Q3 Individual Equity Holdings in the Advisor Perspectives Universe

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1 Q3 Individual Equity Holdings in the Advisor Perspectives Universe This study analyzes the holdings of individual equities within the Advisor Perspectives (AP) Universe, as of the end of Q A previous study looked at equity holdings as of the end of Q2 2007, and this study looks at changes during Q3. As we noted in the previous study, approximately 85% of the assets in the AP Universe are held in individual securities, mostly through separately managed accounts (SMAs); the remainder is held in mutual funds. Most of the observations we made at the end of Q2 were valid at the end of Q3; there were no dramatic shifts in allocations in the AP Universe. Relative to the S&P 500, US equities in the AP Universe continues to be overweighted in Financials and Consumer Staples, and underweighted in all other sectors. The most notable shift in sector weightings was an increase in the Energy weightings from 8.0% to 9.8% (an increase of 1.8%). The AP Universe is divided into three tiers, based on account size. The tier containing the Largest Accounts has an average account size of $3.6 million. An account is a set of assets held by an investor at an institution, and investors typically have accounts. Therefore, the Largest Accounts are reflective of the investments of UHNW investors, those with $25 million or more of investible assets. This tier contains 94% of the assets in the AP Universe, and we monitor it closely, as it reflects the investment trends of the wealthiest investors. Within the US equities in the Largest Accounts, the weightings in the Financial and Consumer Discretionary sectors decreased by 0.9%, and the Energy weighting increased by 1.8%, as it did in the full AP Universe. Overall, weightings relative to the S&P 500 in the Largest Accounts follow the same pattern as in the full AP Universe. We have monitored the performance of a portfolio consisting of the top 25 holdings in the Largest Accounts. This portfolio would have returned 2.51%, versus 1.99% for the S&P 500. The beta of this portfolio was.95, and we can see that it outperformed the market during the down months of July and August: July August September Total Return Index (S&P 500)

2 We have rebalanced the portfolio to reflect the holdings as of 9/30/07. The changes to the portfolio are as follows: Ticker Security AUM % AUM 9/30 Change in %AUM from 6/30 BAC BANK OF AMERICA CP $1,770,793, % 0.0% TEVA TEVA PHARMACEUTICAL INDUSTRIES $758,716, % -0.5% EL ESTEE LAUDER $703,793, % -1.1% AIG AMERICAN INTERNATIONAL GROUP $344,261, % 0.7% XOM EXXON MOBIL CP $339,232, % 0.3% GE GENERAL ELECTRIC CO $291,251, % 0.2% MRK MERCK & CO INC $213,182, % 0.0% MSFT MICROSOFT CORPORATION $174,515, % -0.1% JNJ JOHNSON & JOHNSON INC $161,876, % 0.1% CSCO CISCO SYSTEMS INC $151,421, % 0.3% PG PROCTER & GAMBLE CO $141,619, % 0.2% CVX CHEVRON CP $139,601, % 0.1% C CITIGROUP INC $137,901, % -0.4% KO COCA COLA CO $124,634, % 0.2% ORCL ORACLE CP $122,288, % 0.1% LTS LADENBURG THALMANN FINANCIAL $116,331, % -0.3% INTC INTEL CP $113,108, % 0.1% T AT&T INC $111,911, % 0.1% PEP PEPSICO INC $110,106, % 0.1% IBM INTERNATIONAL BUSINESS MACHINE $107,889, % (new) BEAS BEA SYSTEMS INC $107,392, % 0.0% SLB SCHLUMBERGER LTD $101,321, % (new) MCD MCDONALDS CP $99,007, % 0.0% HPQ HEWLETT-PACKARD CO $98,352, % (new) PFE PFIZER INC $91,273, % 0.0% $6,631,785,557 There are three securities that were dropped from the portfolio: Ticker Security AUM % AUM in Q2 SGP SCHERING PLOUGH CP $113,162, % JPM JP MORGAN CHASE & CO $93,868, % VGR VECTOR GROUP LTD $92,251, % We will continue to monitor the performance of this portfolio. Below is the data for the full AP Universe, the Largest Accounts, Mid-Sized Accounts, and Smallest Accounts.

