TANDEM PORTFOLIO

TANDEM BOND PORTFOLIO

DURATION YTM PRECENTAGECOMPOSITE DURATION COMPOSITE YTM

Templeton Global Fund 4.63 4.66% 10.00%

Templeton Global Total Return 5.77 6.75% 10.00%

Pimco Global Bond Fund 5.07 4.60% 10.00%

Pimco Total Return Bond Fund 4.74 3.71% 10.00%

ING (L) Renta Fund EM 0.66 3.36% 5.00%

ING(L) Renta Fund Asian Debt 4.46 5.87% 5.00%

ING International EMD USD 6.83 8.00% 5.00%

Loomis Sayles 6 9.80% 10.00%

Ishares Barclays CRD- CFT 5.88 4.41% 15.00%

UBS Medium Term Bond 2.4 1.06% 10.00%

Janus US High Yield 3.8 9.06% 5.00%

4.61 5.28%

11/31/09 4.53 5.37%

AVERAGE CREDIT RATING

AAA10.00% AA

25.00%

A30.00%

BBB+10.00%

BBB15.00%

B5.00%

Cash5%

CURRENCY ALLOCATION

US Dollar73.63%

Other*8.84%

South Korea Won

3.40%

Swedish Krona2.50%

Malaysia Ringgit2.10%

Brazilian Real1.79%

Poland Zloty1.60%

CAD1.14%

GEOGRAPHIC ALLOCATION

United States39.90%

Other*20.86%

Cash6.27%

South Korea3.43%

United Kingdom3.42%

Argentina3.20%

Canada3.00%

Germany2.86%

Australia2.53%

Indonesia2.24%

Brazil2.19%

Netherlands1.78%

France1.62%

International Institution

1.33%

Poland1.32%

Sweden1.17%

Russian Federation1.12%

ASSET ALLOCATION

Investment Grade Credit

37.06%

Emerging Markets27.80%

Foreign Government11.69%

Cash6.90%

High Yield Credit4.13%

US Government 4.00%

Non-Corporate Bonds2.53%

Other*2.35%

Non-US-Developed1.35% Mortgage

0.90%

Convertible Bonds0.55%

Municipal0.50%

JAPAN VS. US

RJA VS.DBA VS. RIEHA

RJA VS.DBA VS. RIEHA

-0.41%

-0.33%

-0.27%

-0.21%

-0.02%

0.10%

0.14%

0.23%

0.28%

0.42%

-1% 0% 0% 0% 0% 0% 1%

Lehman BrothersU.S. Corporate High Yield

Lehman Bros. US Corporate

Lehman Brothers Pan-European High Yield (Euro)

ING (L) RENTA-ASIAN DEBT-PC

Lehman Bros.Global Emerging Markets

Lehman Bros. US Aggregate

Lehman Bros. Euro Aggregate Corp.

Lehman Bros.Global Aggregate

Lehman Bros. Euro Aggregate

ISHARES IBOXX INV GR CORP BD

-3.76%

-2.48%

-1.56%

-0.78%

-0.58%

-0.46%

-0.04%

0.70%

2.11%

3.28%

-6% -4% -2% 0% 2% 4%

Lehman BrothersU.S. Corporate High Yield

Lehman Brothers Pan-European High Yield (Euro)

ING (L) RENTA-ASIAN DEBT-PC

Lehman Bros. Euro Aggregate Corp.

Lehman Bros.Global Emerging Markets

Lehman Bros. Euro Aggregate

Lehman Bros. US Corporate

Lehman Bros. US Aggregate

ISHARES IBOXX INV GR CORP BD

Lehman Bros.Global Aggregate

5.93%

6.07%

6.79%

6.93%

15.71%

18.68%

35.61%

37.19%

58.21%

76.10%

0% 20% 40% 60% 80%

Lehman Brothers Pan-European High Yield (Euro)

Lehman BrothersU.S. Corporate High Yield

ING (L) RENTA-ASIAN DEBT-PC

Lehman Bros.Global Emerging Markets

Lehman Bros. US Corporate

Lehman Bros. Euro Aggregate Corp.

