EFTA00656051.pdf

From: "Bauman, Jason S" < To: ' CC: Subject: Date: Importance: Attachments: mjeevacationggmail.core <jeevaeationggmail.corn> FW: Investment Proposal Fri, 15 Feb 2013 21:10:51 +0000 high PIMCO Conservative — Allocation_Illustration.pdf; P1MCO_Conservative- _ Moderate Allocatton_Illustration.pdf Hi Peggy Just want to be sure you received my email from last night. All the best Jason From: Bauman, Jason S (Wealth Mgmt MS) Sent: Thursday, February 14, 2013 11:05 PM To: Cc: Subject: Investment Proposal Importance: High Hi Peggy I've created two investment proposals that are both keen to your desire to not be a risk taker with this money and looking to generate an income that is substantially outperforming the return on cash that you're currently getting. One proposal is a very conservative allocation and the second is if we were to take a slightly less conservative approach. Both proposals illustrate a hypothetical investment of $1,000,000 made on March 31st, 2007 so they both include how you would have fared through the financial crisis of 2007-2008. Some highlights: Proposal #1 - Conservative Allocation $333,333,333 invested in the PIMCO Total Return Fund $333,333,333 invested in the PIMCO Income Fund $333,333,333 invested in the PIMCO Low Duration Fund - During the time period of 3/31/2007 through 1/29/2013 the portfolio generated $314,805 in income. This is an average of - $52,500 per year During the time period the average annual return was 8.04% with a cumulative return of 57.04% Proposal #2 — Conservative/Moderate Allocation $333,333,333 invested in the PIMCO Total Return Fund $333,333,333 invested in the PIMCO Income Fund $333,333,333 invested in the PIMCO Unconstrained Bond Fund - During this time period the portfolio generated $239,561 in income. This is an average of —$40,000 per year - During the time period the average annual return was 9.46% with a cumulative return of 51.35% These portfolios are liquid so if you needed to gain access to cash you can. EFTA00656051 The illustrations attached give detailed information on each strategy. Here's a brief description of each fund and of PIMCO: PIMCO Total Return Fund: Aims to provide a combination of income, capital preservation and capital appreciation. This is PIMCO's anchor strategy managed by Bill Gross who is one of the most respected bond investors in the industry over the past 25 years. Invests in diversified bond securities including non-US securities. It can also invest in high-yield securities. PIMCO Income Fund: Primary objective is to provide a high and consistent level of income. Invests in various fixed income instruments including US and non-US corporate and government securities, asset —backed securities and foreign currencies. The fund is designed for investors who need a steady income potential. PIMCO Unconstrained Bond Fund: Seeks to deliver positive returns over full market cycles. The fund is not bound to any benchmark specific allocations this strategy allows the manager to make investments where it sees the best opportunity. PIMCO Low Duration Bond Fund: Focuses on short-term securities. Invests in securities that mature in 1-3 years and seeks to outperform traditional money-market instruments and other short-term bond funds. It aims to do this by being carefully analyzing the sectors it invests in as well as the credit worthiness of the instruments it purchases. I believe either of these strategies would accomplish our goal of creating a portfolio that is low risk and yet provide a significant income stream to you. Each strategy has also provided significant capital appreciation as well. I think it would be in our best interest to look to implement a strategy sooner than later because, as we've discussed, continuing to sit in cash is doing us no good. I really look forward to hearing back from you. All the best Jason Jason S. Bauman, First Vice President Morgan Stanley Wealth Management 590 Madison Avenue, 11th Floor New York NY 10022 rect oll free ax Visit my Website: http://fa.smithbamey.com/jasonsbaumanl ' Morgan Stanley Smith Barney LLC Confidentiality Notice: The information contained in this e-mail and nay attachments may be legally privileged and confidential. If you are not an intended recipient. you am hereby notified that any dissemination. distribution. or copying of this e-mail is strictly prohibited. If you have received this e-mail in error, please notify the sender and permanently delete the e-mail and any attachments immediately. 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