3. ?Custom Portfolio of Individual Securities

4. ?Fee Based Management ?Custom Portfolio of Individual Securities

5. ?Fee Based Management ?Custom Portfolio of Individual Securities ?Fee Based Management ?Often Full Discretion within Investment Guidelines

6. ?Custom Portfolio of Individual Securities ?Fee Based Management ?Custom Portfolio of Individual Securities ?Fee Based Management ?Fiduciary Relationship

8. Investment Guidelines Status Updates Municipality Portfolio Manager Portfolio Reporting, Performance & Compliance Investment Guidelines Status Updates Portfolio Reporting, Performance & Compliance

9. Municipality Portfolio Manager Broker/Dealer TRADES Investment Guidelines Status Updates Portfolio Reporting, Performance & Compliance Investment Guidelines Status Updates Portfolio Reporting, Performance & Compliance

10. Regulators Municipality Portfolio Manager Broker/Dealer TRADES Investment Guidelines Status Updates Portfolio Reporting, Performance & Compliance Investment Guidelines Status Updates Portfolio Reporting, Performance & Compliance

12. ?Leverage Existing Resources

13. ?Perfectly Aligned Incentives ?Leverage Existing Resources

14. ?Professional Portfolio Management ?Leverage Existing Resources ?Perfectly Aligned Incentives ?Leverage Existing Resources ?Perfectly Aligned Incentives

15. ?Legal Liability ?Leverage Existing Resources ?Perfectly Aligned Incentives ?Professional Portfolio Management ?Leverage Existing Resources ?Perfectly Aligned Incentives ?Professional Portfolio Management

17. ?Disclosed Fees

18. ?Relinquish Daily Involvement ?Disclosed Fees

19. ?Market Risk on Unexpected Withdrawals versus LAIF ?Disclosed Fees ?Relinquish Daily Involvement ?Disclosed Fees ?Relinquish Daily Involvement

21. Data as of December 31, 2003

22. LAIF Data as of December 31, 2003 LAIF Data as of December 31, 2003

23. Individual SecuritiesLAIF Data as of December 31, 2003 Individual SecuritiesLAIF Data as of December 31, 2003

25. US Agencies as of December 31, 2003 Total Return Analysis - 2 Year Horizon

26. US Agencies as of December 31, 2003 Total Return Analysis - 2 Year Horizon

27. US Agencies as of December 31, 2003 Total Return Analysis - 2 Year Horizon

28. US Agencies as of December 31, 2003 Total Return Analysis - 2 Year Horizon

30. Four Key Capabilities Four Key Capabilities Internal Management External Management HIGH LOW Internal Management External Management HIGH LOW

31. Internal Management External Management HIGH LOW Internal Management External Management HIGH LOW Four Key Capabilities

32. Investment Expertise Internal Management External Management HIGH LOW Internal Management External Management HIGH LOW

33. Investment Expertise Staffing Investment Expertise Staffing Four Key Capabilities Internal Management External Management HIGH LOW Internal Management External Management HIGH LOW

34. Investment Expertise Staffing Systems Investment Expertise Staffing Systems Four Key Capabilities Internal Management External Management HIGH LOW Internal Management External Management HIGH LOW

35. Investment Expertise Staffing Systems Audit/Compliance Investment Expertise Staffing Systems Audit/Compliance Four Key Capabilities Internal Management External Management HIGH LOW Internal Management External Management HIGH LOW

37. ?Funds not expected to be used in 1 year may achieve higher returns by investing in individual securities instead of LAIF.

38. ?Positive returns can be achieved in bonds in rising interest rate environments.

39. ?External investment management can add the four Key Capabilities that your organization may need for successful fixed income investing. ?Funds not expected to be used in 1 year may achieve higher returns by investing in individual securities instead of LAIF.

40. ?External investment management can add the four Key Capabilities that your organization may need for successful fixed income investing. ?External investment management puts an “expert” on your team. ?External investment management can add the four Key Capabilities that your organization may need for successful fixed income investing. ?External investment management puts an “expert” on your team. ?Funds not expected to be used in 1 year may achieve higher returns by investing in individual securities instead of LAIF. ?Positive returns can be achieved in bonds in rising interest rate environments.