest credit Jennifer D. Minelli, CFA quality standards for portfolio assets, diversification, investment +1 212 908-0331 management and operational capabilities. LGIPs rated `AA' meet very jennifer.minelli@fitchratings.com high standards for the credit quality of the funds' underlying assets, as Viktoria Baklanova, CFA well as the quality and experience of the funds' management and +1 212 908-9162 operations. LGIPs and similar bond funds rated `V1' and `V2' are viktoria.baklanova@fitchratings.com considered to have a low market risk. Total returns exhibit relative stability, performing consistently across a broad range of interest rate Rico Lu scenarios. These funds offer the lowest risk exposure to interest rates +1 212 908-9148 and changing market conditions. The `V3' and `V4' ratings reflect rico.lu@fitchratings.com moderate market risk. Total returns are expected to perform consistently over intermediate- to long-term holding periods but will Investment Adviser exhibit greater variability over shorter periods due to increased Atlanta Capital Management Co. exposure to interest rates and changing market conditions. Administrator The funds seek to provide an investment pool alternative for those trust Florida League of Cities, Inc. members that have investment horizons greater than those possible +1 850 222-9684 with money market instruments. The funds invest in a high -quality Summary Data investment portfolio authorized by the funds' board of trustees. (As of Oct. 31, 2007) Contributions and redemptions to the One- to Three -Year High -Quality Bond Fund can be made on the 15th and last day of each One- to Three -Year High -Quality Bond Fund month at the then -current NAV. The Florida Municipal Investment Inception Date: July 1, 1996 Trust Intermediate and Broad Market High -Quality Bond Funds accept Net Asset Value: $202,395,186.03 contributions and redemptions only on the last business day of the Intermediate High -Quality Bond Fund month at the then -current NAV. Inception Date: July 1, 1996 Net Asset Value: $208,361,474.99 Membership in the trust is limited to agencies in or political Broad Market High -Quality Bond Fund subdivisions of the state of Florida, which include but are not limited Inception Date: Jan. 1, 1998 to the state, its agencies, counties, municipalities, special districts, Net Asset Value: $115,406,486.21 school districts and other governmental entities. December 13, 2007 ■ Rating Considerations • Extremely strong credit quality resulting from the funds' portfolio assets, investment practices and management controls. • Low to moderate volatility by virtue of conservative investment practices and security restrictions. www.fitchratings.com Fitch -Ratings KNOW YOUR RISK ■ Investment Practices The funds' investment objective is to provide an alternative for those members that have excess moneys and investment horizons greater than those possible with money market instruments. Effective Oct. 1, 1997, the portfolio no longer declares and distributes net income as a dividend. Instead, the net investment income is incorporated into the NAV. Net income consists of interest income earned, changes in the fair market value of the investments, and any other investment income earned less a proportionate share of expenses incurred or accrued. ■ Credit Quality The funds have the highest credit quality on the basis of portfolio assets, investment practices, diversification standards, operational controls and management oversight. By guidelines, the funds are permitted to invest in securities that meet at least the `A' credit quality requirements. ■ Investment Strategy: One- to Three -Year High -Quality Bond Fund To accomplish the One- to Three -Year High -Quality Bond Fund's objective, the board of trustees has authorized the investment adviser to invest only in certain high -quality securities. These permissible investments include U.S. Treasury securities and other obligations that, by their terms, are full faith Historical Changes in Net Asset Value: One. to Three Year High -Quality Bond Fund ($ per Share) 18 16 r 14 12 - 10 --- - - - _ - --- - - 8 6 4 - - 2 0, Florida Municipal Investment Trust 2 Structured Finance Portfolio Composition: One. to Three -Year High -Quality Bond Fund Cash/ (As of Oct. 31, 2007) Money U.S. Market Treasury / Fund Securities 2.18% 16.76% / U.S. Agencies_ 23.69% a. Mortgage - Backed Asset - Securities Backed 30.5% Securities 26.87% Note: Numbers maynot add to Uo%due to rounding. and credit obligations of the U.S. government, U.S. agencies and government -sponsored enterprises, as well as asset -backed securities (ABS), mortgage - backed securities (MBS), collateralized mortgage obligations (CMOs), money market obligations (commercial paper, bankers' acceptances, repurchase agreements, reverse repurchase agreements, time deposits and money market accounts), corporate and Yankee debt obligations, taxable municipal debt Historical Performance: One- to Three - Year High -Quality Bond Fund One- to Three -Year High -Quality Bond Fund Merril Lynch One- to Three -Year Gov emment Index (%) 1.2 1.0 0.8 - — — 0.6 -- - --- -- - - — 0.2- 0. 