Client Services. Investments since 1901

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1 Client Services Investments since 1901

2 INVESTMENTS Equities Fixed Income Mutual Funds Unit Investment Trusts (UITs) Managed Money Accounts Services Wealth Management Asset Management Retirement Planning Estate Planning and Trust Services Cash Management Online Services Account Protection

3 A CENTURY OF TRADITION CONTINUES For over 100 years, Sterne Agee has served the investment needs of its clients through various economic and market conditions. Our founders established this firm with one goal in mind: to deliver superior financial services and advice to help you achieve your financial goals. Today, Sterne Agee is one of the oldest and largest privately-owned brokerage firms in the country, serving clients in all 50 states. A registered Broker Dealer and a member of the New York Stock Exchange, we offer your Broker Dealer total investment solutions from equity trading to wealth management. With a foundation of integrity, stability, innovation, and superior service, we are proud to continue the tradition of excellence set forth by our founders over 100 years ago. Through an Introducing Broker Dealer/Clearing Firm relationship, Sterne Agee makes available to the Broker Dealer servicing your acount ("your Broker Dealer") a wide range of investment products and services briefly described herein. All products and services are offered through your Broker Dealer who in turn has access to the various departments of Sterne Agee. Your Broker Dealer is responsible for the conduct of your account.

4 Working Together Toward Your Goals At the core of a successful investment program is a diversified investment strategy tailored to your specific financial needs. At Sterne Agee, we believe that the most important step in this process is working with a Broker Dealer who can help you determine your overall investment goals, while establishing the level of risk you can comfortably assume within your investment time horizon. The conclusions you reach will be the foundation for determining your personal investment strategy and will provide the framework from which you and your Broker Dealer will work together to achieve your goals. Your Broker Dealer will discuss the asset allocation process, which includes a review of the major asset classes and investment style categories. Achieving the proper mix of stocks, bonds, and short-term investments is critical to helping you meet your goals. A properly allocated portfolio can help balance the risk you assume with the return you seek. Studies have shown that a properly allocated portfolio can result in improved returns with reduced risk. Stocks Bonds Cash & short-term investments * Chart is for illustrative purposes only.

5 After determining your asset allocation, appropriate strategies will be selected that are best suited to meet your objectives. Each month, if your account has actitivity, you will receive a statement that will help you review the progress of your account. Otherwise, you will receive a quarterly statement. Your Broker Dealer is always available to review your portfolio to see if there is a need to make adjustments based on changes in your personal circumstances or market conditions.

6 Investments Equities Multiple Sources of Equity Research Your Broker Dealer, utilizing products and services of Sterne Agee, may benefit from a full-service, in-house research department which maintains a philosophy of quality over quantity. Each day, our analysts provide up-to-the-minute commentary, written and on-line research to keep you abreast of current market conditions. A constant commentary during market hours aids your Broker Dealer as they guide clients through the changing currents of the marketplace. In addition to this internal research, we also have a network of supporting research from outside sources, including independent research firms. With multiple sources of research, we are able to provide your Broker Dealer with an unbiased vantage point and a unique perspective distinct from the traditional Wall Street wire house firms. Equity Trading As a member of the New York Stock Exchange, Sterne Agee maintains a professionally staffed equity trading desk. We can ensure your Broker Dealer receives personal service as well as quality, timely executions on all orders regardless of size through our own state-of-the-art technology. This same execution capability is available in those securities traded on the Nasdaq Market, either as principal in our capacity as a market maker, or as an agent through our extensive dealer relationships.

7 Fixed Income When adding a fixed income element to your portfolio, you will find our Fixed Income Division is able to provide your Broker Dealer exceptional opportunities. Whether you are in need of taxable or tax-free securities, our full-service fixed income trading desk can provide your Broker Dealer with access to: Treasury Securities Corporates Municipals Agencies GNMAs CMOs Unit Investment Trusts Zero Coupons Discount notes Commercial paper Brokered CDs In addition, our Fixed Income Division is home to a Public Finance and Corporate Underwriting Division, which structures, negotiates, and assists in the underwriting of newly issued securities. Portfolio Risk Analysis Sterne Agee has developed a proprietary program to help evaluate the risk in a fixed income portfolio. In addition to providing a cash-flow breakdown and yield analysis, we also investigate more complex factors such as convexity and duration. For those that rely heavily on income from their fixed income investments, this is an essential tool to manage the risk of the overall portfolio.

8 Customized Portfolios With access to a wide variety of fixed income securities, your Broker Dealer will work with you to structure custom fixed income portfolios designed to fit your very specific needs. Carefully considering your risk tolerance level, expected returns, economic factors, and market conditions, your Broker Dealer can develop a number of strategies. These strategies can be designed to emphasize yield, quality, price stability, total return, or varying combinations of these features to meet your particular fixed income needs. Check-a-Month Program Many investors need to manage the income distribution from their fixed income portfolios to meet specific cash flow needs. Through your Broker Dealer, we can customize a portfolio and illustrate monthly cash flows, average duration, portfolio yield, and many other beneficial visuals to help you manage your money.