Lehman Bros.Global Aggregate

Lehman Bros. Euro Aggregate

ISHARES IBOXX INV GR CORP BD

Lehman Bros. US Aggregate

WTDMTDYTD

0.17%0.47%0.37%2YR

0.14%0.68%1.13%5YR

0.03%0.64%1.62%10YR

-0.06%0.45%1.95%30YR

WTDMTDYTD0.14%0.07%-0.42%2YR

0.12%0.19%0.11%5YR

0.07%0.23%0.44%10YR

0.05%0.23%0.58%30YR

2.427

9.092

4.770

22.975

9.250

0

5

10

15

20

25

18/05/2006 18/10/2006 18/03/2007 18/08/2007 18/01/2008 18/06/2008 18/11/2008 18/04/2009

U.S. Treasury U.S. Corporate Investment Grade U.S. Corporate High Yield

9.148

4.735

2.445

255.9762

145.9762

165.9762

198.9762

U.S. 5-Year/Fed Funds Rate Spread

(Five-Year Treasury Yield less Fed Funds Rate)

228.595

1980-1982 RECESSION

1990-1992 RECESSION

2001-2002 WORLDWIDE

RECESSION

2007-2009 FINANCIAL CRISIS

FDTR Index – USGG5YR Index = 242.884

U.S. 2-Year/Fed Funds Rate Spread

(Two-Year Treasury Yield less Fed Funds Rate)

2007-2009 FINANCIAL CRISIS

2001-2002 WORLDWIDE

RECESSION

1990-1992 RECESSION

1980-1982 RECESSION

2007-2009 FINANCIAL CRISIS

71.396

FDTR Index – USGG2YR Index = 88.560

U.S. 10-YEAR/2-YEAR SPREAD

(10-YEAR LESS TWO-YEAR TREASURY

2007-2009 FINANCIAL CRISIS

2001-2002 WORLDWIDE

RECESSION

1990-1992 RECESSION

1980-1982 RECESSION

283.901

USGG10YR Index – USGG2YR Index = 269.937

The difference between 2- and 10- year Treasury notes widened to a record

as investors bet an accelerating economic recovery will fuel inflation and

damp demand for government debt.

U.S. 10-Year/3-Month Spread

(10-Year Treasury Yield less Three-Month T-Bill Rate)

2007-2009 FINANCIAL CRISIS

2001-2002 WORLDWIDE

RECESSION

1990-1992 RECESSION

1980-1982 RECESSION

376.343

USGG10YR Index – USGG3M Index = 377.920

U.S. FIVE-YEAR TIPS YIELD

(FIVE-YEAR TREASURY INFLATION-PROTECTED SECURITIES)

0.3833

0.4193

U.S. 10-YEAR TIPS YIELD

(10-YEAR TREASURY INFLATION-PROTECTED SECURITIES)

1.4253

1.4297

U.S. FIVE-YEAR IMPLIED BREAKEVEN INFLATION RATE

(FIVE-YEAR TREASURY LESS TIPS YIELD)

1.8836

1.9459

U.S. 10-YEAR IMPLIED BREAKEVEN INFLATION RATE

(10-YEAR TREASURY LESS TIPS YIELD)

2.1837

2.3762

U.S. 2-YEAR IMPLIED BREAKEVEN INFLATION RATE

(2-YEAR TREASURY LESS TIPS YIELD)