0.0— — - -, -- -- - - (0.2) -- - - - -- (0.4) — -- (0.6) (0.8) (1.0) (1.2) �v 1�o� 48\ 1�o\ FitchRatinas KNOW YOUR RISK obligations and guaranteed investment contracts (GICs). The fund will typically invest in securities with an average maturity of approximately two years. However, investments in ABS, MBS, CMOs or any other securities that do not have fixed maturity dates or fixed paydown schedules are limited to meet additional maturity or price volatility restrictions (see box at right). The fund enters into repurchase agreements only with highly rated counterparties, usually with a maturity of less than seven days. In addition, the board of trustees has specified that the fund's modified duration will be greater than one year but less than 130% of the duration of the Merrill Lynch One- to Three -Year Government Index. Historically, the benchmark index's modified duration has been approximately 1.67 years. The fund is expected to maintain a modified duration in the range of 1.00-2.25 years. The modified duration of a security or portfolio is the ratio of the price change to the interest rate change. The higher the modified duration of a security or portfolio, the greater its price volatility in percentage terms for a given change in interest rates. As of Oct. 31, 2007, the duration of the fund was 1.58 years. The fund's investment strategy combines a concentration in short-term ABS and MBS, primarily planned amortization classes and sequential classes, with longer -term U.S. Treasury instruments. The fund's investments in CMOs are concentrated in the least volatile sectors of the CMO market and can be characterized as relatively conservative. In addition to interest rate risk, mortgage prepayment risk is a significant factor for CMOs and can be divided into contraction risk and extension risk. Contraction risk can be broadly defined as the likelihood that, in a period of falling interest rates, homeowners will prepay their mortgages, forcing the fund to reinvest the proceeds at an interest rate lower than the coupon rate on the original security. Extension risk, on the other hand, results from a slowing down of prepayments when interest rates rise, forcing the fund to realize less cash flow that can be reinvested at an interest rate greater than the coupon rate on the original security. As of Oct. 31, 2007, the fund's NAV was $15.93 per share. The historical performance of the fund and the fluctuating nature of the NAV are highlighted in the charts on page 2. Structured Finance One- to Three -Year High -Quality Bond Fund ABS, MBS, and CMO Security Restrictions Securities must meet one of the following conditions: For securities with no fixed maturity date, the final maturity window must be seven years or less, based on a reasonably expected payment rate. For securities without fixed paydown schedules, price volatility cannot be greater than two times that of the Merrill Lynch One - to Three -Year Government Index. ■ Investment Strategy: Intermediate High -Quality Bond Fund The Intermediate High -Quality Bond Fund will generally invest in securities with greater potential returns and risk than those offered by money market — type instruments. Because the fund invests in securities with an average maturity of approximately five years, increases in interest rates will cause declines in the NAV. Therefore, this fund may be an inappropriate investment for investors with a requirement to meet short-term needs. To accomplish the fimd's investment objective, the board of trustees has authorized the investment adviser Historical Performance: Intermediate High - Quality Bond Fund N 2.0 1.5 1.0 0.5 0.0 (0.5) Intermediate High -Quality Bond Fund Lehman Brothers Intermediate GovemmenNCredit (ex Baa) + ABS + MBS Index (1.0) ----- - Florida Municipal Investment Trust RatinLS KNOW YOUR RISK Historical Changes in Net Asset Value: Intermediate High -Quality Bond Fund 20 ($ per Share) 18 1- 16 14 12 10 8 6 4 I 2 1���0��� � 104%% tPll\!�1 o 10'11 o^� boa b�oh1°� 4�o�o� to invest only in certain high -quality securities. These permissible investments include U.S. Treasury securities and other obligations that, by their terms, are full faith and credit obligations of the U.S. government, U.S. agencies and government -sponsored enterprises, as well as ABS, MBS, CMOs, corporate and Yankee debt obligations, money market obligations, investment agreements, GICs and taxable municipal debt obligations. Portfolio Composition: Intermediate High - Quality Bond Fund (As of Oct. 31, 2007) Corporate U.S. Treasury Notes Securities / 0.74% Castel Asset- 13.35% Money Backed f -- Market Securities Fund 9.4% 5.36% U.S. Mortgage - Agencies Backed 20.06% Securities 51.08% Florida Municipal Investment Trust Structured Finance Intermediate High -Quality Bond Fund ABS, MBS and CMO Security Restrictions Securities must meet one of the following conditions: • For securities with no fixed maturity date, the final maturity window must be 11 years or less, based on a reasonably expected prepayment rate. • For securities without fixed paydown schedules, price volatility cannot be greater than two times that of the Lehman Brothers Intermediate Government/Credit (ex Baa) + ABS + MBS Index. However, investments in ABS, MBS, CMOs or any other securities that do not have fixed maturity dates or fixed paydown schedules are limited to meet additional maturity or price volatility restrictions (see box above). The fund enters into repurchase agreements only with highly rated counterparties, usually with a maturity of less than seven days. In addition, the board of trustees has specified that the portfolio's modified duration will equal that of the Lehman Brothers Intermediate Govemment/Credit (ex Baa) + ABS + MBS Index plus or minus 30% but no greater than 4.5 years. Historically, the benchmark index's modified duration has been approximately 3.38 years. The fund is expected to maintain a modified duration in the range of 3.0-4.5 years. As of Oct. 31, 2007, the duration of the fund was 3.58 years. The fund's investment strategy combines primarily intermediate -term U.S. agency securities, mortgage - backed pass -through securities, and ABS. The fund's investments in mortgage securities consist of mortgage - backed pass -through securities and CMOs. Investors that invest in MBS are exposed to mortgage prepayment risk, which can be divided into contraction risk and extension risk. While certain CMOs can significantly increase the contraction or extension risk of the portfolio, mortgage -backed pass -through securities do not alter the risk profile of the