Composite Composition Detail

Selection Criteria

Managed portfolios are included in relevant composites when Bernardi Securities, Inc. or Bernardi Asset Management LLC is granted full discretionary management, client objective is consistent to that of a composite, and no management restrictions are placed on the portfolio.

Calculation Method

Returns are calculated using the Advent Axys portfolio accounting and performance measurement system—one of the leading programs used by the Investment Management industry. This program is compliance with current GIPS/AIMR presentation standards.

Remuneration Policy

Portfolios of Bernardi Asset Management LLC are managed on a fee basis with a nominal per ticket charge of $12. Management fees range from 0.20% to 0.45% annually, billed quarterly, depending on the type of services requested. Portfolios managed by Bernardi Securities, Inc. are charged on a per transaction basis. Mark up/mark down fees averaged approximately 0.16% per trade in calendar year 2010. Performance returns are net of all cost.

Annualization Definition

Returns are calculated on a monthly basis and displayed on a one, three, five, seven, and from inception basis. Annualized returns indicate the average annual return over the from-inception time period. The formula is as follows: (((1 + Time Weighted Return/100)^periods in year)-1))*100.

Call Effect on Yield

Callable bonds represent potential reinvestment risk; that is, if a high yield bond in a portfolio or composite is called in a low interest rate enviornment, the proceeds of the called bond will most likely be reinvested at a lower yield.