Wells Fargo Investment Overview Cambrian School District August 16, 2012

Wells Fargo Investment Overview About Wells Fargo Advisors  ƒThird-largest full-service provider of retail brokerage services in the United States*  ƒRepresented by more than 15,000 Financial Advisors in 5,000 U.S. locations  Emerged from Wells Fargo & Company’s December 31, 2008 acquisition of Wachovia Corporation  ƒPredecessor brokerage firms include Wachovia Securities, LLC, and A.G. Edwards & Sons, Inc. * Based on number of Financial Advisors within Wells Fargo’s brokerage business.

Wells Fargo Investment Overview Investment Policy Statement  Based on State Statutes  Objectives Safeguard Principal Meet liquidity needs Achieve a return on funds Beat return on LAIF over a 3-5 year period

Wells Fargo Investment Overview Investment Policy Statement (cont’d)  Allowed Investments Treasury Securities Agency Securities Fannie Mae Freddie Mac Federal Home Loan Bank Others Corporate Debt Securities rated A or better at time of purchase: limit 30% of portfolio Certificates of Deposit: limit 30% of portfolio Maximum maturity 5 years

Wells Fargo Investment Overview History of Capital Projects Investment Account  Source of Funds – Sale of School Site(s)  1994 approach to Prudential Securities to diversify away from LAIF and increase returns  Development of Investment Policy Statement  Move to A.G. Edwards in 2004

LAIF vs. WFA Investment Account Annualized Quarterly Returns YearMarchJuneSeptemberDecember %1.51%0.90%0.60% %4.32%3.20%1.36% % 0.51%0.46% %1.96%1.64%0.28% %0.48%0.38% %2.24%0.00%1.08% % %0.84% LAIF returns are from the Calfornia State Treasurers website. WFA Account returns are taken from past quarterly reports.