EFTA00700845.pdf

From: "Peggy Siegal" < To: "Bernard Saint-Donat" Subject: Re: Investment Proposal Date: Tue, 19 Feb 2013 13:40:38 +0000 Importance: Normal #1. I am just getting dressed and will call in an hour. #2. This proposal is from Jason Bauman, the husband of book keeper Allison Bauman and something I am not doing. He pursued me about investing my mother's money I recently received. I let him send a proposal...but have no intention of giving him my money to manage. Wanted to see his level of knowledge to show you...but I don't understand any of it anyway. This is an example Bryan Bantry only taking his percentage my money from his negotiations from my film studios fees and not managing anything further. #3. I have to send Jeffrey Epstein my mother's jewelry appraisals right now... #4. I have to call that other business manager who represents Kevin Spacy...I am looking for his contact now. More to come shortly. Peggy Peggy Siegal Company From: Bernard Saint-Donat Date: Sun, 17 Feb 2013 18:57:42 -0500 To: Subject: Re: Investment Proposal Peggy, I think that this is backward looking. Bonds have peaked and there is very little upside left, in the bond market in general. Moving forward, the returns are not going as high as they have been in the past 5 years. Pimco is a serious outfit and Bill Gross (the manager of these funds) is very famous. I am using them somewhat getting in the instutional class but not for large percentage of portfolio. I am also using Double Line funds for total return strategies. (Geoffrey Gunlach). I would not invest everything with one firm, PIMCO in this case. Jason does not detail the fees he is charging, which is typical from a brokerage like Morgan Stanley. This guy is predominantly a sales man. You could access the Total Return Fund he is talking about through an ETF called BOND with an expense ratio of 55bps. Bernard On Feb 17, 2013, at 10:56 AM, Peggy Siegal < > wrote: EFTA00700845 This is from the husband of the girl that pays my bills, Allison and she works for Bryan. Can you explain this to me later? Peg Peggy Siegal Company Front: "Bauman, Jason S" Date: Fri, 15 Feb 2013 16:10:51 -0500 To: Cc: iicevacation(a mail.com'<jcevacation unnil.corn> Subject: FW: Investment Proposal Hi Peggy lust 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: 1jeevacation gmail.com' 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. EFTA00700846 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 Visit my Website: ' 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 are 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. You should not retain. copy or use this e-mail or any attachment for any purpose. nor disclose all or any part of the contents to any other person. Important Notice to Recipients: Please do not use e-mail to request, authorize or effect the purchase or sale of any security or commodity. Unfortunately, we EFTA00700847 cannot execute such instructions provided in e-mail. Thank you. The sender of this e-mail is an employee of Morgan Stanley Smith Barney LLC ('Morgan Stanley). If you have received this communication in error, please destroy all electronic and paper copies and notify the sender immediately. Erroneous transmission is not intended to waive confidentiality or privilege. Morgan Stanley reserves the right, to the extent permitted under applicable law, to monitor electronic communications. This message is subject to terms available at the following link: http://www.morganstanley.comidisclaimers/mssbemailhtrnl. If you cannot access this link, please notify us by reply message and we will send the contents to you. By messaging with Morgan Stanley you consent to the foregoing. <PIMCO Conservative Allocation Illustration.pdf><PIMCO Conservative- Moderate Allocation Illustration.pdf> EFTA00700848