2009 AFP liquidity study confirms impacts of economic crisis on investment needs and practices: results reveal credit tightening and conservative, safety-based investment strategies can be expected to continue.

Ramifications from the 2008-2009 liquidity crisis and the dramatic tightening of credit are taking their toll on most aspects of the global economy--leading many organizations to significantly increase their cash and short-term investment holdings. In fact, according to the results of the Association for Financial Professionals' (AFP's) 2009 Liquidity Survey, in the sixth-month period between November 2008 and May 2009, 42 percent of organizations reported that they had increased their cash and short-term investment holdings, while 28 percent decreased their balances.

Underwritten by BNY Mellon, the survey revealed that the majority of respondents (360 corporate practitioners) have fled investment vehicles previously deemed as safe havens for short-term investments, and moved their short-term investments into bank deposits, money market mutual funds and U.S. Treasury securities. This flight to quality is consistent with BNY Mellon's recent experiences, with safety of principal having become the primary cash investment policy objective of most organizations. And, while many organizations also believe that the tightening of available credit and conservative, safety-based investment strategies can be expected to continue in 2009, 74 percent of financial professionals responding to the AFP's Liquidity Survey believe that the worst is over, or that the credit markets will start to recover by the end of 2009.

BNY MELLON'S RESPONSE TO THE LIQUIDITY CRISIS

BNY Mellon's fiscal stability throughout the financial crisis, our understanding of the current environment and our ability to provide the right tools to respond to the ongoing market challenges, have made our bank an attractive source of investment advice at a time when many financial institutions are themselves grappling with liquidity and capitalization issues:

* To help clients more effectively and efficiently rebalance portfolios--especially those with illiquid or hard-to-sell assets--BNY Mellon launched BNY Mellon Beta Management in 2008. This service utilizes derivatives and futures to facilitate asset allocation shifts within portfolios. This service has the ability to overlay existing assets and change the asset allocation profile of the portfolio without requiring the sale of the underlying as sets.

* For institutional investors looking to put their cash to work on a daily basis, BNY Mellon offers Liquidity DIRECTSM. Using this single, centralized online investment portal, clients can access a wide range of money market funds from leading asset managers, invest directly in individual money market securities and protect margin positions in counterparty transactions. In addition to domestic and offshore U.S. dollar-based investments, we also offer an array of funds based in foreign currencies, including Euro, yen, pounds sterling, Australian dollar, Canadian dollar and Singapore dollar.

* For mutual fund boards concerned about their fiduciary role, BNY Mellon consistently maintains some of the highest NAV accuracy standards in the industry, with an average accuracy rate of 99.7 percent from 2006-2008. This level of accuracy means that the board can feel comfortable with having their fund administration with BNY Mellon, as opposed to in-house or with another provider.

WEATHERING THE STORMS AHEAD

In its 225 years of operation, BNY Mellon has endured more financial storms than any other U.S. institution. In this global financial crisis, we remain highly liquid and have demonstrated our ability to rise above market fluctuations to provide our clients with the tools and capabilities they need to manage and secure their investments and effectively weather the storms ahead.

To obtain a complete report of the 2009 AFP Liquidity Survey results, log on to www.bnymellon.com/products/treasuryservices/liquiditysurvey.pdf.

This material provides a general overview of our services and is not an offer or commitment to provide credit facilities or services. BNY Mellon Treasury Services. Services may be provided by one or more legal entities of The Bank of New York Mellon Corporation. Not all services are offered at all locations.

[c]2009 The Bank of New York Mellon Corporation. All rights reserved.

By Eric Kamback, BNY Mellon Treasury Services Chief Executive Officer