Morningstar OfficeSM Investment Planning

For more information, call 1 877 369-4331

Efficient Frontierfeatures include:Interactive graphEditable market assumptionsEditable constraintsCustom asset classes

Monte Carlovariables include:Ongoing savings rateSocial Security benefitsRetirement needsInflationTax rates

Morningstar Office’s investment planning tool helps you create in-depth, comprehensive financial plans that provide your clients with a clearer picture of their potential wealth. Because planning is fully integrated within Morningstar Office, you can generate sophisticated plans more efficiently—meaning you’ll spend less time on your computer and more time with your clients.

The planning capabilities in Morningstar Office combine Ibbotson Associates’ capital market assumptions with Morningstar’s intuitive interface. And as an all-in-one solution, complete with portfolio accounting and client relationship management tools, Morningstar Office can feed your clients’ details directly into the investment plan. Redundant data entry is minimized or eliminated, as client information flows through automatically.

Better Client AssessmentMorningstar Office reveals a client’s complete invest-ment situation, including the true overall asset allocation, based on the underlying securities held in funds and other managed accounts. The Morningstar Risk Tolerance

Questionnaire makes it easy to determine how a client might react to portfolio losses.

Generate an Efficient Frontier GraphWith a clear picture of a client’s current holdings and risk tolerance, you can generate an efficient frontier graph. Based on multiple asset classes—including commodities and REITs— the graph helps you determine the optimal portfolio diversification for any given risk level.

You can create efficient frontier graphs using the default Ibbotson assumptions for pre-tax returns, standard deviation, and correlation between each asset class, or you can incorporate your own assumptions. Load your favorite model portfolios to plot them on the efficient frontier. There’s also an option to create custom asset classes, giving you maximum flexibility with each client. To create a more realistic long-term retirement plan, you can even set multiple target allocations for different future time periods to demonstrate how you would adjust your clients’ investment strategy over time.

Interactive Efficient FrontierSelect a proposed asset allocation directly from any point on the efficient frontier curve or by selecting a model allocation or model portfolio. The darkened line along the curve shows the optimal asset mix for differ-ent levels of risk.

Monte Carlo Wealth Graph Using the new target allocation, a Monte Carlo simulation of the client’s future wealth is generated using the Ibbotson Wealth Forecast Engine.

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©2009. Morningstar Inc. All rights reserved. Product specifications are subject to change without notice.

Morningstar OfficeSM Investment Planning

Compare Current and Target PortfoliosOnce you’ve selected the asset mix that’s most appropriate for your client’s needs, choose a target portfolio and then create a detailed comparison of the current allocation ver-sus the new target allocation.

Run Monte Carlo SimulationsTest your new target allocation with advanced Monte Carlo capabilities that allow you to run sophisticated simu-lations that forecast expected wealth based on a client’s specific cash flows, tax burden, and time horizon. Perform wealth analysis for different scenarios and refine the plan by altering factors such as taxes, ongoing savings, and re-tirement needs to meet the client’s wealth goals.

Optimize a PortfolioTo create a portfolio using a select list of securities, just import the security list and use the auto-allocate feature to diversify a client’s holdings among them. The new portfolio of selected securities will closely map to the target allocation.

Create an Action PlanOnce you’ve determined the target asset allocation, you can present an action plan to the client. Show which holdings you propose to buy and sell with the Investment Recommendation Report or the Investment Policy Statement Report. The customizable IPS report helps you explain proposed changes, as well as the assumptions used to forecast the client’s future wealth.

An Integrated Solution for Sophisticated PlanningMorningstar Office’s Planning tool is the easiest and fast-est way to create sophisticated, in-depth solutions for your clients. With its enlightening “before and after” scenarios and customized reports, it allows you to make the most compelling case for your recommendations to clients and prospects. And as an integrated software solution, it means you can rely on a single source for all of your research, port-folio accounting, and planning needs.

For More InformationPlease call 1 877 369-4331 or visit:www.global.morningstar.com/planning

Investment Recommendation Report and IPS ReportsFully customizableAdd your firm’s logo to cover pageGenerate in Adobe PDF or Microsoft WordAppendix includes disclosures and capital market assumptions

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Forecast Comparison ReportDisplay the wealth percentiles forecast and return percentiles forecast based on a Monte Carlo simulation. Compare historical and potential future performance of the target allocation to the current allocation.

Investment Policy StatementInvestment Recommendation Report

Data as of 5-14-2008 Page 14 of 19

Allocation Comparison

Current Target Proposed Asset Classes Current % Target % Proposed % +/- %

US Large Cap Growth 10.23 0.00 11.68 11.68

US Large Cap Value 2.78 23.48 40.69 17.21

US Mid Cap Growth 34.87 0.00 3.60 3.60

US Mid Cap Value 0.38 0.00 5.33 5.33

US Small Cap Growth 0.01 0.00 4.91 4.91

US Small Cap Value 0.18 20.00 24.86 4.86

Non-US Dev Stk 32.41 0.00 4.64 4.64

Non-US Emrg Stk 0.16 4.47 0.00 -4.47

US Txbl Long Term Bonds 3.70 0.00 0.00 0.00

US Txbl Int Term Bonds 0.00 4.25 0.00 -4.25

US Txbl Short Term Bonds 0.00 0.00 0.00 0.00

US Infl Protected Bonds 0.92 0.00 0.00 0.00

US Tax-Exempt Bonds 0.00 0.00 0.00 0.00

US High Yield Bonds 0.00 0.00 0.00 0.00

Non-US Dev Bonds 0.92 16.94 0.00 -16.94

Non-US Emrg Bonds 0.00 15.86 0.00 -15.86

Cash 9.64 5.00 0.07 -4.93

Real Estate 0.08 0.00 4.22 4.22

Commodities 3.70 10.00 0.00 -10.00

To help you understand the proposed changes to your asset allocation, we're presenting a side-by-side comparison of your current and recommended

