On May 2, 1982, 40 years ago today, AAM officially commenced operations when two young Portfolio Managers, Barry Hoyt and Andy Jarmel, left the Northern Trust so that they could more effectively manage and serve their insurance company clients. One of their first hires was Tyra Lydon, who went on to lead our Settlements team and retired within the past year. We believe that your interests are best served by making AAM a great place to work and we are humbled to have been recognized as such by Pension & Investments for a number of years*. Over our corporate life span, we have had hundreds of employees who have chosen to work at AAM and we are thankful for each of them and their contribution to our firm and clients.

AAM has never wavered from its focus on and dedication to our clients. Our success is not possible without your success. Our process begins with understanding your unique investment objectives and constraints, as well as your service and reporting needs. While we have developed many modeling tools to support this effort, it involves developing and nurturing relationships with each of our clients. We are mindful of the trust that you have placed in AAM. And we are forever grateful that you have chosen AAM as your partner.

Almost all difficult business decisions can be answered by asking a simple question, “What is in the best interest of our clients?” Asking this question led us to investment partners that manage specialized strategies that better enable us to meet your investment needs. I’d also like to acknowledge and thank our investment partners, Securian Asset Management, Muzinich & Company and Zazove Associates, where Gene Pretti and his team have been working side-byside with us to manage convertible bond portfolios for our clients since 1991.

While it’s fun to look back at our history and to think about the past 40 years, we remain focused today on our commitment to each of our clients. As long as we maintain this focus, our future will be very bright. With over 120 clients and $27.5 Billion in assets under management, we continue to grow and attract new clients that seek to partner with a firm like AAM that cares about them and their success. We are proud of our past but we are especially optimistic about our future.

As we celebrate our 40th anniversary, we pause to say thank you to all of our clients, past and present. Thank you for your faith in us and thank you for your commitment to us over the past 40 years. We owe our success to each of you.

All the best,

John Schaefer

Chairman & CEO

*The ‘Best Places to Work in Money Management’ accolade does not represent a statement of any advisory client and does not describe any experience with or endorsement of AAM as an investment adviser by any such client.

Disclaimer: Asset Allocation & Management Company, LLC (AAM) is an investment adviser registered with the Securities and Exchange Commission, specializing in fixed-income asset management services for insurance companies. Registration does not imply a certain level of skill or training. This information was developed using publicly available information, internally developed data and outside sources believed to be reliable. While all reasonable care has been taken to ensure that the facts stated and the opinions given are accurate, complete and reasonable, liability is expressly disclaimed by AAM and any affiliates (collectively known as “AAM”), and their representative officers and employees. This report has been prepared for informational purposes only and does not purport to represent a complete analysis of any security, company or industry discussed. Any opinions and/or recommendations expressed are subject to change without notice and should be considered only as part of a diversified portfolio. Any opinions and statements contained herein of financial market trends based on market conditions constitute our judgment. This material may contain projections or other forward-looking statements regarding future events, targets or expectations, and is only current as of the date indicated. There is no assurance that such events or targets will be achieved, and may be significantly different than that discussed here. The information presented, including any statements concerning financial market trends, is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. Although the assumptions underlying the forward-looking statements that may be contained herein are believed to be reasonable they can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. AAM assumes no duty to provide updates to any analysis contained herein. A complete list of investment recommendations made during the past year is available upon request. Past performance is not an indication of future returns. This information is distributed to recipients including AAM, any of which may have acted on the basis of the information, or may have an ownership interest in securities to which the information relates. It may also be distributed to clients of AAM, as well as to other recipients with whom no such client relationship exists. Providing this information does not, in and of itself, constitute a recommendation by AAM, nor does it imply that the purchase or sale of any security is suitable for the recipient. Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, inflation, liquidity, valuation, volatility, prepayment and extension. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.