3 Full AP Universe US Equities (AUM = $16.2 Bn) Sector 6/30/07 9/30/07 Change S&P 500 9/30/07 v. S&P Consumer Discretionary 10.1% 9.3% -0.8% 9.3% 0.0% Consumer Staples 11.6% 11.2% -0.4% 9.4% 1.8% Energy 8.0% 9.8% 1.8% 12.0% -2.2% Financials 30.4% 29.4% -1.0% 19.8% 9.6% Health Care 11.4% 10.7% -0.7% 11.6% -0.9% Industrials 9.8% 10.2% 0.4% 11.4% -1.2% Information Technology 11.9% 12.0% 0.1% 16.3% -4.3% Materials 2.9% 3.1% 0.2% 3.2% -0.1% Telecommunication Services 1.8% 1.8% 0.0% 3.7% -1.9% Utilities 2.1% 2.2% 0.1% 3.2% -1.0% Unknown 0.1% 0.2% 0.1% Non-US Equities (AUM = $2.5 Bn) Top 10 Countries Country % AUM Israel 31.2% Great Britain (UK) 11.7% Canada 11.3% Switzerland 6.3% Bermuda 5.2% Japan 5.0% Netherlands 4.9% Germany 3.6% France 3.4% Finland 1.6% By Region (All Equities) Region % AUM Africa 0.1% Asia 1.4% Australia 0.2% Europe 8.8% North America 89.3% South America 0.2% Unknown 0.0%

4 Top 25 Holdings (US and non-us) Ticker Security Accts AUM % AUM BAC BANK OF AMERICA CP 1570 $1,772,606, % TEVA TEVA PHARMACEUTICAL INDUSTRIES 585 $759,380, % EL ESTEE LAUDER 71 $703,816, % AIG AMERICAN INTERNATIONAL GROUP 1641 $345,330, % XOM EXXON MOBIL CP 1617 $341,567, % GE GENERAL ELECTRIC CO 2419 $294,921, % MRK MERCK & CO INC 619 $214,098, % MSFT MICROSOFT CORPORATION 2188 $176,255, % JNJ JOHNSON & JOHNSON INC 1257 $162,785, % CSCO CISCO SYSTEMS INC 1828 $153,327, % PG PROCTER & GAMBLE CO 1562 $143,520, % CVX CHEVRON CP 937 $140,067, % C CITIGROUP INC 1568 $139,287, % KO COCA COLA CO 757 $125,373, % ORCL ORACLE CP 719 $122,832, % LTS LADENBURG THALMANN FINANCIAL 15 $116,538, % INTC INTEL CP 1234 $114,164, % T AT&T INC 1426 $113,156, % PEP PEPSICO INC 1487 $111,300, % IBM INTERNATIONAL BUSINESS MACHINE 1128 $108,964, % BEAS BEA SYSTEMS INC 58 $107,426, % SLB SCHLUMBERGER LTD 1215 $102,730, % MCD MCDONALDS CP 746 $99,705, % HPQ HEWLETT-PACKARD CO 753 $98,808, % PFE PFIZER INC 1245 $93,150, % $6,661,116,551 Largest Accounts (Average account size = $3.6 million) US Equities (AUM = $16.0 Bn) Sector 6/30/07 9/30/07 Change S&P 500 9/30/07 v. S&P Consumer Discretionary 10.1% 9.2% -0.9% 9.3% -0.1% Consumer Staples 11.6% 11.2% -0.4% 9.4% 1.8% Energy 8.0% 9.8% 1.8% 12.0% -2.2% Financials 30.4% 29.5% -0.9% 19.8% 9.7% Health Care 11.3% 10.7% -0.6% 11.6% -0.9% Industrials 9.8% 10.2% 0.4% 11.4% -1.2% Information Technology 11.8% 12.0% 0.2% 16.3% -4.3% Materials 2.9% 3.1% 0.2% 3.2% -0.1% Telecommunication Services 1.8% 1.8% 0.0% 3.7% -1.9%

