Loading...
2010 Suntrust 1st Quarter Investment Review .-.~ ~~T InVeStment Review first Quaker 2010 F ~ - t, ~ ~ i f s rr f, , Michael T. Hill Managing director Solutions gtrictly private and Confidentia SunTrust In43utional Investment 615-748 52 mike .hill@suntrust.com Table of Contents ? Economic Overview ? Portfolio Review ? Appendix r 2 Lll'~I'ItUST ..~~,!i. Economic Overview Strictly Private and Confidential ent Themes analysts' °IY11C and Investor . h 54% of companies beating were Cey Ec°n el positive wit o timism and arkets continued to show p First Quarter 2010 s repots Were larg Y orate eo rnm9 rising on the top-line. M uarter IJS COrp 72 /o sup is recovery. ¦ Fourth q of the US econo?~ indicators arnings eXpectations and indicators e e repo~ts~ in as key Ve trended lower and leading encouraged by th employment and boos g clams ha e stabilizing. new jobless rites appear to b divergent to emphasize ains high Dore p as the ~ We continue loyment rem ains tepid while h countries ains, while h overall une1'np ared to the Eurozone with solid 9 Althou9 ss. Demand for housing rem comp uarter of 210 show progre rted stronger GDP results as ended the first q pomestic equity markets the headlines an e US and China repued lest. ¦ Th cont~n ore mo mated a as a global recovery uity returns were m as Greece's debt crisis dOebt and deficit to Sen? ds was highlighted ect the US federal d international eq exp may be closer lobal debt loa raded • Weigh on the dollar ol~cy Concern over g down9 monetary p n credit weS and continue to to Y from easy ram. We expect Po~ugal's sovereig urchase prop , low. emise for rising interest rat eked r the markets that its axe ba securities p ain relatively p e signaled to ed its mortg 9 10 and for rates to rem loyment ederal Reserv end rowth in 20 and unemp ¦ The F discount rate and omit g s stem as the velocity to econ to eS~~aY be on the rise as it increased t ulus to contribute e continues stun as leverag ectation unallocated ion remaining constrained, flat a reco9n1Ze that inflation exp ecrease in ¦ We See actual m However, w an impending d ositive high • remains relatively ed declining• entually be moderated by enditures and p has stopp demand in cap?tal eXp of money ains will ev lJS stock market 9 rowth, pent up e believe line 9 summer. ¦ While w stimulus, continued top- into the St~`~~ a continued rally government _ „o ~nuld drive and & POOr~s 500 Index 2010 Events ~ Stand First Quarter Mar. 23 -Healthcare 1,200 Reform bill signed Into rallied at the law. Equities ,n Mar. 26 -Weak beginrnn9 of the year Treasury auctions. 1,180 ositive anticipation of p earnings' Mar. 16-Fed leaves fourth quarter Jan. 14-Obama but sayslt 1,160 proposes fee on banks rates on hold, to recoup bailoutfunds. will end $1.25T MBS s about purchase program. Mar. 5 -Stronger However, concern htening in than expected jobs monetary tig 1,140 report. Feb. 19 -Fed bank Jan. 12 - Ghina's raises the China Heal , central bank raises Jan. 22- discount rate Greece s reserve requirement. gernanke by p 25°l0. Mar. 3 -Greece s and reconfirmation Lion 4 -Greek announces regula an to 1,120 uncertain. Feb. austerity package debt crisis weighs soon beg onm kets debt crisis d the rr?arkets, an ei h on Feb. 9 - EU Feb. 16 - w `Y °m its 1,100 Jan 2p _ offers loan Greece is given 500 fell fr ossible guarantees 1 monthtoshow the SB~P Rumors of p progress on k p nearly cutbackln lending for Gree e. tans. by Chinese banks. austerity p January pea Y 10°!0 in early February. 1,08o Jan. 28- Feb. 12-China Bernanke reconfirmed . raises reserve requirement. was Feb. 5 - U.S. ~nCe a resolution to ment 1,060 Unemp v 8131110 to supp°~' unexpectedly developed om~c data falls to 9 7°1 8116110 or an Stanley 81110 eCOn Data Source: M 9 214110 Greece and ent, the 1,040 1130110 rovem 1115110 shoaled imp 12131109 markets recovered ~S for ew hr9 went on ton e~~~j'TiUST the year. ~ ~ • sets Rallied in First Quarter of 2010 Market Snapshot: Rlsk As set classes and First Quarter X01 ~ Broad Asset Returns As sectors exhibited a wide 10.0 range of returns in the REITs 8 9 first quarter of 2010. s ~ Small-Gap Stocks Mid-Cap Stocks 5 A We believe the increased urge-Cap Stocks 4 8 return dispersion creates High-Yield q opportunity for asset EmergmgMarketBonds 2.8 allocation and actively Corporates ~ ~ managed strategies. Emerging Market Equities 1 8 Core bonds 1.1 Equities and credit uSTreasuries p.9 securities rallied during Int I developed Equities pA the quarter. REITs and T1~5 stocks -1 smaller-cap Global Gvt Bonds dins. $ .Ip 12 posted the largest g Commodities -~ 8 6 0 2 d ~ 2 Percent Return (°r`°l Commodities retreated despite the gain in crude Data Source: Morningstar oil. SLTI'~I'R~ST 6 • • • Macro Economic Environment The macro economic environment currently favors corporate profit growth and momentum appears to be accelerating. As fundamentals improve, we remain optimistic regarding equities but are cautious near-term and believe that valuations could remain constrained. ~- --• -• Sovereign debt levels ' Monetary and fiscal ' Housing remains ' Corporate revenue and are on the rise policy will become less constrained but is profit growth accommodative improving Higher taxes are on the ' Corporate balance horizon ' Interest rates are on ' Unemployment has sheet health the rise become "less bad" Delinquency rates ' Economic indicators continue to climb ¦ Rising mortgage rates ¦ Consumer trends and point to an expanding will impact housing retail sales economy Increased government affordability spending and ' Capacity utilization ' Manufacturing is regulation crowds out ' Inflationary pressures accelerating private investment are building ' Corporate fundamentals ' Lending conditions Consumer ' Valuations have deleveraging continues become less attractive ' Net worth has rebounded 'r/~ ~ 5tam~I'rtvsT • • • Though Fragile, Employment Is Improving The jobs picture improved ~ ISIVI Mfg and Non-Mfg Employment Index Civilian Unemployment Rate {°I°~ in both the manufacturing Through March 31, 2010 Through March 31, 2010 and service sectors aided 12 ~o by temporary business and 60 10 9 7°~° government hiring. ~o s ao The unemployment rate so 6 has retreated from the 20 ~ ° ° ° ~ ~ ~ ~ ~ ° r~ ° ° o p ~ ~ ° ° ° ° ° ° ° ° ° ° ° October eak but still ° ° 2 remains elevated. ISM Manufacturing ISM Non-Manufacturing ~ ~ ~ ~ ~ ~ ~ 0 0 0 Data Source: Haver ,Data Source: Haver Initial and continuing ~ Average Weeklylnitial Claims Productivity Index {SA. 199P =Index} claims are providing signs Unemploymentlnsurance{Thous) Through March 31, 2010 Through March 31, 2014 of some strength in soo 200 employment. 1so 600 160 With increased corporate 1~0 120 productivity growth, aoo 100 companies may be slow to so add jobs in order to keep 200 ~ margins higher. ~ ~ ~ ~ ~ ~ ~ ~ ~ Business Sector ManufacturingSedor ~ ata Source: Haver J+ Data Source: Haver ,f g SLT11~I'RUST • • • Housing Appears Choppy on Government Policy Support and Winter Weather Residential home prices S&Plcase-Shiller Home Price Index: New and Existing Home Sales appear to be stabilizing comp©site2a {SAAR. Thousands} Through January 31, 2ff'Iff Through February 28, 2~1~ despite cyclicalities in new and existing home sales 25o s,o6o 1600 m due to harsh winter zoo rn 6,060 ,zoo weather and the ~ 5,060 loon o 150 = 4,060 800 ~ ~ 3,060 600 v homebuyer tax credit. 100 z 2,060 Existing Home Sales 400 N 1,060 New Home Sales 200 Housing starts may be 50 60 0 ° o ° ° ° ° ° ° ° ° ~ ° ° ° ° ° ° ° ° ° ° ° ~ ~ leveling out at historically ~ ° ° ° ° ° Data Source: Haver ~ Data Source: Haver low levels and could be COnStralned Untll Sales plClc Housing Starts (SAAR. Thous of Units} New Single-FamilyHousesfor Sale: up, Through February 28, 2Q1ff Months' Supply 14 Through February 28, 4'14 2,560 Builders appear cautious 2,060 as construction spending 10 declined in the quarter. 1,560 1,060 g Moreover, demand for 560 housing remains tepid as 60 2 foreclosures and ~ ° ° ° ° ° ° ° ° ° inventories remain Data Source: Haver Data Source: Haver elevated. g SLT11~I'RUST • • • Consumer Regains Confidence Responsible for 70% of GDP, Consumer Sentiment{Universiryof Michigan) consumers endin Through March 3'I, 2ff'Iff p g 1so behavior has a substantial 120 impact on the economy. 110 100 With net worth rebounding so due to stock market gains 80 and stabilizing house prices, ~0 60 consumer sentiment is ~o rising. Zooo Zoo2 Zooa Zoo6 zoos Zo1o Data Source: Haver Personal income is also Total Retail Sales (SAJ YIY°I° improving, and the personal Througl7March 3'I, 2ff1ff 15 savings rate has declined from the peak during the 10 crisis. This may indicate ~ that consumers feel ~ comfortable spending again. -~ Certainly, retail sales have _10 rebounded strongly. _1~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Data Source: Haver "~,sa 10 SL]11~I'RUST • • • Actual Inflation: Still Subdued as Measured by CPI, but Commodity Prices Have Risen Inflation, measured by the G~~~~mp~~n~nts ~R~IC~m~~ner~:Y~Y96~Chang~ Consumer Price Index, has ~a of dacamb.r a~, ThrauphMarch 31, 2G1G been subdued and recently ~ °tl~,,°a~ ~ Fooa¦ 18 ia~l peaked in December 2009. e~,~ _ ~--- L1 ----=~~~ 1? a z ~ e --- 5 ZA Energy prices have ~ _ a _ o~a stabilized, albeit at a higher 'x ~ ~ -0~ -0~ -~.