GMO 7-Year Asset Class Return Forecasts* - Expected Value Added

- Real Return (Asset Class Index)

As of April 30, 2010

Stocks Bonds Other
10%

8.4%
8% 6.5 % Long-term 7.6% 7.5%
Historical U.S.
Equity Return
Annual Real Return Over 7 Years

1.8% 1.5%
3.7%
6% 5.5%
4.5%
2.3%
4%
3.1%
5.8% 2.9% 6.0%
2.1% 4.7%
2% 2.3% 1.7% 1.6%
3.2% 3
1.8% 0.9% 0.7% 0.9%
3 0.8%
1.6%
-0.1% 0.8% 0.8% 0.9% 0.7% 1.4%2
0% 0.3%
1.8% -0.6%
-0.2%
-1.9%

-2%
U.S. U.S. U.S. High Int'l. Int'l. Equities U.S. Bonds Int'l. Bonds Bonds Bonds U.S. Managed
equities equities Quality equities equities (emerging) (gov't.) (gov't.) (emerging) (inflation treasury Timber
(large cap) (small cap) (large cap) (small cap) indexed) (30 days to
2 yrs.)
Estimated Range of
7-Year Annualized Returns ±6.5 ±7.0 ±6.0 ±6.5 ±7.0 ±10.5 ±4.0 ±4.0 ±8.5 ±1.5 ±1.5 ±5.5
*The chart represents real return forecasts1 for several asset classes and an estimate of net value expected to be added from active management. These forecasts are forward-
looking statements based upon the reasonable beliefs of GMO and are not a guarantee of future performance. Actual results may differ materially from the forecasts above.

GMO
7YearForecast
1
2
Long-term inflation assumption: 2.5% per year.
Alpha transported from management of global equities.
3 Alpha transported from management of global bonds.
Source: GMO 1
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