Core Plus Portfolio

Current as of June 30, 2010.

Composite Description Benchmark: Barclays Aggregate Index

Portfolio Description Portfolio Characteristics Portfolio Allocation

The objective of this strategy is income with a secondary objective of capital preservation. Capital will be positioned primarily in investment grade quality securities and will be diversified according to market opportunities. Volatility is managed with both a top down economic and bottom up security valuation analysis. Our seasoned managers constantly seek opportunities for improving income and risk adjusted returns through careful security selection, yield curve analysis, credit monitoring, bond swapping, and regular communications with advisors. AAM does not employ a market timing strategy, which can lead to increased volatility of the portfolio during extraordinary market conditions.

Portfolio Characteristics

	AAM Portfolio	Benchmark
Avg Credit Quality	Baa1/A-	AA1/AA2
Avg Coupon	6.53	4.46
Avg Yield to Worst	6.40	2.83
Avg Modified Duration*	4.63	4.30
Avg Maturity	18.72	6.47

Source: AAM and Barclays Capital Indices
*Preferred securities are not included in the duration calculation.

Asset Diversification

	AAM Portfolio	Barclays Aggregate Index
Agency	5%	12%
Corporate	50%	18%
Mortgage/ABS	25%	38%
Municipal	0%	0%
Treasury	5%	32%
Other*	15%	0%

AAM Portfolio

Barclays Aggregate Index

Actual weightings may vary per asset class. Rounding calculations may cause percentages to not sum to 100.

*Other categories may include municipal debt, equities, convertible debt, floating rate, inflation-linked, structured notes, derivative debt, funds and other securities which may be greater than 10% of the portfolio.

The Barclays Capital U.S. Aggregate Bond Index covers the USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, Government-Related, Corporate, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS sectors.

Composite Performance

Period (Pd)	Total Return (Gross of Fee %)	Total Return (Net of Fee %)	Benchmark Return*	No. of Portfolios (End of Pd)	Composite Dispersion
2003**	4.86%	4.63%	0.24%	NM	NM
2004	4.49%	4.05%	4.34%	NM	NM
2005	2.17%	1.62%	2.43%	12	0.63%
2006	5.82%	5.19%	4.33%	24	0.41%
2007	4.23%	3.88%	6.97%	37	0.17%
2008	-12.53%	-12.86%	5.24%	26	4.76%
2009	19.77%	19.17%	5.93%	15	1.52%
2010q1	5.08%	4.95%	1.78%	15	1.44%
2010q2	1.38%	1.23%	3.49%	15	1.55%
2010	6.53%	6.24%	5.33%	15	N/A

Results shown in US $. Gross returns are presented after all transaction costs, but before management fees. Net of fee results reflect the deduction of actual dollar-weighted fee rate paid by all accounts in the composite. The fees charged by AAM are described in Part II of its Form ADV. It is not possible to invest directly in an index. This managed discipline may invest in Registered Investment Company securities which may have additional fees and expenses.

*Benchmark is Barclays Capital U.S. Aggregate Bond Index
** Partial period return from 7/1/2003 to 12/31/2003.

Composite dispersion is the relative consistency of a firm's composite performance as measured against the individual portfolio returns within a composite.

Advisors Asset Management claims compliance with the Global Investment Performance Standards (GIPS®). Advisors Asset Management (“AAM”) is a registered broker dealer, member FINRA and SIPC, and SEC registered investment adviser. AAM offers individual account advisory services under the business name Advisors Asset Management and AAM’s Separately Managed Accounts (SMA) department. AAM also sponsors Unit Investment Trusts (“UITs”), which are excluded from the GIPS definition of the firm. To obtain a presentation that complies with the requirements of GIPS and/or a list and description of all firm composites, contact your financial professional. You may also obtain by logging onto our website at www.AAMmanagedmoney.com, or email SMAadministration@aam.us.com.

This report is for informational purposes only and subject to change. All content has been obtained from sources believed reliable; however, we do not guarantee its accuracy or completeness. Each account will be managed on an individual basis and will have variations. Investment return and principal value will fluctuate and there can be no assurance that the portfolio's objective will be achieved. Past performance does not guarantee comparable future results. Actual returns may be lower. Bonds are subject to a variety of risks, including interest rate, income, credit and inflation risk. Composite returns are presented Gross and Net of investment management fees, are calculated in U.S. Dollars, and assume reinvestment of dividends, interest, capital gains and other earnings.