~ price level. ~ ~ ~ ~ ~ ~ o ibrMOO~ nre ~ _ ~ Energy accounts for 8.6 /o ~ e+~a ~ ~ ~ of CPI, and can have a ~ ~ v_ larger impact on CPI when Data Source:Source8ureauofLaborStatistics Data Source:Source8ureauofLaborStatistics prices are volatile. CansumerPrice Index SSA} YIY°I° ~C~mm®dlt~r~rlc~s Through March 31, 201ff ~ Thrcu@h March 31, 241 $4,00 The Transportation s segment is likely most ~ X10 sa.eo a affected by energy prices. 3 2 ~ ;T0 sa.oo z ~ In addition, commodity ' ~ ~ ss,en rices such as oil and -~ p CPI-U Core CPI -2 ~ iCopper[RH] 5.00 copper, which are _3 sCrudeoll[LH] ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° leveraged to global ° ° ~ ~ ° ° ~ s~.eo ° ° ° ° ° ° ° ° ° ° ° ° ° ° ° " " " " " " " " " " a?airoe e?aaroe a?xrroe ~ ar~e?oe ar~en o economic growth, have ~ Data Source: Haver Data Source: Haver been persistently rising. 11 SIT11~I'RUST uid Restrain Grov~h vernment PO~icies C° US GO Net Issuance Has Ballooned Treasury O~u~N01~1~ acrd d'~Ch 31. ~+0~iuane+~ ®1 ent spending has ~~Tre ThwuChMtll US governor ected to aan allooned and the trend is napBudget ~a b ress?o The Cong ~ continue• that federal Office (CBOT estimates ill increase from $7.5 trillion to 160 debt w 1°0 trillion by 2020• w ned into 1f1~ 1rm1n eform bill sig ° irmoe ealthcare R 1r~ 11~ The H ore than lneaa 1~ cost m law in March will likely lneae acity for More? ave the ap and large corporations ated, Data Source: Haver antlclp Un to take po Current Holders of Us Treasu~ ~~~~~~~~u~0s~~~~~ such as AT&T have beg ~ ~e~~t~I+~itH~~'~~~nuor~ ~l. 20°1 charges to account for its ~ red could olicies be1n9 cons? Other p earnings such also impact company °°cap and e bill ( ®eA as the climate Chang 1~ ulation and ~ trade"), financial reg ush tax cuts ~ 169,1 1ae•e en the B em ~19l? zaaA higher taxes wh ~ exp?re. There has also been ~ e~~i Ho"ate"o a value-added tax ~ ate' discussion on act on which would have a broad imp artment of 7reas ury /E=ederal Reserve s Data Source: US OeP the econo?'ny• e~~~y~j'TiUST S equities continued the 2009 rally at the start of the Market Overview U in sovereign risks ?n Ug Equity Broad US Equities: °n intensify g to falter by mid-January olitical landscape• 1-Year Performance uarter only htening and an uncertain p ormance Core' Growth first q ected tig the global recovery and 1t~ 2010 Pert Value Europe, sooner than exP and through Core' Growth correction since Marc e ~ es propelled forty Value After the worst monthly February, and US eq debt fears in Europe• Large reflation trade r uarter on firm economic data and receding the quarter, with the hs during • the end of the q ainst major currencies uit markets reached m i ga°n~ Strength ag Mid The broad eq y erformed international 5.4°t°. As the US do uities outp _ S&A 500 gaining S. eq ed international ,s debt woes, U' develop amidst the Eurozone markets outpaced the _ Small emerging ~ , equities, however, comparable 1 Large-cap core index: S&P 500 Index; All other: Russelu't icRally markets. htened risk aversion and rally from pespite heig the low quality Cyclical Sectors Led the Eq y ~id_ and Small-Cap: s ectrum, s outperform across the market cap a mid- and small-caP uarter, j' First;Gtuarter2014SeetorPel~ormancej°~°} 59 returns in January uarter help 19~° for the q cn o the end of the q ° 13.1 10. 39 5E75 ~.5 2~ February 5 t Volatility also declined close to Zg 11~1'~ °a er-cap brethren. While Industrials and Financials led the their larg was the clear 10 1. 3.5 na hi her risk assets. o further benefiting g the surge In Consumer Discretionary ed a recovery. in large-cap stocks, N rally and small-cap advance as the US consumer s ag N s= ~ .~&PS~~ ~Russe112pQ0 L ed during the _2p ~ N N ~ ¢ y ~ ~ driver of the mid- aced Growth as Financials Burg ~ N w l ~ ~ Sectors: Value outp and Utilities were the only _ Style and while Telecom of steady Value ° ~ ~ o I stretches _ quarter. Cyclical sectors also rallie ~ pespite long the wake of the ost negative returns. ains by Growth in Outperformed sectors top steady in this rally. since 2000 and same g Low Quality outperformance ~1811YASCt L~V~R~a~~ financial crisis, the return differential has remainedha~ a performance advantage ~R~+~~rR ~1dp f anies remium ~g,(a+~00: HISS rowth comp aid a p lnds~•d D~csmbsr 8'1. Quality Trade: The slowest g as near- reinforcing the notion that inOUtpaced other°sectors, 108 during the quarter, articular, could Play f02 Financials, In The high quality trade, however, for earnings growth. 1Q1 term earnings expectations decline. into 2011. fat ore cautious going ai out if markets become m „r~l ~ 2010 unless otherwise noted 8181flQ Data as of March 31, f~Q ~~Q ~np 8t1BMQ pats Source: FactSet S~ar~I'~U~.r 1~811a1 1ryd'IQ wn • • • 2010 Earnings Expectations Remain Positive The continued profit recovery gg~p app Forward operating Eamin~s and upbeat earnings sentiment $100 Peak: 1 Q 2008 was under way in the quarter $90 from the trough in August $80 $812 2009. $~o $60 Analysts estimate that earnings will grow 38% this Trough: 3Q 2009 $40 quarter from the depressed Jun-06 Mar-07 Dec-07 Sep-08 Jun-09 Mar-10 year-over-year levels. Data Source: Factset Companies have beat Per~armige~~BR~ ~,~p,~~mpa~le:®~eming expectations through margin 1°'° expansion and cost cutting; ® tia however, we are now seeing TO w~ ® r,~.s signs of strength from w revenue. ~ ao w io 0 ?e?~hml Selea??s. EaltrieEe ?e?~hml Se1ea??s. lmstYr ?e?~hml opx??s. EaltrieEe ?e?~hml opx??s. l.e~tYr Data Source: Standard and Poors 14 SIT11~I'RUST underPedOrmed US ed markets a dominated leW t overseas develop in Greet an Market ~Verv Mos debt crisis dollar. Jap y ed Markets: as the accelerating a ainst the US omit data a~ qu?t cl pevelop margin ound sold off g ected econ E a wide and British P than exP UK came mainly ternat1On St Regions in 1 -, markets by euro to better M° ews and the Europe and the facing large putpe1~Ormed gummar"'/{°~°1 then tion, advancing due anae in countries US Markets ante sf the excep The underperform per of European reed about future erform was 1Q~p1pP 8G2 the quarter. V•lith a num conce were the euro. Faurt ~9 ~ during Weakness. investors austerity P lications for e1Yr from currency lanand the imp een the US eo 69 ~ harsh rowth rates betty 2% and ~ deficits and ects for the reg1Pn relative g at Ira ~ 5 ~ th pr°sP illustrated the which grew driven by grow GDP rep°rts also Eurozone us 50 ~ a s,2 ~ o g quarter ° annualized rate),rnuch better than c°a$en Greece, mast at 5.8 ~ local Japan's GDP was crisis sag c,~p 50o which grew 8°/0. ongoing debt the quarter in ~o r~~sci M~sc~i EM the UK at 1, highs during the belief that the _a fa pacific er, Ets,FE orts. Despite the hit new -10 _2 ~ Japan Japan strong exp exchanges entals and e ex u k economic fundam Eu'~'p a ainst $USD imprOVing u 4`- oun ere Weak g J international stoc d W mary ~ terms on be resolved. emerging markets was - British P once Sum currency soon debt turmoil Euro and erfan'i' ~ Effect would rformance for Greek er 2410P ?~_i~D Greece crisis st the First C~tua~- ets: This quarter, pe amid countries ¦u~,o tLocalCurrenc~ Emerging Mark US equity returns ing markets the s:z a 6 and lagged in several emerg came early in 43 3A z.4 ~.a more subdued tightening erformanCe 13% at one point to ~ s ~ start of monetary underp 8 a s 3.f ~ , ~ ~ and the and India. Mast of the down as much as and emerging s 2,a e -~ .r_~ as China arkets equities around, however, SCI SAFE in ~ such emerging m ent turned he S&P 500 and the M with broad dispersion quarter Sentim s -~ ~ in January• rforming return AFE ~~C.I EM a peak I outpe index, there was strong a -° E rJ1,c,i E. strong y, -2 pacific ex from overed markets a posting satin -~ -2.A Japan Japan arkets rec emerging Europ Asia and ~ m e p> ies returns with Easter eased and Eur°p, " conom arch. Within the is rebounding u h.. M country ut Greece is growth rted - PMI Shows Reoovering°~~'~d~x among individual Worries abO suPP° 8 4°t°) as ° and 1.7%1• Econam America ~°m~p~~it'~ ~ for the quarter l fagged t1.4 i r m is and Latin and may lead to ~,,h, America returns countries especially sins a concern ~ ~ ~ ~ ~ ~ strongly for many inflation However, FA 'r ~ ' ~ ing exP°rts. tightening• by Burg anetary E6 oted ~ further fiscal and m unless othe~rntise n , +16 g,ta~ ~jtde of March 31, 2 NISCI, haver j +10 SUS ~Gt~ ~ -"` o pata Source: FactSet~ ~Ui~ ~-" pats 9fi ~ Dom' ~ ~ ~ ~ • • • Global Economy: Divergent Growth Paths Economic growth in the Year-Gwer~Y~arR~al~d~~96) Eurozone, the UK, and Ja an has is ~•or~eoembar3'l,~Ce p 1°~ IChlna'e GpR le nominN~ io lagged growth in the US and B many emerging markets a.i fi.i B countries such as China. # z The Eurozone's economic growth ° °•1 may continue to struggle since _1~ many of the European Union (EU) ~ .a,~ members have high deficits and Data Sour°e~a Irde Korea Brad us Japan e~.mm~e uK may need to implement austerity plans to meet EU guidelines. ~ert~rmancesgummary: 1-YearT~talReturrrtls(96~ ~e of March 31, 2a°I° 1~° Emerging markets countries, izn 11fiA i~a especially in Asia and Latin im tea America, have had strong ~ fi7~ 6Bb recoveries and are benefiting ate from surging exports and rising w domestic demand. ° Chhe Irde Korea Brad U9 