For more information contact: emailus@marcusevans.com David Wilson, CFA, the Managing Director, Liability Driven Investing from Cutwater Asset Management, and an asset management firm at the marcus evans US Pensions Summit Spring 2012 examines Cutwater's fixed income investing approach and outlook for the future. Join the 2014 North American Summit along with 60 CIO’s and top decision makers from North America’s largest corporate and public pension funds as well as foundations, endowments and those offering the latest investment strategies on the marketing For more information contact: emailus@marcusevans.com

1. Finding Value
in the Fixed Income Markets
opportunities for adding alpha. With this entire universe of fixed income
in mind, we expect these approaches to instruments, both index and non-index
account for approximately 50 per cent sectors, helps us maximize risk-
and 30 per cent respectively of excess adjusted returns for investors.
return attribution. We take a measured
approach to taking interest rate and In our experience, this has produced
curve exposure in our clients’ portfolios risk-adjusted portfolio returns in excess
based on the efficiency we believe exists of relevant benchmarks and peers.
within the rates market. This generally When spreads are low and do not offer
translates into a lower share of portfolio an adequate “margin of safety” relative
alpha coming from these two decisions, to our fundamental outlook, we lower
approximately 15 per cent over a our allocation to the spread sectors of
market cycle. Buy/sell negotiation the market, increase our allocation to
Interview with: David Wilson, CFA, represents approximately five per cent. risk neutral sectors, including
Managing Director, Liability Driven treasuries, and evaluate for a more
Investing, Cutwater Asset attractive entry point.
Management
There are What is your outlook on the future?
What should institutional investors
Institutional investors should expect many attractive prepare for?
volatility to persist for at least the next
12 months, so they may want to investment For 2012, we expect the US to grow at
consider taking a long-term and patient or slightly below 2 per cent, which is
approach to investing, says David opportunities below blue chip economists’ consensus
Wilson, CFA, Managing Director, Liability view of 2.2 per cent. We expect Europe
Driven Investing, Cutwater Asset in the to experience a moderate recession,
Management. “Despite the historically with Euro area corporate profits
low interest rate environment, there are fixed income space dropping 4 per cent (versus flat
many attractive investment earnings this year). We think this is
opportunities in the fixed income space, already priced into the markets, but a
which require patience through volatile deeper recession may cause us to revise
markets,” he adds. What is unique about Cutwater’s our forecast lower. Asia and emerging
investment philosophy and market growth will likely slow, but
From an asset management firm at the strategy? timely central bank action and prudent
upcoming marcus evans US Pensions fiscal risk management can support
Summit Spring 2012, in Wheeling, The objective of our philosophy is to solid growth in 2012.
Illinois, July 23-25, Wilson examines provide clients with consistent, top
Cutwater’s fixed income investing quartile risk-adjusted portfolio
approach and outlook for the future. performance through market cycles. We The opinions expressed in this interview
consider it important to take a long- are solely those of Cutwater Asset
How do you identify value in the term view of markets with an Management. All information presented
fixed income markets? appreciation for their full business cycle, is believed to be reliable, however the
and apply a counter-cyclical approach to accuracy, timeliness, and completeness
To extract value from the fixed income capital allocation, centered on adding of the content is not guaranteed and
markets, we have five approaches that risk to the portfolio when the margin of should not be relied upon as a basis for
we employ: sector rotation, security safety is high and de-risking when low. any investment decision. This interview
selection, duration management, yield Additionally, we focus on the spread does not constitute investment advice
curve positioning and trading (buy/sell sectors of the market, where the and Cutwater Asset Management
negotiations). We believe that our sector inefficiencies are greatest and separate disclaims any liability for any use of the
rotation and security selection fundamental credit research from content thereof. Past performance is no
approaches represent more attractive relative value analysis. Utilizing the guarantee of future results.

2. About the US Pensions Summit Spring 2012
The Investment Network -
marcus evans Summits group
This unique forum will take place at The Westin Chicago North Shore, Wheeling,
delivers peer-to-peer information
Illinois, July 23-25 2012. Offering much more than any conference, exhibition or
on strategic matters, professional
trade show, this exclusive meeting will bring together esteemed industry thought
trends and breakthrough
leaders and solution providers to a highly focused and interactive networking event.
innovations.
The Summit includes presentations on managing pension risks, dynamic investment
policies and socially responsible investing.
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About Cutwater Asset Management
Cutwater Asset Management is a client-centric and solutions-based investment advisor focused exclusively on fixed income
investments. As one of the largest institutional fixed-income investment managers in the world, Cutwater’s model combines world-
class investment expertise and risk management capabilities with exceptional client service, in-depth consultation, and extensive
interaction between clients and the investment team.
www.cutwater.com
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