Structural manages FDIC-insured cash portfolios for institutional clients. It offers higher yields than alternatives like Treasuries and money market funds through tailored FDIC-insured deposit portfolios. Assets are held in separate custody accounts under the client's name. The portfolios provide safety through FDIC insurance backed by the full faith and credit of the U.S. government, liquidity through various deposit types including those providing weekly withdrawals, and higher yields through specialized sourcing and trading relationships.

1. FDIC-Insured Cash Management

2. Overview
Structural manages tailored, short-duration portfolios of FDIC-insured
deposits for corporations, non-profits, and other institutional clients.
Safety Yield
Same “full faith and credit” backing as Higher yields than alternatives
Treasuries  0.6-0.8%+ above Treasuries, net of fees1
 Portfolios of FDIC-insured deposits, purchased in amounts Equates to $60,000-$80,000 per $10MM managed
below insurance limit of $250,000 per bank
 Higher net yields than money market funds, agency securities,
 FDIC is backed by the full faith of the U.S. government or corporate bonds
 Assets are held in client name by independent custodian  Higher net yields than self-managed CD portfolios, due to
avoidance of retail and wholesale costs
Liquidity Convenience
Ability to meet unanticipated cash needs Tailored solution managed through a single
 MMDA deposits provide costless weekly liquidity
account
 Negotiable brokered CDs are traded in a market with >$3B  One account application, one statement, one 1099
average daily volume  Expanded FDIC-insurance capacity, up to $100MM per entity
 Avoid high transaction costs associated with retail CDs  Web interface to customize maturities and other parameters
1 As of July 1, 2011.
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3. Government-insured safety
FDIC is backed by the full faith and credit of the U.S. government
 Congress has repeatedly affirmed this guaranty:
“Deposits up to the statutorily prescribed amount in federally insured depositor institutions are
backed by the full faith and credit of the United States”
– Competitive Equality Banking Act of 1987
“Insured deposits are backed by the full faith and credit of the United States Government”
– Federal Deposit Insurance Reform Conforming Amendments Act of 2005
We purchase deposits in amounts below FDIC insurance limits
 Corporations, partnerships and individuals are insured for $250,000 of principal and accrued
interest per bank.
 Structural’s technology platform, automated execution, and redundant operational audits
ensure compliance with FDIC insurance limits.
All client assets are held at an independent, third-party custodian
 Each client establishes a separate custody account in their name to hold deposits.
 Assets are maintained in the trust department of an FDIC-insured custody bank and
cannot be used by the custodian or its corporate parent for any purpose.
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4. Higher yields
0.6-0.8+% incremental yield net of fees vs. Treasuries1
Sources of higher yields
= $60,000-$80,000+ per $10MM managed
1 Deposits yield more than alternatives
 Yields are persistently high due to the effort
required to purchase them.
Term: 0-1 year  This opportunity has long been recognized by
WAM: 6 months sophisticated investors:
“Regular opportunities exist to purchase full faith and credit
0.70% instruments of the U.S. government at spreads of 40 to 50
0.46% basis points above otherwise comparable but more liquid
treasury issues... opportunities tend to be small, requiring
+0.60%
0.10% 0.15% portfolio managers to ‘fill a bathtub with a teaspoon.’”2
– David Swensen, CIO, Yale University
Treasuries Agencies AA corporate Structural,
bonds net of fees
No fees included
2 Limited institutional competition
 FDIC insurance limits preclude material purchase
by money market and other mutual funds.
Term: 0-2 years
 Significant investment in technology and sourcing is
WAM: 1 year
a barrier to new providers.
1.00%
0.61%
+0.78% 3 Wholesale trading relationships
0.22% 0.30%  Structural eliminates hidden fees, including retail
mark-ups and selling concessions.
Treasuries Agencies AA corporate Structural,
bonds net of fees
4 “Cherry pick” best yields for clients
No fees included
 Structural selects highest yielding deposits from
universe of 1,500+ issuing banks.
1 Structural yields reflect deposit yields available the week ending July 1, 2011, net of Structural fee of 0.225%. Yields for other instruments do not reflect cost of
management.
2 Pioneering Portfolio Management (1998) 3

5. Liquidity
Structural purchases negotiable CDs and weekly-liquidity MMDA deposits
 Money market deposit accounts (MMDAs) – frequently referred to as savings accounts – permit withdrawals
each Thursday.