Japan 6~romne UK Data Source: Factset 16 SIT11~I'RUST . SoVere~gn peb ~~oba~ E~onomY t and Budget deficits as a °I° pf gQ14 GD N ational f?eb recovering ul~ Greece lobal economy U 15 Ireland ; ~ With the g from worrying = ± pin the focus has shifted ~2 ~`paln France ~ ~itaiv rowth to worrying portu9d~ omit 9 n debt. Large W 9 about econ sovereig o a- 6 Germany about soaring helped nations pull ~ ,2a ending ,aa „a deficit sp but deficits have y~ as qo t of recession, 7a GpF Ou ~ a 5a 6a ~Iet Debt as °rn of Est 20`11 skyrocketed. m as countries needing to ~ pata Source: The Economist With many issue new debt _ _ _ ~ _ - ce and • cause - ~ refinan • . _ • • ~ • - investors may etition for ress ~ ' ~ comp d dep unding rates to rise an 12.s f ent. 0 6 estm -12.2 s.o local inv 69 _23 seeking to 175 -5'S 1g~1 se countries 120 _47 Ireland -9.6 7.9 Moreover, th° ending and 1,750 60 3.6 reduce sp Italy 1,364 -3.2 9.5 substantially the 85 _1 4 those in gpain _g2 8.8 such as 2,807 83 -1.9 deficits, into Germany -13.2 9.7 could fall back 2,112 s2 _22 France -11.2 5.7 Eurozone~ 2,163 94 20 recession. UK 14,266 _7.4 have 227 n debt will likely us 4,1x6 soverei9 Japan ~JLTI'~~~~ pata Source' Hamrrpnd Associates Rising for future economic implications REITs advanced ahead of other major asset classes as S Market OverV1eW to ment picture improved and at~Ve REITs: In the quarter, th the emp Y Ahern showed signs of streng and resort, retail and self ed an Impressive,-_Ra~~Y , _ the economy eared stable. The lodging Ug consumer. EquityyREIT Secto~ r__S Stag -----~ anCe - REIT rally amidst a resurging many credit conditions app e sectors led the equWeak commercial real estate fundamentals, e 1Q 2010 Equtry REIT Sectarperfarm I storag ~ _- despite relatively in economic • to a bottoming out in the sedate tendsfto0ag and may 3Ci 22!7 Moreover, 25 11 ? ~ investors anticipa urchase of bankrupt I 10 ~ s,s ~ in ahead of the turn as commeresimonl Properties p 2C1 11 ~ 9.8 ` buy g er activity following ` seems to have boosted investor sentimen erg 15 10 ~ 7.1 0 1a IS recoveries. ernes also j ~ 5 9 u q ` General Growth Prop ressure due to p a~ A W ~ ~ " about the sector. r nder p ~ ~ r 9 ~ ~ uarter, commodity markets wam~dst signs of monetary _ v o ~ w w ~ s ~ -- - odities: This q rowth ree LL = ~ lobal economic g Q= ~ Comm w odities about future g -- concerns arkets countries and the deandrGra~ns sectors eak fOr Most Com?'~ a emerging m The Energy tightening in som rices. h many of the Returns Were W US dollar likely also affected p return. Althoug gectar Performance A strong on the index's uarter, natural f 1 Q 2010 ~ammodiry e~2.5 the largest impact ositive returns forte ersisted and ¦c~-ro ¦1~fr had sector had p levels p 1d~ components in the Energy inventory I driven by so 23? 25 ~ rices fell over 30% a5 high n.1 gas futures p The Grains sector was down sharp Y ~0 2ra 5 s s of stacks on-hand far the las 60 6 ~ 2 3 _L a production remained healand• global inventory a could be available for 2D 12g ore acreag o upward revisions in U -20 -5 ~ -0 3 _15 0 -11 ~ Livestock season and evidence that m Precious Softs planting -40 Grains base wletals ies lagged traditional ~,~_ugs ci Energy Metals planting. a fund strateg ies: This quarter, hedg A regate Bond Index. in a Strong Market Hedge Fund Strateg the BarCap gg ies Lag gg~p 500 and Hedge Fund Strateg ~~lien~hm~s benchmarks such as the funds using ionglshort and oth theeCB E '~d1110?~ market so strong, as measured by H+~c1~+~~u~~11td~%~~°~' With the equity Furthermore, volatility ~~~nn~ln~~s~umm°~~~ ies fell behind. uarter, which made it more difficult far ¦1Yeer strateg bout the q ~ Volatility Index fell throug W ~'r 1~ hedge funds to add value. 17.7 1B •1~.,{,4 1a r ~ ~ 1b of March 31, 2010 unless otherwise noted F~ Data as Star, FactSet, HFRI ;;1~g . D ~~p ~ ~¦°t H d~0~~ ~,,~nlid~ Data Source: Morning ~,y`- Barb ~ Yd¦x ~f~~'j{[J~`T ~¦C~p ~pY wn • • • REITs Advance Ahead of the Markets Despite Fundamentals Risks Equity REITs performed , ~ Equity REIT and Financial Stock U.S. Rroperty Prices: Index in line with Financials as Performance Through January 31, 2~'I~ the US economy and 100 Indexed January 261]7 200 capital market conditions 90 _ 175 s° improved. 7° 15° 60 50 Pricing data may show a 4° ~`- ==~y" 12~ turn in commercial real 30 l 20 100 Commercial - M oodys estate, which tends to lag Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Residential-S&P CaseShillerlndex REITs S&P Commercial Banks the residential market. = S&P Financials 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Data Source: Morningstar ~ ti Data Source: Haver Ja Risks remain, however, -, as delinquencies and Commercial Real Estate Loan delinquency Commercial Real Estate Cr'ebt Maturities Rate and Net Charge-offs SAAR%) t$Bil} charge-offs of real estate ThroutJh December 31, 24Q9 $600 15 Delinquency Rate 3.5 $524 $495 $494 loans at banks remain ~ Net Charge-Offs 3.0 $500 elevated. ~ 12 2.5 ~ $400 ~ 9 2.0 Moreover, much of the ~ 6 15 0 $300 commercial real estate 1 ° N $200 $14s $133 3 0.5 $100 debt is set to mature in ° 0 0 ° 0 0 0 0 the next two years. ~ ~ ~ ~ $- rn rn rn rn rn o 0 0 0 0 2°10 2°11 2°12 2°13 2°14 Data Source: Haver Data Source: Morgan Stanley l~ 19 ~LJ11~'RUST • • • Portfolio Strategy: March 31, 2010 Balanced Portfolio Slight Overweight Equity versus Bonds ¦ Continued positive earnings and revenue reports along with improving economic conditions are generally supportive of our slightly overweight equities versus bonds strategy. Recent company earnings reports have been positive. Individual company characteristics should be a key driver of performance and the recent divergence among asset classes and sector returns is conducive to actively managed and allocated portfolios. ¦ While we expect to realize further stock market gains over the longer term, strong earnings, improved economic conditions and financial market stability have resulted in a recovery in the equity markets of over 70% and valuations have returned to the upper end of "fair value." We maintain a cautious nearer term outlook. ¦ Eventually the lack of further stimulus, upward pressure on yields, and increased debt loads globally will weigh on equities. The magnitude of the gains and an upward bias on rate moves, tempers our desire to aggressively increase our equity weighting. As we are slightly overweight our neutral target, we feel comfortable at current levels and will wait for confirming global economic information before adding additional equity risk to the portfolio. Equity Overweight Growth versus Value ¦ Growth lagged value during the quarter, but we continue to find large-cap growth valuations attractive relative to large-cap value. Superior earnings growth and stable balance sheets, combined with more reasonable valuation levels should attract investors to the sector and lead to better relative performance. We foresee a recognition of these "high quality" type companies and are allocating dollars to this area. Small and mid-cap allocations also favor growth over value which results in a lower overall allocation to the Financials sector. Overweight Large and Mid-Cap relative to Small-Cap Equities ¦ We continue to favor large and mid-cap stocks over small-cap as valuation levels and continued credit market limitations are headwinds as we move further into 2010. r. 20 SL]11~I'RUST 2~1 ~ better economic March 3 ' exhibited stem in Strategy ~ have of th es' a n aresmindful „tf0~1O ational domestic markets health ~ersug Intern and the al equ~t avor Domestic lobal recoveN anout debt levels anon d internationally, F d the 9 cerned ab relative t0 intern is derive dd to our es to lea be con ht domestic p compan1es ernationa? The US cont~nu e continue to S&p 50 {or opportunities to a addresse tl overwe1 earnings °f look have fundamentals. We are Curren o erat?n9 We continue to d deficit issues ar tries the EuroZOne tely 4p°~0 of the p markets. er picture unfolds an in9 market coup that pproxima to international is recov y ssion. Emer9 a exposure s a firmer econom discu markets. htmg attract providing weig a f?nues t ospects versus develope international Market allocation c er-term p ergin9 ve brighter long . Increased En' d ha curies rebounded faster an Trea Corporates versus S Treasuries. Qua?~ty °hunity relative to U hasize High. d Duration ue to provide opp during the recovery • We Emp a pecrea5e put contra read tighten?n9 Fixed Income ~Ilainta?n reads have contracted ,ven significant sp corporate sp ains at neutral 9 dive ¦ osure rem Is aura se. ectations~ field exp 1eld leve crea High y solute y rate pressures in on rising ?nflat?on ex ¦ to find ab aintained as ains based continue pond allocation m o~-term Lion protected Securities rem ¦ Sh Infla ergin9 Treasury errand from em Allocation tO bsolute Return stronger d attract?ve given modifies and A Mies as rebounded Commod~ ITs have Favor Cora lobal recovery cing• RE view diversified debt refinan on-Traditiona? and ~e contmuno°nlies and the continued 9 ending uities. reduct~on~ N of imp broad eq risk market eCO inherent risk ed relative to Iternaf~ves EITs given the further challen9 Ves for diversification and A de~eig as could return strateg ~ . tJn ht R such be absolute ~harplY, and ~:.,orsified • • • Performance Summary: March 31, 2010 , , Dow Jones Industrial Average 5.31 4.82 4.82 46.93 -1.48 3.34 U. S. Fed Funds Rate 0.13 0.13 0.13 0.13 S&P 500 6.03 5.39 5.39 49.77 -4.17 1.92 European Central Bank Rate 1.00 1.00 1.00 1.00 Nasdaq 7.14 5.68 5.68 56.87 -0.33 3.70 Bank of England Rate 0.50 0.50 0.50 0.50 Russell 1000 ~ 6.14 5.70 5.70 51.60 -3.98 2.31 Bank of Japan Rate . 