5 Utilities 2.1% 2.2% 0.1% 3.2% -1.0% Unknown 0.1% 0.2% Non-US Equities (AUM = $2.5 Bn) Top 10 Countries Country % AUM Israel 31.5% Great Britain (UK) 11.7% Canada 11.2% Switzerland 6.3% Bermuda 5.2% Netherlands 5.0% Japan 5.0% Germany 3.5% France 3.4% Finland 1.6% By Region (All equities) Region % AUM Africa 0.1% Asia 1.4% Australia 0.2% Europe 8.9% North America 89.3% South America 0.2% Unknown 0.0% Top 25 Holdings (US and non-us) Ticker Security Accts AUM % AUM BAC BANK OF AMERICA CP 1357 $1,770,793, % TEVA TEVA PHARMACEUTICAL INDUSTRIES 471 $758,716, % EL ESTEE LAUDER 64 $703,793, % AIG AMERICAN INTERNATIONAL GROUP 1412 $344,261, % XOM EXXON MOBIL CP 1370 $339,232, % GE GENERAL ELECTRIC CO 1852 $291,251, % MRK MERCK & CO INC 527 $213,182, % MSFT MICROSOFT CORPORATION 1842 $174,515, % JNJ JOHNSON & JOHNSON INC 1096 $161,876, % CSCO CISCO SYSTEMS INC 1491 $151,421, % PG PROCTER & GAMBLE CO 1288 $141,619, % CVX CHEVRON CP 850 $139,601, %

6 C CITIGROUP INC 1354 $137,901, % KO COCA COLA CO 666 $124,634, % ORCL ORACLE CP 617 $122,288, % LTS LADENBURG THALMANN FINANCIAL 10 $116,331, % INTC INTEL CP 1071 $113,108, % T AT&T INC 1259 $111,911, % PEP PEPSICO INC 1246 $110,106, % IBM INTERNATIONAL BUSINESS MACHINE 1015 $107,889, % BEAS BEA SYSTEMS INC 55 $107,392, % SLB SCHLUMBERGER LTD 1000 $101,321, % MCD MCDONALDS CP 666 $99,007, % HPQ HEWLETT-PACKARD CO 670 $98,352, % PFE PFIZER INC 1027 $91,273, % $6,631,785,557 Mid-Sized Accounts (Average account size = $119,000) US Equities (AUM = $109 million) Sector 6/30/07 9/30/07 Change S&P 500 9/30/07 v S&P Consumer Discretionary 11.6% 10.3% -1.3% 9.3% 1.0% Consumer Staples 7.4% 7.7% 0.3% 9.4% -1.7% Energy 7.3% 9.5% 2.2% 12.0% -2.5% Financials 23.6% 21.8% -1.8% 19.8% 2.0% Health Care 12.5% 12.5% 0.0% 11.6% 0.9% Industrials 11.6% 12.8% 1.2% 11.4% 1.4% Information Technology 16.3% 15.7% -0.6% 16.3% -0.6% Materials 2.7% 2.9% 0.2% 3.2% -0.3% Telecommunication Services 2.8% 2.9% 0.1% 3.7% -0.8% Utilities 3.7% 3.8% 0.1% 3.2% 0.6% Unknown 0.6% 0.1% Non-US Equities ($21.2 million) Top 10 Countries Country % AUM Canada 19.3% Great Britain (UK) 14.2% Japan 7.0% Switzerland 5.9% Germany 5.8% Bermuda 5.4% France 4.2%

