The World Freedom Select Investment Strategy

1. The World Freedom Select Investment Strategy

2. Overview Founded in 1974, J.W. Burns & Company is an SEC-registered investment advisory firm providing portfolio management to institutions and individuals. • Experience Average professional investment experience of over 25 years. • Stability Low turnover in investment professionals. Well-established regulatory compliance program. • Ingenuity Adding value by combining contemporary empirical research with traditional asset management methods. • Discipline Dedicated solely to asset management. Carefully managing risk while seeking long term capital appreciation. • Principled Bettering the world through investment in economic freedom.

3. Key Personnel James A. Sanderson, Senior Portfolio Manager • Began his career with Marine Midland Bank (now HSBC) in Buffalo, and later served as Vice President of Trust Investments for Marine Midland in Rochester. Chief Investment Officer of the Cornell University Endowment. Founded Sanderson Capital Management (later Sanderson & Stocker, Inc.). Holds a BA degree from Dartmouth College and an MBA in Finance from the Amos Tuck School at Dartmouth. James C. Burns, CFA, President, Chief Investment Officer • Chartered Financial Analyst (CFA), member of the Rochester Society of Security Analysts as well as the Syracuse Bond Club. Graduated from St. John Fisher College with a Bachelor of Arts in Communications/Journalism and a concentration in Political Science.

4. Philosophy wEconomic freedom correlates with superior equity returns wSpecific differences in economic freedom at the country-level offer significant investment opportunities wInternational investments complement a total portfolio by: reducing volatility potentially enhancing performance currency hedge opportunity

5. Economic Freedom Government policies affecting economic freedom account for variations in: wEquity market size as percentage of GDP (Li 2002, La Porta 1997) wGross Domestic Product (GDP) growth rates (Gwartney 2004) wInvestment and Productivity growth rates (Gwartney 2004) wSocio-economic well-being (Gwartney 2004) wEquity returns(Stocker 2005) Economic freedom exists when: “…citizens have secure rights to property, are free to engage in voluntary transactions (domestically and internationally), free of government control over contractual terms, and free from governmental expropriation (by confiscatory taxation or unanticipated inflation).” - Rabushka 1991

6. Why Economic Freedom is Important UNFREEFREE

7. Why Economic Freedom is Important, Cont. UNFREEFREE

8. UNFREEFREE Why Economic Freedom is Important, Cont.

9. Why Economic Freedom Pays wEquity valuation model influenced by change in economic freedom wFuture capital flows affected by change in economic freedom Changes in economic freedom are directly correlated with equity returns Equal Weighted Annualized Returns (US$) for Countries with Increasing or Decreasing Economic Freedom (1970 – 2000)* *Source: Equity Returns and Economic Freedom by Marshall Stocker, Cato Journal, Vol. 5, No.3, Fall 2005 The graphs of equity returns shown above represent a cross-country analysis of the average annualized return (in US$) of selected MSCI equity indices during a selected period and does not represent the performance of actual client accounts of Sanderson & Stocker. The performance data shown in the study does not reflect costs for trading, investment management, or other expenses that would be incurred with an actual client account. The broad market index returns included in the study will differ from returns in the World Freedom Select Strategy in which individual securities are selected. Furthermore, the World Freedom Select Strategy differs from the study in that the securities used in the WFS strategy are asset-weighted and the indices used in the study were equal-weighted. The study which Mr. Stocker conducted relating to this graph was funded by Sanderson & Stocker, Inc. Past results as shown in the study are no guarantee of future results. Performance results may be materially affected by market and economic conditions. Individual investor results will vary.

10. Why Economic Freedom Pays, Cont. Declining (Bear) Market Equal Weighted Annualized Returns (US$) for Countries with Increasing or Decreasing Economic Freedom (2000 - 2002)* * Please see previous page

11. Effects on Equity Markets • How Economic Freedom May Affect Stock Prices: • Size of Government: Shrinking government enterprises decreases financing and operating expenses to private firms, thus increasing equity values. • Legal Structure and Security of Property Rights: Changes which make property rights more secure and give equity holders better recourse against fraudulent securities transactions lower uncertainty risk to investors, thus decreasing the discount rate, and increasing equity valuations. • Access to Sound Money: Investments that create cash flows in a currency which experiences a decreased volatility in the rate of inflation will lower uncertainty risk to investors, thus decreasing the discount rate, and increasing equity valuations.   • Freedom to Trade Internationally: Trade liberalization, which increases a company’s ability to pursue international markets, increases expected cash flow and subsequently equity values. • Regulation of Credit, Labor, and Business: Lower regulation costs increase cash flows and subsequently equity values.