0.10 0.10 0.10 0.10 Russell 3000 6.30 5.94 5.94 52.44 -3.99 2.39 USA LIBOR - 3 Month 0.29 0.25 0.29 0.60 Russell MidCap ~ 7.07 8.67 8.67 67.71 -3.30 4.20 TED Spread (bps) - 3 Month . 13.68 18.98 16.27 39.72 Russell 2000 8.14 8.85 8.85 62.76 -3.99 3.36 2 Yr U. S. Treasury 1.02 1.14 0.96 1.12 Russell 1000 Growth 5.78 4.65 4.65 49.75 -0.78 3.42 10 Yr U. S. Treasury ~ 3.83 3.84 3.31 3.52 Russell 1000 Value 6.51 6.78 6.78 53.56 -7.33 1.05 10-2 yr slope 2.81 2.70 2.35 2.40 Russell MidCap Growth 6.84 7.67 7.67 63.00 -2.04 4.27 ML High Yield Master 8.48 9.08 10.21 13.06 Russell MidCap Value 7.28 9.61 9.61 72.41 -5.22 3.71 ML Corporate Master 4.56 4.89 4.98 6.15 Russell 2000 Growth i 7.94 7.61 7.61 60.32 -2.42 3.82 Russell 2000 Value 8.32 10.02 10.02 65.07 -5.71 2.75 MSCI EAFE Net ~ 6.24 0.87 0.87 54.44 -7.02 3.75 ~ ~ ~ ~ • ~ ~ ~ • ~ ~ ~ MSCI Emerging Markets Net 8.07 2.40 2.40 81.08 5.16 15.65 Euro 1.353 1.435 1.462 1.403 MSCI EAFE Small Cap Net 7.30 4.76 4.76 70.02 -8.27 3.60 Yen 93.440 93.095 89.535 96.485 FTSE NAREIT Equity Index 10.18 10.02 10.02 106.68 -10.60 3.80 GBP 1.517 1.615 1.599 1.647 DJ-UBS Commodity Index -1.24 -5.03 -5.03 20.53 -6.88 -1.36 BarCap Aggregate -0.12 1.78 1.78 7.69 6.14 5.44 BarCap Government/Credit -0.35 1.55 1.55 7.51 5.84 5.17 ~ ~ ~ ~ ~ ~ ~ ~ ML U. S. Treasury Master -0.85 1.11 1.11 -1.24 6.06 5.20 Light Crude Oil ($/barrel) 83.76 79.36 70.61 69.89 ML U. S. Treasuries Inflation-Linked -0.03 0.39 0.39 5.95 5.96 4.78 Gold ($/ozt) 1114.50 1096.20 1009.30 927.40 BarCap U. S. Treasury Bellwethers (2 Yr) -0.28 0.69 0.69 1.58 5.12 4.48 BarCap U. S. Treasury Bellwethers (10 Yr) -1.67 1.00 1.00 -6.35 5.77 4.68 ML U. S. Corporate Master 0.35 2.75 2.75 24.84 5.71 5.21 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ML High Yield Master 3.10 4.82 4.82 57.22 6.53 7.67 2010 Oper Earnings (bottom up) 78.12 75.27 72.80 74.10 Citigroup WGBI (USD) -1.70 -1.33 -1.33 6.31 7.17 4.78 2010 Oper Earnings (top down) 67.61 60.59 52.63 46.60 Citigroup WGBI (USD) Hedged -0.03 1.10 1.10 2.37 5.28 4.83 2010 As Reported (top down) 62.09 55.62 45.84 37.81 JP Morgan EMBI Global 2.33 4.16 4.16 29.15 7.27 9.27 Consumer Discretionary 7.83 10.44 10.44 69.80 -3.18 1.19 CBOE VIX 17.59 21.68 25.61 26.35 Consumer Staples 4.07 5.82 5.82 35.90 4.74 6.67 Energy 2.94 0.62 0.62 29.52 -0.62 6.83 Financials ~ 8.89 11.15 11.15 83.06 -21.29 -8.48 Health Care 2.61 3.40 3.40 34.53 0.44 3.35 ~ Industrials ~ 8.92 13.08 13.08 72.82 -3.08 1.63 HFRXGIobal Hedge Fund Index •1.38 1.62 1.62 14.45 Information Technology 6.79 1.91 1.91 58.01 3.24 5.19 HFRXEquity Hedge Index 1.13 0.32 0.32 12.65 Materials . 7.80 2.88 2.88 56.06 -2.24 4.37 HFRXAbsolute Return Index -1.66 -1.32 -1.32 -4.35 Telecommunication SeMces 5.55 -4.32 -4.32 12.22 -8.91 2.57 HFRI Fund of Funds Composite Index 1.69 1.46 1.46 12.68 Utilities ~ 2.75 -3.53 -3.53 21.01 -5.74 4.18 -rn~o~nnnamr,si zoio i~ 22 SI]11~I'RUST ..~~,!i. Portfolio Review Strictly Private and Confidential ~ • • • Portfolio Composition As of March 31, 2010 ~ ~ ~ ~ Cash 1.4% Large Cap $2,971,720 50.65% 40.09% 10.56% SunTrust Retirement Select Large Cap Growth $1,574,564 26.84% 20.59% 6.25% Fixedlncome SunTrust Retirement Large Cap Value $1,397,157 23.82% 19.50% 4.31% 35.3 Small Cap $437,671 7.46% 5.83% 1.63% SunTrust Retirement Smallcap Growth $437,671 7.46% 5.83% 1.63% International $305,372 5.21% 4.33% 0.87% RidgeWorth Intl Equity Index $305,372 5.21 % 4.33% 0.87% Intl 5.2 Small Cap 'S% SunTrust Ret. High Grade Bond $2,072,750 35.33% 44.62% -9.29% . ~ , ; Portfolio Holdings are subject to change. Please refer to appendix for full disclosure. Source: First Rate Performance System. ~ • • • Performance Comparisons as of March 31, 2010 Annualized Annualized Annualized ITD • 1 • Net of Fees Approximation 3.4% 23.7% 1.4% 4.1% 3.4% 7.1% 60% S&P 500/ 40% Barclays Aggregate 3.9% 32.9% 0.0% 3.3% 2.1 % 7.2% S&P 500 Index 5.4% 49.8% -4.2% 1.9% -0.7% 7.6% Large Cap SunTrust Retirement Select Large Cap Growth 4.6% 42.6% 2.4% 4.7% 2.3% 9.6% Russell 1000 Growth Index 4.7% 49.8% -0.8% 3.4% -4.2% 6.4% SunTrust Retirement Large Cap Value 6.6% 48.2% -1.9% 4.8% 6.0% 8.6% Russell 1000 Value Index 6.8% 53.6% -7.3% 1.1 % 3.1 % 8.6% Small Cap SunTrust Retirement Small Cap Growth 7.9% 56.0% -1.6% 2.4% N/A N/A Russell 2000 Growth Index 7.6% 60.3% -2.4% 3.8% -1.5% N/A International RidgeWorth International Equity Index -1.2% 49.9% -8.5% 2.9% 0.3% 5.1% MSCI-EAFE GDP (Net) Index -1.0% 51.9% -8.3% 3.2% 1.1 % N/A SunTrust Retirement High Grade Bond 1.2% 4.7% 6.4% 5.3% 6.2% 6.5% Barclays Aggregate Bond Index 1.8% 7.7% 6.1 % 5.4% 6.3% 6.5% Barclays Govt/Credit Bond Index 1.6% 7.5% 5.8% 5.2% 6.2% 6.5% 91 Day T-Bill 0.0% 0.1 % 1.6% 2.7% 2.6% 3.4% . ~ ~ Past Performance is not indicative of future results. Please refer to appendix for full disclosure. ~ ;p _ ~°- ~ ~ ~ is •r,k Source: First Rate 25 rformance System. SU1V 11(~]~7' YY ~ F ~ • • • Statement of Cash Flow As of March 31, 2010 January Ol, 2010 to March 31, 2010 ~ Apri101, 2009 to March 31, 2010 ~ Be Innin Market Value $4,760,309.85 Beginning Market Value $5,554,519.96 ; 9 9 Beginning Accrued Income $22.96 ! Beginning Accrued Income $468.29 Beginning Portfolio Value $5,554,542.92 i Beginning Portfolio Value $4,760,778.14 Contributions $966,803.04 Contributions $235,184.94 Withdrawals ($126,641.27) ' Withdrawals ($1,012,507.40) i Gain (Loss) $203,076.42 i Gain (Loss) $1,138,789.10 i Interest and Dividends $475.74 ; Interest and Dividends $13,221.20 ($3.12) ~ Net Accrued Income ($448.45 Net Accrued Income ' ) Ending Market Value $5,866,615.79 ~ Ending Market Value $5,866,615.79 Ending Accrued Income $19.84 i Ending Accrued Income $19.84 ~ Endin Portfolio Value $5,866,635.63 Ending Portfolio Value $5,866,635.63 ; 9 i Total Return 3.58% i Total Return 24.45% ri Past Performance is not indicative of future results. Please refer to appendix for full disclosure. ,~T ~ ~ ~ r Source: First Rate~~erformance System. ~L]jV 1'jtUST F r~° ..~~,!i. appendix Strictly Private and Confidential i of a comp etr c setrof objective ting? ors in evaluating theG~jluses a 400 m GMI) ra have on pe~Ormance' ante al invest °rate G°vgrn etrics International (ssce ip stitution ies rated. rp eM designed to a radices may ¦ What is a Govea at ng system that g°vernan compan lobally. of the 00 companies g G(VII usesce and the impacrteria to each lied ase? more than 4,0 governan tl app G[vll datab ratings on and consises are coveredor toreate governance ¦ What compan features c p categories: The database fined? of six core G~II ratings determ the basis ¦ How are s are calculated on sand policies A Rating hectors _ Board of ~ . roblem ~sclasure GMI,s Global universe. _ Financi old r Rights labor and sourcing p . entompared t0 all companies in _ Shareh ravision Compensation environm _ Anti-takeover p s regulatorY~ bans c e tiVe and directorinclude a relative _ Execu havior - messed on 6.5 is averag . prate oeSunTrust are exp 10 is highest and _ Corp est, of 1 is low of ~=3.0 ¦ All GMor bo gd s rating _GMI rating 5,50 stack ebW Avery GMI rating of 3.50 - _WellB af6.0_7.0 g,5 _ Below AVerag I rating of 7.5 - e = GM -GMI rating 0,0 _ gveragboVe gVerage - GMI rating of 1 G~~ s Highest Rating = period End+ng Marc • Ratings . • . • 150% ~oVernanG ~~~o, d,s ~arporate ' • h q3~ ~s~ ,Sa% Grade Fun z.6a J ~ 20 5 ~ 10.3°h' Average Score 8.6 78 3°~ 66d~ a Score 8.3 pverag • . • a e Score 8.1 g3% 23% Aver 9 • • 267°l0 15? 43 3°~" 61 7 1 413h a Score 7.7 GM I's Highest Rating (10 pverag • ? g.5) . • • Well Above Average (7.5 . • . G 4.0! 