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

Custom Portfolio of Individual Securities Custom Portfolio of Individual Securities

Fee Based Management Fee Based Management

Custom Portfolio of Individual Securities Custom Portfolio of Individual Securities

Custom Portfolio of Individual Securities

Fee Based Management

Custom Portfolio of Individual Securities

Fee Based Management

Often Full Discretion within Investment Guidelines

Often Full Discretion within Investment Guidelines

Often Full Discretion within Investment Guidelines Often Full Discretion within Investment Guidelines

Custom Portfolio of Individual Securities

Fee Based Management

Custom Portfolio of Individual Securities

Fee Based Management

Fiduciary Relationship Fiduciary Relationship

Investment Guidelines Status Updates

Municipality

Portfolio Manager

Portfolio Reporting, Performance & Compliance

Investment Guidelines Status Updates

Portfolio Reporting, Performance & Compliance

Municipality

Portfolio Manager

Broker/Dealer Broker/Dealer Broker/Dealer

TRADES TRADESTRADES TRADES

Investment Guidelines Status Updates

Portfolio Reporting, Performance & Compliance

Investment Guidelines Status Updates

Portfolio Reporting, Performance & Compliance

Regulators

Municipality

Portfolio Manager

Broker/Dealer Broker/Dealer Broker/Dealer

TRADES TRADESTRADES TRADES

Investment Guidelines Status Updates

Portfolio Reporting, Performance & Compliance

Investment Guidelines Status Updates

Portfolio Reporting, Performance & Compliance

Leverage Existing Resources Leverage Existing Resources

Perfectly Aligned Incentives Perfectly Aligned Incentives

Leverage Existing Resources Leverage Existing Resources

Professional Portfolio Management Professional Portfolio Management

Leverage Existing Resources

Perfectly Aligned Incentives

Leverage Existing Resources

Perfectly Aligned Incentives

Legal Liability Legal Liability

Leverage Existing Resources

Perfectly Aligned Incentives

Professional Portfolio Management

Leverage Existing Resources

Perfectly Aligned Incentives

Professional Portfolio Management

Disclosed Fees Disclosed Fees

Relinquish Daily Involvement Relinquish Daily Involvement

Disclosed Fees Disclosed Fees

Market Risk on Unexpected Withdrawals versus LAIF

Market Risk on Unexpected Withdrawals versus LAIF

Disclosed Fees

Relinquish Daily Involvement

Disclosed Fees

Relinquish Daily Involvement

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

3M 6M 1Y 2Y 3Y 4Y 5Y

LAIF U.S. Govt. Agency

Data as of December 31, 2003Data as of December 31, 2003

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

3M 6M 1Y 2Y 3Y 4Y 5Y

LAIF U.S. Govt. Agency

LAIF

Data as of December 31, 2003

LAIF

Data as of December 31, 2003

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

3M 6M 1Y 2Y 3Y 4Y 5Y

LAIF U.S. Govt. Agency

Individual SecuritiesLAIF

Data as of December 31, 2003

Individual SecuritiesLAIF

Data as of December 31, 2003

2 Years 2.02% 4.10 4.10 4.10 4.10 4.10 4.10

3 Years 2.76% 8.10 7.59 7.09 6.09 5.11 2.25

4 Years 3.25% 11.09 10.07 9.07 7.11 5.19 (0.30)

5 Years 3.64% 12.98 11.49 10.02 7.16 4.40 (3.35)

15 Years 4.85% 20.86 15.59 10.63 1.54 (6.53) (25.86)

YieldRate Shift

2.00% 5.00%-1.00% -0.50% 0% 1.00%Maturity

US Agencies as of December 31, 2003US Agencies as of December 31, 2003

Total Return Analysis - 2 Year HorizonTotal Return Analysis - 2 Year Horizon

2 Years 2.02% 4.10 4.10 4.10 4.10 4.10 4.10

3 Years 2.76% 8.10 7.59 7.09 6.09 5.11 2.25

4 Years 3.25% 11.09 10.07 9.07 7.11 5.19 (0.30)

5 Years 3.64% 12.98 11.49 10.02 7.16 4.40 (3.35)

15 Years 4.85% 20.86 15.59 10.63 1.54 (6.53) (25.86)

YieldRate Shift

2.00% 5.00%-1.00% -0.50% 0% 1.00%Maturity

US Agencies as of December 31, 2003US Agencies as of December 31, 2003

Total Return Analysis - 2 Year HorizonTotal Return Analysis - 2 Year Horizon

2 Years 2.02% 4.10 4.10 4.10 4.10 4.10 4.10

3 Years 2.76% 8.10 7.59 7.09 6.09 5.11 2.25

4 Years 3.25% 11.09 10.07 9.07 7.11 5.19 (0.30)

5 Years 3.64% 12.98 11.49 10.02 7.16 4.40 (3.35)

15 Years 4.85% 20.86 15.59 10.63 1.54 (6.53) (25.86)

YieldRate Shift

2.00% 5.00%-1.00% -0.50% 0% 1.00%Maturity

US Agencies as of December 31, 2003US Agencies as of December 31, 2003

Total Return Analysis - 2 Year HorizonTotal Return Analysis - 2 Year Horizon

2 Years 2.02% 4.10 4.10 4.10 4.10 4.10 4.10

3 Years 2.76% 8.10 7.59 7.09 6.09 5.11 2.25

4 Years 3.25% 11.09 10.07 9.07 7.11 5.19 (0.30)

5 Years 3.64% 12.98 11.49 10.02 7.16 4.40 (3.35)

15 Years 4.85% 20.86 15.59 10.63 1.54 (6.53) (25.86)

YieldRate Shift

2.00% 5.00%-1.00% -0.50% 0% 1.00%Maturity

US Agencies as of December 31, 2003US Agencies as of December 31, 2003

Total Return Analysis - 2 Year HorizonTotal Return Analysis - 2 Year Horizon

Four KeyCapabilities

Four KeyCapabilities

InternalManagement

ExternalManagement

HIGH LOW

InternalManagement

ExternalManagement

HIGH LOW

InternalManagement

ExternalManagement

HIGH LOW

InternalManagement

ExternalManagement

HIGH LOW

Four Key CapabilitiesFour Key Capabilities

Four Key CapabilitiesFour Key Capabilities

Investment ExpertiseInvestment Expertise

InternalManagement

ExternalManagement

HIGH LOW

InternalManagement

ExternalManagement

HIGH LOW

Investment Expertise

Staffing

Investment Expertise

Staffing

Four Key CapabilitiesFour Key Capabilities

InternalManagement

ExternalManagement

HIGH LOW

InternalManagement

ExternalManagement

HIGH LOW

Investment Expertise

Staffing

Systems

Investment Expertise

Staffing

Systems

Four Key CapabilitiesFour Key Capabilities

InternalManagement

ExternalManagement

HIGH LOW

InternalManagement

ExternalManagement

HIGH LOW

Investment Expertise

Staffing

Systems

Audit/Compliance

Investment Expertise

Staffing

Systems

Audit/Compliance

Four Key CapabilitiesFour Key Capabilities

InternalManagement

ExternalManagement

HIGH LOW

InternalManagement

ExternalManagement

HIGH LOW

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

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

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

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.

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

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

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

External investment management can add the four Key Capabilities that your organization may need for successful fixed income investing.

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.

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

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.

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.

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