Summary of Curbstone's MLP strategy

1. HOUSTON | BOSTON
curbstonegroup.com
MLP STRATEGY OVERVIEW

2. Overview
Curbstone is a registered investment advisor, 100% privately owned and operated by its managers
• Combining 40 years of professional money management experience, Curbstone’s three portfolio managers built the
firm around fundamental research and a common attraction to scarce hard assets that are chased by growing demand
Curbstone’s MLP Platform
• We understand the fundamentals of individual MLPs, the macro issues surrounding MLP businesses, and the technical
trading patterns of the MLP sector
• Through extensive experience investing in MLPs, we have built relationships with MLP management teams
• We use that collective knowledge and experience to analyze and pick MLPs that we believe will outperform the sector
MLP Strategy
• Long individual MLPs:
– Buying MLPs that have significant potential to grow cash distributions over time, have committed management
teams, and are reasonably valued on an absolute and relative basis
– Hands-on research by a manager with proven track record and deep relationships in this niche industry
Curbstone applies in-house fundamental research and experience to an
under-followed MLP sector that has historically provided diversification, tax-
deferred income and inflation-protecting growth
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3. Curbstone Group Management
Curbstone’s MLP practice is led by an experienced manager with unique background and expertise in MLPs
Hinds Howard, Portfolio Manager (Boston)
• Hinds has been investing in master limited partnerships (MLPs) since 1995 when only 6 existed
• Since April 2009, Hinds has led the MLP investment practice at Curbstone
• Previously with Lehman Brothers MLP Partners
– Hinds was primary research analyst for this MLP-focused investment fund that managed more than $1.0 billion
– Developed lasting personal relationships in the sector through negotiation of $500+ million of equity private placements
into MLPs
• Lehman Brothers’ investment banking group prior to that Hinds Howard
– Exclusive focus on MLPs, helping to execute 20+ lead-managed capital markets transactions (including 8 initial public
offerings) when there are only 75 MLP’s in existence today
• Unique experience has given Hinds a deep understanding of a very un-crowded, under-followed asset class
Ryan Krueger and Mike Catalano, Portfolio Managers (Houston)
• Mike (in 1985) and Ryan (in 1996) started their careers at Citigroup, where they began to co-manage a portfolio at
the end of 2001
• Over the next 6 years, their actively-managed portfolio outperformed the market by more than 280% net (after
their fee) (1)
Ryan Krueger Mike Catalano
– Catalano and Krueger outperformed more than 98% of their peers in the nationwide Lipper core equity manager
database
• Trading disciplines based on profound respect for simple math: losing hurts more than winning helps
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1. Unaudited record because Krueger and Catalano preferred to utilize private separately managed accounts rather than a public mutual fund. Market defined
here as a blended average of the S&P 500 and Russell 3000 indices. 3

4. MLP INVESTMENT THESIS

5. Overview of MLPs
MLPs are publicly-traded companies that own energy infrastructure assets
• Toll Road Businesses: Midstream MLPs typically collect fee-based revenue for transportation
services, without ever owning the energy commodity they transport
and store, akin to a toll road
– MLPs connect oil and gas producers to distributors and end users
• Stable Cash Flow: MLPs have a 25 year record of producing stable and predictable cash flow,
most of which is distributed to investors
• Growth Opportunities: MLP growth is driven by:
– Steady growth in demand for oil and gas
– Massive need for new infrastructure around development of unconventional
shale natural gas and Canadian oil sands plays
Upstream Midstream Downstream
Oil and natural gas production Transportation and processing End users
• Drilling • Transportation • Commercial
• Production • Pipeline • Industrial
• Gathering • Consumers
• Treating and Processing • Refining
Curbstone Focus
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6. MLPs: Long-Term Outperformance for Good Reason
• Partnership structure creates unique alignment of management (general partner) interests and investors interest
(1)
• Fundamentals of MLPs have been strong and remain unchanged from last decades
– High distribution payout promotes capital efficiency by requiring management to access capital markets for growth projects
– U.S. requires more than $200 billion of energy infrastructure investment in the next decade to match new supply growth with demand
Monthly Indexed Total Return: 1/1/2000 through 6/30/2011
Annual Returns Through 6/30/2011 850%
MLPs: +720%
YTD 2011 2010 2009 2008 3 Years 5 Years 10 Years
MLP Index 5.2% 35.9% 76.4% (36.9%) 18.5% 16.1% 16.0% 750%
S&P 500 6.0% 15.1% 28.5% (37.0%) 3.9% 3.3% 2.8%
650%
550%
S&P 500 MLP Index 450%
350%
250%
150%
S&P 500: +13%
50%
(50)%
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1. Past performance is not indicative of future results. MLP Index refers to the Alerian MLP Index, a composite of the 50 largest energy MLPs calculated by S&P. 6

