SBI Mutual Fund Portfolios

Date Updated: 03/31/2010

Investment Overview

SBI Mutual Fund Portfolios use our proprietary Strategy Based Investing (SBI) methodology to identify successful active managers who are pursuing successful strategies. Our three SBI Portfolios are invested in varying amounts of US equity and international equity funds. We make no attempt to time global equity markets and use the investments in US and global markets to create offerings with differing risk profiles.

The portfolio is carefully monitored to ensure that funds continue to meet SBI criteria,with most trading occurring at month end. To the greatest extent possible, we avoid investing in funds with front-end load charges, funds with substantial back-end loads, and funds that we cannot easily buy and sell. We do not invest in index, overlay, asset allocation, or target date funds.

Investment Process

All of the SBI Mutual Fund Portfolios are managed using the same fundamental process, which is outlined below. The only difference between the portfolios are whether US, international, or both kinds of funds are selected.

STEP 1

	Strategy Optimization	Using AthenaInvest's proprietary algorithm, equity allocations are generated based on long-term strategy risk and return.

STEP 2

	Diamond Rating	We select only mutual funds that are designated DR5, which signifies the most strategy consistent, best idea-focused funds within a strategy.

STEP 3

	Buy Discipline	Specific DR5 funds selected based on secondary criteria such as AUM,number of securities held, and expense structure among others.

STEP 4

	Sell Discipline	A fund is sold when its Diamond Rating drops to DR3 or below. No other criteria, including performance, is considered in this decision.

Fund Portfolio Comparison

The table below provides a high-level comparison of the SBI Mutual Fund Portfolios.

	SBI US EQUITY PORTFOLIO	SBI INT'L EQUITY PORTFOLIO	SBI GLOBAL EQUITY PORTFOLIO

Asset Allocation

Investment Objective	Aggressive Growth	Aggressive Growth	Capital Appreciation

Relative Risk*	Moderate to High	High	Moderate to High

Click for Details...	View Portfolio	View Portfolio	View Portfolio

* The relative risk profile shows our assessment of the potential volatility of the SBI Portfolios relative to one another and should not be used to compare the Portfolios to other types of investments.