4 0°l0 (V.O -~ ~ • • . • ?Average • 55% 20D% (3.5-5.5) s 6 % ?gelow Average p,verage (~=3.0~ 236°, ~ZO% ?N/ell Below 67 s% March period Ending Average Score 8.7 ~ e gcore 8.7 pverag Fund Attribution Summlly -Appreciated more than 15% SunTrust Retirement High Grade Growth Fund SunTrust Retirement Small Cap Equity Fund PARKER HANNIFIN CORP COM $ 426,460.20 $ 574,243.80 20.05 INTERMUNE INC COM $ 36,838.00 $ '134,824.25 235.61 BANK OF AMERICA CORP COM $ 3'16,4'10.60 $ 420,456.75 '17.84 RADIAN GROUP INC COM $ 45,322.00 $ 60,605.00 99.36 PRICELINE.COM INC NEW COM $ 465,2'13.30 $ 609,450.00 '16.36 MCMORAN EXPLORATION CO CO $ 22,255.50 $ 43,'158.50 8'1.26 JUNIPER NETWORKS INC COM $ 434,'187.60 $ 559,9'10.00 '15.00 QUESTCOR PHARMACEUTICALS $ 35,625.00 $ 65,840.00 72.7 SunTrust Retirement High Grade Bond Fund PAREXEL INTL CORP COM $ 53,580.00 $ 86,247.00 57.16 NO SECURITIES APPRECIATED MORE THAN 15%. CLEAN ENERGY FUELS CORP C $ 84,369.75 $ 80,869.00 54.64 SunTrust Retirement High Grade Intermediate Bond Fund SALIXPHARMACEUTICALS LTD $ 60,936.00 $ 122,925.00 47.52 NO SECURITIES APPRECIATED MORE THAN 15%. CONSTANT CONTACT INC COM $ 25,200.00 $ 50,030.50 4'1.44 SunTrust Retirement High Grade Relative Value Fund NUVASIVE INC COM $ 67,'158.00 $ 10'1,700.00 41.28 METLIFE INC COM $ 27,573.00 $ 36,275.58 22.52 PHILLIPS VAN HEUSEN CORP $ 32,544.00 $ 48,756.00 4'1.2'1 EATON CORP COM $ 23,984.74 $ 2'1,29'1.37 '19.80 WEBSTER FINL CORP COM $ 56,976.00 $ 74,769.75 40.09 NII HLDGS INC COM NEW CL $ '1'1,4'17.20 $ '16,088.48 '17.93 DENDREON CORP COM $ 3'1,536.00 $ 46,499.25 38.'13 EMERSON ELEC CO COM $ 40,'129.20 $ 26,227.'14 '17.82 ALKERMES INC COM $ 35,758.00 $ 52,528.50 37.4 WELLS FARGO & CO NEW COM $ 32,549.94 $ 40,300.40 '15.32 SONOSITE INC COM $ 36,626.50 $ 52,98'1.50 35.55 SunTrust Retirement Mid Cap Equity Fund ACORDA THERAPEUTICS INC C $ 15,750.00 $ 23,085.00 35.27 REGIONS FINL CORP NEW COM $ '149,468.95 $ 2'12,303.25 47.86 DECKERS OUTDOOR CORP COM $ 55,946.00 $ 86,250.00 35.00 LENNAR CORP CL A COM $ 60,'146.70 $ '104,378.65 30.76 DOMINOS PIZZA INC COM $ - $ - 33.32 AIRGAS INC COM $ '135,660.00 $ - 30.24 TENNECO INC COM $ 52,746.75 $ 75,088.75 32.94 STARWOOD HOTELS & RESORTS $ '174,804.60 $ 206,848.40 27.73 UAL CORP COM $ - $ 43,0'15.50 27.79 POLYCOM INC COM $ 209,373.45 $ '158,863.'10 26.'15 POLYONE CORP COM $ - $ 5'1,200.00 27.67 DARDEN RESTAURANTS INC CO $ 2'10,770.70 $ 220,695.70 26.'1 TEMPUR-PEDIC INTL INC COM $ 72,662.25 $ 99,528.00 26.99 DR PEPPER SNAPPLE GROUP I $ '1'17,728.00 $ '132,239.20 24.85 NETLOGIC MICROSYSTEMS INC $ 85,58'1.00 $ 94,'176.00 26.89 MYLAN INC COM $ '157,207.90 $ 200,642.85 23.'14 TIMKEN CO COM $ 45,049.00 $ 77,275.75 24.66 ROCKWELL AUTOMATION INC C $ '15'1,698.42 $ '147,945.00 2'1.23 WEBSENSE INC COM $ 34,047.00 $ 77,4'18.00 24.56 EATON CORP COM $ '175,273.'10 $ '139,037.95 '19.78 TRUE RELIGION APPAREL INC $ - $ 4'1,745.00 23.68 M & T BANK CORP COM $ '155,'184.80 $ '174,239.'10 '19.64 PORTFOLIO RECOVERY ASSOCS $ 76,245.00 $ 98,766.00 22.52 ALBEMARLE CORP COM $ 982,949.90 $ 299,879.90 97.28 F N B CORP PA COM $ 54,999.00 $ 70,959.50 29.97 F5 NETWORKS INC COM $ 979,622.80 $ 929,423.00 97.24 FIRST MIDWEST BANCORP INC $ 62,345.25 $ 69,782.50 20.74 AMERIPRISE FINL INC COM $ 979,002.90 $ 986,883.20 97.97 AARON-S INC COM $ 44,368.00 $ 56,678.00 20.96 NII HLDGS INC COM NEW CL $ 82,606.80 $ 975,056.00 96.97 RIVERBED TECHNOLOGY INC C $ 23,544.25 $ 84,490.00 20.94 WILMINGTON TR CORP COM $ 950,309.20 $ - 96.79 RUE29 INC COM $ - $ 30,336.25 20.99 GEN-PROBE INC NEW COM $ 936,056.40 $ 978,000.00 96.52 KELLY SVCS INC CL A COM $ - $ 62,475.00 99.8 AUTODESK INC COM $ 956,779.70 $ 298,734.90 95.47 SIRONA DENTAL SYS INC COM $ 49,262.00 $ 52,299.25 99.66 EZCORP INC COM $ 49,790.00 $ 63,345.00 99.33 SunTrust Retirement High Grade Equity Income Fund CARPENTER TECHNOLOGY CORP $ - $ 43,005.00 98.95 BB&TCORPCOM $ 9,984,779.00 $ 9,592,693.00 28.34 CUBIST PHARMACEUTICALSIN $ 46,950.75 $ 59,967.50 98.76 JOY GLOBAL INC COM $ - $ 684,739.00 22.47 STEVEN MADDEN LTD COM $ 79,387.00 $ 900,040.00 98.37 PRUDENTIAL FINL INC COM $ 9,082,280.00 $ 9,225,925.00 29.75 AMEDISYS INC COM $ 34,020.00 $ - 98.3 GENERAL ELEC CO COM $ 9,552,338.00 $ 9,867,320.00 20.90 TITAN MACHY INC COM $ 34,620.00 $ 43,808.00 97.97 VALERO ENERGY CORP NEW CO $ 562,800.00 $ 367,405.00 99.89 JO-ANN STORES INC COM $ - $ 52,475.00 97.87 XEROXCORP COM $ 508,023.00 $ - 97.02 PLANTRONICS INC NEW COM $ 57,805.50 $ 87,584.00 97.49 BAKER HUGHES INC COM $ 9,090,936.00 $ 929,774.00 96.68 BELDEN CDT INC COM $ 59,592.00 $ 89,939.50 96.6 UNION PACIFIC CORP COM $ 9,962,980.00 $ 894,260.00 96.93 HHGREGG INC COM $ 55,075.00 $ 33,443.00 96.59 WELLS FARGO & CO NEW COM $ 2,329,237.00 $ 2,685,656.00 95.49 BRIGHAM EXPL CO COM $ 56,579.25 $ 74,566.25 96.5 Please refer to Appendix for full disclosure. Period Ending March 31, 2010 3o SLT11~I'RUS'T Fund Attribution Summlly -Depreciated more than 15% SunTrust Retirement High Grade Growth Fund SunTrust Retirement Small Cap Equity Fund NO SECURITIES DEPRECIATED MORE THAN 15%. XENOPORT INC COM $ 43,128.75 $ - -57.2 NUTRI SYS INC NEW COM $ 35,066.25 $ 24,948.00 -36.61 SunTrust Retirement High Grade Relative Value Fund SCHWEITZER-MAUDUIT INTL I $ 54,521.25 $ 23,780.00 -29.76 AMERICAN SUPERCONDUCTOR C $ 99,182.50 $ - -26.54 GAMESTOPCORPNEWCLACO $ 27,205.60 $ - -20.76 NEUTRAL TANDEM INCCOM $ 24,456.25 $ - -24.53 QUALCOMMCORPCOM $ 32,474.52 $ - -15.8 ARENARESINCCOM $ 64,680.00 $ - -23.22 OVERSEAS SHIPHOLDING GROU $ - $ 32,364.75 -22.07 SunTrust Retirement High Grade Bond Fund MERIT MED SYS INC COM $ 47,138.00 $ 39,650.00 -20.77 ISISPHARMACEUTICALSCOM $ 34,996.50 $ - -20.05 NO SECURITIES DEPRECIATED MORE THAN 15%. ATHENAHEALTH INC COM $ 73,515.00 $ 63,066.00 -19.39 COMPUTER PROGRAMS & SYS I $ - $ 22,471.00 -17.75 SunTrust Retirement High Grade Intermediate Bond Fund ARRISGROUPINCCOM $ 53,435.25 $ - -16.33 CYPRESS BIOSCIENCES INC C $ 37,649.25 $ 33,985.50 -15.27 NO SECURITIES DEPRECIATED MORE THAN 15 % . SunTrust Retirement High Grade Equity Income Fund NO SECURITIES DEPRECIATED MORE THAN 15 % . SunTrust Retirement Mid Cap Equity Fund GAMESTOP CORP NEW CL ACO $ 166,085.80 $ - -20.98 Please refer to Appendix for full disclosure. Period Ending March 31, 2010 31 ~LJ11~'RUS'T - Adviser ~ ~ ~ ~ - RidgeWorth Investments g3g000 Apple Incorporated . 4.8% Fund Benchmark SUbadvl5EY $25,000 - - Googe Incorporated (CIA] 4.3% Consumer Discretionary 7.11% 1088% SilvantCapital Management LLC - agrowth equity manager based 820,000 Cisco Systems Incorporated 4.2% Consumer Staples 8.98% 1587% in Atlanta,Georgia Hewlett-Packard Company 3.6% Energy 6.96% 3.92% $IS,000-- - - --- --- ------ --- - 812,530 Philip Morris International Incorporated 3.S% Financial Services 8.92% 5.20% Portfolio Managers alo,ooo Vlsa Incorporated 3.S% Health Care 12.86% IS~95% • foe Ransom, CFA Portfolio manager since 2007 SS,000 Express Scripts Incorporated 3.2% Industrials 12.12% 1066% $~~3voo 3r3vos 3131tio Oracle Corporation 3.1% Information Technology 36.39% 3231% •MlchaelA~Sanso[erra EMC Corporation 2.9% Materials 3.78% 381% Portfolio manager since 2007 ¦A~~m ml~e wdh rei~Yenm~t of i~~me aid spiral gams o 0 0 Coach Incorporated 2.9/ Telecom Services 2.83/ 058/ • Christopher Gulnther The a6ovegraph assumes an initial hypothetical investment oF$10,000 from Utilities 0.00% 081% Portfolio manager since 2007 3131100 to 3131(10 The performance quoted herein represents past performance. Objective The Fund seeks capful appredation bylnvesting prlmarllyin large, well-established domestic corporations The Fund Is designed to comply vnth guidelines that are based principally on Florida laws i governing the investment of municipal retlrement plans for fire, Avers Annual Total Returns ' police and general government employees ~ Equities 96.2% Inception Latest I 3 5 10 $ultablllty Date Quarter YTD Year Y~r Year Year Cash & Equivalents 37% This Fund Is open to Investment only by trusts for which SunTrust Fund 3(9!90 4.64% 4.64% 42.62% ~ 2.42% 473% 2.28% Bank serves as Vustee or Investment manager of qualified retire- Russell 1000° Growth Index (benchmark) 4.65% 4.65% 49.75% ~ -0.78% 3.42% A~21 mentplans which adopt the terms of a collective trust S&P5001ndex 5,39% 5.39% 49.77% -0.17% 1,92% -0,65% This Fund is suitablefor investors who want the value of their *As of March 31, 2010 and subject to change. investments to grow, but do not need to receive income on their investment Select Large Cap Growth Stock Fund was formerly known as High Grade Growth Fund. Partperformance does notguamutee future resufis.Theperformance data quoted rrepreseotspart performance and current returns may he lowerorhigher. Total return figures include change in unitprice, reirwertment of dividends anti capital gans.The investment return and principal value will fluctuate so that on investor's units, when redeemed, may he worth more or less than the original cost. ~I~ SunTrust Bank, Member FDIC ©SunTrust Banks, Inn SunTrust is a federally registered service mark of Sun (rust Banks, Inc. NOT FOR PUBLIC DISTRIBUTION • '- • t1 Investment Terms & Index pefinitions CUSIP' 990001273 Alpha' 3 01% Price-to-Book Ratio is used to compare a stock's market value UnltValue $68.12 Beta 0.9 I to its bookvalueShe higher the ratio, the higher the premium the Total fund Assets $26,570,693 R-Squared 9668 market Is willing to payfor a company above Its hard assets. Sharpe Ratio 0.03 Price-to-Earnings Ratro ("P!E"[ is a valuation ratio of a company's Standard Deviation 1860% currentunit price to its per-unit earnings The higher the PfE ratio, the more the market is willing to pay for each dollar of annual Market Capitalization [Weighted Average} $63.8[b[ *As of March 31, 2010 and subject to change. earnings Price-to-Book 3.3 Alyha measures a fund's risk-adjusted performance and represents Price-to-Earnings (12 month trailing) 217 the dlfferenee between a fund's acwal performance and Its expected Return on Equity (12 month trailing) 24.0% performance, given its level of risk as measured by beta Beta is a means of measuring the volatility of a security or portfolio of securities in comparison with the marketas awhole~ Abeta of I indicates that the security will move with the market;greater than I indicates thatit's more volatile than the market, and less than I indicates that it's less volatile than the market RSqumad measures the portion of a fund's movement that Is e explained by movements in the market index, and helps indicate the e e aauracy of a fund's alpha and beta. 40°~' ~ ~ Sharpe Ratio is arisk-adjusted measure that is calculated using 30% ~ ry m standard deviation and excess rewrn to determine reward per unit e as m e of risk The higher the Sharpe ratio, the better the fund's historical 20°/. e e o ~- e - risk-adjusted performance. a- e = e = e 10°/ _ W n W e - _ - ~ 4 o Standard Devrafron is a statistical measurement of dispersion _ _ -_ _ m ~ about an average, which depicts how widely rewrns varied over a 0% o certain period of time Russell 1000©Growth Index is an unmanaged index composed -10°/ of securities In the Russell 1000 Index, with higher than average 20°~ price-to-book ratios and higher than average forecasted growth values. -;0°/, Standard& Poor's SOO Index is an unmanaged index of 500 selected common large capitalization stocks (most of which are -40°/ listed on the Newyork Stock Exchange) that is often used as a measure of the U.S. stock market ¦CollectiveTrustUnits Russell IOO~Growthlndex ¦S&PSOOlndex Investment Concerns Pastperformancedoesnot guararnee future results. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high grade fixed income securifies.The unitvalue perunit of this Fund will flucwate Collective Funds ore sponsored and administered by Sun7rust Bank as Trustee anti managed by RidgeWorth Capita! Monagemern, inc. (an investmern adviser a: the value of the securities in the portfolio changes. registered with the 5EC) Drone of its subsidiaries in acwtdance withthe laws of Georgia and applicable banking regulations. They are open to investmern only The Fund does not invest in limited partnerships,real estate (indud- bytrusts forwhich Suo7rust Baok serves os tmstee or irnestment manager o f quali fled retiremern plans which adopt the terms of o collective trust. These foods ing REITs[, private placements, Rule 144A securities and certain ore not subject io direct regulation by the United States Securities and Exchange Commissbn and are exempt from registration as securities. The Plan anti other non-publicly traded, thinly traded or resVicted securities. Declaration documents which govern the fund's operations are available upon req nest. Audhed financial statemerns are also available upon request. °RidgeWorth CaprtalManagement, Inc. krdgeWorth Investments is the trade name for RidgeWorth Capita! Maragemern,lrK. II lnformotion cornained herein should not be relied upon for any other purposes including separate account investmern adviser or registered fund investment rl! advice.7he informatan is Believed to be accurate, but concern accuracy cannot be ensured. C* ~{~T TST Pleosecornactyourdesignatedcomponyrepresernotiveforfurtherinformation. r`7L/~111`lJ 1 NOT FOR PUBLIC DISTRIBUTION CTR-HGG-t)310 - Adviser ~ ~ ~ ~ - RidgeWorth Investments g3geee f P Morgan Chase & Company 4.5% Fund Benchmark 5ubadviser 875,888 - Wells Fargo & Company 4.4% Consumer Discretionary 9.93% 1059% CeredexValueAdvisors LLC - avalue equity manager based in 870.888 - $II;8S4 Chevron Corporation 4.1% Consumer Staples 6.34% 5.52% Orlando,Florida~ $is,ooo ----- -- -- - Exxon Mobil Corporation 3.6% Energy 17.52% 1759% Pfizer Incorporated 3.6% Financial Services 21.91% 26.13% Portfolio Manager Si4888 General ElectrlcCompany 3.0% Health Care 11.46% 8.68% • Mills Riddlck,CFA gs,eoo Portfolio manager since 1995 Yerizon Communications Incorporated 2.4% Industrials 15.70% 1088% ~~3uoo 3131NS 3~tuiu B8&T Corporation 2.4% InformatlonTechnology 3.16% 4.98% Objective AT&T Incor orated 2.3% Materials 4.69% 4.13% The Fund seeks to provide capital appreciadon,and as asecondary ~Acm°°r"'I°ewa8 ret°Y~ime°i otr°~m"°a apical a~°s p o 0 0 Occidental Petroleum Corporation 2. I / Telecom Services 4.84/ 5,08/ goal,current'mmme, by Investing primarily In dividend-paying securities. The Fund is designed to comply with guidelines that The o6ovegroph assumes on initial hypothetical investment of $10,000 from Utilities 4.38% 6.42% are based principally on Florida laws governing the Investment of 3131100 to 3131f10~ municipal retirement plans for fire police and general government The performance quoted herein represents past performance. employees Suitability This Fund is open to investment only by trusts for which SunTrust i Bank serves as vustee or investment manager of qualified retire- AverageAnnualTotal Returns ment plans which adopt the terms of a collective trust Equities 95.5% Inception Latest I 3 5 10 Cash & Equivalents 4.5% This Fund is suitablefor investors who are looking for capital Date Quarter YTD Year Y~r Year Year appreciation potential and some income with less volatility than the Fund 3112193 6.62% ~ 6.62% 48.21% ~ -1.89% ~ 481% 597% May not add up to 1000% due to rounding equity marketasawhole Russell IQO0°Yaluelndex 678% 6.78% 53.56% -7.33% IOS% 310% *As of March 31, 2010 and subject to change. Large Cap Value Equity Fund was formerly known as High Grade Equity Income Fund. Partperformance does notguamutee future resufis.Theperformance data quoted represeotspart performance and current returns may he lowerorhigher. Total return figures include change in unitpNce, reirwertment of dividends and capital gans.The irwertment return and principal value will fluctuate so that on investor's units, when redeemed, may he worth more or less than the origiool cost. ~i~ SunTrust Bank, Member FDIC ©SunTrust Banks, Inn SunTrust is a federally registered service mark of SunTrust Banks, Inc. NOT FOR PUBLIC DISTRIBUTION .1 . ~ ~ ~ • '- • t1 Investment Terms & Index pefinitions CUSIP~ 990001281 Alpha 4,260% Price-to-Book Ratio Is used to compare a stock's marketvalue UnitValue $43.25 Beta 0.84 to its book value The higher the ratio, the higher the premium the Total fund Assets $63,719,6SS R-Squared 9771 marketis willing to pay for a company above its hard assets. Sharpe Ratio -0.20 Price-to~amings Ratio ("P!E"[ is avaluation ratio of a company's current unit price to its per-unit earnings. The higher Standard Deviation 1839% the P1E ratio the more the marketis willingto payfor each dollar Market Capitalization [Weighted Average} $B0.7[b[ *As of March 31, 2010 and subject to change. of annual earnings. Price-[o-Book 1.9 Alpha measures a fund's risk-adjusted performance and Price-to-Earnings (12 month trailing) 16.3 represents the difference between a fund's actual performance Return on Equity (12 month trailing) 16.5% and its expected performance,given its level of risk as measured by beta. Beta is a means of measuring the volatility of a security or portfolio of securities in comparison with the marketas a whole. A beta of I indicates that the security will move with the markeq greater than I indicates that it's more volatile than the market, and less than I Indicates that It's less volatile than the market 4S% a RSquared measures the portion of a fund's movement thatis e e ry e explained by movements in the market index, and helps indicate 3S°l ~ a the accuracy of a fund's alpha and beta. e 2S°/, - Sharpe Ratio Is arisk-adjusted measure that Is calculated using - - e e standard deviation and excess return w determine reward per I S°l - s ~ a ~ ~ e ~ -~~ unltofrisk The higher the Sharpe ratio, the better the fund's S°/, o - - _ historical risk-adjusted performance S°/ Standard Deviation is a statistical measurement of dispersion about an average which depicts how widely returns varied over a -I S% ~ certain period of time. 2S% Russell 1000°Value Indezis composed of the securities in the Russell IOOO Index with ales-than-average growth orientation. -BS°G Companies in this index generally have low price-to-book 4S°/ and price-to-earnings rados,higher dividend yields, and lower forecasted growth values Investors cannotinvest directly in an ¦CollectiveTrustUnits Russelll000~Valuelndex index Investment Concerns Stocks are more volatlle and carry more risk and return potential Pastperformancedoesnot guarantee future results than other forms of invesunents.The unit value per unit of this Fund will fluctuate as the value of the securities In the portfolio changes. Collective Funds ore sponsored and administered by Sun7rust Bank as Trustee and managed by RidgeWorth Capita! Management, inc. (an investmerrc adviser Value-based investments are subject to the risk that the broad registered with the 5EC) Drone of its subsidiaries in acwrdance withthe laws of Georgia and applicable banking regulations. They are open to investment only market may not recognize their invinsic value. by trusts for which Sun7rust Bank serves os trustee or irvestment manager o f quali fled retirement plans which adopt the terms of o collective trust. These foods The Fund does no t invest i n li mired p artnershi ps, real estate (m- ore not subject io direct regulation by the United States Securities acrd Exchange Commissbn and are exempt from registration as securities. The Alan and eluding REITs[,private placements, Rule 144A securities and certain Declaration documents which govern the fund's operations are available upon request. Audhed financial statements are also available upon request. other non-publicly traded, thinly traded or restricted securities. °RidgeWorth CaprtalManagement, Inc. kidgeWorth Investments is the trade name for RidgeWorth Capita! Maragemern,lnc. II lnformotion contained herein should not be relied upon for any other purposes including separate account investmerrc adviser or registered fund investment rl! advice.7he