Investment Strategy Monthly Slides October Outlook Investment Strategy & Advisory Team: Barbara M. Reinhard, CFA Chief Investment Strategist, Managing

Investment StrategyMonthly Slides

October Outlook

Investment Strategy & Advisory Team:

Barbara M. Reinhard, CFAChief Investment Strategist, Managing [email protected]

Philipp E. Lisibach, [email protected]

Samuel M. BaumannAssistant [email protected]

Jimmy M. JamesVice [email protected]

Scott P. RosenblattAssistant [email protected]

Ryan P. [email protected]

Private Banking Americas

As of October 19, 2011

This document is not complete without attached “Important Legal Information.”

2

Table of Contents

Investment Strategy Overview

Four Charts You Can’t Miss

Asset Allocation & Economic Outlook

Valuations

Fundamentals

Sentiment

Appendix

– Rolling 10-year

– Global Asset Class Returns

– Key Forecasts

– Publication Round-up


3

Investment Strategy Overview

As of 9/13/2011 Source: PB Americas Investment Strategy

& Advisory

High growth equity sectors in a low economic growth environment.

Increase stable over cyclical growth in equity portfolios.

Position U.S. sector allocations towards stable growth sectors such as:

- Health Care, Telecom, Utilities, Consumer Staples

Reduce exposure to U.S. small caps.

High dividend paying stocks and strategies during periods of low interest rates.

Stay overweight emerging market equities.

Increase municipal bond exposure, favoring 5-10 year maturities given yield curve shape.

High credit quality during periods of high liquidity.

Seek higher yield through different vehicles such as:

- Senior Bank Loans, MLPs, REITs with good coupons and coverage ratios


4

Four Charts You Can’t Miss


& Advisory

17.6%

15.5%14.4%

12.9%11.9%

8.2%6.9%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

<8 8-10x 10-12x 12-14x 14-16x 16-18x >18x

# of obs. 76 104 110 80 94 122 203

Minimun 12.0% 7.9% 6.7% 5.2% 3.9% 2.8% -3.4%

Maximum 21.4% 19.2% 19.2% 19.0% 19.5% 18.8% 17.3%

Buying Equities at Lower P/Es May Have Potential Long-Term Benefits

Average 10-year Compounded Annual Growth Rate For Varying P/Es

As of 9/30/2011 Source: Ibbotson Associates, Bloomberg, Haver Analytics, Credit Suisse Investment

Strategy Advisory

30

35

40

45

50

55

60

65

Aug-90 Aug-93 Aug-96 Aug-99 Aug-02 Aug-05 Aug-08 Aug-11

2008 Recession

1990 Recession

2001 Recession

A PMI Reading Below 42 Would Signal TroubleISM manufacturing purchasing manager index, seasonally

adjusted

As of 8/30/2011 Source: Bloomberg, Credit Suisse

1.1%

-0.1%

1.1%

1.3%

0.5%

0.1%0.3%

0.1%

-0.7%

0.5%

1.3%

1.8%

J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec

S&P 500 Index Average Monthly ReturnsSince 1970

As of 8/31/2011 Source: Bloomberg

State & Local Government Tax Revenues Above 2007 Peak

As of 6/30/2011 Source: U.S. Census

290

295

300

305

310

315

320

325

330

335

J un-06 J un-07 J un-08 J un-09 J un-10 J un-11

USD bn, quarterly data annual moving average

USD 333 bn

Asset Allocation & Economic Outlook


6

Over-heating Slowdown Contraction Recovery

Sto

cks

Com

m

Bon

ds

Cash

Bon

ds

Sto

cks

Com

m

Cash

Bon

ds

Com

m

Sto

cks

Cre

dit

s

Cash

Com

m

Bon

ds

Outperform

Underperform

Cycle Clock*

*The Cycle Clock framework breaks the economic cycle into 4 phases (Overheating, Slowdown, Contraction & Recovery). For each of the 4 phases we examine which asset classes perform best.