underlying mortgages. As of Oct. 31, 2007, the fund's NAV was $17.32 per share. The historical performance of the fund and the fluctuating nature of the NAV are highlighted in the chart on the bottom of page 3 and this page. 4 Ratinas KNOW YOUR RISK Historical Performance: Broad Market High -Quality Bond Fund Broad Market High -Quality Bond Fund Lehman Brothers 'A+' Aggregate Index (%) 2.0 --- -- -- ------ -- --- 1.5 - ---- 1.0 n --- - - -— - w 0.0 -- r— i (0.5) —-- — - - (1.0) (1.5) 1p�ph 100 �� \o° 1p\� 1\p1 D\p1 4% 1p\p\ ■ Investment Strategy: Broad Market High -Quality Bond Fund The Broad Market High -Quality Bond Fund will generally invest in securities that offer higher potential returns and risk than those of money market or intermediate -term securities. Because the portfolio invests in securities with an average maturity of approximately 8.5 years, increases in interest rates will cause declines in the NAV. Therefore, this fund may be an inappropriate investment for funds with a requirement to meet short- or intermediate -term needs. To accomplish the fund's investment objective, the board of trustees has authorized the investment adviser to invest only in certain high -quality securities. These permissible investments include U.S. Treasury securities and other obligations that, by their terms, are full faith and credit obligations of the U.S. government, U.S. agencies, and government - sponsored enterprises, as well as ABS, CMOs, corporate and Yankee debt obligations, money market obligations, investment agreements, GICs, taxable municipal debt obligations, commingled governmental investment trusts and mortgage obligations guaranteed by the U.S. government. The fund enters into repurchase agreements only with highly rated counterparties, usually with a maturity of less than seven days. Reverse repurchase agreements and/or other forms of financial leverage are restricted to 30% of the portfolio. Securities lending activity is limited to approved dealers and custodians, and all Structured Finance Historical Changes in Net Asset Value: Broad Market High -Quality Bond Fund 18 ($ per Share) I 16 -- -- - -.✓ f 14 L— -- -- 12 10- B-- I 6 4 z- 0 11\141 ,\MCP 146, 4� ,\\%". 10 1 3 �pb 1�ph 1103 p�do 1�p1 securities must have a final maturity of no more than 30 years. In addition, the board of trustees has specified that the fund's modified duration will equal that of the Lehman Brothers `A+' Aggregate Index plus or minus 30% but no greater than seven years. Historically, the benchmark index's modified duration has been approximately 4.55 years. The fund is expected to maintain a modified duration of Portfolio Composition — Broad Market High -Quality Bond Fund (Ps of Oct. 31, 2007) Cash/ Asset- Money Backed Market Securities Fund 11.62% 2.93% U.S. Agencies Corporate 12.97% Notes 1.54% U.S. Treasury Mortgage - Securities Backed 29.38% Securities 41.55% Note: Numbers may not add to 100%due to rounding. 5 Florida Municipal Investment Trust RatinC KNOW YOUR RISK 4.0-5.5 years. As of Oct. 31, 2007, the duration of the fund was 4.32 years. The fund's investment strategy combines primarily U.S. agency securities, corporate securities, MBS, ABS and intermediate- to long-term U.S. Treasury instruments. On Nov. 20, 2003, the board of trustees approved a change in the investment guidelines to raise exposure to corporate securities rated `A' or better to 30% from 5%. As of Oct. 31, 2007, the fund's NAV was $16.76 per share. The historical performance of the fund and the fluctuating nature of the NAV are highlighted in the charts on page 5. ■ Organization The Florida Municipal Investment Trust was established on April 28, 1993, under the laws of the state of Florida as an interlocal government entity created to enable eligible units of local government to cooperate in the investment of their surplus funds. Structured Finance Florida League of Cities, Inc. serves as administrator of the funds. Florida League of Cities is a nonprofit organization established in 1924 to serve the interests of Florida cities. The funds are governed by a board of trustees composed of no less than five members and no more than seven. The board of trustees consists of the president or the president's appointee and the second vice president of the Florida League of Cities, plus two members of the Florida Municipal Insurance Trust. Three additional representatives may be elected by the board of trustees. Atlanta Capital Management Co. serves as the investment adviser for the funds. Atlanta Capital Management was established in 1969 and managed approximately $8.9 billion as of Oct. 31, 2007, mostly for institutional clients. Portfolio assets are held on behalf of the trust by the funds' custodian, Wells Fargo Bank, N.A. Copyright ® 2007 by Fitch, Inc., Fitch Ratings Ltd. and its subsidiaries. One State Strect Plana, NY, NY 10004. Telephone: 1-800-7534824, (212) 908-0500. Fax: (212) 4904435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. All of the information contained herein is based on information obtained from issuers, other obligors, underwriters, and other sources which Fitch believes to be reliable Fitch does not audit or verify the truth or accuracy of any such information. As a result, the information in this report is provided "as is" without any representation or warranty of any kind. A Fitch rating is an opinion as to the creditworthiness of a security. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. Fitch is not engaged in the offer or sale of any security. A report providing a Fitch rating is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. Ratings may be changed, suspended, or withdrawn at anytime for any mason in the sole discretion of Fitch. Fitch does not provide investment advice of any son. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax- exempt nature or taxability of payments made in respect to any security. Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for rating securities. Such fees generally vary from USD1,000 to USD750,000 (or the applicable currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues issued by a particular issuer, or insured or guaranteed by a particular insurer or guarantor, for a single annual fee. Such fees arc expected to vary from USDI0,000 to USD1,500,000 (or the applicable currency equivalent). The assignment, publication, or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws, the Financial Services and Markets Act of 2000 of Gmat Britain, or the securities laws of any particular jurisdiction. Due to the relative cRcicncy of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers. Florida Municipal Investment Trust Stock Report I September 16, 2008 1 NYS Symbol: BAC I BAC is in the S&P 500 STANDARD Bank of America Corp &POOR!S S&P Recommendation®® Price 12-Mo. Target Price Investment Style $29.55 (as of Sep 16, 2008) $26.00 Large -Cap Blend UPDATE: PLEASE SEE THE ANALYSTS LATEST RESEARCH NOTE IN THE COMPANY NEWS SECTION GICS Sector Financials Summary This banking company, with offices in 32 states and the District of Columbia, also Sub -Industry Other Diversified Financial Services provides international corporate financial services. Key Stock Statistics (Source S&P, Vickers, company repots. ) 52-Wk Range $52.96-18.44 S&P Oper. EPS 2008E 2.22 Market Capitalization(B) $134.751 Beta 0.76 Trailing 12-Month EPS $1.82 S&P Oper. EPS 2009E 3.37 Yield (%) 8.66 S&P 3-Yr. Proj. EPS CAGR(%) 9 Trailing 12-Month P/E 16.2 P/E on S&P Oper. EPS 2008E 13.3 Dividend Rate/Share $2.56 S&P Credit Rating AA- SIOK Invested 5 Yrs Ago $11293 Common Shares Outstg. (M) 4,560.1 Institutional Ownership (%) 59 Price Performance Qualitative Risk Assessment 30-Week Mov. Avg. • 10-Week Mov. Avg. GAAP Earnings vs. Previous Year Volume Above Avg.''`I STARS 12-Mo. Target Price Relative Strength - ♦ Up Down 101 No Change Below Avg. IlllI,i #r 60♦ ♦ ♦ ♦ • 40 ... 30 1' ' 20 vol. Mil. � 240 160 o nnbunnalllllRhtdlhdthulUlllltlluduuhl�hUOluillllulhnlnlhmlllhillllul�IlliuIIIIIIdI�IIIiIIII��II�III��II��I�IIIiIII�II�III�IIIhII�l�l�llll III�III_. 5 '!tr 4 iir 5 2 1 A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N 2005 2006 2007 2008 Options: ASE, CEDE, R Ph Analysis prepared by Stuart Plesser on August 05, 2008, when the stock traded at $ 32.62. Highlights ► We forecast total revenue growth of around 20.0% in 2008, and expect positive operating leverage to be driven by recent acquisitions and expense controls. BAC has restructured its global corporate and investment banking unit, eliminating staffing, changing management, cutting its wholesale mortgage business, and trimming operations in structured products. Coupled with the recent sale of its prime bro- kerage unit, these moves will likely reduce earnings volatility. ► We expect recent strong growth in net interest income to flatten out due to a cessation of in- terest rate cuts. We look for additional securi- ties writedowns as pricing of subprime COOS has worsened based on recent sales of the se- curities. That said, based on further deteriora- tion of U.S. credit quality, we look for chargeoff levels to accelerate into the first quarter of 2009, which should result in the need for contin- ued elevated provisions. We think expenses will remain under tight control. ► Excluding merger -related expenses, we esti- mate operating EPS of $2.22 in 2008 and $3.37 in 2009. Investment Rationale/Risk . Despite the writing down of roughly $14 billion of Countrywide Financial's (CFC) loan portfolio through purchase accounting, we think further chargeoffs are in store. We are particularly concerned regarding BAC inheriting CFC's large Option Arm portfolio, which we believe hasn't been stress -tested yet. We see BAC's legacy loan portfolio coming under additional stress due to further deterioration in U.S. credit quality. Although we look for BAC to continue to benefit from an expanded market share, the in- terest rate environment may soon turn less fa- vorable based on indications from the Fed. We still believe that based on continued write- downs and elevated provisions, there is a pos- sibility BAC will cut its dividend. ► Risks to our recommendation and target price include better-than-expected credit conditions brought about by an improvement in housing prices and an easing of fuel prices. ► Our 12-month target price of $26 equates to about 9.7X our 12-month forward operating EPS estimate of $2.68, a slight discount to historical levels. Our valuation is based on our expecta- tion of weakening capital levels and deteriorat- ing credit conditions. LOW 1TIM HIGH Our risk assessment reflects what we see as a strong U.S. presence with a robust customer base, offset by deteriorating U.S. consumer trends and exposure to residential lending and credit cards. Quantitative Evaluations S&P Quality Ranking A D I C I B. I B 1 B+ A- A+ Relative Strength Rank MODERATE I LOWEST = 1 HIGHEST = 99 Revenue/Earnings Data Revenue (Million $► lQ 2Q 2008 28,871 29,721 2007 30,447 32,409 2006 27,026 28,895 2005 19,168 21,222 2004 12,282 16,471 2003 11,410 12,250 Earnings Per Share ($) 3Q 4Q Year 29,347 26,987 119,190 30,739 30,357 117,017 21,621 22,280 83,980 16,409 18,162 63,324 12,294 12,111 48,065 2008 0.23 0.72 E0.67 E0.60 E2.22 2007 1.16 1.28 , 0.82 0.05 3.30 2006 1.07 1.19 1.18 1.16 4.59 2005 1.07 1.17 0.95 0.88 4.04 2004 0.92 0.93 0.91 0.94 3.69 2003 0.80 0.90 0.96 0.92 3.57 Fiscal year ended Dec. 31. Next earnings report expected: Late October. EPS Estimates based on S&P Operating Earnings; historical GAAP earnings are as reported. Dividend Data (Dates: mi Payment Date: eml/ddlyy) Amount Date Ex -Div. Stk. of Payment ($) Decl. Date Record Date 0.640 10/24 12/05 12/07 12/28/07 0.640 01/23 03/05 03/07 03/28/08 0.640 04/23 06/04 