Current Investment Outlook

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With the extreme level of volatility in the capital markets, our firm has maintained a more defensive type of strategy relative to asset allocation; however equity markets have been on the upswing. We are hopeful that the credit markets will continue to improve as well. As our economy continues striving for recovery, the credit markets may return to a normal level of activity. We do anticipate slight improvement overall in the middle of the 3rd Quarter of 2010. While Holland Financial Services LLC interprets recent market movements to denote a slight general rally, our overall disposition is that market corrections are eminent and may occur well into the latter part of the 2nd Quarter of 2010.

In the past, we have typically increased our exposure to fixed income securities and cash positions with the probability of predictable income streams in instances when the economy experienced a recession. As our economy attempts to emerge, we are not completely convinced of the possibility that an improving economy can be reason alone to change our disposition with respect to our asset allocation strategy. Of course our demeanor may change as economic indicators strengthen, however at this time we are taking more of a cautious approach relative certain sectors within the equity markets.

In recommending equity positions, Holland Financial Services LLC will continue to favor companies with strong management and financials. Professional money management firms selected for our clients who are seeking separate account management will be in accordance with the specific objectives of each client and not solely predicated on the performance of a particular manager.

In general, we do feel that the economy will continue to be somewhat sluggish throughout 2010. Jobs and job expectations are presently a predominate driver of consumer sentiment. Consumer confidence may continue to be an economic issue as long as the national unemployment rate continues to remain high. Spending by consumers may improve slightly in 2011.

With the direction of market movements in 2008 and 2009, a significant amount of capital assets moved into cash positions. Currently, money market funds have been moving into fixed income securities and bond portfolios, despite the fact that there has been significant inflows into equities and stock mutual funds within the last year. We have also observed that many investors concerned with pre-retirement income needs tend to be leaning more toward guaranteed type vehicles such as annuities, providing that these types of financial products are not excessively over-priced with expense and surrender charges.

Our view also is that many investors are currently risk adverse, given the present state of the capital markets. Substantial declines in money market yields have led numerous investors to search for more practical alternatives.

Holland Financial Services LLC presently tends to favor certain securities within the fixed income markets. Tax free bonds for example have experienced some respectable returns year to date. The probability of increased federal tax rates may be a valid consideration for an allocation into this type of an asset class.

At this time, we anticipate that municipal securities and some municipal bond funds can provide tax benefits and some positive yields. While we are not predicting any changes in what may occur within the tax code, it is likely that tax rates could rise within the next several years. We anticipate that bond funds with shorter maturities may be more advantageous, as compared to those having longer maturities, given the current level of interest rates.

The above mentioned commentary is for informational purposes only and is not intended as a recommendation to promote a specific investment strategy. An investment in a separate account management program involves risks associated with selected investment styles and may not be suitable for conservative investors and for those seeking preservation of principal. Performance is subject to substantial market fluctuations. Past performance is not indicative of future results, nor is there any assurance that the selected managers will achieve the investment objectives sought. Holland Financial Services LLC selects other professional investment advisors for its separate account management offerings. The firm is not an affiliate or sponsor of a specific wrap fee program. For complete information on the institutional money managers selected by Holland Financial Services LLC for the offering of separately managed accounts, please refer to the firm's disclosure brochure Form ADV 2A and 2B, which provides details concerning advisory, custodial, and administrative fees. Designated broker/dealers recommended by Holland Financial Services LLC are members of The Financial Industry Regulatory Authority (FINRA). Securities of client accounts held by recommended broker/dealers are protected by the Securities Investors Protection Corporation (SIPC). Mutual Funds are offered by prospectus only. Prospectuses include investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. Investments in securities are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency and involve investment risks, including the possible loss of the principal amount invested. The information contained herein is for U.S. residents only and does not constitute an offer to sell, or a solicitation of an offer to purchase a specific security. IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with requirements imposed by the IRS, Holland Financial Services LLC informs you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.