Scott Frakes Regional Vice President Scott Wynant Executive

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

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 – Foundations – Pension Plans – Unions − Individuals − Health Care Organizations − Public Funds − Insurance Companies Capstone Houston Headquarters • Capstone provides proven disciplined investment processes that have been in place sinception 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: ü ü ü ü * 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. 2

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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 4

Where Will Retirement Income Come From? 64% may be the retiree’s responsibility 64% Your own sources Investments Earned Income Other 18% 37% 19% from outside sources Social Security Pension 44% 2% 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. 5

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

$60, 000 $50, 000 Dollars $40, 000 $30, 477 $30, 000 $23, 880 2% inflation 3% inflation 4% inflation $20, 000 $18, 756 $10, 000 $0 Today 5 years 10 years 15 years 20 years 25 years Years from retirement start date 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. 7

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. DOLLARS REMAINING $10, 000 For a 65 -year-old couple, there is a 94% chance that at least one spouse will need income at age 80. 4% $1, 000 5% 10% $100, 000 1972 Hypothetical Couple (Both Age 65)* 1974 1976 1978 100% at Age 65 1980 6% 7% 9% 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. 8% 1982 99% at Age 70 1984 1986 98% at Age 75 1988 1990 1992 94% at Age 80 1994 83% at Age 85 1996 1998 63% at Age 90 2002 2004 2006 2008 35% at Age 95 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. 8

Many Market Timers Liquidated Stocks After Steep Declines EQUITY MUTUAL FUND FLOWS VS S&P 500 PERFORMANCE (2008– 2011) 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. Fidelity Management & Research Co. 9

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

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. Source: Fact. Set 11

Current Income Portfolio “CIP” 12

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. 13

Investment Profile 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. 14

“CIP” Portfolio Characteristics 9/30/2011 Capstone BCIGC** Duration 4. 06* 3. 96 Current Yield 5. 30% 3. 07% Yield to Maturity 3. 92% 1. 58% Average Quality A Govs * Does not include preferred stocks ** Barclay’s Capital Intermediate Government Credit Index 15

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

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

“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 18

Global Equity Income 19

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 longterm capital appreciation and exposure to International Markets. Investment Universe S&P 1500 S&P ADR 20

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 21

Investment Process Quantitative Screens • 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 22

Investment Process Quantitative Validation • 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 23

Investment Process Optimization • 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 2 x S&P 500 – International component range of 30 -50% – Dividend policy creates a fundamental tilt towards value – Portfolio consists of 55 -65 holdings 24

Global Equity Income Portfolio Characteristics 9/30/2011 COUNTRY DIVERSIFICATION PORTFOLIO CHARACTERISTICS Capstone Market Capitalization S&P 500 $ 44. 6 Billion $ 87. 0 Billion Quantitative Factors Dividend Yield Dividend Growth 3 Yr Dividend Payout EPS Growth 3 Yr 4. 33 11. 24 52. 82 7. 62 2. 20 2. 27 64. 13 5. 63 Valuation Factors Price/Earnings Price/Book Price/Cash Flow ROE Beta vs S&P 500 13. 12 3. 01 9. 17 22. 67 0. 90 14. 63 3. 42 10. 53 20. 98 This information is supplemental to a full disclosure presentation. 25

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

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

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

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The States Compared To The Rest Of The World 30

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