1. 3700 West Sam Houston Parkway South, Suite 250, Houston, Texas 77042 (713) 260-9000(800) 262-6631(713) 260-9050(Fax) Scott Frakes, Regional Vice President Scott Wynant, Executive Vice President October 2011

2. 2 Capstone Profile Founded in 1987, Capstone is in its 25 th year of providing investment management services. Capstone is an independent investment advisor headquartered in Houston, Texas. Capstone manages $3.8 billion in equity, bond and balanced accounts with clients nationwide. * Clients include: –Corporations− Individuals –Foundations− Health Care Organizations –Pension Plans− Public Funds –Unions− Insurance Companies Capstone provides proven disciplined investment processes that have been in place since inception of the firm. Capstone employs a team approach to management which results in consistency among client accounts. Capstone offers high quality portfolios customized via the following solutions: Theta Growth (Income Oriented Equity) Fixed Income Non-Taxable Fixed Income Current Income Portfolio (Income Oriented Fixed Income) Balanced Core Equity Large Cap Growth Global Equity Income * Capstone Financial Services, Inc. and it’s subsidiary companies. Capstone Houston Headquarters

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4. 4 What are Retirees Thinking Their expectations are higher They’re going to be in retirement longer They’ll be responsible for more Their family situations are more complex

5. 5 Where Will Retirement Income Come From? Source: Social Security Administration, “Income of the population 55 or older, 2008,” April 2010, based on highest quintile of $55,889. For illustrative purposes only. May not add up to 100% due to rounding. 64% may be the retiree’s responsibility 18% 64% 2% 44% Investments Earned Income Other Your own sources 37% 18% 19% Social Security Pension from outside sources

6. 6 Source: Annuity 2000 Mortality Table; Society of Actuaries. Figure assumes a person is in good health. 50% chance of one spouse surviving 25% chance of one spouse surviving Male age 65 Female age 65 Couple (both age 65) 85 92 88 94 92 97

7. 7 All numbers were calculated based on hypothetical rates of inflation of 2%, 3%, and 4% (historical average from 1926 to 2006 was 3%) to show the effects of inflation over time; actual inflation rates may be more or less and will vary. Source: Retirement Income Planning – America’s Lifetime Income Challenge, Fidelity Investments Insight, June 2008. Dollars $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Today5 years10 years15 years20 years25 years Years from retirement start date $50,000 $18,756 $23,880 $30,477 2% inflation 3% inflation 4% inflation

8. 8 Sustainable withdrawal rates can extend the life of a portfolio How a couple retiring in 1972 with $500,000 is affected. For a 65-year-old couple, there is a 94% chance that at least one spouse will need income at age 80. Source: Fidelity Investments. Hypothetical value of assets held in an untaxed account of $500,000 invested in a portfolio of 50% stocks, 40% bonds, and 10% short-term investments with inflation-adjusted withdrawal rates as specified. Please refer to “Methodology and information” on slide 24 for important information about methodology and index information. This chart’s hypothetical illustration uses historical monthly performance from January 1972 through December 2008 from Ibbotson Associates; stocks, bonds, and short-term investments are represented by S&P 500, U.S. Intermediate-Term Government Bonds, and U.S. 30-day T-bills, respectively. This chart is for illustrative purposes only and is not indicative of any investment. Past performance is no guarantee of future results. *Probability of a couple surviving to various ages is based on Annuity 2000 Mortality Table; Society of Actuaries. Figures assume a person is in good health. 4% 5% 6% 7% 8% 9% 100% at Age 65 99% at Age 70 98% at Age 75 94% at Age 80 83% at Age 85 63% at Age 90 35% at Age 95 A couple, both age 65, would have run out of money at age 88 if they had withdrawn 5%, adjusted upwards for inflation each year. $100,000 DOLLARS REMAINING $1,000,000 Hypothetical Couple (Both Age 65)* $10,000,000 For a 65-year-old couple, there is a 94% chance that at least one spouse will need income at age 80. 1972197419761978198019821984198619881990199219941996199820002002200420062008 10%

9. 9 Many Market Timers Liquidated Stocks After Steep Declines Fidelity Management & Research Co. September fund flow data is the sum of weekly flows. Past performance is no guarantee of future results. Source: Investment Company Institute, Standard & Poor’s, Haver Analytics, FAM (AART) as of 9/30/10. EQUITY MUTUAL FUND FLOWS VS S&P 500 PERFORMANCE (2008–2011)

10. 10 How Often Is Cash King? Fidelity Management & Research Co.

11. 11 Source: FactSet Attempting to pick the exact bottom could potentially be costly. Stock returns represented by total return of the S&P 500 Index. Past performance is no guarantee of future results. All market indices are unmanaged. It is not possible to invest directly in an index. Index performance is not meant to represent that of any Fidelity mutual fund.