GDP robust

Unemployment low

Tighter rate policy

Inflation rising

GDP dropping

Employment slowing

Tight rate policy

Inflation slowing

GDP contracting

Unemployment high

Easier rate policy

Inflation low

GDP picking up

Employment off

Easy rate policy

Inflation tame

As of 9/13/2011 Source: PB Global Research

Our Cycle Clock indicator has moved into Contraction territory, reflecting the weaker economic activity brought about by the Eurozone crisis. This financial market crisis, rather than the business cycle, is the chief driver of asset prices.


7


& Advisory

Positive Negative NeutralNote; Arrows represent the current PB Americas Investment Strategy & Advisory absolute market view for 6-12 months.

Outlook Summary

EQUITY

U.S.

Non-US Developed

Emerging Markets

FIXED INCOME

US Tax-Exempt US Taxable

Non-USD

ALTERNATIVE INVESTMENTS

Commodities

Gold

Hedge Funds Global Macro Funds remain favored hedge fund strategy.

Private Equity Secondary Funds volume likely to remain high through 2011.

Real Estate Direct Real Estate investments still appear attractive in low interest rate environment.

Negative sentiment dominates over attractive valuations.

Bond yields fell given softer economic growth; don’t represent compelling value.

Officials are pushing hard to recapitalize European banking sector.

Global Macro hedge funds continue to be favored strategy.

Recent sell-off puts gold back in fair value range with upside potential.

Potential near-term volatility likely; strategic 6-12 month view remains positive.

EM benefits from falling US sovereign rates and positive fundamentals.

Munis attractive relative to Treasuries; improving fiscal revenues and inflows.

De-risking of portfolios has led to outflows, though growth outlook remains superior.

Large cap companies with stable growth, high dividends are our focus.

Volatile credit spreads calls for caution; focus on high credit quality issuers .


8

Guidance Allocations

Data as of 9/30/11Source: PB Americas Investment Strategy & Advisory

The proposed Benchmark and Strategic Asset Allocations for each of the risk budgets referenced above are created by the Private Banking Americas Investments Strategy & Advisory

group. The Benchmark Asset Allocation (BAA), for a 3-7 year time horizon, is the neutral position reflecting the predefined risk budgets and meets investment objectives over a full market cycle.

The Strategic Asset Allocation (SAA), for a 6-12+ month time horizon, expresses views resulting in temporary deviations from the BAA to generate expected excess returns or reduce risk.

Alternative investments are typically high-risk investment vehicles which are available only to qualified individuals or entities that are willing to assume above average risk and sustain limited

liquidity with a portion of their net worth. Please refer to the attached “Important Legal Information” for important disclosure relating to alternative investments.

BAA SAA BAA SAA BAA SAA BAA SAA BAA SAA

Cash 5.0% 4.0% 5.0% 3.0% 5.0% 2.0% 5.0% 2.0% 5.0% 2.0%

USD 5.0% 4.0% 5.0% 3.0% 5.0% 2.0% 5.0% 2.0% 5.0% 2.0%

Equities 0.0% 0.0% 20.0% 22.0% 40.0% 43.0% 55.0% 58.0% 65.0% 67.0%

USA 0.0% 0.0% 10.0% 11.5% 20.0% 22.5% 27.5% 30.5% 32.5% 35.0%

Developed Equities ex-US 0.0% 0.0% 6.0% 5.5% 12.0% 11.0% 16.5% 14.0% 19.5% 16.0%

Emerging Markets 0.0% 0.0% 4.0% 5.0% 8.0% 9.5% 11.0% 13.5% 13.0% 16.0%

Fixed Income 80.0% 80.0% 55.0% 54.0% 30.0% 29.0% 10.0% 9.0% 0.0% 0.0%

USD, Tax-Exempt 56.0% 60.0% 38.5% 40.5% 21.0% 22.0% 7.0% 8.0% 0.0% 0.0%

USD, Taxable 24.0% 18.0% 16.5% 12.0% 9.0% 6.0% 3.0% 0.0% 0.0% 0.0%

Non-USD, Taxable 0.0% 2.0% 0.0% 1.5% 0.0% 1.0% 0.0% 1.0% 0.0% 0.0%

Alternative Investments 15.0% 16.0% 20.0% 21.0% 25.0% 26.0% 30.0% 31.0% 30.0% 31.0%