 Negotiable CDs trade and settle like other DTC-eligible fixed income securities. This is in contrast to direct-from-
bank retail CDs, which cannot be traded.
Negotiable CDs can be sold on secondary markets
 The market for negotiable CDs has significant depth, with average daily trading volume of over $3 billion.
 Negotiable CDs can be sold without early termination penalties; Structural charges no fee for managing early
liquidation. By contrast, direct-from-bank retail CDs cannot be traded and typically impose significant penalties on
early withdrawal.
Structural’s liquidation process minimizes transaction costs for negotiable CDs
 Crossing – Where possible, Structural crosses CDs between clients requiring early liquidation and clients with
demand for similar maturities and yields. This benefits both parties by avoiding bid-ask cost.
 Multiple competitive bids – When crossing is not possible, Structural solicits multiple wholesale bids through a
competitive auction process.
 Low transaction costs – We estimate that clients for whom we sell at wholesale incur round-trip transaction costs
of 0.10-0.15% on a one-day liquidation of instruments with maturities of 9 months or less (and lower costs with more
patient liquidation). For clients with reasonable confidence in their liquidity needs, the higher yield that CDs provide
should more than offset any transaction cost from unanticipated liquidations.
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6. Convenience
Simple account 1 Complete on-line application to open an account in 10 minutes
setup
2 Use the web interface to specify investment parameters
 Maturity ladder and/or dollar amounts required on specific dates (e.g., tax payment: April 15th)
 Advanced parameters if desired (e.g., permitted banks, minimum spread to Treasuries)
Web: www.structuralinvest.com/cash ►
Phone support: (415) 963-4900 ►
Automated Structural’s proprietary technology platform and investment processes
portfolio automate portfolio implementation
management  Aggregate highest yielding inventory across over 40 trading partners
 Apply client-specific restrictions and investment parameters
 Purchase CDs and MMDAs
 Ensure compliance with FDIC insurance limits
 Roll CDs at maturity
 Manage recovery process in the event of bank failure
 Provide daily reports through Structural website and third party custodian
 Create FAS 115/157 compliant month-end reports and data exports to most accounting platforms
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7. Pricing
Structural does not accept commissions, soft dollars or other
inducements. Client fees are our sole source of revenue.
Structural CDs First $10 million 0.250 %
fees $10-100 million 0.200
$100-500 million 0.175
Beyond $500 million 0.150
Treasuries 0.050 %
Money No fee
market funds
Independent Huntington National Bank 0.010 %
custody fees
Structural works with other custodians as requested by
clients. These custodians may have different fee schedules.
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8. About Structural
Structural was founded in 2005 by leaders in financial markets and technology. Our mission is to build
Overview the next generation of passive investment management. We do not attempt to “beat the market”
through security selection or market timing. Rather, we use separate accounts, managed to client-
specified parameters, to achieve benefits not available through commingled funds. We use technology
to ensure that the large number of routine tasks required to obtain these benefits are executed
flawlessly and at low cost.
Joel Hornstein Ed Nicoll
Principals
Founder, Chief Investment Officer Founder, Chairman Emeritus
Aaron Kessler Matthew Pollock David Slusarski
Client Service Marketing & Business Development Trading & Operations
 Corporations – We serve publicly-traded and privately-held companies. We offer the convenience of
Clients FASB-compliant accounting in addition to the higher yields and safety provided by FDIC-insured CDs.
 Family offices – We manage “permanent” cash and reserves for tax payments, capital calls, and other
planned outflows.
 Financial advisors – We partner with financial advisors to provide a cash management solution that is
differentiated, convenient and provides real safety and yield benefits to clients.
 Financial services firms – We offer cash and fixed income management for a range of liability-driven
financial services applications (e.g., escrow accounts, reinsurance, and collateral management).
 Institutions – We provide cash and fixed income management to foundations, endowments, and other
tax-exempt institutions.
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9. Appendix: Bank safety and FDIC mechanisms
Bank health
 All CDs that Structural purchases are insured by the FDIC, regardless of the health of the issuing bank.
 Independent firms such as IDC rate bank health in a manner intended to approximate the FDIC’s confidential CAMEL score.
 Clients may choose to exclude banks below a certain IDC rating, which may reduce achievable yields.