06/06 06/27/08 0,640 07/23 09/03 09/05 09/26/08 Dividends have been paid since 1903. Source: Company reports Please read the Required Disclosures and Analyst Certification on the last page of this report Redistribution or reproduction is prohibited without written permission. Copyright ©2008 The McGraw-Hill Companies, Inc. Page 1 of 9 Stock Report I September 16, 2008 1 NYS Symbol: BAC Bank of America Corp STANDARD &POOR'S Business Summary August 05, 2008 CORPORATE OVERVIEW. Bank of America has operations in 32 states, the District Corporate In o"nation of Columbia and 44 for- eign countries. In the U.S., it has more than 6,100 retail banking centers and Investor Contact approximately 18,500 ATMs. BAC reports the results of its operations through three business segments: Global Consumer and Small Business Banking, Global Corporate and Investment K. Stitt (704-386-5667) Banking, and Global Wealth and Investment ment. Manage- -- Office Global Consumer and Small Business Banking has about 59 million consumer and mass -market small busi- ness relationships and 100 N Tryon St, Charlotte, NC 28255. provides a diversified range of products and services to individuals and small busi- nesses through multiple delivery channels. Global Corporate and Investment Telephone Banking provides compre hensive financial solutions. Services include: bank deposit and credit products; risk management, management 704-386 8486. cash and payment services; equity and debt capital raising; and advisory services. Global Wealth and Investment Management Fax offers comprehensive banking and investment services to more than three million individual and institutional customers. Clients have access to services from 704-386-8486. three primary business es: U.S. Trust, Bank of America Private Wealth Management; Columbia Management, and Premier Bank- ing & Investments. Services include, investment Website services, estate management, financial planning service fiduciary management, credit and banking s ces, http://www.bankofamerica.com expertise, and diversified asset management products in tutional clients as well as high -net -worth individuals. IMPACT OF MAJOR DEVELOPMENTS. On July 1, 2008, BAC acquired Countrywide Financial in a stock deal valued at $2.5 billion. Although the deal Officers makes BAC a top U.S. mortgage originator, we believe it increases BAC's risk profile due to CFC's loan portfolio, which has a high proportion of Option Arm Chrrnn, Pres & CEO K.D. Lewis SVP & Chief Acctg Officer loans. On October 1, 2007, BAC acquired LaSalle Bank from ABN AMRO for S21 billion in cash, with a $5 billion rebate N.A. Cotty of ex- cess capital to BAC. The deal was expected to be immediately accretive to EPS, and BAC sees $400 million in annual after-tax cost savings in 2008, Vice Chrmn and $800 million in 2009. We believe the deal will provide BAC with a strong presence in the attractive Chicago market, and we expect BAC's experience G.L. Curl CFO J.L. Price in similar transac- tions, such as the acquisition of Fleet Financial, to add to the likelihood of a successful integration. EVP General On July 2, 2007, BAC acquired U.S. Trust Corp. from Charles Schwab for $3.3 billion in cash. Prior to the deal, BAC was the second-largest manager C Counsel Counsel s T.J. Mayopoulos of private wealth in the U.S., and the purchase should make it the largest. We view the acquisition favorably, as BAC had been seeking to expand its more profitable pri vate banking business. Board Members In January 2006, BAC acquired MBNA Corp. for $34.6 billion. The acquisition expanded its customer base and deepened its customer relationships W. Barnet, III F P. Bramble by delivering innovative deposit, lending and investment products and services to MBNA's customer base. In addition, the acquisition allowed BAC to increase its credit card business by selling MBNA's credit cards through BAC's delivery channels, including the retail branch network. G. L Countryman G. L. Curl T. Franks The April 2004 acquisition of FleetBoston helped expand BAC's reach mainly through the expansion of its branch network in the New England C. K. Gifford region. We also believe this acquisition has increased BAC's scale in banking and offers a medium for the its K. D. Lewis M. sale of various products. Lozano FINANCIAL TRENDS. BAC's credit quality deteriorated in 2007 and will likely continue to worsen in 2008, with nonperforming assets/loans and foreclosed W. E. Massey T J. May properties increasing due to sharp declines in U.S. home prices. We also expect to see credit card chargeoffs rise in 2008 due to an increase in P. E. Mitchell unemployment, higher fuel costs, and the inability of consumers to tap into their home equity. We look for BAC's net inter- est margin to increase in 2008, as Fed T. M. Ryan 0. T. Sloan, III rate cuts will likely gain traction. However, the possibility exists that the Fed may reverse its rate -cutting initiative and increase rates in the latter M. R. Spangler part of 2008, which would be a detriment to BAC's net interest margin. A. Spence R. L. Tillman J. M. Ward Domicile Delaware Founded 1874 Employees 210,000 Stockholders 263,761 Redistribution or reproduction is prohibited without written permission. Co------------ pyright 02008 The McGraw-Hill Companies, Inc. Pace 2 of 9 Florida Municipal Investment Trust FMIvT Enhanced Cash Portfolio For the Period Ending March 31, 2008 ♦ Strategy: Short Term Cash Portfolio ♦ Manager: Columbia Management ♦ Vehicle: Separate Account ♦ Manager Fee: 7.5 bps; fees are based on the net asset value of the Portfolio ♦ Admin Fee: 8 bps; fees are based on the net asset value of the Portfolio ♦ Total Expenses: Approximately 18 bps ♦ Inception Date: December 1, 2002 ♦ Benchmark: 90 Day US Treasury Bill Index ♦ Invests in obligations denominated in US Dollars, consisting of US Treasury and US Government Agency