9 Mutual Funds Sterne Agee provides your Broker Dealer with a full selection of mutual funds, while assisting them in the performance evaluation of individual funds. Your Broker Dealer has access to more than 370 fund families and over 7,000 individual funds, including: U.S. Equity Funds U.S. Government Bond Funds Municipal Bond Funds Corporate Bond Funds Balanced Portfolio Funds International & Global Funds Precious Metal Funds Money Market Funds Unit Investment Trusts We also provide your Broker Dealer with an array of Unit Investment Trust (UIT) opportunities, both equity and debt UITs in the primary and secondary markets. We adhere to a strict due-diligence process during the selection of UITs to ensure that your Broker Dealer has the most current information available on these investments.

10 W e a lt h M a n a g e m e n t Managed Money Accounts Sterne Agee Investment Advisors, Inc. is a Registered Investment Adviser and specializes in managing assets and developing investment programs for high net worth individuals, retirement plans, foundations/endowments, and other institutions. In order to better serve the special needs of this clientele, we provide an added level of service and communication to all of our professionally managed programs: Sterne Agee Strategic Portfolios Designed for sophisticated investors seeking to take advantage of highly personalized, professional portfolio management, Sterne Agee Investment Advisors, Inc., developed Sterne Agee Strategic Portfolios (SASP), an individually-tailored portfolio management service with reduced fees and lower minimum investment levels for clients of Broker Dealers. Investment Management Account (IMA) An IMA account is a portfolio of individual securities selected by Sterne Agee Investment Advisors and managed by an outside professional money manager. With the IMA program, we are able to bring you access to some of the world s leading money managers who specialize in a variety of asset classes and employ a range of investing styles.

11 Target Allocation Portfolio (TAP) TAP is a mutual fund wrap program that consists of six model portfolios of mutual funds strategically managed by Sterne Agee Investment Advisors, Inc. With TAP, we assist in evaluating mutual funds that are carefully selected through a qualitative and quantitative screening process from more than 7,000 available no-load and load-waived mutual funds. Sterne Select Advisor (SSA) This non-discretionary, fee-based investment advisory service is designed to give you maximum flexibility. This flexibility allows you to customize a portfolio through the use of a wide range of securities including: equities, options, fixed income securities, eligible mutual funds, and defined portfolios, to name a few. You can deploy a limitless number of individual or combined strategies, in one convenient account.

12 SERVICES Wealth Management Your Broker Dealer can provide you with exceptional wealth management services which include the use of various investment, trust, charitable, and estate planning techniques. Your Broker Dealer can also help you with wealth transfer and wealth preservation planning. Retirement Planning In conjunction with your Broker Dealer, our retirement planning department helps develop programs to fulfill your unique retirement needs. Sterne Agee acts as custodian for qualified retirement accounts and offers a full spectrum of retirement investment options to our clients, including: Rollover IRAs SEP-IRAs 401(k) Plans Defined Contribution Plans Roth IRAs Self-Directed IRAs

13 Estate Planning and Personal Trust Services A full range of trust services is available through The Trust Company of Sterne, Agee & Leach, Inc. The Trust Company specializes in: Employee Benefit Plans Personal Trust Services Charitable Trust Services Portfolio Management & Investment Management Consulting Services The Trust Company is staffed by specialists with long-term trust experience. Providing personal, professional service, The Trust Company promotes consistency in trust relationships. Their goal is to support the overall planning and investment objectives of each client.

14 Public Finance The Public Finance Division oversees the firm s negotiated municipal bond issues, both tax-free and taxable. We ve underwritten issues for single and multi-family housing, schools, higher education, medical, SPLOST, TANs, BANs, airport expansions, economic development, landfill and recycling facilities, water and sewer, industrial development, and many other types of municipal and private projects. Our public finance professionals are among the best short-term/variable rate underwriting teams in the country. We manage a portfolio of over $500 million in remarketings weekly, making us a top national contender in our markets. Taxable & Tax-Exempt Bonds Public and Private Debt Offerings Source Credit Enhancement Facilitate State & Local Economic Incentives Interest Rate Protection Derivative Bond Structure

15 Investment Banking Sterne Agee s Investment Banking professionals provide a full range of investment banking services to assist you in reaching your business objectives. We advise you on current market conditions and optimal capitalization strategies; we have expertise in managing public offerings as well as arranging private placement transactions. Our investment banking professionals specialize in transactions for small and middle market companies whose capital needs exist between $5 million and $40 million. Often, the small and middle market companies are not adequately served by larger investment banking firms. They need the innovative, aggressive, and timely solutions we provide. Debt/Equity Origination & Underwriting Services Business Valuations Merger & Acquisition Advisory Fairness Opinions Corporate Reorganizations & Restructurings Private Placements After-Market Support Including Market Making & Research Coverage

16 Cash Management A single account for all of your banking and investment needs? Absolutely. At Sterne Agee, you may link competitive money market mutual fund yields with services such as: No Minimum Balance Requirement Unlimited Check Writing VISA Platinum Check Card Margin Loan Access for Overdraft Protection Use this account to automatically sweep cash between your money fund and your brokerage account, make purchases, direct deposits, and withdrawals from your account, pay bills, and keep an accurate record of all transactions. On-Line Services Our on-line services were developed to provide you with instant access to your account at your convenience. As a complement to your existing Broker Dealer relationship, your on-line service provides you with detailed account information. You can view the current value of your account(s), monitor your values during trading hours, and view the latest research and cost basis information for your account. In addition, you can perform your trades on-line, view electronic trade confirmations, and use our advanced features to consolidate your portfolio holdings from other institutions.