Commodities 2.5% 3.0% 2.5% 3.0% 2.5% 3.0% 2.5% 3.0% 2.5% 3.0%

Gold 2.5% 3.0% 2.5% 3.0% 2.5% 3.0% 2.5% 3.0% 2.5% 3.0%

Hedge Funds 5.0% 5.0% 5.0% 5.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%

Private Equity 0.0% 0.0% 5.0% 5.0% 5.0% 5.0% 10.0% 10.0% 15.0% 15.0%

Real Estate (Property) 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 0.0% 0.0%

TOTAL 100% 100.0% 100% 100% 100% 100% 100% 100% 100% 100%

Risk BudgetRisk Budget Risk Budget1) LOW 2) LOW-MEDIUM 3) MEDIUM

Risk Budget5) HIGH

Risk Budget4) MEDIUM-HIGH


9

Economics: Latest surveys tentatively support case for resumption of slow

growth U.S. data and indicators (PMI, corporate

investment, consumer spending) are somewhat more robust, much of Europe is moving into contraction phase.

Pressure for more radical solution of the Greek debt issue, including decisive bank re-capitalization, is mounting.

Emerging market growth is mixed, but still elevated inflation suggest policy easing will be cautious.

German Business Sentiment Cools Off, but

Better than Expectations

As of 9/13/2011 Source: Credit Suisse Investment Strategy & Advisory

Source: PB Americas Investment Strategy & Advisory

U.S. Car Sales Accelerating


8

9

10

11

12

13

14

15

16

17

18

Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11

U.S. auto sales Replacement Trend Rate

In million, seasonally adjusted

80

85

90

95

100

105

110

115

120


IFO Business Climate Index


10

Developed Markets Emerging Markets

U.S. Asia

Asia Pacific ex-Japan Latin America

Canada Europe, Mid East, Africa

UK

Japan

Europe ex-UK

Regional Outlook

S&P 500 Index Net Company Revisions

2012E

Note; Arrows represent the current PB Americas Investment Strategy & Advisory absolute market view for 6-12 months.

/ Indicates a strong investment conviction in over/underweight position.

/ Indicates a modest investment conviction in over/underweight position. Indicates a neutral investment conviction, or benchmark weighting

position.

Equities: Negative sentiment dominates over attractive valuations

Earnings season is underway, presumably shifting focus from temporary factors back to fundamentals. Analysts have cut estimates of late, and an updated outlook from company managements will add more clarity to market sentiment.

Valuation remains attractive, with healthy balance sheets and strong cash flow generation, and P/Es for the next-twelve months suggest ample upside potential. Yet investors sentiment and risk appetite continue to be low, outweighing fundamentals.

De-risking of portfolios has led to money outflows in emerging markets, though growth outlook remains far superior to developed markets, offering better upside potential.


-4,000

-3,000

-2,000

-1,000

0

1,000

2,000

3,000

4,000

5,000

Sep-09 Dec-09 Mar-10 J un-10 Sep-10 Dec-10 Mar-11 J un-11 Sep-11

Up Down Net As of 9/15/2011 Source: Factset/IBES, Credit Suisse


11

U.S. Sector Outlook

Health Care Energy

Consumer Staples Industrials

Telecomm Services Consumer

Discretionary

Utilities Financials

Information Technology Materials

S&P 500 Dividend & US 10-Year

Treasury Yields


/ Indicates a strong investment conviction in over/underweight position.

/ Indicates a modest investment conviction in over/underweight position. Indicates a neutral investment conviction, or benchmark weighting

position.

U.S. Equities: Large cap companies with stable growth, high dividends

are our focus Given the prospect of continued heightened

volatility, we maintain our defensive posturing. Our focus remains stable, defensive growth and we continue to underweight cyclical growth.

