Each fund portfolio selects up to four approximately equally weighted positions of the highest AAS Rated securities from each of the respective fund families. The securities must also be AAS Recommended Buys in order to be selected for portfolio allocation. Annual rebalancing of the positions is recommended.

The four model fund portfolios are reviewed daily after the close of trading. Any holding which has triggered a specific sell rule is then sold on the following day. Replacing the sold fund is the security with both the highest AAS Rating Score and an AAS Buy Recommendation from the appropriate group.

The AAS Model Stock Portfolio is reviewed daily at the close of trading EST and any transaction which is recommended for either purchase or sale would then be completed on the next trading day with all trades priced at the average of the High and Low of the security on the day of the trade.

The AAS Stock portfolio consists of up to thirty (30) equally weighted positions; each security is selected from a master list of up to 1500 stocks utilizing both the AAS Rating Score and the AAS Buy Recommendation. This portfolio is best categorized as All-Cap and All-Style since the selections are not limited by either market capitalization or investment style. This is a long only portfolio. Assets are moved to cash or money market funds when acceptable investment options are not identified by the portfolio analytic. The AAS Stock portfolio is designed to be used either in conjunction with other AAS fund portfolios or to be used as the tactical portion of an overall asset allocation portfolio. This portfolio aims to out-perform the benchmark in positively trending markets.

Since the holdings in this portfolio are not limited by market cap or investment style, and are selected using the AAS Rating Score coupled with further technical analysis, subscribers utilizing the AAS Stock Portfolio can be exposed to a variety of sectors and segments at any given time. When a market segment turns negative, the AAS Stock portfolio has the ability of reducing exposure in that segment by moving the assets either into another sector, or into cash. The result is an agile portfolio that is quick to find winners, and even quicker to remove losers. Vito J. Racanelli’s article, Picking the Top Stockpickers, explains how the large Wall Street management firms use the same approach as AAS in the February 13, 2006 issue of Barron’s Online.

Please remember that past performance does not guarantee future results. For further information about how you can benefit from the analysis used to construct these portfolios, please view the AAS model portfolio performance handouts below or contact AAS at your convenience.