Wells Fargo Wealth Management
2010 Utah Economic Summit for Nonprofits
Economic and Market Strategy Update | April 2010
Rees L. Petersen, CFA, CIMC
Vice President, Regional Investment Manager
A Note about Disclosures
Please be sure to read the important
disclosures at the end of this presentation
1
200907125 TPB-IM21019 (08/09)
Wells Fargo Private Bank provides financial services and
products through Wells Fargo Bank, N.A. and its various
affiliates and subsidiaries. Wells Fargo & Company and its
affiliates do not provide legal advice. Please consult your
legal advisors to determine how this information may apply
to your own situation. Whether any planned tax result is
realized by you depends on the specific facts of your
situation at the time your tax preparer submits your return.
Today’s Agenda
Where are we in this economic cycle?
Where are we in this market cycle?
Investment strategies to consider for your
organization.
2
Economic Data Trends
Economic data trends show significant improvement
over the past year.
Improving
March
2009
35%
30%
35%
March
2010
54%
35%
11%
Source: FactSet, 03/31/10
3
Staying
Deteriorating
the Same
Leading Economic Indicators Still Rising
The LEI Index continues to imply growth.
Annualized Quarterly Change (%)
U.S. Gross Domestic Product
6
1
4
0.5
2
0
0
-2
GDP
LEI (Adv 6 mos)
-0.5
-4
-1
-6
-8
3/30/2007
-1.5
3/1/2008
3/1/2009
3/10/2010
Wells Fargo Wealth Management Gross Domestic Product Estimates
Source: Wells Fargo Wealth Management, 04/10; FactSet, 04/10
4
1.5
MoM Change (%) Advanced 6 Months
8
Housing Falters
New home sales should rebound from extreme lows,
but the sector could disappoint later this year.
Annualized Monthly Sales 0000’s
New Home Sales Hit All-time Low
1500
1200
900
600
300
Feb-00
Feb-01
Source: FactSet, 04/10
5
Feb-02
Feb-03
Feb-04
Feb-05
Feb-06
Feb-07
Feb-08
Feb-09
Feb-10
Employment Situation Improving
Unemployment claims are dropping more rapidly than
they did in the prior two recessions.
Initial Claims (000), 4 Wk. Ave.
U.S. Initial Unemployment Claims*
650
620
590
1991 & 2002 Avg
560
530
500
470
Apr. 2, 2010
440
410
1983
380
350
Nov-08
Feb-09
May-09
Aug-09
Nov-09
Feb-10
*Prior cyclical peaks are indexed to the 643 peak of the current cycle.
Source: ISI, 04/10; FactSet, 4/10
6
May-10
Retail Sales Making a Strong Comeback
Are consumers feeling more confident or are they
shopping their blues away?
4
4
3
3
2
2
1
1
0
0
-1
-1
-2
-2
Ex-Autos
-3
-3
-4
-4
Jun-07
Source: FactSet, 03/10
7
Retail Sales
Jun-08
Jun-09
MoM Change (%)0
MoM Change (%)
Retail Sales Improving
Asset Prices are Rising
Improving capital markets and stabilizing house
prices are helping consumers’ net worth recover.
Household Net Worth is Rebounding
$ Billions
75000
50000
25000
0
Dec-99
Dec-01
Dec-03
Dec-05
Source: Wells Fargo Wealth Management, Federal Reserve Board, 04/10
8
Dec-07
Dec-09
Debt Service is Falling
The amount of disposable income required to service
debt has dropped to 2000 levels.
Debt Payments as a % of Income
In Percent (%)
14.0
December
2000
13.0