Large cap companies offer better value in a low-growth environment, and companies with high yet sustainable dividend yields offer an attractive alternative to low-yielding fixed income investments.

Valuations are reflecting an economic scenario more dire than what is likely to occur, as implied earnings suggest a recession-like drop in earnings growth.


0

1

2

3

4

5

6

7

8

9

Oct-91 Oct-93 Oct-95 Oct-97 Oct-99 Oct-01 Oct-03 Oct-05 Oct-07 Oct-09 Oct-11

S&P 500 Index Dividend Yield 10 Year U.S. Treasury Yield

%


12

Fixed Income: European sovereign crisis still dominating; preference for high

quality credits Market volatility and accommodative central

banks should keep benchmark yields at low levels.

Corporate credit valuations look increasingly attractive, but focus remains on stronger issuers given European sovereign crisis overhang. We increased our exposure to corporate credits to overweight from neutral favoring high-quality non-financial issuers.

We reduced our overweight position in emerging markets to de-risk our fixed income asset allocation. In taxable allocations, we increase our exposure to municipal bonds to overweight from neutral due to the relative attractiveness municipal bonds yields compared to U.S. Treasuries.

Fixed Income Outlook

Positive Negative Neutral



As of 6/30/2011 Source: DataStream

As of 10/13/2011 Source: Credit Suisse Investment Strategy & Advisory

U.S. Municipal

U.S. Investment Grade Corp.

Emerging Markets

U.S. Treasury Inflation Protected

U.S. High Yield

U.S. Treasuries

U.S. Securitized

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

J un-56 J un-67 J un-78 J un-89 J un-00 J un-11

Non-financial corporate sector: cash/total assets

Corporate Cash Levels At Generational Highs


13

Currencies: Short term neutral view on USD; longer term we favor emerging markets

currencies vs. USD EUR: Narrowing interest rate spread and low

risk appetite positive for USD in near term. Longer term neutral as negative U.S. current account weighs on USD.

Commodity currencies (AUD, NZD, CAD) remain overvalued. AUD narrowing spreads vs. the USD, overvaluation and vulnerability to bouts of risk points to further weakness despite Credit Suisse’s positive outlook on base metals.

Emerging market currencies face near-term downside risk with continued lack of risk appetite. Longer term we remain positive on emerging markets.


Note: Arrows represent the current PB Americas Investment Strategy & Advisory absolute market view for 6-12 months.


USD vs. CAD EUR vs. USD

USD vs. MXN USD vs. JPY

USD vs. BRL NZD vs. USD

GBP vs. USD AUD vs. USD

Data as of 10/04/2011Source: Bloomberg

Currency Outlook

EURUSD Shorts Look Extended

-150

-100

-50

0

50

100

150

Oct-07 Oct-08 Oct-09 Oct-10 Oct-11

Speculative Net Long Future P ositions EURUSD (# of contracts)

In thousands



14

Commodities: Potential near-term volatility likely; strategic 6-12 month view

remains positive Recent commodity weakness is likely the

result of broad market weakness and the uncertainty resulting from indecisive policy makers in Europe. We expect a continued uptrend in commodity prices following the resolution of the Euro debt crisis and a stable pattern of economic growth.

Gold experienced significant selling pressure during September, partially due to funding and liquidity needs by large institutional holders. Prices are now back within fair value ranges and are no longer expensive. Gold will likely recover and resume uptrend into 2012.

Industrial metals, particularly copper and aluminum, are fairly valued. Physical demand remains robust and copper imports to China have increased over the last three months. Tight physical market may allow prices to rebound quickly when stability returns, however due to overall macro concerns we remain neutral.




