---

---

Products & Services
for Public Funds

Vining Sparks is pleased to introduce you to its products and services designed specifically for government portfolios. As a national leader in executing fixed income securities transactions for institutional investors, Vining Sparks is uniquely qualified to provide governmental portfolio managers with opportunities to better meet their stated objectives. Our approach to successful investing combines strategic support services with broad trading capabilities. Some specific details of our services for government portfolios are listed below:

• Vining Sparks is one of the world’s top 20 underwriters of newly issued debt by agencies of the U.S. Government. As such, we can structure deals specifically for you or let you know as new deals come to market.
• As a regional dealer, we have “one call access” to a wide array of primary dealer and regional inventories (including those you don’t regularly deal with). Our active trading desk is staffed by twenty-five trading professionals and even though we have our own inventory totalling hundreds of millions of dollars, we are not limited to just our own inventory.
  
• Derivative Solutions® is a commercially available software system designed to assist portfolio managers whose objective is to maximize total return. We are a licensed user of Derivative Solutions® and run the program for our governmental customers who need it.
  
• Through an in-house proprietary system, we can provide monthly pricing for virtually all fixed income securities. This system utilizes a variety of electronic pricing services and then selects the best source for each market sector and sector type. This approach is more accurate than using a single pricing source or a pricing matrix.
  
• Another Vining Sparks’ proprietary system compares your holdings to specific securities which pass through our inventory. When “matchers” are noted, you are notified of the opportunity to “add on” to your current position. This is especially helpful to government portfolio managers who wish to limit the number of securities owned.
  
• VPort provides government portfolio managers with the information required for GASB 31. In addition, investors in securities with embedded options such as callable debt and mortgage-related securities will find our VPORT system helpful. This in-house system provides three services to assist in the regular management of these securities: 1) immediate notification of called securities by daily electronic monitoring; 2) predicted call dates updated regularly based on the current treasury curve and newly issued security levels; and 3) five-year, month-by-month projection of cash flows based on predicted calls and projected prepayment speeds on amortizing securities. This system is also used to produce a Performance Profile which analyzes your portfolio cash flow under a wide range of interest rate assumptions.
  
• Soft dollar arrangements are available for other services which you might need but are not listed above.

If you have any questions, please contact your account representative or Randy Wade, Executive Vice President, at (800) 829-0321.