7. MLPs: High Yield and Growth
• Yield compression for REITs and treasuries has outpaced yield compression for MLPs
• We target current yield, but also anticipate that our MLP holdings will grow their distributions over time, unlike some
of the asset classes shown below
• In the last 12 months ended 6/30/2011, MLPs in Curbstone’s portfolio grew distributions 5.7% on average
Current Yield Comparison (as of June 2011)
7.00% 6.60%
6.00%
5.00%
4.10%
4.00%
3.20%
3.00%
3.00%
2.00%
2.00%
1.00%
0.00%
Curbstone MLP Utilities U.S. 10-Year REITs S&P 500
Portfolio
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Source: Bloomberg 7

8. PORTFOLIO MANAGEMENT

9. Research Process and Concentrated Portfolio Construction
• We use certain qualitative and quantitative criteria to narrow the list of potential MLPs
– Factors we consider include: historical distribution growth, stability of cash flow, distribution coverage, strength
of management team, strength of GP, balance sheet strength, asset quality, relative yield
• Once the list is narrowed, we build an asset-level financial model for remaining MLPs
– Develop our own projections and run stress tests on the drivers
• We use distribution discount models with asset specific discount rates to determine value
• Based on our analysis, we build concentrated “Core Portfolio” of 8-12 best MLPs
– Core Portfolio is the basis for all client portfolios
– Deep research process allows for construction of concentrated portfolio with fewer K-1s
– Unless something fundamentally changes with Core Portfolio MLPs, we do not make changes
• We will opportunistically trade around a position as relative valuation fluctuates
Portfolio Construction
Target Positions: 8-12 MLPs
Minimum Positions: 7 MLPs
Leverage: None
Target Turnover: <25% annually
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10. Separately Managed Account Structure: Terms and Benefits
Terms for Accounts
Investment Manager: Curbstone Group, LLC
Minimum Initial Investment: $100,000
Exit Ability: Daily (no lockup or gates)
Management Fee: Percent of total assets, paid quarterly:
2.00% for accounts $100,000 to $500,000
1.50% for accounts $500,000 to $1,000,000
1.25% for accounts larger than $1,000,000
Trading Costs / Commissions: Included in management fee (covered by Curbstone)
• Complete transparency in separate accounts
– Wins and losses are clear to see
– Allows maximum flexibility for individual investor’s tax situations
• No Trading Costs – Curbstone covers commissions
• No “involuntary” indirect trading costs or tax consequences
– Clients are not affected by the decisions of any other investor, such as dilution from additions or forced liquidations from
redemptions
• Accessible, transparent managers
– Curbstone portfolio managers provide a private letter to each investor each quarter, along with an open invitation via phone or
e-mail to ask any question
• No lock-ups
– Should clients ever wish to change their minds that should be just as easy as opening the account in the first place, so there is
no lock-up provision, and no penalty or surrender charge of any kind
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11. Contact Information
Partners Offices
Mike Catalano Houston Office
mike@curbstonegroup.com 7700 San Felipe, Suite 461
Houston, TX 77063
Hinds Howard
hinds@curbstonegroup.com Boston Office
34 Washington Street, Suite 205
Ryan Krueger Wellesley Hills, MA 02481
ryan@curbstonegroup.com (781) 333-4449
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12. Disclaimers
Historical performance results for investment indices and/or categories generally do not reflect the deduction
of transaction and/or custodial charges or the deduction of an investment-management fee, the incurrence of
which would have the effect of decreasing historical performance results. Each of these indices is a Total
Return index, calculated as though all cash flows from the asset are reinvested.
Any information contained herein or referenced regarding the past performance of a security is not indicative
of future results and there can be no assurance the mentioned security will achieve similar returns in the
future or avoid losses. Depending on the particulars of any specific individual's account, actually investment
returns may vary materially from the returns stated in this presentation.
This information is provided for informational purposes only and does not constitute an offer to sell or a
solicitation to purchase any security.
This investment evaluation is directed only to the client and/or interested party for whom this evaluation was
created. The underlying data has been obtained from sources considered to be reliable: the information is
believed to be accurate, but there is no assurance that it is so. This evaluation is for informational purposes
only and is not intended to be an offer, solicitation or recommendation with respect to the purchase or sale of
any security, or a recommendation of the services supplied by any money management organization. Past
performance is not an indication, nor a guarantee of future results.
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