informatan is believed to be accurate, but content accuracy cannot be ensured. C* >~{~T TST Pleosecorrcactyourdesignatedcomponyrepresentotiveforfurtherinformation. ~7L/~111`lJ 1 NOT FOR PUBLIC DISTRIBUTION CTR-HGEI-310 - Adviser , , , , RidgeWorth Investments a30.ooo Informatica Corporation 1.6% Fund Benchmark 5ubadviser g~s,ooo Skyworks Solutions Incorporated L5% Consumer Discretionary 18.12% 1129% SilvansCapitalManagementLLC-agrowthequitymanagerbased g~goop _ InterMunelncorporated 1.4% Consumer Staples 2.01% 356% inAdanta,Georgia gl3,os7 ActuantCorporation(CIA} 1.4% Energy 5.47% 4.06% $is,ooo ---- - o POrt~0i10 Managers gi4ouu Salx Pharmaceuticals Limited .3°s/~ Flnanna Services 8.68% 5.74% Atheros Communications Incorporated 1.3% Health Care 23.29% 2461 • Christopher Guinther Portfollomanagersince2007 CyberSourceCorporation 1.2% Industrials 18.22% 14.19% $3I3Iru~ 313IIrs 3AI11~ HexcelCorporation 1.2% Information Technology 21.81% 2658% •MlchaelA~Sansoterra I~I7u1~3 Catalyst Health$olutionslncorporated LI% Materials 2.41% 2.37% Portfolio manager since 2007 ¦a«o~m r~~e wah relr~enmem of ~n~me aid appal gams NuVaslvelnmrporated LI% TelecnmServlces 0.00% 139% Ob~ettive The above graph assumes an initial hypothetical investment o($10,000 from dse Utilities 0.00% 0.20% Fund's inception date to 313 I f C P. The Fund seeks to provide long-term cayital appreciation by investing in U.S. companies with market capitalizations of up to $3 The performance quoted herein reyresents past performance. billion that demonstrate above average growth potential Suitability This Fund is suitablefor investors who want the value of their investments to grow, but do not need current income. ~ AverageAnnualTotal Returns Equities 98.4% Inception Latest I 3 5 Since Cash & Equivalents L5% Date Quarter YTD Year Year Year Inoe{stion Fund 10!1103 7.93% 7.93% 56.01% -164% 2.39% 5.18% Russell 7400©Growth Index 7.61 % 7.61 % 60.32% -242% 3.82% 5.86%*k *As of March 31, 2010 and subject to change. Small Cap Growth Fund was formerly known as Small Cap Equity Fund. Postperformarkedoes rrotguarontee future results.Theperformance data quoted rrpreseotspast performance anti current returns may he lowerorhigher. Total return figures include change in unitpNce, reirwestment of dividends anti capital gaps.The irwestment return and principal value will ~luctuare so that on investor's units, when redeemed, may he worth more or less than the original cost. *`Return from 9(30!03. li~ SunTrust Bank, Member FDIC ©SunTrust Banks, Inn SunTrust is a federally registered service mark of SunTrust Banks, Inc. NOT FOR PUBLIC DISTRIBUTION ~ ~ ~ ~ ~ • '- • #1 _ Investment Terms & Index definitions CUSIP' 990009086 Alpha' 0.33% Price-to-Book Ratio is used to compare a stock's market value UnltValue $ 13.89 Beta 0.89 to its book value~The higher the ratio, the higher the premium the Total fund Assets $9,176,241 R-Squared 9635 marketis willing to pay for a company above its hard assets. Sharpe Ratio -0.IS Price-to~arnings Ratio ("PfE"] is avaluation ratio of a Standard Deviation 2320% company's current unit price to its per-unit earnings. The higher Market Capitalization (Weighted Average} $1.4[b] *As of March 31,2010 and subject to change. the P1E ratio,the more the marketis willingto payfor each dollar Price-to-Book 2.4 of annual earnings. Price-to-Earnings (12 month nailing) 24.9 Npha measures a fund's risk-adjusted performance and Return on Equity (12 month trailing) 6.4% represents the difference between a fund's actual performance and its expected performance given its level of risk as measured by beta. Beta is a means of measuring the volatility of a security or portfolio of securites in comparison with the marketas a whole. - - - A beta of I indicates that the security will move with the markeq e greater than I Indicates that Its more volatile than the market, and SS°/ 4 less than I Indicates that Its less volatile than the market 4S°/ e ~ RSquared measures the portlon of a fund's movement thatis e m explained by movements in the market index, and helps indicate 3S% e e ~ the accuracy of a fund's alpha and beta. 2S°/' e e Sharpe Ratio Is arisk-adjusted measure that Is calculated using e e - e - - e e I S°/ _ ~ - standard deviafion and excess return to determine reward per S°/' e ~ 4 ~ unltofrisk The higher the Sharpe ratio, the better the fund's S% historical risk-adjusted performance -I S°/ ~ Standard Deviation is a statistical measurement of dispersion about an average,whlch depicts how widely returns varied over a -2S°~ certain period of time. ° - ' Russell 2000©Growth Index is composed of the securities found -4 S% in the Russell 20001ndexwith agreater-than-average growth orientation Companies in this index tend to exhibit higher ¦ Common Trust fund Russell 2000 Growth Index price-tabook and price-to-earnings ratios. Investors cannot invest Pastperformance dcesnot guarantee future results. directly in an index Investment Concerns Small capitalization funds typically carry additional risks since Collective Funds ore sponsored and administered by SunTrust Bank as Trustee and managed by RidgeWorth Capita! Management, inc. (an irrvestmeM adviser smaller companies generally have a higher risk of failure, registerred with the SEC) prone o f its subsidiaries in accordortce with the laws o f Georgia and applicable banking regulations. They are open to invertment only by trusts for which SunTrust Bank serves os trustee or irvestment manager o f quali fled retirement plans wMch adopt the terms of o collective trust. These funds Equ ity securities [s rocks) are more volatil e and carry more risk ore not subject to direct regulation by the United States Securities and Exchange Commission and are exempt from registration as securities. The Plan and than od,er forms of invesnnents, including invesnnents in high Declaratan documents which govern the fund's operations are available upon request. Audited financial statements are also available upon request. grade fxed income securities.The unitvalue per unit of this fund will fluctuate as the value of the securities in the portfolio changes °RidgeWorth CaprtalManagement, Inc. RrdgeWorth Investments is the trade name for RrdgeWorrh eapaal Maragemerrc,lne. I The Fund does notinvestln limited partnerships,real estate lnformotbn contained herein should not be relied upon forony otherpurposes including separate account investmem adviserorregistered fund investment ~I! ~ [including REITs],private placements,Rule 144A securities znd advice. The informatan is Believed to be accurate, but cornent accuracy cannot 6e ensured. ~T TcT certain other non-publicly Waded,thinly Waded or restricted PleosecoMactyourdesignatedcomponyrrpresentotiveforfurtherinformation. 1J~71 securities. NOT FOR PUBLIC DISTRIBUTION CTR-SCE-oa io STYLE Country Weightings" value Blend Growth of Portfolio) Fund Benchmark Top Ten Holdings of Portfolio)" z Australia 5.32% 5.39% Banco Santander Central Hispano 1.6% 0 Large ~ ¦ Austria 1.68% 1.73% ENI Spa 1.5% a Mid Belgium 2.18% 2.18% Telefonica S.A. 1.5% ~ Small Bermuda 0.18% 0.17% Siemens NPV (regd) 1.5% China 0.00% 0.01% Total SA New 1.3% Adviser Cyprus 0.09% 0.08% ° E.on AG (formerly Veba AG) 1.2 /o RidgeWorth Investments Denmark 1.46% 1.48% Unicredito Italiano 1.2% Subadviser Finland 0.99% 1.06% Certium Asset Management LLC - an o o Allianz SE 1.0% international/quantitative equity manager France 11.09 /0 11.30 /o 0 BASF AG 1.0 /o based in Atlanta, Georgia. Germany 14.71 % 14.89% Bayer 1.0% Portfolio Managers Greece 0.94% o.9s°io _ • Chad Deakins, CFA Hong Kong 0.86% 0.90% Portfolio manager since 1999 Portfolio Characteristics • Matthew Welden Ireland 1.01 % 1.02% Total Fund Assets $845,597,826 Portfolio manager since 2008 Italy 8.43% 8.48% Lipper Category International Multi-Cap Core Funds Objective Japan 19.34% 19.40% Market Capitalization (Wtd. Avg.) $43.5(b) The Fund seeks to provide investment results that correspond to the aggregate Luxembourg 0.83% 0.81 Price-to-Book 7.3 price performance of the securities Mexico 0.00% 0.01 included in the Morgan Stanley Capital Price-to-Earnings (12 month trailing) 15.9 International Europe, Australasia, Far Netherlands 4.18% 4.36% East (EAFE), GDP Weighted Index (Price Return on Equity (12 month trailing) 6.4% Return). New Zealand 0.53% 0.55% NonNay 1.78% 1.78% Composition of Net Assets)" Portugal 0.91 % 0.88% Equities 99 7% Singapore 0.80% 0.80% Cash & Equivalents 0.2% Spain 6.02% 6.10% May not add to 100.0% due to rounding. Sweden 2.23% 2.30% *As of March 31, 2010 and subject to change. SWltzerland 2.14% 2.19% ~r RIDGEINDRTH I N V E 5 T hA E N T 5' • • • ~ • ~ ~ • ISHARES Ticker SIEIX CUSIP 766288813 Modern Portfolio Theory Statistics (3 years)* Total Returns as of 3/31/10 Alpha -0.29% Average Annual Total Returns Inception Latest Beta 0.99 Shares** Date NAV Quarter YTD 1 Year 3 Year 5 Year 10 Year R-Squared 98.66 I 6/6/94 ' $12.72 -1.24% -1.24% 49.93% -8.52% 2.86% 0.33% Sharpe Ratio -0.41 MSCI EAFE Index GDP Weighted (Net Return) -1.04% -1.04% 51.94% -8.32% 3.20% 1.12% Standard Deviation 25.32% MSCI EAFE Index GDP Weighted (Price Return) -1.51 % -1.51 % 47.67% -10.86% 0.57% -1.01 *As of March 31, 2010 and subject to change. Because equity markets maybe volatile in the