Annual Performance Results

GIPS Verified by Ashland Partners through 09/30/05
 

SIA ASSET ALLOCATION COMPOSITE
PERFORMANCE HISTORY
NET OF FEES
FROM 12/31/01 to 12/31/07

 
**Please see the important performance information disclosed at the bottom of the page.**

SIA Asset Allocation Composite contains fully discretionary accounts holding a combination of U.S. and foreign based equity and bond closed-end mutual funds, and for comparison purposes is measured against the Dow Jones Industrial Average and the S&P 500 indices. The minimum account size for this composite is $30 thousand.

SIA DOMESTIC GROWTH COMPOSITE
PERFORMANCE HISTORY
NET OF FEES
FROM 12/31/01 to 12/31/07

**Please see the important performance information disclosed at the bottom of the page.**

SIA Domestic Growth Composite contains fully discretionary accounts holding U.S. equity based closed-end mutual fund, and for comparison purposes is measured against the Dow Jones Industrial Average and the S&P 500 indices. The minimum account size for this composite is $30 thousand.

SIA WORLD GROWTH COMPOSITE
PERFORMANCE HISTORY
NET OF FEES
FROM 12/31/01 to 12/31/07
 

**Please see the important performance information disclosed at the bottom of the page.**

SIA World Growth Composite contains fully discretionary accounts holding a combination of U.S. and foreign based closed-end mutual funds, and for comparison purposes is measured against the Dow Jones Industrial Average and the S&P 500 indices. The minimum account size for this composite is $30 thousand.

SIA FIXED INCOME COMPOSITE
PERFORMANCE HISTORY
NET OF FEES
FROM 12/31/01 to 12/31/07
 

**Please see the important performance information disclosed at the bottom of the page.**

SIA Fixed Income Composite contains fully discretionary accounts holding a combination of U.S. and foreign based closed-end bond mutual funds and for comparison purposes is measured against the Lehman Brothers Government Credit Bond Index. The minimum account size for this composite is $30 thousand.

SIA FOREIGN GROWTH COMPOSITE

PERFORMANCE HISTORY
NET OF FEES
FROM 12/31/01 to 12/31/07

**Please see the important performance information disclosed at the bottom of the page.**

SIA Foreign Growth Composite contains fully discretionary accounts holding foreign stock and bond closed-end mutual funds and for comparison purposes is measured against the S&P 500 Index. The minimum account size for this composite is $30 thousand.

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*Schultz Investment Advisors, Inc. has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). Disclosures are the representation of management and actual results have not all been examined by Ashland Partners & Company LLP. Performance results shown above are included as part of a complete disclosure presentation.

Schultz Investment Advisors, Inc. is a registered investment adviser. The firm maintains a complete list and description of composites, which is available upon request.

Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Non-fee-paying accounts are not included in these composites. Composite performance is presented net of foreign withholding taxes. Withholding taxes may vary according to the investor's domicile. Past performance is not indicative of future results.

The U.S. Dollar is the currency used to express performance. Returns are presented net of management fees and include the reinvestment of all income. A fee schedule is an integral part of a complete presentation and is described in Part II of the firm’s ADV, which is available upon request. A fee schedule is also available by clicking here.

Balanced portfolio segments are not included in these composites. Leverage is not used in these composites.

The Independent Verifier’s Report is an integral part of this presentation. Click here to view Report

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**Important performance information disclosure**

The performance results included in this presentation are total return, time-weighted rates of return, net of advisory fees expressed in U.S. dollars. All computations assume the reinvestment of all dividends, interest and capital gains. Performance results from January 1, 1999 through September 30, 2005 have been verified for compliance with GIPS standards by Ashland Partners & Company, LLC. Results from October 1, 2005 through December 31, 2007 have been generated by the Advent Axys reporting system, and while SIA's account management has been audited on a quarterly basis by an independent auditor, the performance reporting has not been verified by an independent third party hired specifically for that task. Results are based on fully discretionary accounts under management, including accounts no longer with the firm. Non-fee paying accounts are not included in the composite. Composite performance is presented net of foreign withholding taxes which may vary according to the investor’s domicile. Past performance is not indicative of future results.

Portfolios are actively managed by investing primarily in closed end mutual funds. Schultz Investment Advisors, Inc., (“SIA”) employs a variety of investment strategies to develop an individually managed account customized to each client’s time horizon, lifestyle and investment objectives. Within each strategy, SIA has the flexibility to accommodate client portfolio requirements. Accordingly, the performance shown is a composite of clients and therefore may not be indicative of future performance by any single client.

The investment strategies included in this presentation may acquire the same securities that are owned by other strategies if, in the Advisor’s opinion, the Advisor believes the investment is suitable for the particular strategy. Also, the Advisor may take concentrated positions in various securities across multiple strategies referenced above. In adverse market conditions, all or a portion of a client’s account may be invested in cash or cash items, or a different mix of closed-end funds from those set forth in other portfolios. The Advisor’s strategies are continually developing and evolving. While it is anticipated that the Advisor will invest primarily in closed-end funds that represent the investment strategy discussed above, the Advisor has broad and flexible investment authority. Therefore, there is no material limitation on the instruments or markets in which the Advisor may purchase or sell.

On December 28, 2005, SIA agreed to an Offer of Settlement in response to administrative proceedings initiated by the Securities and Exchange Commission (“Commission”) without admitting or denying the findings of the Commission. An Order (File No. 3-12136) instituting administrative cease-and-desist proceedings was initiated by the Commission in response to quarter-end transactions involving four closed-end mutual funds included in SIA’s composites over an eighteen month period (June 2002 - December 2003) which the Commission deemed to be “marking-the-close transactions.” Based on the Commission’s contention, performance would be lower than actually stated herein since the Commission believes that improper marking-the-closed trades materially increased the market value and performance of client accounts for the 18 month period in question. The Order includes recalculated performance numbers for SIA’s results for only one quarter of the time period noted. SIA believes that the closed end funds, unaffiliated advisors and investors who held these funds during the identified time period have not recalculated or added any disclosure to their performance numbers for the time period in question. SIA believes that given the limited re-calculation of one quarter identified in the order, essentially all investors holding these funds would have shared in any gains or losses attributed to the transactions identified in the order. Given these circumstances, SIA believes it should not be permissible for these funds and advisors to claim these performance numbers on which they also presumably bill any applicable advisory fees.

The performance results have been compared to the Dow Jones Industrial Average, S&P 500 including dividends, and Lehman Government Credit. SIA believes that the comparison of composite returns to the DJIA, S&P 500, and Lehman Government Credit or to any other market index is inappropriate due to the differences between SIA's strategies and the composition of the DJIA, S&P 500, and Lehman Government Credit Indices. SIA cautions that no index is directly comparable to SIA’s strategies.