Commodity Outlook


Precious Metals

Industrial Metals

Livestock

Agriculture

Energy

Gold: -15% From Peak: Under Pressure in September

+27%

-15%


1450

1500

1550

1600

1650

1700

1750

1800

1850

1900

Jul-11 Aug-11 Sep-11

$/Troy Ounce


15

Alternatives: Global Macro hedge funds continue to be favored strategy

August 2011 resulted in the largest monthly decline in 2011 for the Dow Jones Credit Suisse Hedge Fund Index, however global macro managers were able to post a positive performance for the month. Current market dislocation likely to continue to favor tactical strategies such as global macro and managed futures.

Despite difficult market environment of 2011, hedge fund launches have outpaced liquidations as investors generally believe that tactical hedge funds may be better equipped to preserve capital and take advantage of tactical trading opportunities. The 3rd quarter of 2011 is expected to see the trend continue.

Private equity outlook remains constructive for the longer term. Current activity in the space is focused around secondary funds.



Global Macro Funds Have Been Top Performers Amidst

Market Volatility

Investors Remain Committed to Hedge Funds


Hedge Fund Index: 0.0% YTD

-800

-600

-400

-200

0

200

400

Q1-08 Q4-08 Q3-09 Q2-10 Q1-11

Launches Liquidations

730

740

750

760

770

780

790

Dec-10 J an-11 Feb-11 Mar-11 Apr-11 May-11 J un-11 J ul-11 Aug-11

460

465

470

475

480

485

DJ CS Global Macro HF Sub Index DJ CS HF Index(r.h.s.)

Index Level Index Level

Global Macro Sub-Index: 5.9% YTD

Valuations


17

U.S. Equities - The Valuation Math Favors Investors


S&P 500 12-Month Forward P/E Ratio

10.7

5

10

15

20

25

30


12Mo Fwd P/E Ratio Avg

+1 Std Dev -1 Std Dev


18

Emerging Market Equities – At a Discount Despite Superior Growth Outlook


MSCI Emerging Market - 12-Month Forward P/E Ratio

8.65

5

10

15

20

25





19

EAFE* Equities – Sovereign Debt Issues Remain an Overhang

As of 9/30/2011 Source: DataStream*EAFE: Europe, Australasia, and Far East

MSCI EAFE - 12-Month Forward P/E Ratio

9.45

5

10

15

20

25

30





20

Municipals – Remain Attractive Compared to U.S. Treasuries

As of 9/30/2011 Source: Thomson Reuters MMD,

Blommberg

G.O. AAA Muni Yield as % of 10 Year US Treasury Yield

60%

80%

100%

120%

140%

160%


High Yield Bond Spread Avg


115%


21

High Yield – Relatively Cheap, Yet Macro Environment Continues to Push

Spreads Up Barclays High Yield Index spread over U.S. Treasuries


0

300

600

900

1200

1500

1800

2100


High Yield Bond Spread Avg


841


22

Emerging Market Debt – Tepid Macro Sentiment Suggest Continued

High VolatilityJP Morgan Emerging Market Bond Index spread over U.S. Treasuries


0

200

400

600

800

1000

1200

1400

1600

Dec-97 Dec-00 Dec-03 Dec-06 Dec-09Emg Mkt Bond Spread Avg


465

Fundamentals


24

Global PMIs Are Down, But Not At Recession Levels

As of 9/30/2011 Source: Bloomberg, PB Americas Investment Strategy &

Advisory

Global Purchasing Managers Index

30

35

40

45

50

55

60

65


U.S. Eurozone China Global

U.S. Recessionary Level: 42


25

We Are in a Downward Sloping Phase, Though Not a Contraction Phase

As of 9/13/2011 Source: OECD

OECD Composite Leading Indicators

85

90

95

100

105

110

Aug-91 Aug-96 Aug-01 Aug-06 Aug-11

85

90

95

100

105

110


85

90

95

100

105

110


85

90

95

100

105

110


United States Europe

Japan China

Sentiment


27

Sentiment – Market Participants are Very Nervous…

As of 9/30/2011 Source: Credit Suisse Global Strategy

Research

Credit Suisse Daily Risk Appetite Index

-8

-6

-4

-2

0

2

4

6

8

10

09/81 09/86 09/91 09/96 09/01 09/06 09/11

Credit Suisse Daily Global Risk AppetiteAverage

Sep-

81

Sep-

86

Sep-

91

Sep-

96

Sep-

01

Sep-

06

Sep-

11

Panic

Euphoria


28

…And Are Becoming Increasingly More Bearish

As of 10/06/2011 Source: American Association of Individual

Investors

AAII Bull – Bear Investor Sentiment Surveys

-60

-40

-20

0

20

40

60

Oct-87 Oct-91 Oct-95 Oct-99 Oct-03 Oct-07 Oct-11

Bullish

Bearish

Appendix


30

Don’t Let The Recent Past Predict The Future S&P 500 Index Total Return Index 10-year Rolling Returns

As of 9/30/2011 Source: Standard and Poor's, Bloomberg

-10%

-5%

0%

5%

10%

15%

20%

25%

J an-36 J an-46 J an-56 J an-66 J an-76 J an-86 J an-96 J an-06


31

Global Asset Class Returns

As of 9/30/2011 Source: Bloomberg, DataStream

*EAFE: Europe, Australasia, and Far East / * U.S. Private Equity Index The Cambridge Associates only quarterly data available

Equity (TR, USD) Spot 1M 3M YTD 1 Year3 Year

(annualized)5 Year

(annualized)10 Year

(annualized)

MSCI All Country World 118 -9.4% -17.4% -13.6% -6.0% 0.59% -1.6% 4.5%

S&P 500 Index 1,131 -7.0% -13.9% -8.7% 1.1% 1.23% -1.2% 2.8%

MSCI EAFE* 3,440 -9.5% -19.0% -15.0% -9.4% -1.13% -3.5% 5.0%

MSCI Europe 181 -12.2% -28.4% -19.5% -17.8% -7.53% -6.6% 3.7%

MSCI Japan 3,704 -1.6% -6.4% -10.9% -0.1% -0.18% -4.9% 2.8%

MSCI Emerging Markets 341 -14.6% -22.6% -21.9% -16.1% 6.27% 4.9% 16.1%

Fixed Income (TR, USD) Spot 1M 3M YTD 12M Rolling3 Year

(annualized)5 Year

(annualized)10 Year

(annualized)

Citigroup 3 Months Treasury Bills Index 622 0.0% 0.0% 0.1% 0.1% 0.20% 1.6% 1.9%

Barclays Global Aggregate Bond Index 446 -2.3% 1.0% 5.4% 4.0% 7.78% 6.8% 6.9%

Barclays U.S. Aggregate Bond Index 1,750 0.7% 3.8% 6.6% 5.3% 7.97% 6.5% 5.7%

Barclays Muni Bond Index 923 1.0% 3.8% 8.4% 3.9% 8.08% 5.0% 5.1%

Barclays High Yield Index 1,194 -3.3% -6.1% -1.4% 1.8% 13.83% 7.1% 8.8%

JP Morgan Emerging Market Bond Index Plus 572 -4.1% -1.2% 3.7% 1.4% 11.6% 7.9% 11.0%

Alternative Investment Spot 1M 3M YTD 12M Rolling3 Year

(annualized)5 Year

(annualized)10 Year

(annualized)

Dow Jones UBS Total Return Index 282 -14.7% -11.3% -13.6% 0.0% -5.67% -1.1% 5.9%

Gold 1,624 -11.1% 8.2% 14.3% 24.1% 23.08% 22.1% 18.7%

CS Tremont Hedge Fund Index 447 -3.2% -4.8% -3.2% 1.3% 4.57% 4.2% 6.6%

Barclay CTA Managed Futures Index 30,210 0.0% 1.4% -0.8% 3.5% 4.24% 6.1% 5.5%

Private Equity* n/a n/a 4.5% n/a 10.1% 6.46% 10.1% 11.3%


32

Key Forecasts*

Global Equity Indices 9/30/11 12M

U.S. (S&P 500) 1,131 1,299

Euro Area (Euro Stoxx 50) 2,180 2,740

UK (FTSE 100) 5,128 5,809

Japan (Nikkei 225) 8,700 10,500

Asia Ex-Japan (MSCI Asia AC ex-Japan) 445 609

Brazil (Bovespa) 52,324 63,000

Mexico (IPC) 33,503 35,000

Data as of 9/30/2011 *3month, 12month, or Year-end forecasts as indicated; **Level with USD as counter currency, price change with USD as base

currencySource: PB Global Research, CS Latin American Equity Strategy, Bloomberg, Thomson Reuters DataStream

