QUARTERLY INVESTMENT REVIEW :Economic Review and Capital Markets Review QUARTERLY INVESTMENT REVIEW Branden Findeisen, New England Financial


Agenda :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 1 Agenda Economic Review Capital Markets Review Asset AllocationApproach Review


Economic Review :Economic Review and Capital Markets Review Economic Review


Economic Review :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 3 Economic Review Consumer Sentiment Decreasing Purchasing Managers Index Increasing Real Gross Domestic Product (20 years ending Q2 2009) Sentiment (20 years ending Q3 2009)


Economic Review :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 4 Economic Review US Inflation Core Rate (20 years ending August 2009) U.S. Unemployment Rate (20 years ending September 2009)


Economic Review :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 5 Economic Review Fed Funds Rate (20 years ending Q3 2009) Yield Curve Metrics


Economic Review :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 6 Economic Review Personal Consumption Decreasing Personal Savings Rate Increasing Housing Starts & Supply (20 years ending August 2009) Consumption & Savings (20 years ending Q2 2009) Housing Starts Increasing Number of Months Supply Decreasing


Capital Markets Review :Economic Review and Capital Markets Review Capital Markets Review


Capital Markets Review :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 8 Capital Markets Review Source: Zephyr Style Advisor Past Performance is no guarantee of future success


Capital Markets ReviewAsset Class Performance over History :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 9 Capital Markets ReviewAsset Class Performance over History Source: Zephyr Style Advisor. Performance through September 2009 Past Performance is no guarantee of future success


Capital Markets ReviewAsset Class Performance over Last 12 Quarters :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 10 Capital Markets ReviewAsset Class Performance over Last 12 Quarters Source: Zephyr Style Advisor. Performance through September 2009 Past Performance is no guarantee of future success


Capital Markets ReviewAsset Class Performance over the Last 12 Months :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 11 Capital Markets ReviewAsset Class Performance over the Last 12 Months Source: Zephyr Style Advisor. Performance through September 2009 Past Performance is no guarantee of future success


Asset Allocation Approach Review :Economic Review and Capital Markets Review Asset Allocation Approach Review


Asset Allocation Approach ReviewFour Approaches to Asset Allocation :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 13 Asset Allocation Approach ReviewFour Approaches to Asset Allocation Tactical Unconstrained SM SM


Asset Allocation Approach ReviewFour Approaches to Asset Allocation - Return Drivers Extent to which returns are driven by market exposure or allocation decisions :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 14 Asset Allocation Approach ReviewFour Approaches to Asset Allocation - Return Drivers Extent to which returns are driven by market exposure or allocation decisions


Asset Allocation Approach ReviewFour Approaches to Asset Allocation – PerformanceAverage Performance of Portfolio Strategists within each Asset Allocation Approach :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 15 NOTE: Profile 3 (Global) used for Strategic, Tactical Constrained and Tactical Unconstrained Portfolio Strategists ++ S&P 500 return greater than 5% -- S&P return less than -5% + S&P 500 return between 0% and 5% - S&P return between 0% and -5% Source: Zephyr Style Advisor (using monthly strings from GFWM). Net of fees Asset Allocation Approach ReviewFour Approaches to Asset Allocation – PerformanceAverage Performance of Portfolio Strategists within each Asset Allocation Approach Past Performance is no guarantee of future success


Disclosure :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 16 Disclosure Indexes used in this presentation For the asset class performance charts, the following is a list of the indices used and a brief definition: US Growth: Russell 3000 Growth Index – an unmanaged index consisting of those companies in the Russell 3000 Index with higher than average price-to-book ratios and forecasted growth values. US Value: Russell 3000 Value Index - an unmanaged index consisting of those companies in the Russell 3000 Index with lower than average price-to-book ratios and forecasted growth values. US Large Cap: Russell 1000 Index - an unmanaged index consisting of those companies considered to represent the large-cap segment of the U.S. equity market. It is a subset of the Russell 3000 Index based on market capitalization. US Small Cap: Russell 2000 Index - an unmanaged index consisting of those companies considered to represent the small-cap segment of the U.S. equity market. It is a subset of the Russell 3000 Index based on market capitalization. International Equity: The Morgan Stanley Capital International (MSCI) Europe, Australia and Far East Index (MSCI EAFE) - an unmanaged index holding approximately 1,000 companies traded on 20 stock exchanges from around the world, excluding the U.S.A., Canada, and Latin America. Emerging Markets Equity: MSCI Emerging Markets Index - a free float-adjusted market capitalization index from countries considered to represent emerging markets. US Fixed Income: Barclays Capital U.S. Aggregate Index - the index covers the USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, Government-Related, Corporate, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS sectors. U.S. Agency Hybrid Adjustable Rate Mortgage (ARM) securities were added to the U.S. Aggregate Index on April 1, 2007. International Fixed Income: Barclays Capital Global ex Treasury Bond Index – a subgroup of the Lehman Global Index. All issues in the Lehman Global Index must be fixed rate, nonconvertible debt and have at least one year remaining to maturity. Securities from countries classified as emerging markets are excluded. US Real Estate: FTSE Nareit Equity Index - a broad measure of the performance of publicly traded real estate securities, such as Real Estate Investment Trusts (REITs) and Real Estate Operating Companies. Commodities: Dow UBS Commodity Index – the index is composed of futures contracts of 19 physical commodities traded on U.S. exchanges, with the exception of aluminum, nickel and zinc, which trade on the London Metal Exchange (LME). The component weightings are also determined by several rules designed to insure diversified commodity exposure. Market Neutral: HFRI Equity Market Neutral Index – the index reflects hedge fund industry performance by constructing equally weighted composites of constituent funds, as reported by the hedge fund managers listed within the HFR Database. Equity Market Neutral strategies employ sophisticated quantitative techniques of analyzing price data to ascertain information about future price movement and relationships between securities, select securities for purchase and sale. Equity Market Neutral Strategies typically maintain characteristic net equity market exposure no greater than 10% long or short. Cash: Citigroup 3 month T-bill - an unmanaged index of three-month Treasury bills.