short-term, resulting in unusually high or low performance, investors should evaluate long-term performance before making an investment. **The expense ratio for 1 Shares is 0.67%. Investment Concerns Calendar Year Returns Equity securities (stocks) are more volatile and carry more risk than other o ~ o forms of investments, including 50% ~ ~ o 0 investments in high grade fixed income ° ° o ~ ~ o securities. The net asset value per share o o ° ° ~ o M ~ of this Fund will fluctuate as the value of 30% o ° ~ o o ~ ~ N o o N ~ the securities in the portfolio changes. N N ° CO N ~ ~ ~ 0 0 0 0 0 0 0 0 ~ ~ ~ ~ M o 0 0 o p ~ M O N I~ O ~ ~ N W International investing involves increased 10% ° ~ ~ M M o ~ ~ ~ ~ o N N N ~ ~ ~ risk and volatility. ~ ' It is important to remember that there are -10% risks associated with index investing, including the potential risk of market -30% decline, as well as the risks associated with investing in specific companies. -50 -70 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 ¦Fund MSCI EAFE BDP Weighted (Net Return) _r MSCI EAFE BDP Weighted (Price Return) Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. For performance data current to the most recent month end, visit our website at www.ridgeworth.com. RIDGEINDRTH For investment terms and index definitions please refer to the glossary. I K V E 5 T hA E hl T S' RidgeWorth Irnertments jt SeixlrnresonentAdvisorsLLC-afi~sdincome $0,000 $10200 United5tatesTreasuryNotes 12.5% mareger based in Upper Saddle River, NewJersty. United SmtesTreasury Notes 12.4% $6,000 United SmtesTreasury Notes 9.4% • PerryTroisi, Portfolio manager since 2004 United StatesTreasury Notes 8.7% •AdrienWebb,CFA,Portfoliomanagersince2004 $10,000 UnitedStatesTreasuryNotes 8.1% United StatesTreasury Notes 3.3% The Fund seeks to provide total returns by irnerting in a diversified $5,000 United SetesTreasury Bonds 2.3% portfolio of fixed income securities issued by U.S.companies. The Wal-Mart Stores 22% Fund only inverts in assets authoraed by the laws of Florida (or $0 United SetesTreasury Bonds 22% Firefighters Pensions and Municipal Police Pensions. 3!31100 3I3110S 3!31!10 IBM Corp 1.4% daount value wtlh reinvesomnt of income and capital gaim This Fund is open to irnertment only by trurts forwhich SunTrurt The above graph assumes an iritial hypothetical investment of $10,000 from Bank serves as trurtee or irnesonent mamger o(qual'rfied 313!100 to 313!!!0. retiremetrt plans which adopt the terms of a collective trust. The performance quoted herein represents past performance. This Fund is suRable Tor irnestors who want to receive income from their irnesonetrt,as well as an increase inthe value of the imvesonent AuerageiannualTotalReturns 0-I 21.6% Inception Latest I 3 5 10 I-6 31.4% Date Quarter YTD Year Year Year Year 6-10 32.0% Cash&Equmalents 050'1 Fund 7124189 1.16% 1.16% 4.74% 6.35% 5.31% 8.21% Mortgage ~dred 050'! U.S Traasury II-20 15.0% Sgp~i BoTA Merrill Lynch GovernmentlCredit A-Rated+Index 1.43% 1.43% 4.63% 5.48°/ 4.94% 5.99% * Average Coupon 4.29% As of March 31, 2010 and subject to change. Yield-to-Maturity 2.97°/ co pow a Past performance does not guammee future resuhs. The performance dam quoted represents vast performance and currem Duration 528Years 7 q.BT~ returns may be tower or higher. Total return figures include change in unit price, reinvestment of dividends and capita! gains. Weighted Average Maturity 7.89Years The investment return and principal value will fluctuate so thct en investor's units, when redeemed may be worth more or less than the original cost. ~29hZ E9!INA~Bflq ~S(P~ p•'~105~1 ~ ~7~~ A 1100°0 Tyr 5920'1 J SunTrurtBank,MemberFDIC.©SunTrust6anks,lnc. ~=T~T SunTrurt is a federally registered service mark o(SunTmrt Banks, Ina U 1 NOT FOR PUBLIC DISTRIBUTION Bonds offer a reiatrvely stable level of income although bond prices 990001?65 will fluctuace providingthe potential for principal gain or loss. CUSIP $41.65 Intermediate-cerm,bigher-quality bonds generatly offer less risk UnitValue $76,73$696 than bnger-cerm bonds and a lower rate of retutm. Mort~ge-barked irnestments irnolve risk o(loss ue m Toal Fund Assets - prepaymeirtsand, like arty bond, due m defauk. Because of the sensitivity of m ortgage-related securities to changes in interest rates, the Fund's peiiormance may be more volatile than A it did ---=-- - _ - - - not hold these securities. The Fund does not invest In limned partnerships, real estate o M (indudingRElTs),privace placements,Rule 144Asecur¢iesand I S°/+ ~ certain other non-publichy traded, thing traded or restricted - - e o e M1 o- ti securities. 10% m ~ e e r - e o - 0 4 _ BofAMerrillLynchGovernmentlCreditA-Rated+lndexvs S°~ M awidety recognized composite made up of the BofA Merrill Lynch U.S. Government Indexand the BofA Merrill Lynch U.S. _ CredR Index,v.~hich include U.S.government,Treasuryand agency securities,as well as high grade corporete bonds.lnvesmrs cannot 0°I+ invest diredhy in an index -S% -10°/ Collective InvestmentTrust BofA Merrill Lynch GovernmendCreditA-Rated+ Index pastper(ormancedoesnot guarantee future resuks. Collective Funds are sponsored and administered by SunTrust 8ankasTrurtee and managed by RidgeWorth Capital Management, lnc. (an intrcstmerrt adviser registered whh the SECJ or one of its subsidiaries in accordance with the laws of Georgia and applicable banidng regulations. They are open to investmem funds~are not su6i'ectl t Sdirect reglafron by the UnitedStates Securrc es and ExciQiange Commission api+d are exemp~tmhregistmtwn as se u rt esnThe Pinsn and Decbmtion documents which govern Lire fund's apemtions are aurifabfe upon requert.Audrted financial statements are aha awilabfe upon request ~i2iAgeVJorth Capita! Managemene, Inc. RidgeWonh Invesanents is the trade name for RidgeWorth Copiml Managemen>, Irtc. Information contained herein should not 6e relied upon forarry other purposes including separate account intrestmerrt adviser or registered fund imrestmeM u~~ „ ~_J advice.The information is believed to be accurate, but content accumry cannot 6e ensured. f~ please contact your designated comparry representative for further information. ~T T~~, V CTR-HGB-0310 NOT FOR PUBLIC DISTRIBUTION o~ant Disclosures mp for institutional clients othe1~ise noted. dvisors, LLC 2010 unless should not be ent A others and erit of this of March 31 ~ suitable for tion is as SunTrust lnstitutio a I not bem as to the accuracy ~e a the time All informa repared by This mater?al m Y or Warrant?es rented herein Wasp representation based on informat?on ava?lab ecific advice, erspeCtive pre ake any ections are as individual or sp . rovided Thep ~ titutionai clients °f S aff ??ateBm rket prol e not intended The informat?on P dvised and prospective ?ns eneral ma ur oses only, ar ibuted. Neither SunTrust Comments and g for future invest?ng~ Investors are a red?str use. are for informational p p articular securityak?ng any investment be accurate, and may not be reliedorps ~I any p owls before m ective for individual urchase persp and believed to of the entire Firm of writ?ng ent the opinions red a recommendation to p s de eir specific financial needs an 9 may not repre cons? . this report should no ebtment professio o f bum t results. ?n their ?n istered are not indicative LLC is a reg to consult pa t returns dvisors, anks, Inc decisions LLC ent A of SunTrust B C. SunTrust Institutional Inver m stitutional InvestmenccuracY STMENT ppVISORS oll owned subsidiary L INVE ent Advisors, LL wh Y SunTrust In TRUST INSTITUTIQNA e Cornrniss?on, ?s a correct but a vestm SunTrust Bank to be or legal erein is believ SUN Chang rovide tax unTrust lnsti~ht~hease~urities and Ex advice to ©2010 S anager selection anon contained h employees do not p and m Inc All inform LLC and its financial transaction. investment advi ~fol ~o strategy anks, dvisors, into any and provides p of SunTrust B rior to entering Investment A Advisors is a service mark Trust Institutionaal or tax advisors p uaranteed. Sun cannot be 9 nts should consult with their leg advice. CI1e ~~- ~ Important Disclosures Banking and trust products and services are provided by SunTrust Bank. SunTrust Bank may use or offer the services of affiliate companies as well as third party entities to achieve your banking and investment objectives. Where applicable, any affiliations and all pertinent provider information will be disclosed in accompanying agreements and prospectuses. SunTrust Bank and its affiliates and the directors, officers, employees and agents of SunTrust Bank and its affiliates (collectively, "SunTrust") are not permitted to give legal or tax advice. Clients of SunTrust should consult with their legal and tax advisors prior to entering into any financial transaction or investment plan. These materials are educational in nature. The implications and risks of a transaction may be different from client to client based upon each client's unique financial circumstances and risk tolerances. Securities and Insurance Products and Services: ¦ Are not FDIC or any other Government Agency Insured ¦ Are not Bank Guaranteed ¦ May Lose Value ©2010 SunTrust Banks, Inc. SunTrust and Live Solid. Bank Solid. are federally registered service mark of SunTrust Banks, Inc. r. Str~TrtusT