(cont.)

IPEX would conduct a detailed review of all existing money managers and mutual funds that comprise the client's investment program, with a particular emphasis on their respective investment styles. This review would include an analysis of the historical investment returns of the various money managers and mutual funds for the purpose of determining their correlation to each other and to ascertain the level of actual style diversification in the overall account. This analysis would enable IPEX to determine whether the current mix of money managers and mutual funds positions the overall portfolio in a manner that is consistent with the objectives set forth in the Investment Policy Statement. IPEX would offer specific recommendations, as appropriate. 

IPEX would conduct a detailed review of the historical investment performance of all existing money managers and mutual funds that comprise the client's investment program. Specifically, IPEX would analyze the accounts' absolute, relative and risk adjusted total returns. In the case of balanced accounts, the analysis would focus on both the overall account and the separate equity and fixed income components. The evaluation would offer comparisons between the accounts' performance and the performance of broad market benchmarks, style specific benchmarks and a representative peer group of money managers that utilize similar investment styles. IPEX would offer specific recommendations, as appropriate. 

Finally, IPEX would conduct a detailed review of the custodian(s) and the brokerage arrangements that are currently in place, including an analysis of all expenses and all disclosed commission costs, as well as the costs associated with each of the money managers and mutual funds. IPEX would examine these costs in relation to the broad investment market. In conjunction with this analysis, IPEX would contact all existing money managers for their brokerage and custodian preferences, as well as explore other possible custodial and brokerage arrangements. IPEX would offer specific recommendations, as appropriate. 

After IPEX has completed all aspects of the analysis set forth above, we would provide the client with a comprehensive written evaluation, complete with reports and graphs, which would summarize all of our findings, conclusions and recommendations.

Following the transmittal of the written evaluation, IPEX would plan to meet with the client at a mutually convenient time to review our findings, conclusions and recommendations in detail, to assist the client in agreeing upon a plan of action, as well as to answer any questions raised by the analysis.