Company Press Release

NEW YORK, NY – August 15, 2008 – Triggered by an 8% drop in U.S. stock indexes in June, followed by further deterioration in July and rising economic anxiety, US investors net redeemed an estimated $27 billion from stock mutual funds in July. Mutual funds as a whole enjoyed net inflows of $52 billion when money-market funds’ and bond funds’ gains are included. Some July fund flow highlights:

* Money market funds experienced net inflows of $75 billion in July, as institutional and individual investors sought safe havens from the volatility that has buffeted stock and bond markets.

* Equity fund net outflows totaled an estimated $27 billion in July (excluding ETF flows). These redemptions followed net inflows into equity funds in April, May and June. In July, US equity fund outflows totaled some $20 billion, while international equity fund outflows were only $7 billion. Year to date through July, all equity funds have experienced very modest net outflows of roughly $20 billion. Considering the 13% drop in the S&P 500 in the first seven months of the year and extreme level of economic concerns, and in the context of about $7 trillion held in stock funds industrywide, these outflows, roughly $3 in each $1,000 dollar held, were quite a modest shift in allocation, and underscores investors’ commitment to long-term, buy-and-hold strategies.

* Bond fund inflows approximated $4.5 billion in July. Taxable bond funds drew more net inflows than tax-free bond funds, which has been the general pattern so far in 2008.

* Not included in the above figures: ETFs pulled in roughly $9.4 billion in July across all asset classes. Slightly more than half of those inflows went to domestic equity ETFs.

“Some shifts in asset allocation are not surprising given the uncertain markets. But US mutual fund holders clearly demonstrate their dedication to funds as investment vehicles,” said Avi Nachmany, Strategic Insight’s Director of Research. “And the rebound in US stock markets in the first part of August, if continuing, may slowly trigger improving flows for equity mutual funds in coming months.”

In its 22nd year, Strategic Insight has become a widely used and well respected research firm for the mutual fund and wealth management industry, providing clients with in-depth studies, consultation, and electronic decision support systems .Strategic Insight assists over 250 organizations worldwide, including the largest mutual fund management companies operating in the U.S. and the largest insurance companies serving the VA business. SI clients are responsible for about 90% of all U.S. mutual fund assets. Strategic Insight also serves many Wall Street equity research and investment banking firms, service companies, and many of the largest asset managers in Europe and Asia. For more information, visit our home at www.sionline.com.