INVESTMENT STRATEGIES

*Benchmarks:

Citigroup 1-3 Year U.S.Treasury Index is an unmanaged index produced by Citigroup to measure the returns of U.S.Treasury fixed income securities in the maturity range of 1 to 3 years

Merrill Lynch 1-3 Year U.S.Treasury Index is an unmanaged index produced by Merrill Lynch to measure the returns of U.S.Treasury fixed income securities (direct sovereign debt of the U.S. Government) in the maturity range of 1 to 3 years

Barclays Capital Government Intermediate Index is an unmanaged index comprised of all publicly issued non-convertible domestic debt of the U.S. government or any agency thereof, or any quasi-federal corporation and of corporate debt guaranteed by the U.S. government. Only notes and bonds with minimum outstanding principal of $1 million and minimum maturity of one year and maximum maturity of ten years are included.

Barclays Capital Government/Credit Intermediate Index is an unmanaged index produced by Barclays Capital Inc. to measure the returns of public-obligations of the U.S.Treasury, publicly-issued debt of U.S. Government agencies & quasi-federal corporations, corporate & foreign debt guaranteed by the U.S. Government and U.S. corporate & foreign debentures & secured notes, all in the maturity range of 1 to 9.99 years; the inclusion of each security is determined by a rule-based system, incorporating factors such as maturity, liquidity and quality; the current quality criteria are that bonds must be rated investment-grade (Baa3/BBB- or higher) by at least two of the three agencies of Moody's, S&P and Fitch

Barclays Capital [U.S.] Aggregate Bond Index is an unmanaged index produced by Barclays Capital Inc. to measure the returns of securities that are SEC-registered, taxable and U.S. dollar denominated; the inclusion of each security is determined by a rule-based system, incorporating factors such as maturity, liquidity and quality; the current quality criteria are that bonds must be rated investment-grade (Baa3/BBB- or higher) by at least two of the three agencies of Moody's, S&P and Fitch

Citigroup Broad Investment Grade Bond Index is an unmanaged index produced by Citigroup to measure the returns of U.S.Treasury, U.S. Government-sponsored, mortgage and corporate fixed income securities; the inclusion of each security is based on factors such as maturity (must be at least one year), liquidity and quality (must be rated investment-grade)

Citigroup BB/B ['High-Yield B-Rated'] Bond Index is an unmanaged index produced by Citigroup to measure the returns of corporate fixed income securities rated BB or B; the inclusion of each security is based on factors such as maturity (must be at least one year), liquidity and quality (must be rated BB or B)

Merrill Lynch High Yield Master II [Bond] Index is an unmanaged index produced by Merrill Lynch to measure the returns of U.S. dollar-denominated corporate fixed-income securities bonds publicly issued in the U.S. domestic market; the inclusion of each security is determined by a rule-based system, incorporating factors such as maturity (must be at least one year), liquidity and quality; the current quality criteria are that bonds must be rated below investment-grade based on a composite of Moody's and S&P

Citigroup World Government Bond Index (WGBI) ex-US (Hedged) index. The (WGBI) index is a capitalization weighted index composed of government bonds from twenty-two countries. Each bond must have a minimum rating of BBB-/Baa3 by S&P or Moody’s, and the benchmark does not include US Government bonds. Returns are hedged back to the US dollar.

London Interbank Offered Rate is a reference rate fixed on a daily basis by the British Bankers' Association. The LIBOR is derived from a filtered average of the world's most creditworthy banks' interbank deposit rates for larger loans with maturities between overnight and one full year.