obligations, repurchase agreements, and Wells Fargo Money Market Fund for sweep purposes only. ♦ Outperform the 90 Day Treasury Bill Index over a complete market cycle (usually 3 to 5 years). ♦ Rank above median in a relevant peer group universe. ♦ The Portfolio is subject to interest rate and credit risk, which may cause a loss of principal. Shares of the Portfolio are neither insured nor guaranteed by any US Government azencv. includine the FDIC. Beginning Market Value Net Additions Return on Investment Income Gain/Loss Ending Market Value This Quarter 174,843 -23,619 1,681 1,817 -136 152,905 Last 12 Months 172,695 -27,745 7,956 8,296 -341 152,905 - Minimum initial investment: $50,000 - Minimum subsequent investments: $5,000 - Minimum redemption: $5,000 - The Portfolio is open twice a month, on the first business day following a Portfolio Valuation date, to accept Member contributions or redemptions. - The Portfolio is valued on the 15th and last business day of the month. If the 15th is not a business day, the valuation is the next succeeding business day. - The Administrator must have advance written notification of Member contributions or redemptions. —+-- FMIvT Enhanced Cash Portfolio US T-Bills 90 Day $1.25 $1.20 $1.15 $1.10 $1.05 $1.00-- $0.95 $0.90 N M M M 7 It Ln Ln Ln � 1.0 V' r` r` r` W 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M OMzOCq.-'OM z � z z � z; zz;� © 2008 Asset Consulting Group, Inc. All Bights Reserved Florida Municipal Investment Trust FMIvT Enhanced Cash Portfolio As of March 31, 2008, FMIvT Enhanced Cash Portfolio held 26 securities in their portfolio. Holdings and portfolio characteristics are as follows: ■ FMIvT Enhanced Cash Portfolio 0 90 Day U.S. T-Bills o N CL- g c �n S cV V' C M a,7.tl7ANNE�� ■ FMIvT Enhanced Cash Portfolio 0 90 Day U.S. T-Bills AAA E S 6 4 2 01 ■ FMIvT Enhanced Cash Portfolio 0 90 Day U.S. T-Bills g g C C v W Avg Maturity Avg Cpn (%o) Avg Quality Duration (yrs) YTM (%o) (Yrs) ■ FMIvT Enhanced Cash Portfolio 0 90 Day U.S. T-Bills 0-2 Year © 2008 Asset Consulting Group, Inc. All Rsghts Reserved Florida Municipal Investment Trust FMIVT Enhanced Cash Portfolio For the PeHods Ending March 31, 2008 Ranldng 25 22 21 21 26 29 G N c 5 0 4 E B a 3- 0 i 2C p 1 0 Xz- ZZ 1 Quarter 2 Quarters 1 Year 2 Year, 3 1 c:v 5 Years ■FMlvT Enhanced Cash Portfolio 090 Day U.S. T-Bills ■Median Cash Manager 1 Quarter 2 Quarters 1 Year 2 Years 3 Years 5 Years 5th Percentile 2.05 4.18 8.40 7.26 7.04 6.91 25th Percentile 0.99 2.29 5.03 5.15 4.75 3.53 50th Percentile 0.88 2.09 4.73 4.92 4.50 3.26 75th Percentile 0.72 1.81 4.30 4.60 4.22 3.01 95th Percentile -0.08 0.03 1.57 3.13 2.94 2.19 Observations 878 830 794 683 582 424 The numbers above the bars am the rankings for this portfolio versus the cash manager unimrse. The rankings are on a scale of 1 to 100 with 1 ranking the best. © 2008 Asset Consulting Group, Inc. All Rights Reserved Florida Municipal Investment Trust FMIvT High Quality 1-3 Year Bond Fund For the Period Ending March 31, 2008 ♦ Strategy: Short Bond Fixed Income Portfolio ♦ Manager: Atlanta Capital Management Company ♦ Vehicle: Separate Account ♦ Manager Fee: 10 bps; fees are based on the net asset value of the Portfolio ♦ Admin Fee: 9 bps; fees are based on the net asset value of the Portfolio ♦ Total Expenses: Approximately 23 bps ♦ Inception Date: July 1,1996 ♦ Benchmark: Merrill Lynch 1-3 Year Government Index ♦ Invests in Government and high quality securities while maintaining an average maturity of approximately two years. ♦ Outperform the Merrill 1-3 Year Government Index over a complete market cycle (usually 3 to 5 years). ♦ Rank above median in a relevant peer group universe. ♦ The Portfolio is subject to interest rate, credit, and liquidity risk, which may cause a loss of principal. Neither the Fund nor its yield is guaranteed by the US Government. I / This Quarter Last 12 Months Beginning Market Value 243,321 190,463 Net Additions 31,424 73,845 Return on Investment 5,940 16,377 Income 3,353 10,168 Gain/Loss 2,587 6,209 Ending Market Value 280,685 280,685 - Minimum initial investment: $50,000 - Minimum subsequent investments: $5,000 - Minimum redemption: $5,000 - The Portfolio is open twice a month, on the first business day following a Portfolio Valuation date, to accept Member contributions or redemptions. - The Portfolio is valued on the 15th and last business day of the month. If the 15th is not a business day, the valuation is the next succeeding business day. - The Administrator must have advance written notification of Member contributions or redemptions. t FMIvT High Quality 1-3 Year Bond Fund Merrill Lynch 1-3 Yr Govt $2.00 $1.60 - - $1.40 $1.20 _ $1.00 - $0.80 - $0.60 - - - $0.40 - - —--- $0.20 $0.00 V r- r- W W(71 C, O — .-. N N M 7 c. 0*1 0*1 c. a" C. c\ o 0 0 0 0 0 0 C 0 0 o o 0 0 C C z u >, u� ,a A, -> a q y >> u -0 �' Q O VZ cn Q 2 5, - Q � Q Lzu © 2008 Asset Consulting Group, Inc. All Rsghtr Reserved FMIvT High Quality 1-3 Year Bond Fund As of March 31, 2008, FISMvT High Quality 1-3 Year Bond Fund held 77 securities in their portfolio. Holdings and portfolio characteristics are as follows: ■ FMIvT High Quality 1-3 Year Bond Fund OML 1-3 Year Government ■ FMIvT High Quality 1-3 Year Bond Fund O ML 1-3 Year Government 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 0 S in o M o M oo M JZRZA0 LG G Co ro 0 U F e U GOVT AAA 12 10 8 6 4 2 8 $ d o C, c, � M v � 00 b G O O 16-7 0 Avg Maturity Avg Cpn (%) Avg Quality Duration (yrs) YTM (%o) CM) ■ FMIvT High Quality 1-3 Year Bond Fund © M1.1-3 Year Government 80.0% 60.0% 0 o � 40.0% N N - 0 20.0% N c 0.0% 0-2 Year 2-4 Years 4-6 Years © 2008 Asset Cox rxltixg Groxp, Inc. All Fights Resemed Florida Municipal Investment Trust FMIvT High Quality 1-3 Year Bond Fund For the Periods Ending March 31, 2008 4.98% 4.97% 4.97% 4.97% a w u 4.97% 4.97% 4.96% FMIvT High Quality 1-3 Year Bond Fund Merrill Lynch 1-3 Yr Govt 4.96% 1.46% 1.48% 1.50% 1.52% 1.54% 1.56% 1.58% 1.60% 1.62% Standard Deviation ■FMIvT High Quality 1-3 Year Bond Fund 0Merrill Lynch 1-3 Yr Govt 100 90 80 70 60 50 40 30 20 10 0 9187 lts2 1u1 00 00 00 00 I If �00 00 00 00 ffa oo r_ 20 &o sro C �, oeo 01. 