An Introduction to Standard & Poor’s Bringing analytical rigor, objectivity and integrity to your portfolio

Today’s Agenda Who is Standard & Poor’s (S&P)? Standard & Poor’s History and Milestones Why I Use Standard & Poor’s –Transparency and independence –Experienced and insightful research staff –Rigorous research process How S&P Can Add Value to Your Portfolio

3. Who is Standard & Poor’s? Standard & Poor’s (S&P) was founded in 1860 by Henry Varnum Poor based on the tenet: “Every Investor’s Right To Know” World’s foremost provider of: –Independent credit ratings (bonds) –Indexes like the S&P 500 –Investment research (stocks, bonds, ETFs) Portfolio analysis through Standard & Poor’s Investment Advisory Services, LLC (SPIAS) 6,500 employees located in 22 countries A division of The McGraw-Hill Companies (NYSE:MHP)

4. Standard & Poor’s History Important Milestones 1860 Henry Varnum Poor Publishes “History Of Railroads …” 1867 Poor’s Publishing created months prior to crash, Standard Statistics & Poor’s Publishing Advise Investors to Liquidate 1932 Poor’s Publishing merges with Standard Statistics. S&P is born McGraw-Hill acquires Standard & Poor’s SPIAS established to provide advice to financial community 2004 Stock Reports introduced S&P 500 Index introduced Expansion outside U.S. begins SPIAS introduces first asset mgmt. program

5. Why I Use Standard & Poor’s Market Transparency S&P research process clearly and openly communicated Provider of regular investment, economic and market commentaries Objectivity and Independence S&P has no investment underwriting or securities distribution activities S&P analysts do not own stocks they cover Independent investment research provider of choice

6. Why I Use Standard & Poor’s Experienced and Insightful Investment Staff (Qualitative) *6 S&P analysts awarded “Best on the Street” in 2005 by The Wall Street Journal. TeamNumber Average Years Market Experience Investment Policy Committee1021 Equity Analysts*1009 Fund Analysts4515 Portfolio Analysts720 Economists315 Index Analysts205

7. Why I Use Standard & Poor’s Rigorous Research Processes: Stocks STARS buy-hold-sell recommendations (since 1986) Quality Rankings Fair Value

8. Why I Use Standard & Poor’s The STARS model performance graph is only an illustration of S&P’s research: it shows how stocks that received particular STARS rankings performed. This performance is not a result of investment advisory activities of Standard & Poor’s Investment Advisory Services LLC (SPIAS). The performance of these stocks does not show how any model portfolio has performed. The STARS rankings are only one piece of information SPIAS utilizes when selecting stocks for stock baskets. Stock recommendations will not be made solely on STARS rankings, nor will investors be able to invest in all of the stocks that receive a particular STARS ranking through the program. STARS model performance does not represent the results of actual trading of investor assets. Thus, the model performance shown does not reflect the impact that material economic and market factors might have had on decision-making if actual investor money had been managed. While model performance for five, four and three STARS performed better than the S&P 500 for the period shown, the performance during any shorter or longer period may not have. STARS does not take into account any particular investment objective, financial situation or need and is not intended as an investment recommendation or strategy. Investments based on the STARS methodology may loose money. The model performance calculation for STARS does not take into account reinvestment of dividends. It also does not take into account capital gains taxes, brokers' commissions and investment advisory fees. The imposition of these fees and charges would cause actual performance to be lower than the model performance shown. Past STARS model performance is no guarantee of future performance. The Standard & Poor’s 500 index is unmanaged and includes a different number of holdings, has different risk characteristics than the STARS stocks, and does not reflect expenses and fees or takes into consideration the reinvestment of dividends. It is not possible to invest in an index. Past performance of the index is no guarantee of future performance. Analytic services and products provided by Standard & Poor’s are the result of separate activities designed to preserve the independence and objectivity of each analytic process. Standard & Poor’s has established policies and procedures to maintain the confidentiality of non-public information received during each analytic process.

9. Why I Use Standard & Poor’s Rigorous Research Processes: Stocks STARS Cumulative Performance December December 2005

10. 8,000 Domestic Mutual Funds Why I Use Standard & Poor’s Performance Consistency Rigorous Research Processes: Mutual Funds Best of Breed Funds Manager Interviews Secondary Research

11. Why I Use Standard & Poor’s 150 ETFs Structure Rigorous Research Process: ETFs Best of Breed ETFs LiquidityCost

12. How S&P Can Add Value To Your Portfolio What does this mean to you? It means a portfolio built on…. 140 years of experience “Every Investor’s Right to Know” Independent and unbiased investment research and analysis A deep bench of investment analysts from which to draw In-depth coverage and analysis on more than 1,500 domestic stocks In-depth analysis on approximately 8,000 funds Rigorous research processes that are transparent and independent

13. Questions & Answers ? Copyright © 2005 by The McGraw-Hill Companies, Inc. Redistribution, reproduction and/or photocopying in whole or in part is prohibited without written permission “Standard & Poor’s” and "STARS" are trademarks of The. All rights reserved. “S&P”, “S&P 500”, McGraw-Hill Companies, Inc. The information in this slide presentation is not investment advice. Analytic services and products provided by Standard & Poor’s are the result of separate activities designed to preserve the independence and objectivity of each analytic process. Standard & Poor’s has established policies and procedures to maintain the confidentiality of non-public information received during each analytic process. SP3-0106