17 Account Protection Sterne Agee & Leach, Inc. is a member of the Securities Investor Protection Corporation (SIPC). As such, our clients accounts are protected up to a maximum of $500,000 per client, including up to $100,000 in cash balances (explanatory brochure available upon request at Sterne Agee also has additional coverage in the amount of $24.5 million in securities per client with an aggregate limit of $100 million. This coverage is provided by Lloyd s of London. SIPC protection covers more than one account in which you have an interest provided you are acting in different capacities for each account. (For instance, coverage would apply if you had an individual account and a joint account with your spouse.) SIPC does not protect against a decline in market value of securities in your brokerage account.

18 A C e n t u ry o f S e rv i c e Founded in 1901, Sterne Agee has been providing investors with high quality investment opportunities for over a century. During the early years, the founders of the firm prominently established themselves in the financial securities industry in the southeastern United States. Today, the firm has expanded to serve all regions of the country. Sterne Agee now holds over $12 billion in client assets and serves over 109,000 clients. Employing over 540 professionals, the firm operates five subsidiaries which provides a total investment solution for individual and corporate clients. Headquartered in Birmingham, Alabama, the firm has offices located in Alabama, Arkansas, California, Florida, Georgia, Illinois, Kentucky, Louisiana, Massachusetts, Minnesota, Mississippi, Missouri, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, and Wisconsin.

19 Sterne Agee Milestones 1901 George B. Ward organizes a securities firm in Birmingham, Alabama Mervyn H. Sterne founds M.H. Sterne Securities Company Mervyn H. Sterne and George B. Ward merge to form Ward, Sterne & Company Rucker Agee joins their firm Edmund C. Leach opens a Montgomery, Alabama, office for the firm Ward, Sterne & Company join the NASD Founder George B. Ward passes away. Firm name is changed to Sterne, Agee & Leach. continued

20 1955 Henry S. Lynn acquires a seat on the New York Stock Exchange (NYSE) and Alonzo H. Lee becomes an associate member of the American Stock Exchange Firm incorporates as Sterne, Agee & Leach, Inc Sterne, Agee & Leach, Inc. acquires Shropshire, Frazer & Co., Mobile, Alabama Sterne, Agee & Leach, Inc. consolidates with First Birmingham Securities Sterne Agee Asset Management is formed. F&G Investment Services (Now Sterne Agee Financial Services, Inc.) is acquired The Trust Company of Sterne, Agee & Leach, Inc. is formed Hill, Crawford & Lanford in Little Rock, Arkansas is purchased The holding company of Sterne, Agee & Leach Group, Inc. is formed Sterne Agee acquires John R. Taylor Financial Group, Inc. in Fort Smith, Arkansas Sterne Agee acquires McAllaster Associates in The Landings, Georgia Sterne Agee acquires CG Maton Financial Services. (Now Sterne Agee Financial Services, Inc.)

21 Sterne, Agee & Leach trading floor - circa 1936 Disclosures Mutual Funds and UITs: An investor should carefully consider fund objectives, risks, charges, and expenses before investing. For this and more information on mutual fund investments, please view a prospectus which you may obtain by contacting your Broker Dealer. Please read it carefully before you invest or send money. As with all securities products, a mutual fund or UIT investment return and principal value will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Money Market Funds: An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Company (FDIC) or any other government agency. Although the fund seeks to preserve the value of your investment of $1 per share, it is possible to lose money by investing in the fund.

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24 Sterne Agee Group, Inc. comprises five subsidiaries: Sterne, Agee & Leach, Inc. A full service brokerage firm providing investment services to individuals, corporations, municipalities, and other public and private institutions. Member NYSE/NASD/SIPC. The Trust Company of Sterne, Agee & Leach, Inc. Offers a full range of trust services, including: investment management, estate planning, personal and charitable trusts, and retirement plan services. Sterne Agee Asset Management, Inc. Provides professional fee-based discretionary asset management services to high net worth individuals, businesses, and non-taxable institutions. Sterne Agee Financial Services, Inc. A registered broker-dealer, serves independent representatives as well as provides third party marketing services to financial institutions. Member NASD/SIPC. Sterne Agee Capital Markets, Inc. A registered broker-dealer, establishes and oversees clearing relationships with correspondent broker/dealers nationwide. Member NASD/SIPC. SACM 0507