Asset Management Discipline

Raymond James Asset Management Services provides the intelligence and institutional capability needed to carefully construct a diversified portfolio, striving to eliminate the emotional aspect of asset allocation and trend-following behavior. Together with the risk management support of Mercer Investment Consulting, a leading global institutional consulting firm, we ultimately provide the sophistication expected and used by many of the country's largest foundations, plan sponsors and corporate pension and endowment funds.

Raymond James offers full-service asset management for clients who wish to employ the skills and expertise of professional money managers through separately managed accounts. A rigorous process is employed by our Asset Management Services team to carefully select and monitor world-class managers based on quantitative and qualitative criteria.

Through Raymond James Consulting Services (RJCS), we employ an institutional approach to building investment portfolios. After assessing return objectives and tolerance for risk, RJCS develops asset allocation alternatives grounded in forward-looking risk and return assumptions, based on Mercer's economic research.

Because every investor has a unique risk profile, RJCS has developed portfolio strategies targeting a broad range of risk levels, providing diversification intended to reduce the overall volatility of each portfolio while enabling investors to fulfill their long term-goals. This is central to our methodology because asset allocation has been shown to be responsible for 90% of the variability of returns over time.*

*Brinson, Beebower and Associates, "Determinants of Portfolio Performance," 1986,1991,1995.

What Else You Should Know About Fee-Based Accounts?
In an asset-based fee relationship, you pay a fee (charged quarterly) based on the level of assets for the advice and services provided by your financial advisor as a part of the advisory relationship. This fee is based on the level of assets in your account, independent of the level of trading activity. By deciding to pay a fee based on services provided rather than transactions, you should understand that the fee may be higher than the cost of a commission alternative during periods of lower trading activity.

You should understand that the advisory fee charged in the Passport investment account is in addition to the management fees and operating expenses charged by open-end, closed-end and exchange-traded funds. To the extent that you intend to hold fund shares for an extended period of time, these internal fund expenses should be added to the advisory fee when evaluating the costs of a Passport account. Additionally, certain mutual fund families impose short-term trading charges (typically 1% to 2% of the original amount invested) which are generally NOT waived for fee-based accounts.

Additional Considerations
You should consider these factors when deciding whether a fee-based account is right for you: i) your past and anticipated investment activity, ii) past and anticipated use of the products and services available in the account, iii) the value and type of eligible assets, iv) the costs and potential benefits of the service, v) investment objectives and goals, vi) additional financial and planning services provided by your financial advisor, vii) personal preferences concerning available payment alternatives.

You should also consider whether it would be better to pay separately for each trade executed and each product and service used. Since these factors may change, you should periodically re-evaluate whether the ongoing use of a particular asset-based fee program continues to be appropriate for your needs.

Please ask your financial advisor for a complete schedule of charges which is, available in Form ADV Part II or the client agreement.