Marketing Materials

2. Marketing Materials What client approved material would provide you with the best benefit when discussing Alternative Investments with clients? Client approved strategy inserts to use with the AI brochure Client approved factsheets for each offering Client approved presentations discussing each strategy Monthly educational conference calls

3. Marketing Materials What items on the FA only factsheets would you like to see added? Sample recent trade within the fund Strategy commentary to complement the RJ fund commentary already included Recent monthly / quarterly commentary from the fund sponsor None of the above

4. Sales & Marketing What periodic conference call would be most beneficial to you? Monthly call to discuss fund performance Quarterly call to discuss fund performance Periodic calls highlighting timely investment ideas More frequent sponsor calls with portfolio manager(s)

5. External product Specialist What could our external product specialist do to better assist your practice? More frequent branch visits Regularly scheduled client seminars “Roadshows” to highlight specific offerings such as new product launches Meetings in conjunction with sponsor partners Leave me alone!

6. Product Offerings Within which strategy would you prefer us to expand the number of product offerings? Long/Short Equity Managed Futures Fund of Hedge Funds Alternative Mutual Funds

7. Product Offerings Within which strategy would you prefer us to expand the number of product offerings? Event Driven Real Estate Private Equity

8. Product Integration Which of the choices below is ordered correctly in terms of most liquid to least liquid? Greenspring, ACAP Strategic, The Arbitrage Fund The Arbitrage Fund, Greenspring, ACAP Strategic ACAP Strategic, The Arbitrage Fund, Greenspring The Arbitrage Fund, ACAP Strategic, Greenspring

9. Product Integration Which of the choices below is ordered correctly in terms of most liquid to least liquid? AQR Risk Parity, CPG Carlyle Equity Opportunity, Clutterbuck Clutterbuck, CPG Carlyle Equity Opportunity, AQR Risk Parity CPG Carlyle Equity Opportunity, Clutterbuck, AQR Risk Parity AQR Risk Parity, Clutterbuck, CPG Carlyle Equity Opportunity

10. Product Integration Assuming that an investor’s primary goal for utilizing alternative investments was for diversification, which strategy would correlate least with equity and fixed income currently in the portfolio? Private Equity Managed Futures Fund of Hedge Funds Event Driven

11. product Integration If a client had a current objective of income, which of the following products would not meet that objective? Callable yield note Cypress Equipment Leasing Eagle Aggressive Growth Partners

12. product Integration Which of the following alternative strategies would you consider the most obvious return enhancer? Managed futures Merger arbitrage Private Equity

13. product Integration Which of the following products would provide a 1099 for tax reporting? MutualHedge Frontier Legends Greenspring Global Partners V CPG Carlyle Equity Opportunity Fund Clutterbuck CF Special Situations

14. product Integration Which of the following long/short funds generates a significant portion of their returns from their short book? Eagle Aggressive Growth Partners Alkeon Growth RJ Partners

15. product Integration Can a managed futures fund include both long and short positions in the various futures markets? Yes No

16. Due Diligence The Investment Committee for Alternative Investments is chaired by: Paul Reilly Chet Helck Tom James Hank Paulson Bernie Madoff

17. Due diligence For every product that we approved and added to the platform in FY 2011, approximately how many were not approved? 5 15 29 57

18. Product Support resources The Alternative Investments Group has a dedicated external representative? True False

19. Product Support resources The name of the external is? John Rodriguez Gordon Gecko John Paulson John Ramirez Juan Ramirez

20. Product Support resources John is able to assist with? Client meetings/seminars Conference calls Branch meetings All of the above

21. Product Support resources In addition to external product specialists, dedicated internal product specialists are available? True False

22. Advisor education From the perspective of an advisor, what is the most valuable marketing resource available through the Alternative Investments Group? Offering document FA Factsheet Advisor Only Due Diligence Updates

23. Advisor education Can Advisor fact sheets be shared with your clients? Yes, they work great As long as compliance doesn’t ask No, they are not for client use Good idea….