Bank failures
 In the event of a bank failure, the FDIC works to facilitate assumption of deposits by another bank, which becomes
responsible for ongoing payment of coupons and principal. Should the acquiring bank subsequently fail, time deposits
issued by the first bank are considered separate from those of the acquirer in application of FDIC insurance limits.
 If a failed bank’s deposits are not acquired, the FDIC targets payment principal and accrued interest to the depositor within
two business days. Structural works with the custodian and the FDIC to ensure speedy recovery of funds.
Term deposits purchased on the secondary market at a premium to par
 Fluctuations in interest rates may cause CDs to trade at a premium to par value. In the event of bank failure, any premium
paid to par is not insured by the FDIC.
 To compensate for this risk, Structural’s purchase logic requires higher yields on deposits trading at a premium to par.
 Structural does not purchase instruments trading at a premium to par from banks rated 1 by IDC. Clients may choose to
exclude all deposits trading at a premium to par, which may reduce achievable yields.
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10. Appendix: Structural avoids markups embedded in retail yields
Illustrative supply chain for 12-month new-issue term deposit, 1.00% coupon
Structural sourcing
Price Wholesale Retail
Issuing bank Originator Purchaser
distributors distributors
99.65 99.75 99.83 100.00
Yield 1.35% 1.25% 1.17% 1.00%
 Negotiate terms  Distribute to brokers,  Sell through full
 Register CUSIP, other sales channels service and
DTC eligibility discount brokers
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11. Appendix: Client case study - initial implementation
Situation
 $25MM in cash held by the
management company of a
private equity firm to fund
ongoing operations and
strategic investment
 Was invested in a JP Morgan
Federal Money Market fund
earning 0.04% and exposed
to credit risk
 Client specified maturity ladder
from 1 to 24 months
Results
 Improved safety to achieve
“full faith and credit” of U.S.
government
 Achieved average YTM, net
of fee, of 1.11% (1.33%
gross), an annualized
$277,500 of incremental
income
 Achieved average spread to
Treasuries, net of fee, of
0.67% (0.89% gross)
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12. Appendix: Client case study - performance over time
Situation
 Balance fluctuated between
$25 and $50 million due to
client additions/withdrawals
 Structural shortened average
duration in response to client
request
 Interest rates declined further,
reducing yield on client’s former
money market fund to 0.00%
Results
 Achieved 2.07% return, net of
fee (2.40% gross) over first 18
months, 1.63% ahead of
Treasury index benchmark
 Recognized $570,270 in
incremental return, net of fee,
relative to benchmark (without
fee)
 Recognized $715,870 in
incremental return, net of fee,
relative to original money
market fund
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13. Appendix: Structural versus CD/Treasury alternatives
Treasury money CDs purchased at a
Structural market funds CDARS® broker
(e.g., Schwab.com)
Safety Funds can invest up to 20% of Bank naming conventions
assets in non-Treasury and mergers makes
securities. Holdings need only ensuring FDIC insurance
be disclosed once per quarter. compliance difficult.
Yield The highest yielding Treasury Sets network rate significantly Yields are lower than
money market fund currently below what some banks are Structural (even after
yields 0.02%. Higher yields willing to pay. Network fee Structural fee) due to
available in other funds reflect further reduces yield. For limited inventory and
credit and/or extension risk. example: At 12 months, hidden mark-ups.
CDARS = 0.32% vs. Structural
= 0.70%.1
Convenience Logistically difficult to setup
maturity ladders, manage
FDIC compliance, and roll
CDs at expiration.
Not saleable. Early liquidity High retail bid-ask and
Liquidity
entails significant penalty that other transaction costs
may result in loss of principal. (e.g., Schwab.com charges
minimum $35 commission
to sell through broker).
1 CDARS and Structural CD yields represent average per maturity for the week ending July 1, 2011. Structural CD yields shown net of Structural fee of 0.225%
for a $20MM portfolio.
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14. Disclaimers
 Spreads and yields quoted are representative values as of the dates listed. These will change over time with
market fluctuations.
 Clients may recognize losses if liquidity is required prior to an instrument’s maturity. In defining implementation
parameters, we recommend a term structure of instruments that considers the possibility of early sale.
50 California Street, Suite 3260 For further information, please contact:
San Francisco, CA 94111
Matt Pollock, Principal
mpollock@structuralinvest.com
(415) 963-4917
An electronic copy of this document is
available at:
www.structuralinvest.com/cash