12.0
11.0
10.0
Dec-99
Dec-01
Dec-03
Dec-05
Source: Wells Fargo Wealth Management, Federal Reserve Board, 04/10
9
Dec-07
Dec-09
Businesses Also in Better Shape
Businesses have excess cash to invest in capital
spending projects and debt reduction in 2010.
Corporate Balance Sheets
Cash as a % of Assets
Q1 1990 through Q4 2009
6.0%
5.5%
5.0%
4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09
Source: Bloomberg Finance, LLP, as of 04/10
10
Business Surveys Show Expansion
As business activity picks up, profits and new hires are
increasing.
65
65
60
60
55
55
50
50
45
45
40
40
35
35
30
30
Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10
Manufacturing
Source: FactSet, 04/10
11
Service
ISM Non-Manufacturing Index
ISM Manufacturing Index
Manufacturing and Services
Expanding
Lots of Stimulus Still in the Pipeline
More than one half of the U.S. stimulus has yet to be
distributed.
U.S. Stimulus Funding
350
$ billions
300
$288B
$275B
250
$224B
200
150
$120.2B
$99.1B
$88.6B
100
50
0
Tax Benefits
Source: www.recovery.gov, 02/10
12
Contracts, Grants, Loans
Funded
Paid Out
Entitlements
Dollar Gaining
Expectations for higher interest rates and a flight to
quality have led to recent dollar appreciation.
U.S. Dollar Bounces Higher
US Dollar Weighted Index
95
90
85
80
75
70
2004
2005
Source: Bloomberg, LLP, 04/10
13
2006
2007
2008
2009
Global Recovery is Broad-Based
Contraction
a
Ru
ss
i
lia
55
Au
st
ra
ng
ap
or
e
Si
Po
la
nd
Ja
pa
n
.
Cz
ec
h
Re
G
pu
lo
bl
ba
ic
lP
M
I
Eu
ro
-Z
So
on
e
ut
h
Ko
So
re
a
ut
h
Af
ric
Br
a
az
il
Ch
in
a
.
U.
K
60
Hu
ng
ar
y
De
nm
ar
k
55
65
In
di
a
60
70
March PMI
U.
S
Expansion
65
Sw
ed
en
70
Sw
it z
er
la
nd
The Global Manufacturing Purchasing Managers’ Index
has risen to its highest level since 2004.
50
50
45
45
40
40
Source: Ned Davis Research, ISM, Haver Analytics, NTC, Hungarian National Bank, BER, SVME, 03/10
14
Emerging Economies are Growing Fast
Emerging economies fared better during the crisis than
developed economies and are recovering more quickly.
Percent of Total Global GDP
GDP Growth Rates
12
9
6
3
0
-3
-6
-9
2006
2007
2008
2009
Advanced economies
Source: IMF, World Economic Outlook, 10/09
15
2010
Emerging economies
2011
2012
Relative Contributions Changing
The relative share of global output from emerging
economies has gained over the past decade.
Contribution to Global Output1
Percent of Total Global GDP
70%
63%
60%
54%
46%
50%
40%
30%
20%
10%
0%
2009(e)
Developed
2014(e)
Emerging Economies
PPP Gross domestic product based on purchasing-power-parity (PPP) share of world total, 2009 IMF estimates
Source: IMF, World Economic Outlook, 10/09
16
51%
37%
2000
1
49%
Today’s Agenda
Where are we in this economic cycle?
Where are we in this market cycle?
Investment strategies to consider for your
organization.
17
2010 Forecasts
We see equity market gains in 2010, supported by a
solid rebound in earnings growth.
Equity Market Forecasts
2008(a) 2009(a) 2010(e)
S&P 500
903
1115
1275
Russell 2000
499
625
700
1237
1581
1770
567
989
1140
40
22
23
MSCI EAFE
MSCI EM
