From: "Bauman, Jason S" •c l=la> To:' cEIMMIlab CC: [email protected] <[email protected]> Subject: Investment Proposal Date: Fri, 15 Feb 2013 04:04:42 +0000 Importance: high Attachments: PIMCO_Conservative_Allocation_Illustration.pdf; PIMCO_Conservative- Moderate_Allocationillustration.pdf Hi Peggy I've created two investment proposals that are both keen to your desire to not be a risk taker with this money and looking to generate an income that is substantially outperforming the return on cash that you're currently getting. One proposal is a very conservative allocation and the second is if we were to take a slightly less conservative approach. Both proposals illustrate a hypothetical investment of $1,000,000 made on March 31st, 2007 so they both include how you would have fared through the financial crisis of 2007-2008. Some highlights: Proposal #1 - Conservative Allocation $333,333,333 invested in the PIMCO Total Return Fund $333,333,333 invested in the PIMCO Income Fund $333,333,333 invested in the PIMCO Low Duration Fund - During the time period of 3/31/2007 through 1/29/2013 the portfolio generated $314,805 in income. This is an average of -$52,500 per year - During the time period the average annual return was 8.04% with a cumulative return of 57.04% Proposal #2 — Conservative/Moderate Allocation $333,333,333 invested in the PIMCO Total Return Fund $333,333,333 invested in the PIMCO Income Fund $333,333,333 invested in the PIMCO Unconstrained Bond Fund - During this time period the portfolio generated $239,561 in income. This is an average of -$40,000 per year - During the time period the average annual return was 9.46% with a cumulative return of 51.35% These portfolios are liquid so if you needed to gain access to cash you can. The illustrations attached give detailed information on each strategy. Here's a brief description of each fund and of PIMCO: PIMCO Total Return Fund: Aims to provide a combination of incom