1.1647

1.2684

WORLD INFLATION BREAKEVEN RATES

12.64

19.69

20.58

26.47

27.17

28.34

28.36

28.45

31.58

33.08

33.77

34.20

34.21

34.27

34.47

37.02

37.21

37.38

40.48

46.29

54.63

0 10 20 30 40 50 60

NASDAQ 100 STOCK INDX

RUSSELL MIDCAP GROWTH IX

Russell Midcap Index Total Ret

S&P 400 MIDCAP INDEX

RUSSELL 1000 GROWTH INDX

RUSSELL 3000 GROWTH IDX

RUSSELL 2000 GROWTH IDX

RUSSELL 2500

Russell Midcap Value Index Tot

RUSSELL MIDCAP VALUE IX

S&P MidCap 400 Value

MSCI US LAR GR

S&P 500 Growth

RUSSELL 1000 INDEX

RUSSELL 3000 INDEX

Russell 3000 Total Return Inde

RUSSELL 2000 INDEX

S&P 500 INDEX

RUSSELL 2000 VALUE IDX

RUSSELL 1000 VALUE INDEX

MSCI US LAR VA

72.89 71.0763.42 62.79 62.79 61.79

56.75 55.07 54.6351.44

47.56 44.96

0

10

20

30

40

50

60

70

80

-0.65%

-0.55%

-0.50%

-0.50%

-0.44%

-0.21%

-0.16%

-0.02%

0.10%

0.33%

-1% -1% 0% 0% 0% 0% 0%

MSCI WORLD MATERIAL

MSCI WORLD FINANCIALS

MSCI WORLD TELECOM

MSCI WORLD UTILITIES

MSCI WORLD CONSUMER STAPLES

MSCI WORLD INDUSTRIAL

MSCI WORLD CONSUMER DISCRETIONARY

MSCI WORLD INFORMATION TECHNOLOGY

MSCI WORLD ENERGY

MSCI WORLD HEALTHCARE

-1.19%

0.80%

0.91%

1.13%

1.76%

2.01%

2.45%

2.69%

3.82%

5.61%

-2% 0% 2% 4% 6%

MSCI WORLD INFORMATION TECHNOLOGY

MSCI WORLD CONSUMER DISCRETIONARY

MSCI WORLD MATERIAL

MSCI WORLD UTILITIES

MSCI WORLD HEALTHCARE

MSCI WORLD INDUSTRIAL

MSCI WORLD ENERGY

MSCI WORLD TELECOM

MSCI WORLD CONSUMER STAPLES

MSCI WORLD FINANCIALS

2.01%

8.63%

16.40%

18.63%

22.89%

23.95%

27.72%

37.30%

50.88%

58.40%

0% 10% 20% 30% 40% 50% 60% 70%

MSCI WORLD MATERIAL

MSCI WORLD INFORMATION TECHNOLOGY

MSCI WORLD CONSUMER DISCRETIONARY

MSCI WORLD FINANCIALS

MSCI WORLD INDUSTRIAL

MSCI WORLD ENERGY

MSCI WORLD CONSUMER STAPLES

MSCI WORLD HEALTHCARE

MSCI WORLD TELECOM

MSCI WORLD UTILITIES

PERFORMANCE YTD VS. % OF

HOLDINGS

58%51%

37%

28%24% 23%

19% 16%

9%2%

11%16%

6%

17%10% 10% 7% 6%

2% 2%0%

10%

20%

30%

40%

50%

60%

70%

-1.73%

-1.71%

-1.62%

-1.53%

-1.51%

-1.29%

-0.97%

-0.94%

-0.91%

-2.00% -1.50% -1.00% -0.50% 0.00%

MSCI US LARGE CAP GROWTH INDEX

MSCI US LARGE CAP 300 INDEX

MSCI US LARGE CAP VALUE INDEX

MSCI US SMALL CAP GROWTH INDEX

MSCI US SMALL CAP 1750 INDEX

MSCI US MID CAP GROWTH INDEX

MSCI US MID CAP 450 INDEX

MSCI US MID CAP VALUE INDEX

MSCI US SMALL CAP VALUE INDEX

0.24%

1.33%

2.48%

4.97%

6.10%

6.55%

7.26%

7.70%

8.88%

-5% 0% 5% 10%

MSCI US SMALL CAP GROWTH INDEX