24. Advisor education Some alternative strategies can deliver on multiple objectives? True False

25. Advisor education The same strategy can be executed in a number of ways? True False

26. Advisor education To sell all managed futures products on the Alternative Investments Group platform, you need a Series 3 or a Series 31? True False

27. Advisor education Advisors are required to take a CE module prior to selling an Alternative Investments or Structured Product. True False

28. Advisor education Advisors are required to take the module every: Week Month Quarter Year

29. Investor Qualifications, suitability and eligibility Is there a difference between investor qualification and eligibility? No, if they qualify they are eligible Yes, qualified doesn’t always mean eligible Good question No, if they are eligible they should qualify

30. Investor Qualifications, suitability and eligibility Is there a difference between eligibility and suitability? No, if they are eligible then it is suitable Another good question Not if the client doesn’t think so Yes, suitability is concerned with risk tolerance

31. Investor Qualifications, suitability and eligibility In terms of lowest qualification (e.g. $1 million net worth) level to highest (e.g. $5 million investable assets), is the following order correct? Qualified Client Qualified Purchaser Accredited Investor Yes No

32. Investor Qualifications, suitability and eligibility These standards also apply to Structured Products? True False

33. Investor Qualifications, suitability and eligibility Dodd / Frank changed the Accredited Investor status. The change was: New net worth criteria of $500,000 Exclusion of personal residence Inclusion of personal residence New net worth criteria of $5,000,000

34. Investor Qualifications, suitability and eligibility Did Dodd / Frank change the Qualified Client status? Yes, the net worth requirement is now $2,500,000 No, the net worth requirement is still $1,500,000 Yes, clients can no longer include personal residence & net worth is now $2,000,000 No, only Accredited Investor was impacted

35. Investor Qualifications, suitability and eligibility Do some products have more than one qualification standard (e.g., Qualified Client and Accredited Investor)? No, this is a silly question No, if a client meets one qualification standard then they meet them all Yes, some products may require two Yes, all products require multiple qualifications

36. Investor Qualifications, suitability and eligibility For the regulatory standards, do the assets have to be at Raymond James for the client to qualify for a particular product? Only if Raymond James tells me that’s the case Yes, because it depends on the assets in the account No, the qualification standards take all assets into account, regardless of physical location Yes, how else would you know what assets the client owns

37. Investor Qualifications, suitability and eligibility Does the Qualified Purchaser definition provide a look-through provision for irrevocable trusts? Yes No

38. Investor Qualifications, suitability and eligibility Does the Accredited Investor definition provide a look-through provision for irrevocable trusts? Yes No

39. Investor Qualifications, suitability and eligibility Should you contact a member of the Alternative Investments Group when purchasing a product in an entity (e.g. corporate account, irrevocable trust)? Yes, just to be sure they can qualify No, my best guess will suffice No, because entities do not have different guidelines I’ll never purchase an alternative investment

40. Investor Qualifications, suitability and eligibility Can presentation, factsheets and/or other marketing collateral be presented without the offering documents? Yes, as long as they are client approved No, all materials must be accompanied by a prospectus or offering document Yes, because the offering documents are too lengthy I hope you know, because I don’t

41. operations Private placements provide the perfect opportunity to prospect for new clients? True False

42. operations Are Alternative Investments available for wrap-based accounts? Yes, all products can be placed in wrap accounts Most products are available for both wrap & commission accounts No, none of the alternative investments can be placed in wrap accounts What is a wrap account?

43. operations Are Structured Products available for wrap-based accounts? Yes, the upfront commission is waived and I will receive the annual fee immediately Yes, I receive the upfront commission and can start billing immediately Yes, I receive the upfront commission and the product is unbillable for one year No, they cannot go into wrap-based accounts

44. operations I manage a discretionary practice. I need to be aware of the following: Structured product offerings require form #2747 signed by the client each purchase Most of the alternative investment offerings require paperwork for purchases and redemptions Rebalancing the portfolio with alternative investments is more difficult than equities or mutual funds All of the above

45. operations Shouldall Alternative Investments and Structured Product be purchased in tax-sheltered accounts? Yes, because they are very tax inefficient No, because they are tax efficient Yes, if that’s the only account the client has No, some investments may generate UBTI or have lockups that could interfere with RMDs

46. operations Should you contact the Alternative Investments Group if investing in a tax-sheltered account? Yes, just to make sure the offering is eligible for this account type No, I can determine myself No, contact my branch mgr Yes, but only after asking Tom James his opinion first

47. operations All Alternative Investments and Structured Products generate a Schedule K-1? What is a K-1? Yes, all AI & SP offerings generate K-1s No, some of the offerings may generate 1099s No taxes are owed when investing in Alternatives or Structured Products