Volatility (VIX Index)
Index price at December 31
Note: An index is not managed and unavailable for direct investment.
a: actual; e: estimate
Source: Bloomberg Finance, LLP, as of 01/10
18
Bull Markets Historical Perspective
The latest bull market is off to a good start.
History shows we may only be in the early stages.
700%
Average Bull Market: 68 Months, 178%
Bull Market Return
600%
'87-'00
Current Bull Market: 13 Months, 73%
500%
400%
300%
'82-'87
'47-'57
Average
200%
Current
'66-'68
100%
'62-'66
'70-'73
0%
0
20
40
'02-'07
'57-'61
60
'74-'80
80
A larger circle represents a longer bull market
Past Performance is no guarantee of future results.
Source: Bloomberg Finance LLP, as of 02/10
19
100
120
140
160
Bull Market Length (Months)
Equities vs. Fed Tightening
Contrary to popular belief, Fed rate hikes do not
always lead to poor equity market performance.
S&P 500 Returns after Initial Fed Rate Hikes
Data from 1928-2009
% Change / # Days
14.0
13
12
12.0
12
10
10.0
9
8.6
8.0
7
7
6
6.0
4.8
4.0
2.0
1.6
0.6
0.0
3 Months
6 Months
Average % Return
Positive Return Periods
Past Performance is no guarantee of future results.
Source: Ned Davis Research, as of 03/10
20
9 Months
12 Months
Negative Return Periods
Equities
Riskier and non-dollar assets surged during the 2009
recovery. We expect more-normal returns in 2010.
Equity Returns by Market Segment
2009
79.0
80.0
% Change
YTD 2010
60.0
40.0
40.5
37.2
32.5
26.5
20.0
0.9
2.5
4.6
27.2
19.7
5.4
6.8
8.7
8.9
0.0
-20.0
MSCI
EAFE
MSCI EM
R1000
Growth
Past Performance is no guarantee of future results.
Source: Bloomberg Finance, as of 03/10
21
S&P 500
R1000
Value
Russell
Midcap
Russell
2000
S&P 500 Index Historical Price to Earnings
Equity valuations have risen but remain attractive
based on forward earnings estimates.
S&P 500 P/E Ratio
30
P/E Ratio
27
24
21
18
15
12
9
1993
1997
12-month Trailing P/E
12-month Forward P/E
Source: FactSet, as of 03/10
22
2001
2005
2009
Fixed Income
After the 2009 credit rally, we expect more normal
returns in 2010.
Fixed Income Market Total Return
% Change
2009
58.2
50
28.2
30
18.7
11.4
10
-10
3.9
1.1
0.6
-1.9
Developed
Int'l
5.9
1.5
2.3
MBS
IG Corp
4.2
4.6
-3.6
TIPS
Treasurys
Past Performance is no guarantee of future results.
Source: Bloomberg Finance, LLP, as of 03/10
23
2010 YTD
EM Debt
HY Corp
Global Interest Rates
Major government bond yields have been range-bound
for nearly a year, despite Greek debt concerns.
Global 10-Year Government Yields
Interest Rate
7
6
5
4
3
2
1
2007
2008
US
JP
UK
Source: FactSet, as of 03/31/10
24
EU
2009
Greece
2010
Relationship Between Equity and Credit
Credit markets have returned to pre-crisis levels.
We expect equity markets to follow.
S&P 500 and Investment Grade
Corporate Bond Spreads (Inverted)
1600
0
S&P 500 Index
1400
200
1200
300
Pre-crisis levels
1000
400
500
800
600
600
700
2006
2007
Investment Grade Corporate Bond Spreads
2008
S&P 500 Index
Source: Bloomberg Finance, LLP, Barclays Capital, as of 03/31/10
25
2009
Investment Grade Corporate
Bond Spreads (Inverted)
100
