Credit Opportunities Portfolio

Current as of June 30, 2010.

Composite Description Benchmark: Barclays High Yield US Corp

Portfolio Description Portfolio Characteristics Portfolio Allocation

The objective of this aggressive strategy is capital appreciation through credit opportunities. These opportunities will predominantly be found in below investment grade bonds. Allocation decisions and sector weightings are based on macroeconomics and eventdriven effects on individual securities. There are no restrictions on percentages of assets in any one asset class. AAM does not employ a market timing strategy, which can lead to increased volatility of the portfolio during extraordinary market conditions.

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Portfolio Characteristics

	AAM Portfolio	Benchmark
Avg Credit Quality	Caa1/CCC+	B1/B2
Avg Coupon	8.48	8.41
Avg Yield to Worst	13.54	9.16
Avg Modified Duration*	3.23	4.38
Avg Maturity	9.91	6.79

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

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Asset Diversification

	AAM Portfolio	Barclays High Yield US Corp Index
Agency	0%	0%
Corporate	75%	100%
Mortgage/ABS	20%	0%
Municipal	0%	0%
Treasury	0%	0%
Other*	5%	0%

AAM Portfolio

Barclays High Yield US Corp

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

*Other: Investable assets may include: municipal debt, equities, convertible debt, floating rate, inflation-linked, structured notes, derivative debt, funds, etc., which may be greater than 10% of the portfolio.

The Barclays Capital U.S. Corporate High-Yield Bond Index covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. The index excludes Emerging Markets debt.

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**	17.59%	17.24%	8.85%	NM	NM
2004	17.82%	17.11%	11.13%	NM	NM
2005	-6.57%	-7.40%	2.74%	NM	NM
2006	27.00%	25.52%	11.85%	6	2.07%
2007	-3.57%	-4.31%	1.87%	10	0.21%
2008	-35.74%	-36.20%	-26.16%	14	2.34%
2009	60.51%	59.21%	58.21%	7	3.16%
2010q1	10.03%	9.80%	4.62%	7	0.91%
2010q2	-5.07%	-5.27%	-0.11%	7	1.03%
2010	4.45%	4.01%	4.51%	7	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. Corporate High-Yield Bond Index
** Partial period return from 7/1/2003 to 12/31/2003.

From 7/1/03 through 3/1/05 the Credit Opportunities strategy was comprised of only the AAM proprietary funded account. During this period the account returned a net annualized return of 16.59%. The proprietary account exited the strategy on 7/31/09. The proprietary account, since inception through July 2009 experienced a net annual return of 3.37% juxtaposed to the negative returns that may have been experienced by client accounts formed after March 2005. Returns will vary depending on when the investor enters the strategy.

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.