CLS Investment Methodology Components

1
Market Overview and StrategySecond Quarter 2006

2
Key Investment Themes During The Second Quarter
of 2006

• Equities
• Value outperformed growth.
• Large caps outperformed small and mid caps.
• Emerging Markets underperformed the U.S. equity
  markets.
• Bonds
• Corporate bonds outperformed U.S. Treasuries
  across all maturities.
• Short maturities outperformed longer maturities.

3
Standard and Poors 500 Index - The Past Three
Years
Correction within an uptrend.???
Correction within an uptrend.
Correction within an uptrend.
Correction within an uptrend.
The Standard and Poors 500 Index represents an
unmanaged groups of equities considered to be
representative of U.S. stocks in general.
You cannot invest directly in an index. A line
has been added to illustrate a potential trend.
Past performance is not indicative of future
results.
4
Actual headlines near the October 2005
intermediate-term market low.
5
Recent Headlines In June, 2006
Past performance is not necessarily indicative
of future results.
6
MSCI EAFE International Index - The Past Three
Years
The MSCI EAFE Index represents an unmanaged
groups of equities considered to be
representative of international stocks in
general. You cannot invest directly in an index.
A line has been added to illustrate a potential
trend. Past performance is not indicative of
future results.
7
What If Global Economic Growth Is Slowing Slowing
For REAL?

• The U.S. interest rate cycle could be close to a
  peak.
• Example of a potential beneficiary Intermediate
  maturity bonds.
• Cyclical investments could under-perform.
• Examples of potential laggards Basic materials,
  emerging markets, small companies, industrials.
• If interest rates start to ease and growth slows,
  the U.S. dollar could fall.
• Examples of potential leaders Large companies
  doing business globally, developed international
  equities, healthcare, gold.

8
Change In Dow Jones Industrials Mid Term
Election Year Low To High The Following Year
Period Return Period Return Period Return
1914-1915 87.6 1946-1947 14.5 1978-1979 21.0
1918-1919 63.0 1950-1951 40.4 1982-1983 65.7
1922-1923 34.1 1954-1955 74.5 1986-1987 81.2
1926-1927 49.7 1958-1959 55.5 1990-1991 34.0
1930-1931 23.4 1962-1963 43.2 1994-1995 45.2
1934-1935 73.6 1966- 1967 26.7 1998-1999 52.5
1938-1939 57.6 1970-1971 50.6 2002-2003 43.5
1942-1943 56.9 1974-1975 52.7 2006-2007 ?????
Source Stock Traders Almanac 2006, Jeffrey A.
Hirsch publisher, page 78 Dow Jones Industrial
Average is a price-weighted average of 30
actively traded Blue Chip, primarily industrial
stocks. Past performance is not indicative of
future results.
9
Market Index Performance Benchmark Returns By
Stock To Bond Ratio June 30, 2006
Stock To Bond Ratio Year To Date One Year
100 Equity / 0 Bonds 2.71 8.63
90 Equity / 10 Bonds 2.50 7.87
80 Equity / 20 Bonds 2.30 7.12
70 Equity / 30 Bonds 2.09 6.36
60 Equity / 40 Bonds 1.89 5.71
50 Equity / 50 Bonds 1.68 4.85
40 Equity / 60 Bonds 1.47 4.09
30 Equity / 70 Bonds 1.27 3.34
Data Source Morningstar Principia Pro The Equity
positions shown above are represented by the SP
500 Index. The Standard and Poors 500 Index
represents an unmanaged group of equities and is
considered to be representative of U.S. stocks in
general. The Bond positions shown above are
represented by The Lehman Brothers 1-5 Year
Government Credit Index. The Lehman Brothers 1-5
Year Government Credit Index is considered to be
representative of the short to intermediate bonds
in general. You cannot invest directly in an
index. All returns greater than one year
represent annualized rates of return. Past
performance is not necessarily indicative of
future results.
10

Thank You!
The views expressed herein are exclusively those
of CLS Investment Firm, LLC as of July 13, 2006
and are not meant as investment advice, and are
subject to change. No part of this report may be
reproduced in any manner without the written
permission of CLS Investment Firm, LLC.
Information contained herein is derived from
sources we believed to be reliable, however, we
do no represent that this information is complete
or accurate and it should not be relied upon as
such. All opinions expressed herein are subject
to change without notice. This information is
prepared for general information only. It does
not have regard to the specific investment
objectives, financial situation and the
particular needs of any specific person who may
receive this report. There is no guarantee that
any investment program or account will be
profitable or will not incur loss. Investors
should seek financial advice regarding the
appropriateness of investing in any security of
investment strategies discussed or recommended in
this report and should understand that statements
regarding future prospects may not be realized.
Investors should note that security values may
fluctuate and that each securitys price or value
may rise or fall. Accordingly, investors may
receive back less than originally invested. Past
performance is not necessarily a guide to future
performance. Individual client accounts may vary.
The volatility of the indices may be materially
different from the individual performance
attained by a specific investor. In addition,
portfolio holdings may differ significantly from
the securities that comprise the indices. The
indices have not been selected to represent an
appropriate benchmark to compare an investors
performance, but rather are disclosed to allow
for comparison of the investors performance to
that of certain well-known and widely recognized
indices. You cannot invest directly in an index.