Fixed Income Managed Accounts

Investment Grade Program

• Invests 100% in investment grade bonds (North American corporate bonds, U.S. government agencies, and foreign investment grade bonds)

At StateTrust, our Investment Grade Program is especially designed to control risk and offer diversification*. Our program invests only in bonds from a variety of North American and foreign companies and from the U.S. Treasury/U.S. Government agencies that have an average risk rating of BBB- (S&P ratings), or Baa (Moody’s ratings).

* Diversification does not guarantee a profit or ensure against loss.  The graph above is a representative sample of investment sectors and percentages utilized (the actual sectors and percentages vary over time).

Please note: Investments in fixed income ETF's are subject to interest and market risks.

Emerging Markets Program

Our Emerging Markets Program looks to take advantage not only of U.S. Investment Grade Securities, but also to offer some exposure to developing countries. This would include securities from an assortment of governments and corporations. We research and analyze different emerging economies and environments to determine the best opportunities.

Averages Number of Securities 30 Duration 7 Maturity (yrs) 12

Please note: Investments in fixed income ETF's are subject to interest and market risks.  The graph above is a representative sample of ratings of securities in our emerging markets program (the actual percentages for each rating vary over time).

Euro Program

• Invests 100% in denominated euro bonds

With our Euro Program, you get the opportunity to invest your assets in denominated euro bonds. These Investment Grade bonds comprise sovereign debt and a host of corporate securities (Investment Grade) as well.

Please note: Investments in fixed income ETF's are subject to interest and market risks.  The graph above is a representative sample of ratings of securities in our euro program (the actual percentages for each rating vary over time).

US Government & Agencies Program

• Invests 100% in the U.S. government and government agencies

Bonds from the U.S. government and assorted government agencies are among some of the safest ones you can buy, since the U.S. government is considered one of the best sovereign credit risks.  If you are looking for steady, stable returns over time, this is one of your best options.

U.S. Government & Agencies Program U.S. Treasury Securities Federal Agency Bonds

Risk Levels from Lowest to Highest 1. U.S. Government/Agencies Program 2. Investment Grade Program 3. International Program 4. Euro Program 5. Emerging Markets Program

Averages Number of Securities 30 Duration 5 Maturity (yrs) 10

Please note: Investments in fixed income ETF's are subject to interest and market risks.  The graph above represents a representative split of the securities contained in our US Government and Agencies program (the actual split may vary over time).

Municipal Bond Program by State

• Invests 100% in municipal and state general obligation bond offerings

At StateTrust, our Municipal Bond Program is especially designed to control risk while offering the advantages of certain tax exemptions.  Our program invests only in bonds from a variety of US municipalities and states that have an average risk rating of BBB (S&P ratings), or Baa (Moody’s ratings).

A municipal bond is a bond issued by a city or other local government, or their agencies. Potential issuers of municipal bonds includes cities, counties, redevelopment agencies, special-purpose districts, school districts, public utility districts, publicly owned airports and seaports, and any other governmental entity (or group of governments) below the state level. Municipal bonds may be general obligations of the issuer or secured by specified revenues.

In the United States, interest income received by holders of municipal bonds is often exempt from federal income tax* and the income tax of the state in which they are issued.

A state general obligation bond is a common type of municipal bond in the United States that is secured by a state's pledge to use legally available resources, including tax revenues, to repay bond holders.

*  Income maybe subject to the Alternative Minimum Tax (AMT)

States covered:

All 50 US states and the District of Columbia.

Cumulative historic default rates for municiapl bonds and corporate bonds in percent 1970-2007                        (source:  Moody's/S&P)

Please note: Investments in fixed income ETF's are subject to interest and market risks.