12. Strategy World Freedom Select strategy seeks to: wBlend philosophical principals with sound investment methods wInvest in countries which: havegovernments committed to furthering economic freedom have economic policies that promote socio-economic well-being deliver attractive returns with a low correlation to U.S. indices

13. Investment Process OVERVIEW wReview client objective and guidelines wQuantitative evaluation of cross-country differences in economic freedom wUtilization of over 40 discrete variables wQualitative study of policy environment & developments wIdentification of countries with increasing economic freedom wConstruct portfolio wOngoing review

14. Investment Selection NON - U.S. COUNTRIES (40+) ETF’S, ADR’S, CLOSED END FUNDS  FILTER FOR INCREASING ECONOMIC FREEDOM (using multi-variable model) TARGET UNIVERSE  SELECT WEIGHTINGS FOR COUNTRIES W/ INCREASING ECONOMIC FREEDOM  PORTFOLIOS

15. Quantitative Analysis wEstablishes recent level & direction of change of economic freedom wProvides timely measures wRequires proprietary collation of multiple discrete variables, such as: Business Regulations Administrative Conditions for New Businesses Credit Market Regulation Freedom to Trade Internationally Inflation Impartial Courts Tariff Rates Government consumption as % of GDP

16. Quantitative Analysis (Cont.) wAssesses recent policy changes which affect economic freedom wPredicts future policy changes which affect economic freedom wUtilizes wide variety of sources Public Policy Institutions Economic Policy Conferences Policy Staff of Foreign Governments International Periodicals Academic Journals Institutional Research (Goldman Sachs, Credit Suisse, UBS, Merrill Lynch, Morgan Stanley, etc.)

17. Sell Discipline and Risk Mgt. Decisions to sell triggered by: wPortfolio Profile Rebalance of the portfolio’s risk-reward profile wCountry Specific Negative change in economic freedom outlook Risk Management Diversification is accomplished by: wInvesting in a variety of countries and geographic regions wUtilization of multi-variable model wUtilization of broad equity indices where available to minimize idiosyncratic risk

18. WFS Fund – How it Works Portfolio Management As a registered investment advisor (and unlike a commingled mutual fund), J.W. Burns & Company manages each client’s account separately. By signing an investment management agreement, you give us a limited power of attorney to direct the investments in your account. In order to establish a client relationship with J.W. Burns & Company, you must maintain a Primary Account of at least $500,000. We charge a percentage fee based on the assets in the account. You are billed quarterly based on the account’s total market value as of the last day of the preceding quarter. The following annual percentages are charged: 1.00% of the first $5,000,000; plus 0.75% of the next $5,000,000; plus 0.50% of amounts over $10,000,000 Minimum Annual Fee: $10,000 Custody J.W. Burns & Company does not custody your assets. Assets are custodied at either Schwab Institutional1 or at a qualified bank custodian. To start your account, you may write a check and/or transfer securities to the custodian. We will help you in this process. Brokerage For accounts custodied at Schwab Institutional, J.W. Burns & Company executes clients’ trades through Schwab Institutional whose current commission schedule is $9.95 flat fee per tradee. For accounts custodied at a qualified bank custodian, we execute trades through various institutional brokerage firms. 1 J.W. Burns & Company is not affiliated with nor does it receive any compensation from Schwab Institutional. 2For accounts with assets over $1 million.

19. WFS Fund – Summary wSuccessful track record managing institutional assets wStable – strong compliance and backoffice wSeasoned, accessible investment team wFocused – dedicated to asset management wProgressive – combining traditional asset management withcontemporaryempirical research wPrincipled – bettering the world by investing in economic freedom

20. Important Disclosures Past performance may not be indicative of future results. The above individual account performance information reflects the reinvestment of dividends, and is net of applicable transaction fees, J.W. Burns & Company’s investment management fee and any other related account expenses. Account information has been compiled solely by J.W. Burns & Company, has not been independently verified, and does not reflect the impact of taxes on non-qualified accounts. In preparing this report, J.W. Burns & Company has relied upon information provided by the account custodian. Please remember to contact J.W. Burns & Company if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Please also advise us if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request. Historical performance results for investment indices and/or categories have been provided for general comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results. It should not be assumed that your account holdings correspond directly to any comparative indices.