0�0 0t0 0�0 0�0 0to oto oho r�tP ��J :io •10 Oo �� 20 .iO Y� O r� 0 0 0 0 0 o So 0 10 Years FMIvT High Merrill Quality 1-3 Year Lynch 1-3 Yr Bond Fund Govt Standard Deviation 1.48 1.61 Sharpe Ratio 1.11 1.02 Beta 0.90 1.00 Alpha 0.04 -- Up Capture 97.98 -- Down Capture 78.04 -- Correlation 97.00 -- R Square 94.09 -- FMIvT High Merrill Quality 1-3 Year Lynch 1-3 Yr Bond Fund Govt Number of Months 141 141 Highest Monthly Return 1.58% 1.71% Lowest Monthly Return -0.70% -0.95% Number of Pos. Months 122 118 Number of Neg. Months 19 23 % Positive Months 86.52% 83.69% All information calculated using monthly data. © 2008 Asset Consulting Group, Inc. All Rights Reserved Florida Municipal Investment Trust FMIVT High Quality 1-3 Year Bond Fund For the Periods Ending March 31, 2008 Ranking 21 20 lU 9 8 7 6 V R 5 .. O � 2 4 C4 K 3 fi:.2 2 1 n r 00 1 Quarter 2 Quarters 1 Year 22 21 17 �n v v W V rrj � u'1 M 3 Years bears ■FMIvT High Quality 1-3 Year Bond Fund OML 1-3 Year Government 1 Quarter 2 Quarters 1 Year 3 Years 5th Percentile 3.67 7.64 13.02 6.51 25th Percentile 2.24 4.20 7.20 5.29 50th Percentile 1.29 3.02 5.76 4.91 75th Percentile 0.81 1.99 4.75 4.40 95th Percentile -2.72 -2.09 -0.68 2.94 Observations 83 80 77 59 The numbers above the bars are the rankings far this portfolio versus the short bond universe. The rankings are on a scale of 1 to 100 with 1 ranking the best. 5 Years 4.44 3.64 3.48 3.33 2.01 43 46 0 0 0 10 Years ■ Median Short Bd Mgr 10 Years 6.20 5.13 4.% 4.71 3.20 17 © 2008 Asset Consulting Group, Inc. All Rights Reserved Florida Municipal Investment Trust FMIvT Intermediate High Quality Bond Fund For the Period Ending March 31, 2008 ♦ Strategy: Intermediate Bonds Fixed Income Portfolio ♦ Manager: Atlanta Capital Management Company ♦ Vehicle: Separate Account ♦ Manager Fee: 10 bps; fees are based on the net asset value of the Portfolio ♦ Admin Fee: 9 bps; fees are based on the net asset value of the Portfolio ♦ Total Expenses: Approximately 23 bps ♦ Inception Date: July 1, 1996 ♦ Benchmark: LB Interm Gov't/Credit (Ex BAA)+ABS+MBS Index ♦ Invests in Government and high quality securities while maintaining an average maturity of approximately five years. ♦ Outperform the Lehman Brothers Intermediate Govt/Credit (Ex BAA)+ABS+MBS Index over a complete market cycle (usually 3 to 5 years). ♦ Rank above median in a relevant peer group universe. ♦ The Portfolio is subject to interest rate, credit, and liquidity risk, which may cause a loss of principal. Neither the Fund nor its yield is guaranteed by the US Government. - Minimum initial investment: $50,000 - Minimum subsequent investments: $5,000 - Minimum redemption: $5,000 - The Portfolio is open once a month, on the first business day following the Portfolio Valuation date, to accept Member contributions or redemptions. - The Portfolio is valued on the last business day of the month. - The Administrator must have advance written notification of Member contributions or redemptions. t FMIvT Intermediate High Quality Bond Fund LB Interm Gov't/Credit (Ex BAA) + ABS + MBS $2.50 $2.00 $1.50 $1.00 This Quarter Last 12 Months $0.50 Beginning Market Value 213,322 194,773 Net Additions 4,540 11,239 $0.00 Return on Investment 6,372 18,221 Income 3,110 10,371 Gain/Loss 3,262 7,850 Ending Market Value 224,234 224,234 V r- r- W X�� O .-+ — N N Cn It � Ul Ln V V r X c, ON a� O, O11 OS O. O O O O O O O O O O O O O O a u> u a A, > al ao U a 0 2008 Asset Consulting Group, Inc. All Rights Reserved Florida Municipal Investment Trust FMIvT Intermediate High Quality Bond Fund As of March 31, 2008, FMIvT Intermediate High Quality Bond Fund held 102 securities in their portfolio. Holdings and portfolio characteristics are as follows: 60.0 40.0 20.0 ■ FMIvT Intermediate High Quality Bond Fund OLB Interm Govt/Credit (Ex BAA) +ABS +MBS /o M e " d v� �o e 0 r N c /0 C C o u{ 0.0% 14 V ■ FMIvT Intermediate High Quality Bond Fund OLB Interm Govt/Credit (Ex BAA) +Ass +MBS 100.0% 80.0% 60.0% 40.0% 20.0% 0 0.0 /o e e 00 .� g e v .. 00 o e $ r h M d o o CD GOVT AAA AA A BAA ■ FMIvT Intermediate QualityHigh Bond Fund O LB Interm Govt/Credit x BAA) +MBS c r C- Ln N n r d: t f � Avg Maturity Avg Cpn (%) Avg Quality Duration (yrs) YTM (%) (yrs) ■ FMIvT Intermediate High Quality Bond Fund 0-2 Year 2-4 Years 4-6 Years 6-8 Years 8-10 Years * Duration allocation for the benchmark is unavailable. © 2008 Asset Consulting Group, Inc. All Rights Reserved Florida Municipallnvestment Trust FMIvT Intermediate High Quality Bond Fund For the Periods Ending March 31, 2008 Risk vs. Return (10 Year A ninialized) 5.99% — FMIvT 5.981/0 Intermediate High 5.97% Quality Bond Fund 5.96% 5.95% a d 5.94% 5.93% LB Interco Gov't/Credit (Ex 5.920% BAA) + ABS + MBS 5.91 % 2.82% 2.82% 2 83% 2.83% 2.841/6 2.841/6 2.85% 2.85% 2.86% Standard Deviation 10 Years FMIvT LB Interm Intermediate Gov't/Credit High Quality (Ex BAA) + Bond Fund ABS + MBS Standard Deviation 2.85 2.82 Sharpe Ratio 0.93 0.92 Beta 0.99 1.00 Alpha 0.01 -- Up Capture 100.59 -- Down Capture 98.72 -- Correlation 97.74 -- R Square 95.53 -- ■FMIvT Intermediate High Quality Bond Fund OLB Interm Gov't/Credit (Ex BAA) + ABS + MBS FMIvT LB Interco 70 t 60 50 40 30 20 10 0 I 5759 22s 31 2 I � 5 00 00 02 21 �1 00 00 00 0 0 h 0 0 0 0� °r °� 02 Off° OA Os,o f� ° s ° Intermechate Gov t/Credit High Quality (Ex BAA) + Bond Fund ABS + MBS Number of Months 141 141 Highest Monthly Return 2.22% 2.12% Lowest Monthly Return -1.92% -2.35% Number of Pos. Months 105 109 Number of Neg. Months 36 32 Positive Months 74.47% 77.30% All information calculated using