Volatility
Volatility has fallen below long-term average levels;
however, it could pick up again as stimulus fades.
CBOE Volatility Index (VIX)
70
60
Index
50
The VIX Index reached
an all-time closing high
in October 2008
40
30
20
10
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Bloomberg Finance, LLP, 04/10
26
Lots of “Dry Powder” on the Sidelines
Ample cash remains available to support financial
market growth as risk appetites improve.
$ Billions
Cash on the Sidelines
4500
4500
4000
4000
3500
3500
3000
3000
2500
2500
2000
2000
1500
1500
1000
1000
500
500
0
1996
1998
2000
2002
Source: ICI, 04/10
Cash represented by money market mutual fund assets.
27
2004
2006
2008
0
2010
Decades of Returns
The last decade was not kind to investors concentrated
in domestic equities.
S&P 500 Cumulative Returns by Decade
600%
486.5%
500%
% Change
403.7%
432.4%
400%
300%
200%
140.5%
112.1%
76.7%
100%
0%
-0.5%
-9.1%
-100%
30's
40's
Source: Morningstar, as of 01/10
28
50's
60's
70's
80's
90's
00's
The Power of Diversification
The “lost decade” for stocks was not “lost” for
well-diversified investors.
Growth of a Dollar over the Last Decade
$2.00
$2.00
$1.80
$1.80
$1.60
$1.60
$1.40
$1.40
$1.20
$1.20
$1.00
$1.00
$0.80
$0.80
Balanced Portfolio
S&P 500
$0.60
$0.40
1999
2000
2001
2002
2003
2004
2005
2006
2007
$0.60
2008
$0.40
2009
Total diversified portfolio consists of the following: 4.0% Short Bonds (Barclays Capital Aggregate 1-3 Total Return Index); 23.0% U.S. Taxable Bonds
(Barclays Capital Aggregate Bond Total Return Index); 5.0%High Yield Bonds (Merrill Lynch High Yield Master II Index ); 8.0% Developed International Bonds
(Citigroup World Government USD Total Return Index); 18.0% Large Cap Stocks (S&P 500 Total Return Index); 4.0% Mid Cap Stocks (S&P 400 Total Return
Index); 4.0% Small Cap Stocks (S&P 600 Total Return Index); 11% International Developed Equity (Morgan Stanley Capital International Europe, Australia,
Far East & Canada gross return Index in U.S. dollars); 3.0% Emerging Markets Equity (Morgan Stanley Capital International Emerging Markets gross return
Index in U.S. dollars), 8.0% Real Estate Investment Trusts (FTSE NAREIT Equity REIT Total Return Index); 4.0% Commodities (Dow Jones UBS Commodity
Total Return Index in U.S. Dollars), 4.0% Conservative Hedge (HFRX Equity Hedge Index), 4.0% Conservative Hedge (HFRX Relative Value Arbitrage Index).
29
Source: Wells Fargo Wealth Management, 02/10, Markov Processes International, LLC, 02/10
Key Points – Economy and Markets
 The economy is recovering.
 Recent company earnings have exceeded expectations.
 Employment conditions seem to be stabilizing, but high
unemployment may limit economic growth.
 Government policy responses have aided the recovery and
there is more to come in 2010.
 Moderate inflation is potentially on the horizon.
 The markets are functioning much better, although some
consolidation is likely.
 Stock valuations are attractive by historical standards.
 Cash on the sidelines may fuel further asset price increases.