Disclosure :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 17 Disclosure Important information on performance shown. Average Performance, Slide 15 The average performance of Portfolio Strategists within each Asset Allocation Approach shown on Slide 15 has been derived by GFWM in the following manner. Using the performance calculation methodologies described below, GFWM averages the performance of all Portfolio Strategists accounts that are available for each time period shown, using Profile 3 accounts for Strategic, Tactical Constrained and Tactical Unconstrained Portfolio Strategists. Averages are equal-weighted, so that the results reflect the average only of the stated performance for each Portfolio Strategist for the time-period shown, and do not take into account actual assets under management. Averages are presented for informational purposes only and do not reflect results of any actual client account on the GFWM Platform. Performance calculations include model and composite (actual) returns calculated on a net-of-fees basis. Information contained in the Calculation Methodology section is crucial to your understanding of the returns presented herein. These performance figures should be viewed in the context of the various risk/return profiles and asset allocation methodologies utilized by the Portfolio Strategists in developing their model tracking portfolios, and should be accompanied or preceded by the model portfolio descriptions for each Portfolio Strategist. Returns based on Model tracking portfolios (“model portfolios” or “model”) established at the time of the Strategies’ inception on the platform do not reflect the actual investment results of any individual client participating in the asset allocation program, but represent the performance of the models as initially established and as adjusted from time to time based on guidance from the Portfolio Strategists. Actual performance results for the comparable periods would have varied from the model portfolio results based upon the timing of contributions and withdrawals from individual client accounts, and client restrictions. All investments involve the risk of potential investment losses as well as the potential for investment gains. Prior performance is no guarantee of future results and there can be no assurance, and clients should not assume, that future performance of any of the model portfolios or composite of actual client portfolios (“composite”) will be comparable to past performance. Further, the prior performance figures indicated herein represent portfolio performance for only a short time period, and may not be indicative of the returns or volatility each portfolio will generate over a long time period. Returns for less than 12 months are not annualized. Performance returns reflect reinvestment of dividends and other distributions. The performance returns on this presentation should also be viewed in the context of the broad market and general economic conditions prevailing during the periods covered by the performance information. Where composite returns are used, actual Account Fees (Client Fee and Investment Manager fee, if applicable) are used in the calculation of net of fees performance figures. The Client Fee consists of the Financial Advisor Fee and the GFWM Advisory Fee. When model returns are presented, the maximum Account Fees applicable under the Referral Model are used to calculate performance. Please refer to Genworth Financial Wealth Management, Inc.’s Disclosure Brochure (Schedule H) for a complete description of all applicable fees.


Disclosure :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 18 Disclosure Calculation Methodology Mutual Fund and Exchange Traded Fund (“ETF”) Investment Solutions Since inception, all model portfolios have been generated using Centerpiece and Security APL portfolio management software. Model portfolio accounts were established using this software effective as of September 3, 1996, based upon the initial mutual fund allocations provided by each Portfolio Strategist, and were then rebalanced periodically in accordance with the instructions provided by the Strategists. Prior to May 1, 2008, Avatar Associates performance was calculated directly by Avatar Associates using Security APL and was submitted to Genworth Financial Wealth Management, Inc. on a monthly basis. On May 1, 2008, Avatar Associates moved to a more traditional Portfolio Strategist role and did not materially change its investment strategy or investment selection as a result. Since May 1, 2008, performance figures for Avatar Associates model portfolios are generated by Genworth Financial Wealth Management, Inc. using the method described above. Model performance generated by Avatar Associates prior to May 1, 2008 will be linked on a monthly basis to model performance generated by Genworth Financial Wealth Management, Inc. through Security APL. For comparison purposes, model performance figures for the Investment Solutions are calculated using model portfolios at TD Ameritrade and Genworth Financial Trust Company (“GFTC”). Actual client performance for certain Portfolio Strategists' mutual fund model portfolios held at different custodians will vary from the model performance at TD Ameritrade and GFTC due to fund availability. The following table sets for the Maximum Fee rate used in calculating model returns, net of fees: Strategist Maximum Fee Rate Avatar Associates 1.80 Breen Financial 1.80 Goldman Sachs Mutual Funds 1.80 JP Morgan Mutual Funds 1.80 Litman Gregory Mutual Funds 1.80 Litman Gregory AssetMark Funds 1.35 Pan Agora AssetMark Funds 1.35 State Street Global Advisors ETF 1.80 UBS Mutual Funds 1.80 Goldman Sachs Distribution Strategies 1.80 UBS Distribution Strategies 1.80 Stadion ETF 2.00