12. 12 Current Income Portfolio “CIP”

13. 13 Investment Profile Current Income Portfolio seeks to: Provide the highest current yields available on investment grade, coupon and dividend-paying, U.S. investments; Utilize a high degree of issuer diversification and asset allocation strategic management; Establish a defined investment horizon to safeguard investment principal; Maintain the highest possible absolute returns/cash flow.

14. 14 Current Income Portfolio invests in: One to fifteen year investment grade corporates; U.S. Agencies (with call and step-up provisions); Corporate inflation protection (floating rate) securities; Seasoned mortgage-backed securities; and Listed preferred stocks. Investment Profile

15. 15 “CIP” Portfolio Characteristics 9/30/2011 * Does not include preferred stocks ** Barclay’s Capital Intermediate Government Credit Index CapstoneBCIGC ** Duration 4.06*3.96 Current Yield 5.30%3.07% Yield to Maturity 3.92%1.58% Average Quality A Govs

16. 16 “CIP” Portfolio Sector Weightings 9/30/2011

17. 17 “CIP” Performance 9/30/2011 *Barclay’s Capital Intermediate Government/Credit Bond Index ** Source: Informa Investment Solutions – PSN using gross calculations Percent Calendar Year Returns **

18. 18 “CIP” Yield Advantage 9/30/2011 Percent Current Yield Advantage ** *Barclay’s Capital Intermediate Government/Credit Bond Index ** Source: Informa Investment Solutions – PSN using gross calculations

19. 19 Global Equity Income

20. 20 Global Equity Income Goals And Strategy Objective: Seeks to generate current income and long-term growth of capital. The Global Equity Income Strategy offers investors a privately managed stock portfolio designed to provide dividend income, the potential for long- term capital appreciation and exposure to International Markets. Investment Universe S&P 1500 S&P ADR

21. 21 Global Equity Income Strategy In addition to income, dividend paying stocks provide the portfolio with these positive attributes: Risk Reduction - Dividend paying stocks are less volatile than non dividend paying stocks and provide investors with steady cash flow. Dividends are an important sign of corporate strength - Companies must generate consistent significant earnings in order to pay dividends - Dividend growth is a signal of improving profitability - Dividend reductions signal corporate distress Dividend policy imposes discipline on management - Companies are reluctant to change dividend policy due to signaling effects - Dividends force a discipline on capital spending reducing the probability of unwise investments

22. 22 Investment Process Exclude non dividend paying stocks, and stocks paying “one time” or “special” dividends Identify securities with the following characteristics: – Dividend yield above sector median – Payout rate less than 100% (ex REITS, Investment Cos.) – Positive dividend growth: 3 years – Favorable earnings growth: 3 years Quantitative Screens

23. 23 Investment Process Review quantitative screened universe for validity using the most current data for the following factors: – Change in dividend policy – Profitability trends – Earnings growth trends – Current information affecting earnings and cash flow – Corporate actions Quantitative Validation

24. 24 Investment Process Create a risk controlled diversified portfolio – S&P 500 is benchmark for performance, sector diversification and large cap characteristics – Dividend yield is targeted at approximately 2x S&P 500 – International component range of 30-50% – Dividend policy creates a fundamental tilt towards value – Portfolio consists of 55-65 holdings Optimization

25. 25 Global Equity Income Portfolio Characteristics 9/30/2011 This information is supplemental to a full disclosure presentation. COUNTRY DIVERSIFICATION Market Capitalization$ 44.6 Billion$ 87.0 Billion Quantitative Factors Dividend Yield4.332.20 Dividend Growth 3 Yr11.242.27 Dividend Payout52.8264.13 EPS Growth 3 Yr7.625.63 Valuation Factors Price/Earnings13.1214.63 Price/Book3.013.42 Price/Cash Flow9.1710.53 ROE22.6720.98 Beta vs S&P 5000.900.98 PORTFOLIO CHARACTERISTICS CapstoneS&P 500

26. 26 Global Equity Income Portfolio Characteristics 9/30/2011 SECTOR WEIGHTINGS This information is supplemental to a full disclosure presentation.

27. 27 Global Equity Income Performance 9/30/2011 *Source: Informa Investment Solutions – PSN using gross calculations GROWTH OF $1 MILLION * Percent $837,205 $980,781 Dollars ($) TRAILING RETURNS * This information is supplemental to a full disclosure presentation.

28. 28 Why Capstone ? Disciplined Investment Process Consistently Applied Investment Process Customization Active Client Communications

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30. 30 The States Compared To The Rest Of The World

31. 3700 West Sam Houston Parkway South, Suite 250 Houston, Texas 77042 (713) 260-9000 / (800) 262-6631 www.capstonefinancial.com ©2011