30
Improving asset values and reduced fear may result in
growth in donations to nonprofits over the next year.
Today’s Agenda
Where are we in this economic cycle?
Where are we in this market cycle?
Investment strategies to consider for your
organization.
31
Asset Classes
Tactical adjustments:
Underweight
Overweight
 International Bonds
 Corporate Bonds
 Treasury Bonds
 U.S. Small-Cap
 Real Estate
 U.S. Mid-Cap
 Value Style
 U.S. Large-Cap
 Agency Bonds
 Growth Style
 Duration
 Commodities
 Complementary
Strategies –
Conservative1
†Strategic
or neutral recommendation is 0%. Asset class may not be underweighted because short
positions in any asset class are prohibited.
1Some complementary strategies may be available to pre-qualified investors only.
Suggestions as of 04/10
32
U.S. Equity Sectors
Tactical adjustments:
Underweight
 Consumer Staples
 Telecommunications
 Utilities
 Consumer
Discretionary
Suggestions as of 04/01/10
33
Neutral
Overweight
 Information
Technology
 Financials
 Health Care
 Materials
 Industrials
 Energy
 Information
Technology
Theme – Global Recovery
Trends
 Interdependent global
economies
 Correlated global
markets
 Synchronized global
stimulus supporting
worldwide recovery
 Rise of the global
consumer
– China, India, Brazil,
Russia, Korea and
frontier markets
becoming consumer
driven markets
– Global imbalances
correcting
Strategies
 Fully invest in all four asset groups
–
–
–
–
International
International
Commodities
Hedge Funds
Dev & EM Bonds
Dev & EM Equity
& Global Real Estate
with Global Exposure
Tactical
 Diversify currency exposure through
public and private investments
 Overweight commodities
 Broaden emerging markets exposure
beyond BRIC countries
– Opportunities in SE Asia, Europe & SA
34
Theme – Re-engineering the System
Trends
Strategies
 Capital expenditure on
Infrastructure and
Technology low
 Invest in Real Assets
 Invest in Private Equity
 Public sector spending
on roadways, bridges,
ports
 Adoption of current
technology to create
better efficiencies
Tactical
 Overweight Industrials sector
 Overweight Materials sector
 Overweight Energy sector
 Overweight Commodities
35
Theme – Risk Control
Trends
Strategies
Long-term:
 Strategic Asset Allocation fully
diversified to meet risk/return targets
 Removal of stimulus
 Higher tax rates
 Invest in Complementary Strategies to
change risk profile
 Higher interest rates
 Incorporate risk budgeting
 Higher inflation
Tactical
 Rebalance High Yield
 Rebalance Small Cap
 Overweight Conservative Hedge Funds
36
Theme – Higher Interest Rates
Trends
 Potential for higher
interest rates due to:
– Recovery
– High Federal deficit
 Inflationary pressures
from easy monetary
policies
 Potential “asset
bubbles”
Strategies
 Diversify Fixed Income Assets
 Diversify Income Sources
 Equity, Commodities help hedge
inflation
 Active Yield Curve/Duration Mgmt
Tactical
 Underweight Duration
 Overweight Domestic Equity
 Underweight Treasurys
 Underweight Foreign Sovereign Debt
 Overweight Corporate Bonds
37
Theme – U.S. Dollar Diversification
Trends
Strategies
Cyclical Trends:
 Diversify currency exposure through
public and private overseas investments
 Higher interest rates
in U.S. may help dollar
in 2010
 Certain Hedge Funds may benefit from
currency fluctuations
 Dollar may be oversold
in the short-term
Secular Trends:
 Longer-term dollar
pressured by high
debt, relatively weaker
economy and
persistent trade
imbalances
38
Tactical
 Underweight International Developed
Bonds
 Underweight International REITs
Key Points – 2010 Strategy Highlights
 Maintain globally diversified portfolios.
 Focus on high quality, dividend-paying, cash-rich companies.
 Broaden emerging-markets exposure beyond BRIC countries.
 Diversify currency exposure.
 Prepare for the triple threat of higher inflation, higher interest
rates, and higher taxes.
 Overweight commodities – not just gold.
 Rebalance high-yield back to target.
 Seek opportunities in hedge funds and private equity.
39
Questions?
40
200701178 TPB-PB21055 (03/08)
Disclosures