7 Brazil 3.7% Israel 3.6% Netherlands 2.8% By Region (All equities) Region % AUM Africa 0.1% Asia 2.2% Australia 0.6% Europe 7.2% North America 88.4% South America 0.6% Unknown 0.8% Top 25 Holdings (US and non-us) Ticker Security Accts AUM % AUM GE GENERAL ELECTRIC CO 440 $3,178, % XOM EXXON MOBIL CP 222 $2,061, % PFE PFIZER INC 184 $1,785, % PG PROCTER & GAMBLE CO 247 $1,739, % BAC BANK OF AMERICA CP 198 $1,704, % CSCO CISCO SYSTEMS INC 282 $1,671, % MSFT MICROSOFT CORPORATION 299 $1,537, % JPM JP MORGAN CHASE & CO 113 $1,395, % SLB SCHLUMBERGER LTD 206 $1,374, % C CITIGROUP INC 184 $1,310, % T AT&T INC 143 $1,138, % PEP PEPSICO INC 228 $1,126, % SYK STRYKER CP 155 $1,101, % AIG AMERICAN INTERNATIONAL GROUP 221 $1,041, % WLRE WELLS REAL ESTATE INVST TR INC 12 $1,004, % IBM INTERNATIONAL BUSINESS MACHINE 101 $941, % INTC INTEL CP 128 $932, % WAG WALGREEN CO 177 $929, % MRK MERCK & CO INC 83 $884, % BRK B BERKSHIRE HATHAWAY INC CL B 37 $840, % JNJ JOHNSON & JOHNSON INC 150 $839, % TGT TARGET CP 162 $817, % AFL AFLAC INC 181 $809, % BP BP PLC 66 $772, % MO ALTRIA GROUP INC 98 $762, % $31,701, %

8 Smallest Accounts (Average account size = $15,000) US Equities (AUM = $8.3 million) Sector 6/30/07 9/30/07 Change S&P 500 9/30/07 v. S&P Consumer Discretionary 14.9% 14.1% -0.8% 9.3% 4.8% Consumer Staples 8.0% 8.7% 0.7% 9.4% -0.7% Energy 9.0% 9.3% 0.3% 12.0% -2.7% Financials 21.5% 22.9% 1.4% 19.8% 3.2% Health Care 7.7% 7.6% -0.1% 11.6% -4.0% Industrials 10.8% 10.7% -0.1% 11.4% -0.7% Information Technology 19.2% 17.3% -1.9% 16.3% 1.0% Materials 0.6% 1.2% 0.6% 3.2% -2.0% Telecommunication Services 3.5% 2.7% -0.8% 3.7% -1.0% Utilities 3.6% 3.8% 0.2% 3.2% 0.6% Unknown 1.2% 1.6% Non-US Equities (AUM = $692,000) Top 10 Countries Country % AUM Canada 19.2% Bermuda 14.2% Great Britain (UK) 10.0% Germany 9.0% Japan 8.9% Finland 4.9% France 4.6% Switzerland 3.9% Taiwan 2.8% Israel 2.6% By Region (All equities) Region %AUM Asia 1.1% Australia 0.1% Europe 3.0% North America 94.9% South America 0.1% Unknown 0.9%

9 Top 25 Holdings (US and non-us) Ticker Security Accts AUM % AUM GE GENERAL ELECTRIC CO 127 $492, % WLRE WELLS REAL ESTATE INVST TR INC 20 $301, % XOM EXXON MOBIL CP 25 $273, % CSCO CISCO SYSTEMS INC 55 $234, % MSFT MICROSOFT CORPORATION 47 $201, % GM GENERAL MOTORS CP 33 $192, % PG PROCTER & GAMBLE CO 27 $161, % IBM INTERNATIONAL BUSINESS MACHINE 12 $133, % INTC INTEL CP 35 $123, % BLC BELO CP 5 $123, % CRK COMSTOCK RESOURCES INC 124 $122, % PCL PLUM CREEK TIMBER CO 9 $109, % BAC BANK OF AMERICA CP 15 $109, % T AT&T INC 24 $106, % DCT DCT INDUSTRIAL TRUST INC 6 $99, % ENR ENERGIZER HOLDINGS INC 3 $99, % KMP KINDER MORGAN ENERGY PARTNERS 14 $96, % FITB FIFTH THIRD BANCORP 5 $94, % PFE PFIZER INC 34 $91, % MCD MCDONALDS CP 12 $90, % GNTX GENTEX CP 12 $86, % WAG WALGREEN CO 16 $83, % PRU PRUDENTIAL FINANCIAL INC 5 $82, % BRK B BERKSHIRE HATHAWAY INC CL B 8 $79, % C CITIGROUP INC 30 $75, % $3,664,413 For a free subscription to the Advisor Perspectives newsletter, visit: