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Fee-Based Relationships

Because financial

advisors get paid a

percentage of the

client’s total assets in

a fee-based relationship,

rather than commissions

on individual trades,

they have a vested

interest in the

performance of

your investments.

The better your

portfolio performs,

the more the advisor

is rewarded.

Freedom

Since 1962, Raymond James has offered clients comprehensive financial planning

services. Our goal has been to help investors understand and manage risk. We believe

that portfolios should be constructed in an effort to reward each investor for the

risk taken.

It is an approach that serves as the keystone for our success. And it is the reason we

created the Freedom Account.

With Freedom, clients are invested in institutional-quality portfolios built and overseen

by Asset Management Services professionals. Dozens of portfolio options and multiple

investment vehicles provide you and your financial advisor with the options necessary

to accommodate personal goals, circumstances and risk tolerance.

Employing mutual funds, exchange-traded funds (ETFs), separately managed

accounts (SMAs) or combinations of investment choices, these portfolios strive to meet

the requirements of busy investors who prefer a fee-based relationship with their

financial advisor.

Read on to learn how the Freedom Account can help make your life simpler, without

sacrificing the quality you deserve.

Why Freedom?

Comprehensive investment process captured in more than 80 portfolio options I

Advice from a financial advisor, by way of a fee-based relationship, who has a vested I

interest in the success of your portfolio

Clear, informative performance statements detail your progress I

Automatic annual rebalancing keeps your asset allocation in line with your objectives I

Access to RJFreedom.com to learn more about Freedom or peruse a wide I range of

helpful commentary and news

Further information on the funds selected for the Freedom portfolios is available by prospectus, which can be obtained through your financial advisor. Investors should carefully consider the investment objectives, risks, charges and expenses of the underlying funds before investing. The prospectus contains this and other information about the funds and should be read carefully before investing. Investing involves risk and investors may incur a profit or a loss. Diversification does not ensure a profit or protect against a loss.

The Investment Process

Before you choose a particular portfolio, your financial advisor will work with you to

assess your tolerance for risk and identify an objective that you agree is the right fit for

your circumstances.

Some of the considerations include your tax situation, cash distribution needs,

investment time horizon, retirement goals and suitability for particular investment

vehicles, including mutual funds, ETFs and separately managed accounts.

Based on those conversations, your advisor may recommend Freedom Mutual Funds,

Freedom ETF, Freedom UMA (unified managed account) or the Freedom Retirement

Income Solution. We will describe these account formats in more detail later.

The Four Essential Steps

The foundation upon which all investment portfolios are constructed is encompassed in

our proprietary Four-Step Process, a methodology essential to constructing investment

options we are confident can help you achieve your financial goals.

Develop Forward-Looking

Capital Market Assumptions |

Freedom employs forward-

looking risk, return and correlation

assumptions based on economic data

and indicators. These tools move

beyond analyzing historical data and

help avoid trend-chasing behavior.

Build Asset Allocation Models |

Using our forward-looking

assumptions, we construct portfolios

designed to maximize return potential

at each level of risk. These asset

allocation choices are very important,

having been shown to account for

approximately 90% of a portfolio’s

volatility over time.1

Step 1 Step 2

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1. Source: Brinson, Beebower and Associates, “Determinants of Portfolio Return,” 1986, updated 1991 and 1995.

Choose Investments and

Construct Portfolio | The AMS

Investment Committee chooses mutual

fund, ETF or separately managed

account managers to fill each of the

slices of your asset allocation. Managers

are screened and hired who we believe

have demonstrated ability to add

value through skill. Because we treat

asset allocation as a distinct step in the

process, we can combine managers

in ways that help avoid unintentional

biases in the portfolio (e.g., toward

growth or value).

Monitor Progress and Adjust

As Needed | Asset Management

Services proactively and continuously

monitors each element of the program,

applying ongoing research of the

forward-looking assumptions, asset

allocation decisions and investment

managers to ensure your Freedom

Account stays true to the original

investment philosophy over time.

Given that performance will vary

among asset classes over time, we

automatically rebalance your portfolio

annually to your objective’s target

asset allocation.

Step 3 Step 4

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With the Freedom Account, you can set your

financial future in the right direction and

know that Raymond James will be there to help

keep your goals on track.

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Freedom Account Choices

Freedom Mutual Funds

The original Freedom, our mutual fund platform features a full spectrum of models

constructed using more than 40 funds carefully screened and monitored by the AMS

Due Diligence Department.

With Freedom Mutual Funds, you’re not tied into one family of funds. Our research

team reviews each fund to determine its suitability for the specific objectives required by

our portfolios. Final decisions are made by the AMS Investment Committee, comprised

of investment professionals with combined decades of experience.

With qualitative and quantitative sell disciplines in place, we constantly monitor each

fund’s performance and management factors pertinent to ongoing stability in an effort to

avoid surprises and uncertainty.

The result is a selection of portfolios designed to maximize return at each level of risk.

Minimum investment: $50,000

Freedom ETF

For investors who wish to invest in low-cost, tax-efficient exchange-traded funds

(ETFs), the Freedom ETF account may be a good option. You receive broad market

exposure through the same investment process Raymond James utilizes to create fully

allocated portfolios.

ETFs are a rapidly growing investment vehicle that combines the broad participation

of an index fund with the trading flexibility of stocks. Like index funds, ETFs are

portfolios of stocks or bonds designed to track a specific market index.

Unlike traditional mutual funds, however, there is no opportunity for outperformance

through stock picking. At the same time, investors may experience less volatility due to

the breadth of the individual investments within the ETFs.

Minimum investment: $50,000

Freedom portfolios

are not suitable

for all investors.

It is important

to review the

investment

objectives, risk

tolerance, tax

objectives and

liquidity needs

before choosing an

investment style.

All investments

carry a certain

degree of risk and

no one particular

investment style or

manager is suitable

for all types of

investors.

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Freedom UMA (unified managed account)

The Freedom UMA account allows you to invest in multiple separately managed

accounts and mutual funds with the convenience of one account number and

integrated performance reporting.

Freedom UMA seeks to diversify your investments, exposing them to wide-ranging

market opportunities while seeking to buffer the portfolio from downturns in

particular segments of the investment universe.

Working with your financial advisor, you choose from dozens of asset allocation

models designed to accommodate a broad range of investors’ investment objectives and

risk tolerance.

As an added convenience, we rebalance your portfolio, manage all aspects of trading

and provide your financial advisor with the opportunity to conveniently monitor tax

implications and apply reasonable trade restrictions.

Diversification increases at each of four minimum investment levels, providing a wider

breadth of investment managers with each increasing level. However, you and your

financial advisor are free to select any model within your investment objective as long

as you meet the minimum investment requirement.

Minimum investment levels: $300,000, $600,000, $1 million, $2 million

1. Source: Brinson, Beebower and Associates, “Determinants of Portfolio Return,” 1986, updated 1991 and 1995.

UMA portfolios

are not suitable

for all investors.

It is important

to review the

investment

objectives, risk

tolerance, tax

objectives and

liquidity needs

before choosing an

investment style.

All investments

carry a certain

degree of risk and

no one particular

investment style or

manager is suitable

for all types of

investors.

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Freedom Retirement Income Solution

Investors nearing retirement have myriad investment issues to consider including

tax implications, cash distribution needs, inflation and the chance they may outlive

their retirement money, a challenge known as longevity risk.

Freedom Retirement Income Solution, a trio of portfolio options comprised of

carefully screened mutual funds, helps clarify the retirement picture by striving

to overcome longevity risk while remaining flexible enough to accommodate each

investor’s unique circumstances and distribution requirements.

By allocating a portion of your investments to a diversified array of equities, the

Freedom Retirement Income Solution portfolios go beyond traditional fixed-

income retirement solutions by positioning your investments to potentially capture

outperformance in the stock markets. The portfolios include an allocation to fixed

income optimized to your stage of retirement and reflected in early, mid or senior

models. This is done in an effort to help buffer your investments from market

turbulence and increase the likelihood you will have the income you need.

And remember, half of all 65-year-old men will live beyond age 85, and half of

all women of the same age will live beyond age 88.1 Planning beyond your first few

years of retirement can help you continue enjoying the lifestyle you’ve worked

hard to achieve.

For more risk-averse clients, Freedom Retirement Income Solution also can be

paired with annuity options to provide a guaranteed income stream while remaining

invested in the potential long-term growth of the capital markets.

Talk to your financial advisor about how Freedom Retirement Income Solution

can help you meet your retirement goals so you can enjoy a longer life, without

sacrificing quality of life.

Minimum investment: $100,000

1. Source: Metlife, The Metlife Retirement Income Study: The Silent Generation Speaks, June 2006.

Freedom Retirement

Income Solution

(“FRIS”) accounts

are not suitable for

all investors. It is

important to review

the investment

objectives, risk

tolerance, tax

objectives and

liquidity needs

before choosing an

investment style.

All investments

carry a certain

degree of risk and

no one particular

investment style or

manager is suitable

for all types of

investors.

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Chart Your Progress

In addition to monthly brokerage statements, Freedom investors are provided quarterly

performance reports summarizing market activity, contributions and withdrawals from

the day you open your account.

These reports show you asset allocation and time-weighted portfolio performance data.

Annual tax information will be provided on the end-of-year brokerage statement.

With Freedom, there are no traditional commissions – just an annual fee based on a

percentage of the assets under management. It’s an extra level of comfort knowing that

Raymond James and your financial advisor have a vested interest in your success.

*All investments are subject to risk. There is no assurance that any investment strategy will be successful. In a fee-based account, clients pay a quarterly fee, based on the level of assets in the account, for the services of a financial advisor as part of an advisory relationship. In deciding to pay a fee rather than commissions, clients should understand that the fee may be higher than a commission alternative during periods of lower trading. Advisory fees are in addition to the internal expenses charged by mutual funds and other investment company securities. To the extent that clients intend to hold these securities, the internal expenses should be included when evaluating the costs of a fee-based account. Clients should periodically re-evaluate whether the use of an asset-based fee continues to be appropriate in servicing their needs. These additional considerations, as well as the Freedom fee schedule, are listed more fully in the Client Agreement and the Raymond James & Associates Schedule H Brochure.

Freedom UMA 1234567

Model Allocation vs. Actual AllocationAs of December 31, 2008

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Information at Your Fingertips – RJFreedom.com

For those who prefer even more information, RJFreedom.com provides answers.

There, you can find quarterly and annual composite performance for most Freedom

products; timely news and commentary related to the markets and economy; as well as

up-to-date samples of current asset allocations for the Freedom programs.

Wondering how markets bounced back from past economic challenges? RJFreedom.com

has the answers, along with an impressive library of other market-related slides and

presentations to help put current economic conditions into perspective.

It’s another way for you to find the comfort level you deserve with your investments.