Wells Fargo Private Bank provides products and services through Wells Fargo Bank, N.A. and its various affiliates and
subsidiaries.

The information and opinions in this report were prepared by the investment management division within Wells Fargo
Private Bank. Information and opinions have been obtained or derived from sources we consider reliable, but we cannot
guarantee their accuracy or completeness. Opinions represent Wells Fargo Private Bank’s opinion as of the date of this
report and are for general information purposes only. Wells Fargo Private Bank does not undertake to advise you of any
change in its opinions or the information contained in this report. Wells Fargo & Company affiliates may issue reports or
have opinions that are inconsistent with, and reach different conclusions from, this report.

This material is for general information only, is not suitable for all investors and is not soliciting any action from any
particular investor. Information and opinions presented have been obtained or derived from sources we believe reliable, but
we cannot guarantee their accuracy or completeness. Opinions represent WFB’s judgment as of the date of the report and
are subject to change without notice. WFC affiliates may issue reports or have opinions, which are inconsistent with, and
reach different conclusions from, this report.

This report is not an offer to buy or sell or a solicitation of an offer to buy or sell any securities mentioned. Wells Fargo &
Company and/or its affiliates may trade for their own accounts, be on the opposite side of customer orders, or have a long
or short position in the securities mentioned herein.

The investments discussed or recommended in this report are not insured by the Federal Deposit Insurance Corporation
(FDIC) and may be unsuitable for some investors depending on their specific investment objectives and financial position.

Past performance is not a guide to future performance. Income from investments may fluctuate. The price or value of the
investments also may fluctuate.

Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of
investment losses.

Investing in foreign securities presents certain risks that may not be present in domestic securities and may not be suitable
for all investors.

Real estate investment carries a certain degree of risk and may not be suitable for all investors.
41
Disclosures

Some complementary strategies and real assets may be available to pre-qualified investors only.

Hedge strategies and private investments may be speculative and involve a high degree of risk. Hedge strategies and
private investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment.
There is no secondary market for the investor’s interest in a hedge fund or private equity investment and none is expected
to develop. There may be restrictions on transferring interests in a hedge fund or private equity investment.

Fixed income securities are subject to availability and market fluctuation. These securities may be worth less than the
original cost upon redemption. Certain high-yield/high-risk bonds carry particular market risks and may experience greater
volatility in market value than investment grade corporate bonds. Government bonds and Treasury bills are guaranteed by
the U.S. government and, if held to maturity, offer a fixed rate of return and fixed principal value. Interest from certain
municipal bonds may be subject to state and/or local taxes and in some instances, the alternative minimum tax.

Yields are subject to change with economic conditions. Yield is only one factor that should be considered when making an
investment decision.

Wells Fargo & Company and its affiliates do not provide legal advice. Please consult your legal advisors to determine how
this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific
facts of your situation at the time your tax preparer submits your return .

You cannot invest directly in an index.

The S&P/Case-Shiller® U.S. National Home Price Index is a broad, market value-weighted composite of single-family home
price indices for the nine U.S. Census divisions and is calculated quarterly.

S&P 500 Index is a capitalization-weighted index calculated on a total-return basis with dividends reinvested. The index
includes 500 widely held U.S. market industrial, utility, transportation and financial companies.

S&P 400 Index is an unmanaged capitalization-weighted index of common stocks representing all major industries in the
mid-range of the U.S. stock market.

S&P 600 Index is an unmanaged capitalization-weighted index of common stocks representing all major industries in the
small-cap (between $300mn and $2 billion) are of the market.

The Market Volatility Index (VIX) is an index designed to track market volatility as an independent entity. The index
calculated based on option activity and is used as an indicator of investor sentiment, with high values implying pessimism
and low values implying optimism.

Wilshire 5000® Equity Index is an unmanaged index made up of all U.S. stocks regularly traded on the three major U.S.
exchanges, including the New York Stock Exchange, American Stock Exchange, and Nasdaq.
42
Disclosures

Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios
and higher forecasted growth values.

Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and
lower forecasted growth values.

Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000® Index, which
represents approximately 8% of the total market capitalization of the Russell 3000®.

Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent
approximately 25% of the total market capitalization of the Russell 1000 Index.

MSCI EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to
measure the equity market performance of developed markets, excluding the U.S. and Canada. As of June 2007 the MSCI
EAFE Index consisted of 21 developed-market country indices.

MSCI Europe, Australasia, Far East & Canada Gross Return Index is a free float-adjusted market capitalization index that is
designed to measure the equity market performance of developed markets, excluding the U.S.

