THE EMERALD ALLOCATION STRATEGIES (EAS)

The Emerald Allocation Strategies are a series of asset allocation portfolios focused on achieving investment results in real, absolute terms. They offer a refreshing alternative to traditional stock-bond investment approaches, in the pursuit of investment and lifestyle objectives. Through EAS, the strategist team at Emerald responds to the most important questions investors and advisors have about their portfolios:

How Can I Invest in a Way That.		How EAS Provides Solutions.
* Allows me to pursue solid long-term returns?	→	* We use a diversified, multi-manager approach
* May reduce the impact of market forces on my results?	→	* We seek performance independent of market conditions
* Separates me from the "same old-same old" investment approaches?	→	* We represent an alternative to classic stock and bond portfolios
* Accesses professional asset allocation from a qualified manager?	→	* We are an industry leader in managing portfolios of this type
* Offers the comfort of investing in SEC-regulated securities?	→	* We use no-load or load-waived mutual funds (+see note below)
* Grants me fast access to my assets?	→	* Our portfolios offer daily liquidity
* Keeps my investment costs reasonable?	→	* We are cost and tax-sensitive (but net performance is the key)

Securities chosen for the EAS Progam are based on Emerald Asset Advisors' diligent research in three distinct investment themes. Click on a circle to learn more about a strategy.

Different combinations of these three themes can be allocated and balanced to create any number of diversified portfolios

"Avoiding trouble is more important than finding that next big winner" - Michael Kahn

"There are two requirements for success on Wall Street. First, you have to think correctly;
secondly, you have to think independently" - Benjamin Graham

+ Some offerings of the strategy may use additional types of securities such as ETFs, stocks, options or other completion strategies

HYBRID: styles that exhibit low volatility and low correlation to the broad markets.

Hybrid Investing is similar to the multi-manager approach used by absolute return hedge funds-of-funds. The difference is that we use mutual funds and other traditional, highly-liquid investment vehicles that employ hedge fund-like strategies. By doing this, we hope to deliver to the investor a competitive risk-reward profile as compared to absolute return hedge funds as well as traditional fixed income strategies.

CONCENTRATED EQUITY: equity styles that pursue long-term growth of capital using a very limited number of holdings (typically 30 or less).

The managers chosen are usually focused on finding companies they can own a piece of for a long time. They tend to favor conducting thorough company research over analysis of short-term market factors. While each manager's relatively small number of holdings may produce greater short-term volatility than a broad-based strategy, we attempt to lower portfolio volatility by diversifying amongst a group of managers. We may also buy short-index securities as a hedge in perceived periods of high market risk.

GLOBAL CYCLE: securities that seek to capitalize on long-term trends identified by Emerald's research team.

We believe some of these themes will take place over many years, even decades. This strategy often involves investing in areas of the markets that exhibit high short-term volatility. While the themes are expected to play out a long period, we do recognize that it may be helpful to increase or decrease our position in a particular theme over time. We may also buy short-index securities as a hedge in perceived periods of high market risk.

MOST CONSERVATIVE .............................................................. MOST AGGRESSIVE

HYBRID	CONCENTRATED EQUITY	GLOBAL CYCLE
Investment Time Horizon: 3 Years or more	Investment Time Horizon: 5 Years or more	Investment Time Horizon: 10 Years or more
Current Investment Themes Include:	Current Investment Themes Include:	Current Investment Themes Include:
Long-Short Equity Market Neutral Equity Merger Arbitrage Convertible Securities	Contrarian Value High ROE Growth Sector Rotation Multi-Cap Investing	India Equity China Equity Alternative Energy Homeland Security
Performance Benchmark: DJ Conservative Index	Performance Benchmark: Russell 3000 Index	Performance Benchmark: MSCI World Index

Emerald Allocation Strategies (EAS) are multiple style vehicles, which utilize various proprietary asset allocation and investment management processes. EAS investments are not a pooled vehicle. Accounts are individually managed for each investor. As with any investment situation, past performance is no guarantee of future performance. Each strategy has unique risk characteristics and there is potential for loss and that the goals of the strategy will not be met.