0939 Adviser Tactical-4 1/27/04 3:35 PM Page 1

Adviser Profile

Investment Process1 Adviser Information The Portfolio’s investment process is UBS Global Asset Management (US) Tactical based on a Model that projects the Inc. is a subsidiary of UBS AG and a stock market’s expected equity risk member of one of the world’s largest premium (“ERP”). The Model, devel- and most respected investment manage- Allocation oped by the Adviser, incorporates ment organizations — the UBS Global several factors including: Asset Management business group. • Current prices of stocks and their The organization has more than 20 Portfolio expected future dividends; and years of experience managing global •Yield-to-maturity of the Constant investments for institutional investors. Advised by: Maturity Treasury bill. When the UBS Global Asset Model reflects a high ERP (greater Assets under management: Management (US) Inc. than or equal to 5.5%), the Portfolio $383 billion (worldwide) invests 100% in stocks. Conversely, New York, NY when the ERP decreases below cer- Minimum account size outside of tain threshold levels, the Model sig- UBS Fiduciary Trust Company: Benchmark: S&P 500 nals the Portfolio to reduce its expo- $100 million sure to stocks. The Model can rec- ommend stock allocations of 100%, Selected Clients2 Portfolio Objective 75%, 50%, 25% or 0%. Manulife Financial To outperform the benchmark (i.e., the ReliaStar Life Insurance Company When the Model results in a stock allo- S&P 500 Index) with less volatility over cation of less than 100%, it will also the long term. Key Personnel create a fixed income allocation for the Frank A. Vallario remainder of the Portfolio’s assets. The • Executive Director Investment Philosophy fixed income allocation will consist of The Tactical Allocation Portfolio’s • B.S., Lehigh University either bonds (five-year U.S. Treasury • M.B.A., Rutgers Graduate School of investment strategy is based on the notes) or cash (30-day Treasury bills), concept that incremental return can be Management but not both. The fixed income alloca- •Years of Experience: 12 achieved through the tactical allocation tion is determined by a “bond risk of Portfolio assets across three main premium” (“BRP”) based on the asset classes – stocks (by purchasing Matt Liebman yield-to-maturity of the five-year U.S. • Associate Director units in the UBS Fiduciary Trust Treasury note and the Constant Company S&P 500 Index Portfolio1), •B.B.A., Emory University Maturity Treasury bill. When the BRP is •Years of Experience: 4 bonds (five-year U.S. Treasury notes) high (greater than or equal to 0.5%), and cash (30-day Treasury bills). the Portfolio invests 100% in five-year U.S. Treasury notes. Conversely, if the BRP is low (less than 0.5%), the Portfolio invests 100% in 30-day Treasury bills.

Asset reallocations are made on the first business day of each month. UBS Global Asset Management may make changes to the Model over time.

ab UBS Fiduciary Trust Company 0939 Adviser Tactical-4 1/27/04 3:35 PM Page 2

Portfolio: Tactical Allocation Benchmark: S&P 500 UBS Global Asset Management (US) Inc.

Annual Rates of Return Total Annualized Annualized Standard 3 4 Year Adv. Index Return Deviation 1994 0.65% 1.32% For the period ending 12/31/03 1995 36.93% 37.58% Adv.3 Index4 Adv.3 Index4 1996 22.89% 22.96% 1997 33.18% 33.36% 3 yrs. -3.95% -4.05% 21.92 22.02 1998 28.82% 28.57% 5 yrs. 0.73% -0.57% 18.71 19.30 1999 19.12% 21.04% 7 yrs. 8.58% 7.57% 19.68 20.16 2000 -1.76% -9.11% 10 yrs. 11.66% 11.06% 17.13 17.55 2001 -11.46% -11.88% 2002 -22.16% -22.10% 4th Qtr. 2003 12.14% 12.18% YTD 2003 28.57% 28.68%

1. The permissible investments for the S&P 500 Index Portfolio and the Tactical Allocation Portfolio are set forth in their respective Portfolio Disclosure Document (PDD) under the UBS Fiduciary Trust Company Collective Investment Trust for Employee Benefit Plans (CIT). The PDD and the Declaration of Trust for the UBS Fiduciary Trust Company CIT govern the management of the Portfolio and should be read in conjunc- tion with this Adviser Profile. For additional information, contact your Financial Advisor. The units of the Portfolio are not deposits or obligations of UBS Fiduciary Trust Company or any bank. The value of the Portfolio is not guaranteed by the Federal Deposit Insurance Corporation or by any other Governmental Risk/Return Analysis agency. The units are subject to investment risk, including possible loss of principal invested. No representation as to future results can be made from past performance.The portion of the Tactical Allocation Portfolio Ten years ending 12/31/03 invested in equities holds units in the UBS Fiduciary Trust Company S&P 500 Index Portfolio, another Portfolio under the UBS Fiduciary Trust Company CIT managed by UBS Global Asset Management, Inc. (US). 2. Selected clients were based on potential name recognition as well as diversity of client type and geography. 25% These clients have given permission to list their names as representative clients but have not indicated ▲ UBS Global Asset More return, whether or not they endorse the advisory services provided by UBS Global Asset Mgmt. Clients listed Management (US) Inc.3 more risk receive the same or a related investment strategy as that provided by UBS Global Asset Mgmt. in the UBS Fiduciary Trust Company Tactical Allocation Portfolio. A more comprehensive list is available upon ■ S&P 5004 20% request from UBS Global Asset Mgmt. 3. All returns are time-weighted and include the reinvestment of income. Because the Portfolio was not established until 10/1/99, returns shown prior to that date reflect the performance (less commissions on securities transactions and 0.04% for custody and valuation services but not of investment management fees) of the UBS Tactical Allocation Fund (Class C Shares) without the deduction of the internal expense 15% ratio. The UBS Tactical Allocation Fund was a mutual fund managed by UBS Global Asset Mgmt. using the same investment management style as the one used in the Portfolio. Returns shown for the period after 10/1/99 reflect actual Portfolio performance, without the deduction of UBS Fiduciary Trust Company fees. The deduction of fees and the compounding effect of such deductions over time will reduce a client’s return. For example, an account with a 2.8% fee deducted quarterly and a 10% gross annualized 10% performance will have net performance after fees of about 7.1% per year, a reduction of 2.9% per year. Compounding will similarly affect the account’s performance on a cumulative basis as will timing and other Annualized Return individual account factors. 4. The S&P 500 Index is the benchmark against which the Portfolio’s performance is measured. The S&P 500 5% Index is an unmanaged index with no expenses, which covers 500 industrial, utility, transportation and financial companies of the U.S. markets. It is a capitalization-weighted index calculated on a total return Less return, basis with dividends reinvested. Portfolio structure and security holdings, however, will differ from those of less risk the S&P 500 Index, which may increase volatility. Investment results may differ from those of the Index. Data for the S&P 500 Index is provided by Frank Russell Company. 0% 051015 20 25 “Standard & Poor’s,” “S&P,” “S&P 500,” and “500” are trademarks of the McGraw-Hill Companies, Inc. and have been licensed for use by the Portfolio. The Portfolio is not sponsored, endorsed, sold or promoted by S&P. S&P makes no representation or warranty, express or implied, to the purchasers of the Portfolio or Annualized Standard Deviation (Risk) any member of the public regarding the advisability of investing in securities generally or the Portfolio par- ticularly or the ability of the S&P 500 Index to track general stock market performance.

UBS Fiduciary Trust Company www.ubs.com/fiduciarytrust