Colony Capital Management has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). The CFA Institute has not been involved with the preparation or review of this report. These results have been prepared and presented in compliance with GIPS® beginning 1/1/93. The composite was originally created in 1985. From 1/1/92 forward, composite performance is asset-weighted; prior to 1/1/92, the firm’s fixed income composite was equal-weighted. Composite performance is presented both gross and net of investment management fees. Since 1/1/93, composites have been valued monthly and portfolio returns have been weighted by using beginning-of-month market values. The dispersion of annual returns is measured by the range between the highest and lowest performing portfolios in the composite. As of 9/30/08, the composite included 1 account and totaled $11 million which represented 8% of the firm’s total assets, 89% of the firm’s total fixed income assets, and 92% of the firm’s discretionary tax-exempt assets managed in this product. There is no minimum asset size below which portfolios are excluded from a composite. A complete list and description of the firm’s composites is also available. Balanced portfolio fixed income segments were included from 10/1/85 to 12/31/91. The cash has been allocated based upon the client’s actual asset allocation. Performance is expressed in US dollars. Performance results reflect total fund returns which include the reinvestment of interest. Interest income is accounted for on an accrual basis. Trade date accounting is used. This composite does not contain any non-fee paying portfolios. For the trailing five years, the lowest performing component returned 3.55% annualized; the highest returned 3.55% annualized. Past performance should not be used as an indication of future results. Colony Capital Management is an independent investment adviser established in 1971 and is registered with the SEC. Firm assets represent the total assets under management of all fee-paying, discretionary portfolios. The composite includes all discretionary, nontaxable, non-individual fixed income portfolios. Our fixed income management process focuses primarily on preservation of principal with enhancement of returns as the secondary objective.

Gross-of-fees performance returns are presented before management fees, custodial fees, and withholding taxes but net of all trading expenses. The annual fee for Fixed Income investment advisory services is based on the market value of the assets under supervision. The fee formula is: 0.50% on the first $10,000,000; 0.375% on the next $20,000,000; 0.25% on the next $20,000,000. Management fees will vary with both the product being considered and the account size. This published fee schedule is also disclosed in Part II of Form ADV, as filed by the firm with the Securities & Exchange Commission. For example, a $10 million portfolio with an 8% return each year would appreciate to $21.59 million at the end of 10 years when compounded annually. If the same account were subjected to an annual management fee of .50%, the portfolio would be worth $20.61 million at the end of 10 years. Annual returns are time-weighted rates of return calculated by linking monthly returns. Additional information regarding the firm’s policies and procedures for calculating and reporting performance results is available upon request. The Barclays Capital Intermediate Treasury Index is the most appropriate benchmark. As of 9/30/08, the composite and Barclays Capital Intermediate Treasury Index have the following characteristics respectively: Average Duration 2.3/3.7yrs; Average Maturity 2.5/4.2yrs; Yield to Maturity 2.2%/2.6%; Average Coupon 3.8%/4.2%.

*BCIT = Barclays Capital Intermediate Treasury Index