Separately Managed Accounts (SMAs)

SMA Account Information / Print Version

Peroni Method

Current as of June 30, 2010.

Composite Description

Benchmark: Russell 3000 Index
S&P 500 Index
Equity Exposure: Multi-Cap Blend

Portfolio Description Portfolio Characteristics Asset Allocation Composite Performance

The objective of this technical strategy is capital appreciation. Portfolios are managed based on the Peroni Method; the proprietary, technically based research strategy of the portfolio manager, Eugene E. Peroni, Jr. Utilizing a multi-cap equity strategy, securities may range from value to growth as market conditions change or are anticipated. Cash levels generally do not exceed 20%. Appropriate benchmarks for the composite would be the Russell 3000 Index and the S&P 500 Index.

Composite Characteristics

AAM Portfolio Russell 3000 Index S&P 500 Index
Price/Earnings Ratio 18.2 15.8 15.8
Price/Book Ratio 4.3 3.3 3.5
Price/Sales Ratio 3.4 17.0 2.3
Standard Deviation 23.32 22.56 21.85

Source: Informa Investment Solutions. 3 year data for risk calculations.
* FactSet Research Systems Inc.

Sector Allocations

AAM Portfolio1 Russell 3000 Index2 S&P 500 Index3
Consumer Discretionary 10.0% 10.9% 10.1%
Consumer Staples 5.9% 9.7% 11.4%
Energy 13.7% 10.0% 10.7%
Financials 4.1% 17.1% 16.3%
Health Care 12.6% 11.9% 11.8%
Industrials 15.4% 11.1% 10.3%
Information Technology 17.3% 18.6% 19.1%
Materials 14.9% 3.9% 3.5%
Telecommunications 0.00% 2.6% 2.9%
Utilities 0.00% 3.7% 3.7%
Cash 6.1% 0.0% 0.0%

1 Source: Advisors Asset Management Inc.
2 Source: Informa Investment Solutions
3 Source: FactSet Research Systems Inc.
The S&P 500 is a commonly used gauge of the U.S. equities market and includes 500 leading companies in leading industries in the U.S. economy. The Index focuses on the large cap segment of the market, with approximately 75% coverage of U.S. equities. The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market.

Composite Performace

Period Composite (Net of Fee) Benchmark Return* Russell 3000 Index Benchmark Return* S&P500 Index Number of Portfolios at Period End Composite Dispersion (Std Dev)
2003* 24.50% 24.97% 22.76% 6 0.00%
2004 20.17% 11.95% 10.87% 18 1.30%
2005 8.46% 6.13% 4.89% 72 0.67%
2006 10.07% 15.72% 15.78% 79 0.82%
2007 16.46% 5.15% 5.49% 75 0.67%
2008 -40.27% -37.31% -37.00% 79 0.46%
2009 25.90% 28.34% 26.46% 70 0.83%
2010q1 0.95% 5.94% 5.39% 67 0.09%
2010q2 -7.80% -11.32% -11.43% 67 0.20%
2010 -6.92% -6.05% -6.65% 67 N/A

Results shown in US $. Benchmarks are the Russell 3000 Index—Total Return and the S&P 500 Index—Total Return. 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.

*Partial period return from 5/1/2003 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.

© 2010 Advisors Asset Management, All rights reserved.

Advisors Asset Management is a  broker/dealer,
FINRA/ SIPC member and SEC Registered Investment Advisor.

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Monument, CO 80132
(888) 883-2663