We utilize the investment methodology of Litman/Gregory's Advisor Intelligence to construct Fergerson Financial model portfolio's. We have found this approach to be the most effective.

We utilize a carefully defined and tightly disciplined investment approach to construct and monitor Fergerson Financial Investment Strategies. There are four components:

Neutral Allocation- Our approach begins with a "neutral asset allocation." The neutral allocation reflects a static asset allocation determined to provide an optimum balance of risk and return for a hypothetical long-term investor who is not actively allocating assets.

Tactical Allocation Overlay- We will shift tactically from the neutral allocation when their fundamental research determines that sufficiently compelling opportunities exist. These "fat-pitch" opportunities usually occur when fear or greed drives prices of certain asset classes to unjustified extremes. The implementation of fat-pitch opportunities is executed with the intention of maintaining the same target risk posture of the neutral allocation. At the margin, asset allocation may also be influenced by long-term trends that they are highly confident will have a major impact on the upcoming investment climate. Asset Classes included in their Investment Strategies may include:

                     1. Investment-grade bonds

                     2. High-Yield Bonds (tactical only)

                     3. Large-cap U.S. stocks

                     4. Small-cap U.S. stocks

                     5. REITs (tactical only)

                     6. Foreign stock

Investment Selection- Our portfolios are invested in mutual funds selected on the basis of their in-depth due diligence on individual fund managers. Our qualitative edge in selecting managers comes from a refined research process that requires going far beyond performance analysis to assess the underlying factors that collectively constitute a manager's edge, and carefully evaluating whether the factors behind the success are likely to remain in place. We seek to select managers with a sustainable edge.

Monitoring and Rebalancing- On an ongoing basis,we will meet with managers and assess replacing managers where necessary. Portfolios will be monitored and rebalanced as our research necessitates change.