Disclosure :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 19 Disclosure Consolidated Managed Account Investment Solutions Model performance figures for the CMAs are calculated by Parametric Portfolio Associates on a monthly basis. For CMA accounts, individual managers, which have been selected for each asset class, provide Parametric their specific asset allocation on which to base the performance figure calculation. The individual managers update their asset allocations selection daily to Parametric via an automated interface. Parametric calculates the performance by simulating the execution of the manager selections as of close of market and utilizes Advent Axys software for this calculation. Genworth Financial Wealth Management, Inc. receives such performance information directly from Parametric and does not perform any independent verification as to the accuracy of this information. Performance returns for annual and multiyear time periods are calculated using Security APL by Genworth Financial Wealth Management, Inc. from the monthly returns provided by Parametric. Parametric has calculated performance for the CMAs since inception of the CMA product. Model performance figures used are net of the maximum CMA fee of 2.15%. Individually Managed Account Investment Solution – Rochdale Solution Model performance figures for the Rochdale Models are calculated by Rochdale Investment Management on a monthly basis. Genworth Financial Wealth Management, Inc. receives such performance information directly from Rochdale and does not perform any independent verification as to the accuracy of this information. Model performance figures are presented net of the maximum IMA Fee for Rochdale of 2.40%. Advent Axys provides return calculation and pricing information. Trade Date and Accrual Accounting is used. Returns are time weighted. Unified Managed Account Investment Solutions – Genworth Multiple Strategies (“GMS”) and Privately Managed Portfolios (“PMP”) Solution Types For all periods after the achieving Composite status, the GMS and PMP performance results reflect the composite performance for all discretionary client accounts invested in the various services, using the Modified Dietz Method. Performance results for periods prior to the Composite Date reflect the composite performance of all client assets held in the investment mandates contained in the Solution. Model returns may be linked to actual composite returns when calculating quarterly or annual return figures. The Inception Date is the beginning of the first full calendar quarter for which data is available. Performance returns used are net of the actual client fees. Unified Managed Account Investment Solutions – Active Return Opportunities (“ARO”) Solution Type Model performance is presented since inception of the ARO Solution Type (October 8, 2007) until each Mandate (Global, High Current Income, and Domestic) reaches composite calculation status. Performance is calculated on a composite basis when 65% of the Profiles in the Mandate contain at least one (1) client account. The quarter following the date Mandate composite status is achieved, composite returns are used. Model returns may be linked to actual composite returns when calculating quarterly or annual return figures. Multiple year returns may include model and composite performance returns linked together to generate the multiyear return.


Disclosure :Quarterly Investment Review - Third Quarter 2009 Branden Findeisen, New England Financial 20 Disclosure Unified Managed Account Investment Solutions – Active Return Opportunities (“ARO”) Solution Type continued The following table sets forth the Maximum fee rate used in calculating net of fees model returns: Strategist Maximum Fee Rate ARO 250 High Current Income 2.80 ARO 500 High Current Income 2.80 ARO 500 Domestic 2.80 Composite returns used in the performance presentation are calculated using a value-weighted average of client assets in the Solution Type. ARO model returns include non-taxable accounts and taxable accounts with a tax-harvesting feature. This feature permits taxable accounts to hold Exchange Traded Funds (“ETF”) instead of the security in the model that the non-taxable accounts may hold. At any time taxable accounts may hold more or less of the ETF than non-taxable accounts, and for this reason, actual client performance for taxable accounts may deviate from the model returns used on this presentation. Unified Managed Account Investment Solutions - GFAM Preservation Strategy Solution Type Performance returns used reflect the composite performance for all discretionary client accounts invested in this Solution Type shown on a net of actual client fee basis. Composite returns used in this performance presentation are calculated using a value-weighted average of client assets in the Solution Type. Other Information Genworth Financial Asset Management (“GFAM”) is a division of Genworth Financial Wealth Management, Inc. Genworth Financial Wealth Management, Inc. is an investment adviser registered with the Securities and Exchange Commission and is a wholly owned subsidiary of Genworth Financial, Inc. Genworth, Genworth Financial and the Genworth logo are registered service marks of Genworth Financial, Inc.