2007 3rd Quarter

Joseph Stevens joined the firm in October 2007 as an analyst in our Washington, DC office. Joe was previously employed at T. Rowe Price as a Senior Associate in Trade Support.

Meredith Davis joined IFS in September as an Executive Assistant, in our Washington D.C. office. Meredith was previously the Office Administrator for Cel-Sci Inc. Meredith is providing executive administrative support to various members of the IFS leadership team.

Jennifer A. Cooper, CFA, CEBS joined IFS in September of 2007 as Vice President of Business Development. She brings to the firm 20 years of hands-on experience in the institutional investor community. Ms. Cooper began her professional career with the Houston Firemen's Relief and Retirement Fund where she served as Executive Director. She was responsible for the investment, administrative, legislative, actuarial, and public relations programs for a $1.6 billion retirement system.

James (Jim) Bungerz joined IFS in September 2007 as a Vice President in its Fiduciary Decisionmaking practice. He is based in the company's Newark, NJ office. Jim brings more than 15-years of investment management and research experience to IFS developed from both the buy-side and sell-side in the capital markets. Prior to joining the company, Jim managed a $9 billion fixed income portfolio for defined benefit and defined contribution pension plans and other institutional clients of Times Square Capital Management in New York City.

In September, Edward Patchett, Sr. Vice President, attended the 2007 NCCMP annual conference held in Westin Diplomat Hotel, West Hollywood, Florida.

The General Accountability Office interviewed Skip Halpern, IFS President, as part of its research for its forthcoming report on fiduciary responsibilities for the named fiduciaries of 401k plans. While recent GAO reports have focused more specifically on particular subjects like employer stock and mutual fund fees in 401k plans, the upcoming report will extend more broadly across those and other aspects of fiduciary responsibility concerning 401k plan investment programs The expect the report sometime in the first quarter of 2008.

On September 20, 2007 Frank Lilly, Chairman and CEO of IFS presented comments and suggestions to the United States Department of Labor, 2007 ERISA Advisory Council Working Group on Fiduciary Responsibilities - Update and Revenue Sharing. His presentation suggested how the DOL could bring greater transparency to the participant directed 401K market to assist plan participants and plan sponsors in their decision-making. Lilly suggested standardizing terminology and reporting with respect to 401K plan fees, costs and services.

IFS recently completed an Investment Review of the Ohio Operating Engineers Pension Fund. This strategic investment review of the Fund's investment program and practices outlined IFS' evaluation and recommendations to the Board of Trustees regarding investment policy statement, asset allocation & investment structure, alternative investments, investment consultant's services, investment manager guidelines, historical investment performance benchmarks, and investment-related costs and fees.

IFS completed an operational review of the defined benefit pension plan of a Fortune 500 diversified manufacturing company. As part of the assignment, IFS reviewed the plans'governance structure, investment policy, asset allocation, and investment performance. The project took just under three months to complete. A brief, high-level report was issued to the client.

IFS was hired as a retainer consultant by the following funds to provide ongoing advice and recommendations regarding investment policy, asset allocation, investment manager search, risk controls and performance reporting and evaluation:

• Freight Drivers & Helpers Local 557 Pension Fund
• Freight Drivers & Helpers Local 557 Health & Welfare Fund
• Electrical Workers Local No. 26 Pension Trust Fund
• Local 8 IBEW Retirement Plan and Trust