MSCI US SMALL CAP 1750 INDEX

MSCI US MID CAP GROWTH INDEX

MSCI US SMALL CAP VALUE INDEX

MSCI US MID CAP 450 INDEX

MSCI US MID CAP VALUE INDEX

MSCI US LARGE CAP GROWTH INDEX

MSCI US LARGE CAP 300 INDEX

MSCI US LARGE CAP VALUE INDEX

14.47%

24.17%

26.71%

34.54%

37.33%

38.42%

41.18%

44.93%

45.69%

0% 10% 20% 30% 40% 50%

MSCI US SMALL CAP GROWTH INDEX

MSCI US MID CAP GROWTH INDEX

MSCI US MID CAP 450 INDEX

MSCI US SMALL CAP 1750 INDEX

MSCI US MID CAP VALUE INDEX

MSCI US LARGE CAP GROWTH INDEX

MSCI US SMALL CAP VALUE INDEX

MSCI US LARGE CAP 300 INDEX

MSCI US LARGE CAP VALUE INDEX

-3.55%

-2.40%

-1.26%

-0.77%

-0.53%

1.47%

1.64%

1.68%

2.33%

3.24%

-4% -3% -2% -1% 0% 1% 2% 3% 4%

WHEAT FUTURE(CBT)

WHITE SUGAR (LIF)

WTI CRUDE FUTURE

COPPER FUTURE

CORN FUTURE

ROUGH RICE (CBOT)

GOLD SPOT $/OZ

NATURAL GAS FUTR

COFFEE 'C' FUTURE

SILVER SPOT $/OZ

-8.71%

-8.03%

-7.01%

-4.26%

-2.71%

-0.72%

2.69%

5.34%

14.93%

16.37%

-10% -5% 0% 5% 10% 15% 20%

WHITE SUGAR (LIF)

NATURAL GAS FUTR

COPPER FUTURE

WTI CRUDE FUTURE

CORN FUTURE

ROUGH RICE (CBOT)

COFFEE 'C' FUTURE

GOLD SPOT $/OZ

WHEAT FUTURE(CBT)

SILVER SPOT $/OZ

-21.80%

-21.18%

-10.67%

7.39%

9.46%

24.36%

33.36%

48.16%

93.25%

131.27%

-50% 0% 50% 100% 150%

COPPER FUTURE

WHITE SUGAR (LIF)

SILVER SPOT $/OZ

WTI CRUDE FUTURE

GOLD SPOT $/OZ

COFFEE 'C' FUTURE

ROUGH RICE (CBOT)

CORN FUTURE

WHEAT FUTURE(CBT)

NATURAL GAS FUTR

Bloomberg's U.S. Financial Conditions Index Components and Weights

Weight

Money Market

Ted Spread 11.1%

Commercial Paper/T-Bill Spread 11.1%

Libor-OIS Spread 11.1%

33.3%

Bond Market

Investment-Grade Corporate/Treasury Spread 6.7%

Muni/Treasury Spread 6.7%

Swaps/Treasury Spread 6.7%

High Yield/Treasury Spread 6.7%

Agency/Treasury Spread 6.7%

33.3%

Equity Market

S&P 500 Share Prices 16.7%

VIX Index 16.7%

33.3%

Total 100%

FINANCIAL CONDITIONS INDICATOR

0.201Normal Financial Conditions

Weekly Change 47.1665 %

0.088

Lehman Failure

2.3945 %

20.9441

Weekly Change - 12.7685 %

Lehman Failure

8.6630

Weekly Change 4.7264 %

Lehman Failure

21.5141

Weekly Change - 7.6870 %

195.77

193.78

Weekly Change - 1.0165 %

Equity Market S&P 500

1126.48Weekly Change - 1.0102 %

1115.10

4187.86

4099.63

Weekly Change - 2.11%

Lehman Failure

Lehman FailureLehman Failure

19.47

Weekly Change + 11.35%

21.68

Lehman Failure

Lehman Failure

Lehman FailureLehman Failure

3258.00

Weekly Change NO CHANGE