monthly data © 2008 Asset Consulting Group, Inc. All Rightr Reserved Florida Municipal Investment Trust FMIvT Intermediate High Quality Bond Fund For the Periods Ending March 31, 2008 Ranking 26 24 27 22 40 48 7 0 E 6 H aC 5 0 v 4 0 ;2 (V 3 2 1 1 Quarter 0 N v 2 Quarters 1 Year v'i M uy � v c 3 Years 5 Years G Q, O 10 Years ■FMIvT Intermediate High Quality Bond Fund 0LB Interm Govt/Credit (Ex BAA) + ABS + MBS ■Median Interm Bd Mgr 1 Quarter 2 Quarters 1 Year 3 Years 5 Years 10 Years 5th Percentile 4.47 8.44 12.15 7.08 5.78 6.86 25th Percentile 3.02 6.09 9.15 5.97 4.89 6.39 50th Percentile 1.81 4.45 6.96 5.31 4.55 5.97 75th Percentile 0.93 2.72 5.03 4.83 4.07 5.76 95th Percentile -0.78 0.97 3.16 3.87 3.47 5.18 Observations 164 161 158 135 The numbers above the bars are the rankings for this portfolio versus the intermediate bond universe. The rankings are on a scale of 1 to 100 with 1 ranking the best. 101 46 © 2008 Asset Consulting Group, Inc. All Rights Reserved Florida Municipal Investment Trust FMIVT Broad Market High Quality Bond Fund For the Period Ending March 31, 2008 ♦ Strategy: Expanded High Quality Bond Fund ♦ Manager: Atlanta Capital Management Company ♦ Vehicle: Separate Account ♦ Manager Fee: 15 bps; fees are based on the net asset value of the Portfolio ♦ Admin Fee: 13 bps; fees are based on the net asset value of the Portfolio ♦ Total Expenses: Approximately 34 bps ♦ Inception Date: January 1, 1998 ♦ Benchmark: Lehman Brothers A+ Aggregate Index ♦ Invests in Government and high quality securities while maintaining an average maturity of approximately eight and one-half years. ♦ Outperform the Lehman Brothers A+ Aggregate Index over a complete market cycle (usually 3 to 5 years). ♦ Rank above median in a relevant peer group universe. ♦ The Portfolio is subject to interest rate, credit, and liquidity risk, which may cause a loss of prinicpal. Neither the Fund nor its yield is guaranteed by the US Government. This Quarter Last 12 Months Beginning Market Value 121,596 107,523 Net Additions 8,347 15,586 Return on Investment 4,298 11,131 Income 1,432 5,636 Gain/Loss 2,865 5,495 Ending Market Value 134,241 134,241 - Minimum initial investment: $50,000 - Minimum subsequent investments: $5,000 - Minimum redemption: $5,000 - The Portfolio is open once a month, on the first business day following the Portfolio Valuation date, to accept Member contributions or redemptions. - The Portfolio is valued on the last business day of the month. - The Administrator must have advance written notification of Member contributions or redemptions. -+—FMlvT Broad Market High Quality Bond Fund Lehman Brothers Aggregate A&Better $2.00 $1.80 - - -- $1.60 - -- - $1.40 - - $1.20 - $1.00 -- - - $0.80 $0.60 - - - $0.40 - $0.20 $0.00 r-XXW \ GN GN o o oN N N M M M� dl- N Ln Ln V VV l,-r-I 00 c�c�c�c�c�cc0000000000000000000000000 2���5 � � � � � � � � � � � 0 2008 Asset Consulting Gmup, Inc. All Rights Reserved Florida Municipal Investment Trust FMIvT Broad Market High Quality Bond Fund As of March 31, 2008, FMIvT Broad Market High Quality Bond Fund held 63 securities in their portfolio. Holdings and portfolio characteristics are as follows: ■ FM1vT Broad Market High Quality Bond Fund 0 Lehman Brothers A+ Aggregate ■ FMIvT Broad Market High Quality Bond Fund 0 Lehman Brothers A+ Aggregate 60.0% 12 a00 o $ c a 10 N 40.0% e 8 t` 10 � M N N M r a N 7 07 e e 6 oo 4 20.0% °O N $ N1 4 o $ $ ^ ao $ G C G G N 2 0.0% ' u a C " pNpa� d 0 U U w Avg Maturity Avg Cpn (%) Avg Quality Duration (yrs) YTM ON E. (yrs) cJ ■ FMIvT Broad Market High Quality Bond Fund 0 Lehman Brothers A+ Aggregate ■ FMIvT Broad Market High Quality Bond Fund D Lehman Brothers A+ Aggregate 60.0% 100.0% o 80.0% 40.0%i 60.0% e v e o e pG ^1 W e o oo c e a e O p en N M $ 0.0% 0.0% GOUT AAA AA A 0-2 Year 2-4 Years 4-6 Years 6-8 Years 8-10 Years 10-12 Years 12+ Years © 2008 Asset Consulting Group, Inc. All Rights Reserved ' Florida Municipal Investment Trust FMIvT Broad Market High Quality Bond Fund For the Periods Ending March 31, 2008 6.10% 10 Y 6.09% 6.08% E a y 6.07% a w v 6.06% a 6.05% 6.04% 6 03% ears FMIvT Broad Lehman Market High Brothers Quality Bond Aggregate Fund A&Better Standard Deviation 3.31 3.42 Sharpe Ratio 0.84 0.79 Beta 0.94 1.00 Alpha 0.03 -- Up Capture 98.16 -- Down Capture 91.62 -- Correlation 96.74 -- 3.30% 3.32% 3.34% 3.36% 3.38% 3.409/6 3.42% 3.44% R Square 93.58 -- Standard Deviation ■FMIvT Broad Market High Quality Bond Fund 0L.ehman Brothers Aggregate A&Better 60 ' 5148 I 50 40 30 2 31 32 20 10 '4 00 l of 11 00 00 00 0 6 v, o /, 1-i6 3 I G sf o oro� o o °1 o' o!� °� °1 �cb �.3� of �Ao oS� �S� 0 FMIvT Broad Lehman Market High Brothers Quality Bond Aggregate Fund A&Better Number of Months 123 123 Highest Monthly Return 2.46% 2.51% Lowest Monthly Return -2.47% -3.24% Number of Pos. Months 88 86 Number of Neg. Months 35 37 % Positive Months 71.54% 69.92% All information calculated using monthly data. 0 2008 Asset Consulting Group, Inc. All Rights Reserved Florida Municipal Investment Trust FMIvT Broad Market High Quality Bond Fund For the Periods Ending March 31, 2008 Ranking 12 12 11 10 9 a 8 7 E E 6 r a � a 5 4 3 2 1 r c; I Quarter 2 Quarters 1 Year 13 13 32 55 v 10 vi vj o c 1"rar> 5 Years 10 Years ■ FMIvT Broad Market High Quality Bond Fund G Lehman Brothers A+ Aggregate ■ INSedian Core Bd Mgr 1 Quarter 5th Percentile 3.62 25th Percentile 2.67 50th Percentile 1.89 75th Percentile 0.63 95th Percentile -1.88 Observations 464 2 Quarters 1 Year 3 Years 5 Years 10 Years 7.60 11.27 6.99 6.07 7.21 5.90 8.64 5.98 5.15 6.40 4.65 7.19 5.50 4.73 6.13 2.65 4.63 4.89 4.41 5.92 -0.51 0.74 3.68 3.93 5.64 465 458 392 The numbers above the bars are the rankings for tbir portfolio versus the core bond universe. The rankings are on a scale of 1 to 100 with 1 ranking the best. 303 167 © 2008 Asset Consulting Group, Inc. All Rigbts Reserved