1. Asset Allocation: Investment Philosophy We apply fundamental, integrated and global analysis to estimate sustainable, longer-term value across markets. Periodically, we identify unstable disturbances away from longer-term equilibrium (price-value discrepancies) with sufficient conviction regarding their existence, magnitude and likelihood of convergence to justify an active allocation away from the normal benchmark. It is our aim to maximize the clients risk adjusted out-performance over a full investment cycle–taking into account the specific investment target and guidelines.

2. Fundamental valuation models Fundamentals determine fair value Cash flows discounted at equilibrium rates of return Market behavior models Market valuation Liquidity Growth Market sentiment Strategy Setting Set strategy positions considering contribution to portfolio Risk Fundamental Anchor Market Behavior Models Capture Opportunity Asset Allocation Process Identification of Opportunities

3. Multi-Asset Portfolio: Current Strategy September 30, 2003 1 Benchmark date as of 8/31/03 2 Current Strategy will fall in this range with 95% frequency 3 Includes Emerging Market Debt denominated in USD

4. Multi-Asset Portfolio: Current Strategy September 30, 2003

5. Multi-Asset Portfolio: Strategy Summary September 30, 2003 Quality/ Sector EQUITIES 1 MULTI-ASSET PORTFOLIO Industry Exposures Stock Selection Interest Rate Sensitivity/ Duration BONDS Asset Allocation EquityBondsReal EstatePrivate Mkts.CashCurrency Investment Grade60.0% Cash Equiv.0.2 Govt.57.7 Agencies0.0 Supranational2.2 Provincial0.0 Corporate0.0 Emerging Market Debt40.0 Total100.0% Major Market Duration Strategy US1.00x Japan0.81 Australia0.70 Canada0.80 Denmark1.00 EMU1.07 Sweden0.55 Switzerland1.00 UK1.00 Emerging Market Debt1.00 Investment Grade78.9% Cash Equiv.1.3 Treasury/ Agency16.5 Corporates17.1 Mortgages30.0 Asset-Backed14.0 High Yield21.1 TIPS0.0 Total100.0% USNon-US US32.0%19.0%10.0%3.5%0.0%66.0% Japan4.40.00.00.00.06.8 Other Developed20.13.00.00.00.019.2 Emerging Markets6.02.00.00.00.06.0 62.5%24.0%10.0%3.5%0.0%100.0% 1 Equity data as of 6/30/03 +Pharmaceuticals + Diversified Financial Services +Tobacco +Wireless Telecomm Services +Media - Specialty Retail -Semiconductors -Insurance -Beverages -Industrial Conglomerates +Wyeth +Citigroup + Federal Home +Nextel + Nestle -Cisco -Intel - Wal-Mart - Pfizer - Exxon Mobil