Real GDP (%) 2011E 2012E Inflation 11E

Global 3.80 3.80 3.90U.S. 1.60 1.80 3.00Euro Area 1.80 1.40 2.60Japan -0.30 1.70 0.20Non-Japan Asia 7.50 7.30 5.60Latin America 4.30 3.80 6.70

Interest Rates (10-yr Gov.)

9/30/11

3M 12M

U.S. 1.922.3 – 2.5%

2.6 – 2.8%

Euro Area 1.891.8 – 2.0%

2.2 – 2.4%

UK 2.432.4 – 2.6%

2.7 – 2.9%

Japan 1.030.9 – 1.1%

1.1 – 1.3%

Currencies (USD vs.)9/30/1

1 3M 12M

Euro** 1.34 1.35 1.40

Japanese Yen 77.1 76.0 76.0

British Pound** 1.56 1.53 1.55

Swiss Franc 0.91 0.93 0.93

Canadian Dollar 1.05 1.05 1.06

Australian Dollar** 0.97 0.95 0.93

New Zealand Dollar** 0.76 0.75 0.74

Mexican Peso 13.90 14.20 13.00

Brazilian Real 1.88 1.92 1.80

Commodities9/30/1

13M 12M

EnergyWTI Crude Oil (USD/barrel) 79.20 84 88US Natural Gas (USD/mmbtu) 3.67 3.80 4.50

Precious Metals (Spot, USD/ounce)

Gold 1623.97 1900 2000

Silver 29.93 28 25

Platinum 1525.75 1700 2100Base Metals (Spot, USD/pound)

Aluminum 0.98 1.00 1.10Copper 3.18 3.45 4.30

Agriculture ($/bushel)Wheat 6.09 6.60 6.80Corn 5.93 6.30 6.20

Appendix

Published by PB Americas Investment Strategy and Advisory Group:

The Investment Committee

Report U.S.Last Published: Oct-6-

2011

Released bi-weekly, the Investment Committee Report offers consolidated and consistent opinions on the markets as well as strategic and tactical outlooks from Credit Suisse’s global thought leaders.

Viewpoints: Risk-on/Risk-off

Last Published: Oct-3-2011

Released at the beginning of each month, Viewpoints examines the implications of the latest economic trends and market moving events impacting the financial markets.

Key Focus: Municipals

Last Published: Sep-15-2011

Released monthly, the Key Focus publication provides an in depth review of an asset class or investment strategy that is of particular interest during a given timeframe.

Change of Investment View

Last Published: Sep-30- 2011

Released as needed due as a result of changes to the Global Asset Allocation Framework.

Appendix

Published by PB Americas Investment Strategy and Advisory Group:

Research Monthly(s)Last Published: Sep-2011

Five separate reports released monthly, covering Commodities, Foreign Exchange, Alternative Investments, Real Estate, Fixed Income Strategy

Investment Strategy Monthly SlidesLast Published: Oct-19-2011

Released monthly, featuring timely commentary on current market conditions, our economic outlook, as well as our guidance allocations and latest investment strategies.

CompassLast Published: Jul-15-

2011

Released quarterly, Compass presents a convergence of portfolio strategy and global market insights, thematic investment theses and asset allocation analysis.


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Documents

Investment Strategy Monthly Slides October Outlook Investment Strategy & Advisory Team: Barbara M. Reinhard, CFA Chief Investment Strategist, Managing