MPSIF Market Strategy Value Fund October 20, 2003

Objectives Market catalysts Sector recommendations

Bull Run YTD, Dow Jones Industrial Average ↑ 17% YTD, S&P 500 ↑ 18% YTD, S&P 500 ↑ 18% YTD, NASDAQ Composite ↑ 43% YTD, NASDAQ Composite ↑ 43% Earnings expectation 3Q03 : 18% ↑ over 3Q02 Earnings expectation 3Q03 : 18% ↑ over 3Q02 Earnings expectation 4Q03 : 22% ↑ over 4Q02 Earnings expectation 4Q03 : 22% ↑ over 4Q02

Interest Rates Fed Triggers : Core Inflation & Unemployment rate Fed Triggers : Core Inflation & Unemployment rate Core inflation (1.5%) at lowest level in 40 years Core inflation (1.5%) at lowest level in 40 years GDP growth (6% 3Q03, 3.3% 4Q03) > Productivity growth (3.5%) = Improvement in labor market GDP growth (6% 3Q03, 3.3% 4Q03) > Productivity growth (3.5%) = Improvement in labor market Sept.03 non-farm payrolls up by 57,000 Sept.03 non-farm payrolls up by 57,000 Fed funds futures price in 25 bp increase only in 2H04 Fed funds futures price in 25 bp increase only in 2H04

Growth Business investments Business investments ISM Survey ISM Survey Consumer Consumer Confidence, Retail Sales, Fading fiscal stimulus Confidence, Retail Sales, Fading fiscal stimulus

Earnings Dollar Dollar ST & LT direction ST & LT direction Consumer product, raw material producers Consumer product, raw material producers Other – Corporate default spread, pricing power Other – Corporate default spread, pricing power Upward earnings revisions > downward earnings revisions in 3Q03 Upward earnings revisions > downward earnings revisions in 3Q03 Guidance for 4Q03 more downbeat than expected Guidance for 4Q03 more downbeat than expected

Recommendations Upward revisions : Consumer discretionary, financials, industrials, materials, telecom services Upward revisions : Consumer discretionary, financials, industrials, materials, telecom services Downward revisions : Consumer staples, health care, IT, utilities Downward revisions : Consumer staples, health care, IT, utilities