Morgan Stanley Capital International (MSCI) Emerging Markets Global Index is a market capitalization-weighted benchmark
index made up of equities from 29 developing countries.

JP Morgan Global Ex United States Index is a total return, market capitalization weighted index, rebalanced monthly
consisting of the following countries: Australia, Germany, Spain, Belgium, Italy, Sweden, Canada, Japan, United Kingdom,
Denmark, Netherlands, and France.

Barclays Capital U.S. Aggregate Bond Index (formerly known as Lehman Brothers U.S. Aggregate Bond Index) represents
U.S. domestic, taxable and dollar-denominated securities. The index covers the U.S. investment grade fixed rate bond
market, including government and corporate securities, mortgage pass-through securities and asset-backed securities
between one and ten years.

Barclays Capital Aggregate 1-3 Total Return Index includes aged U.S. Treasury bills, notes and bonds with a remaining
maturity from 1 up to (but not including) 12 months. It excludes zero coupon strips.

Barclays Capital U.S. Corporate Bond Index (from Lehman Brothers U.S. Corporate Bond Index) includes publicly issued
U.S. corporate and Yankee debentures and secured notes that meet specified maturity, liquidity, and quality requirements.

Barclays Capital U.S. Treasury Index (formerly known as Lehman Brothers U.S. Treasury Index) includes public obligations
of the U.S. Treasury with a remaining maturity of one year or more.
43
Disclosures

Barclays Capital Municipal Bond Index (from Lehman Brothers Municipal Bond Index) represents municipal bonds with a
minimum credit rating of at least Baa, an outstanding par value of at least $3 million, and a remaining maturity of at least
one year. The Index excludes taxable municipal bonds, bonds with floating rates, derivatives, and certificates of
participation.

Barclays Capital U.S. TIPS Index consists of Inflation-Protection securities issued by the U.S. Treasury.

Barclays Capital High Yield Bond Index is an unmanaged index that tracks the performance of below investment grade U.S.
dollar-denominated corporate bonds publicly issued in the U.S. domestic market.

Merrill Lynch High-Yield Bond Master II Index is an unmanaged index that tracks the performance of below-investment
grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. This index does not reflect fees
and expenses.

JP Morgan Emerging Markets Bond Index Global (EMBI Global) currently covers 27 emerging market countries. Included in
the EMBI Global are U.S.-dollar-denominated Brady bonds, Eurobonds, traded loans, and local market debt instruments
issued by sovereign and quasi-sovereign entities.

Citigroup World Government USD Total Return Index is a dollar denominated, market-weighted bond index consisting of
government bond markets of developed countries.

FTSE NAREIT Equity REIT Total Return Index is an unmanaged index reflecting performance of the U.S. real estate
investment trust market.

The HFRX indices currently consist of eight single strategy indices, an asset-weighted Global Hedge Fund Index and HFRX
Equal Weighted Strategies Index, each calculated pursuant to an index methodology. Most HFRX Indices are priced daily. All
HFRX Indices are re-balanced quarterly.

Equity Hedge: Equity Hedge strategies maintain positions both long and short in primarily equity and equity derivative
securities. A wide variety of investment processes can be employed to arrive at an investment decision, including both
quantitative and fundamental techniques.

Relative Value Arbitrage: Investment Managers who maintain positions in which the investment thesis is predicated on
realization of a valuation discrepancy in the relationship between multiple securities.

Dow Jones - UBS Commodity Index is designed to be a highly liquid and diversified benchmark for commodities as an asset
class. The index is composed of futures contracts on 19 physical commodities. No related group of commodities (e.g.,
energy, precious metals, livestock and grains) may constitute more than 33% of the index as of the annual re-weightings of
the components. No single commodity may constitute less than 2% of the index.
Additional information is available upon request.
© 2010 Wells Fargo Bank, N.A., All rights reserved.
44