Description of Services and Fees U.S. Institutional Corp. was founded in April 2005 as an independent institutional investment consulting firm. Our firm is 100% owned by John G. Russon. USI is registered with the United States Securities and Exchange Commission as a pension consultant under Rule 203A-2(b) of the Investment Advisers Act of 1940.
USI is an institutional investment consultant that provides consulting services to Insurance Reserves, Endowments and Foundations, Retirement and Employee Benefit Plans and other institutional clients. Our services to retirement and employee benefit plan sponsors or trustees assist them in meeting their management and fiduciary obligations under the Employee Retirement Income Security Act. We also provide financial/business consulting services to corporations and other business entities designed to assist clients in all aspects of financial management. Our general consulting services include: We assess the risk tolerance of each client and then develop an investment strategy using broad asset classes to meet their income and total return targets. The client and our firm decide whether an asset class exposure should be attained using passive or active strategies.
CLIENT EDUCATION We consider investment education for plan participants and boards as an integral part of the services we provide where the goal is to supply clients with information to allow them to make sound investment and business decisions. INVESTMENT POLICY DEVELOPMENT AND REVIEW We consider the Investment Policy Statement to be a key component of a client's investment program which we utilize as a "road map" to govern the program. The Investment Policy Statement generally includes a purpose statement, investment goals and objectives, responsibilities of key personnel, identification of key constraints, eligible investments, asset allocation and liability process, portfolio rebalancing process, risk management process, performance benchmarks and performance reporting process.
ASSET ALLOCATION ANALYSIS/REVIEW We perform an asset allocation analysis/review utilizing proprietary asset allocation models and assumptions designed to analyze risk and return and correlations between asset classes with the purpose of achieving the goals and objectives of the client's Investment Policy. Some of the models are built internally and are fully customized to each client's specific situations. The customized models produce a detailed asset allocation analysis incorporating client specific parameters. INVESTMENT MANAGER SEARCHES We regularly meet with and interview existing and prospective managers to determine philosophy, process, discipline, and the current positioning of a client's portfolio. Our firm, to the extent possible, interviews portfolio managers directly to gain insight into management style, philosophy, competence, day-to-day risk controls, and the actual daily hands-on management of the portfolio. We assist clients in defining the mandate and identifying candidate managers. Searches can be done for investment providers as well including custodians and recordkeepers.
INVESTMENT MANAGER MONITORING We monitor investment managers to ensure that the manager is performing in a manner which we believe is satisfactory. We evaluate many factors including: performance relative to benchmarks and peers, adherence to guidelines, adherence to mandate/style, employee turnover, firm qualifications, 4 consistency of process and volatility and risk characteristics. In the event we conclude that a particular manager is deficient in any area, we will advise the client and may recommend terminating, however, the client shall have sole discretion to take any action as deemed necessary.
PERFORMANCE REPORTING We provide clients with monthly and/or quarterly performance reports that are customized

to the needs and preferences of each client. Reports incorporate information we receive directly from the client's custodial bank, investment manager, and USI's analysis.
Our typical monthly reports provide a snapshot summary of the client's portfolio including performance compared to benchmarks for each manager, asset class composite and total fund composite for trailing periods through the previous month-end.
Our typical quarterly reports provide more detail on individual portfolios and on composites. The quarterly reports begin with a market environment section that details key events which impact the market during the quarter and a performance summary for the major domestic and international indices. In addition, the report may also include various holdings-based metrics and comparisons of the manager's historical performance versus appropriate benchmarks and peers. Fixed income analytics that include interest rate sensitivity, sector breakdown and quality breakdown may be included as well, if relevant.
FINANCIAL/BUSINESS CONSULTING RELATED TO THE INVESTMENT PORTFOLIO We provide financial/business consulting services which are customized to meet the needs of clients on a case by case basis and which may include the following: 1. Peer group/best practices studies designed to assist clients in gaining a better understanding of their investment portfolio and financial ratios relative to peers.
2. Capital expenditure/debt financing analysis to enable clients to assess their capital structure and optimal sources of funding for capital expenditures.
3. Review of investments in subsidiaries to determine rates of return on investment.
4. Capital Structure Review designed to assist clients in analyzing optimal deployment of financial assets including lines of credit, long-term debt, fixed for floating swaps and the use of permanent capital versus surplus notes.
Types of Investments We provide non discretionary investment advice under the business name US Institutional Corporation. For clients who contract us for non discretionary management services, USI does not maintain discretionary authority or control with respect to client's accounts and we do not provide investment advice or recommendations regarding the purchase or sale of specific securities. We provide clients with alternatives and various courses of action; however, decisions regarding the investment of client's assets, the establishment of an investment policy, and the selection of investment managers remains with the client. If you receive invoices from our firm, we encourage you to reconcile our invoices with the statement(s) you receive from the qualified custodian. If you find any inconsistent information between our invoice and the statement(s) you receive from the qualified custodian, please call our main office number located on the cover page of this brochure. 5 Accuracy of Client Information In providing the contracted services, we are not required to verify any information we receive from you or from your other professionals (e.g. attorney, accountant, etc.) and we are expressly authorized to rely on the information you provide. You must promptly notify our firm if your financial situation, goals, objectives, or needs change for the purpose of reviewing, evaluating, and/or revising our previous recommendations and/or services.
Types of Investments We do not primarily offer advice on one type of security over another and offer advice on a broad range of investments. You may request that we refrain from investing in particular securities or certain types of securities. You must provide these restrictions to our firm in writing.
Assets Under Management We do not manage assets on a continuous basis; therefore, we do not have any discretionary or non- discretionary assets under management.