HYPOTHETICAL PERFORMANCE
FEE BASED PERFORMANCE MODEL-$10,000 Investment
(Hypothetical performance 1/2/87 - 4/26/02
Actual performance 4/27/02 to present)
* Fund will be identified when it is sold.
** The Advisory fee is tied directly to performance. If we do not exceed a specific benchmark, which is the S&P 500 Index, we do not receive an Advisory fee. Our Advisory fee is 40% of all gains that are in excess of the gains of the S&P 500 Index multiplied by the minimum investment amount of $5,000.
The formula used to determine the Advisory fee is given below.
Sector fund Profit/Loss = Y
S&P 500 Profit/Loss = X
Advisory Fee = .4(Y - X)$5,000
The Advisory fee is due within thirty days after the sell signal and the amount will be displayed on the signal page on the day following the detection of the sell signal. Failure to pay the Advisory fee within the allocated time period will immediately result in the discontinuance of service.
The Fee Based Performance Model is an updated version of our original computerized model that we have used for the past fifteen years. The updates improve the overall model performance through a refinement of the conditions related to (1)entering the market, (2)fund selection and (3)exiting the market. The Advisory Fee,** assessed as a result of participating in this service, is tied directly to performance.