asset mixes. ***THIS AREA IS COMPLETELY CUSTOMIZABLE

Action Plan

Security Name Ticker Current Current Proposed Proposed Action Action Action

USD % USD % Type USD %

Nokia Corporation ADR NOK 5,660,425 261.59 100,378 4.64 Sell 5,560,047 256.96

Morningstar, Inc. MORN 3,702,300 171.10 11,400 0.53 Sell 3,690,900 170.57

Clipper CFIMX 1,026,200 47.43 0 0.00 Sell 1,026,200 47.43

Harbor Capital Appreciation Adm HRCAX 1,428,867 66.03 0 0.00 Sell 1,428,867 66.03

Apple, Inc. AAPL 572,790 26.47 0 0.00 Sell 572,790 26.47

ELEMENTS Morningstar Wide Moat Focus ETN WMW 0 0.00 394 0.02 Buy 394 0.02

First Trust Morningstar Div Leaders Idx FDL 0 0.00 26,936 1.24 Buy 26,936 1.24

iShares Morningstar Large Value Index JKF 0 0.00 1,129,408 52.20 Buy 1,129,408 52.20

iShares Morningstar Mid Core Index JKG 0 0.00 136,248 6.30 Buy 136,248 6.30

iShares Morningstar Small Core Index JKJ 0 0.00 49,046 2.27 Buy 49,046 2.27

iShares Morningstar Small Value Index JKL 0 0.00 710,004 32.81 Buy 710,004 32.81

© 2008 All Rights Reserved.

Proposed Portfolio on the Efficient Frontier

Expected Return vs Standard Deviation/Risk Target Current Proposed Frontier Risk Score

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11 .9

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15 .3

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3 .4 6 .8 10 .2 13 .6 17 20 .4 23 .8 27 .2 30 .6 34

Risk and Performance Statistics Current Target

Expected Return 9.09 9.93

Risk 18.36 11.59

Yield 1.80 3.91

Sharpe Ratio 0.50 0.86

Data as of 5-14-2008 Page 2 of 19

Wealth Forecast

Current Allocation: Median Historical Wealth Target Allocation: 10% 50% 90% Median Historical Wealth

(Wealth USD vs Years) (Percentiles)

1K

10K

100K

1M

10M

100M

2003 2008 2013 2018 2023 2028 2033 2038 2043

Probability

of Success

Current

Allocation

61%

Target

Allocation

85%

Wealth

Percentiles

10th 50th 90th

1 Year 1.9M 2.2M 2.5M

3 Year 2.1M 2.6M 3.3M

5 Year 2.0M 2.7M 3.9M

10 Year 1.9M 3.1M 5.3M

35 Year 0.0 7.4M 27.6M

IMPORTANT: The projections generated by Advisor Workstation Office Edition regarding the likelihood of various investment outcomes are hypothetical

in nature, do not reflect actual investment results and are not guarantees of future results.

Office Edition calculates a range of projected wealth amounts over time based on user-entered data that describes a client's financial situation and

desired financial goals. At the lower end of each wealth range is the amount Office Edition predicts the client will have a 90% chance of attaining

or exceeding (labeled as 10th percentile). We also show the wealth levels that the user has an estimated 90% and 50% probability of meeting or

exceeding. To determine these income ranges, Morningstar uses Monte Carlo simulation, a mathematical method used to calculate distributions in

statistical models. Office Edition uses long-term forecasts for return, risk, and correlation from Ibbotson Associates, a Morningstar company.

***THIS AREA IS COMPLETELY CUSTOMIZABLE

Monitoring Your Progress

This investment recommendation is based on your current situation, resources, and goals. In addition, it is based on our current expectations of the

behavior of asset classes included in your asset allocation. Your situation and goals will change over time, as will reasonable performance projections.

Other securities may become more appropriate for you over time. Your portfolio should be re-evaluated at least annually to ensure that you are making

progress toward your goals. In the meantime, please make every effort to update your advisor when changes in your goals or situation take place.

The performance of the securities selected for your portfolio will be monitored on an ongoing basis. Our intent in monitoring performance is to ensure

that 1) you continue to be on track to achieve your goals, 2) over a reasonable period your investments produce acceptable return in relation to risk,

3) securities contribute to the portfolio as anticipated, and 4) the portfolio continues to feature an acceptable level of risk.

***THIS AREA IS COMPLETELY CUSTOMIZABLE

Agreement

I have reviewed and agree with the tenets of this Investment Policy Statement. I will notify Dennis Michael Wilson of any changes to my information,

risk tolerance, goals, or investments. This policy will be reviewed annually.

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etaD Advisor Signature

© 2008 All Rights Reserved.

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