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Income & Growth Composite

Leeb Capital Management Portfolio Characteristics as of 6/30/08

Employs a disciplined investment process which seeks to Portfolio Characteristics16 LCM S&P 500
produce superior returns over a complete market cycle.
Forward P/E Ratio 14.3 13.8
Provides service tailored to individual client requirements
Yield 4.9% 1.1%
as well as sector specific investment strategies.
Wtd Average Market Cap $63.0 bil $89.8 bil
Offers regular communications from our investment and client
service professionals regarding our current market outlook
and individual portfolio holdings.
Top Ten Equity Holdings15
Royal Dutch Shell 4.3%
Chevron Corporation 3.6 %
FPL Group 3.4%
Investment Philosophy and Approach Southern Company 3.3%
Income & Growth approach focuses primarily on: ConocoPhillips 3.0%
AT&T Inc. 2.8%
Securities that provide a combination of income and the AES Tr III 6.75% pfd. 2.5%
potential for long term capital appreciation. MDU Resources 2.5%
Healthy businesses on the basis of market share, leverage, Spectra Energy 2.4%
dividend coverage ratios, business stability and vulnerability GlaxoSmithKline 2.3%
to event risk or regulatory concerns.
Since Inception (11/30/99) - 6/30/08
Diversifying portfolios across sectors to limit overall portfolio Leeb I&G Composite, Gross of Fees +67.3%
volalitily. 1,600 Leeb I&G Composite, Net of Fees
Blended Benchmark* +53.6%
Businesses that have a steady dividend payout and are 1,400
positioned to increase the dividend over time.
High quality fixed income investments.

Investment Process
LCM believes that superior long-term results are best achieved 11/99 5/00 11/01 5/02 11/02 5/03 11/03 5/04 11/04 5/05 11/05 5/06 11/06 5/07 11/07 5/08
by selecting investments that, through a combination of balance
sheet strength and high payout potential, have an investment Annualized Returns as of 6/30/08
value that is not reflected in current prices and offer dividend 1 3 5 7 Since
year years years years Inception
Leeb I&G
-2.3% 7.0% 9.2% 5.4% 6.2%
Composite, Gross
Investment Leeb I&G -3.3% 4.3% 5.1%
5.9% 8.2%
Macro-Economic Universe Composite, Net
Sector Analysis 250-300 Blended -8.3% 4.4% 6.7% 3.4% 3.1%
Screening * 75% S&P 500, 25% DJ Lehman Bond Composite Index
List Fundamental Research
150 LCMs fundamental research process seeks to identify
Fundamental Stocks
Research companies with the following characteristics:
Business Fixed Income Company Management
Portfolio Analysis Analysis Analysis Strength
25-35 Portfolio
Positions Construction Dominant Diversified Overall financial Strategic vision
market position holdings strength
Companies Steady Above average
largely immune yield dividend Reputation
Strict sell discipline minimizes commissions and fees while to competitive paying ability
Preference Experience
maximizing the collection of dividends and interest. Positions threats
is given to
are sold when business fundamentals deteriorate, or when Barriers to investment Profitability Track record
price appreciation has unbalanced the overall portfolio. entry grade
BLIG 608
Leeb Capital Management (LCM) Performance Results: Income & Growth Composite
December 1, 1999 through June 30, 2008
Number Composite Assets Total
Total Return Total Return Blended of Composite Assets as % of Firm Assets
Year (Gross) (Net of Fees) Benchmark 4 Accounts Dispersion (US$ mil) Firm assets (US$ mil)

1999 11 2.7% 2.6% 4.3% <5 - $0.7 1.0% $67.0

2000 17.8% 16.7% -4.2% 6 N/A $3.4 3.9% $87.8
2001 -4.4% -5.4% -6.7% 7 N/A $5.1 5.4% $95.1
2002 -15.1% -15.9% -14.6% <5 N/A $2.0 3.0% $67.1
2003 17.4% 16.3% 22.4% <5 N/A $2.1 2.5% $83.8
2004 12.4% 11.3% 9.3% 13 N/A $9.5 8.7% $109.1
2005 8.2% 7.2% 4.3% 21 2.4% $14.0 9.4% $148.2
2006 15.6% 14.5% 12.8% 24 4.0% $16.8 11.3% $148.0
2007 7.0% 6.0% 5.9% 28 4.5% $21.3 13.6% $157.1
2008 11 -3.6% -4.1% -8.7% 26 - $17.8 10.3% $172.7

Leeb Capital Management (LCM) has prepared and presented this report in compliance with the Global Investment
Performance Standards (GIPS).
1.) Leeb Capital Management ("LCM") is a registered investment advisor with the Securities Exchange Commission. Prior to 2001,
the firm was doing business as Money Growth Institute. Leeb Capital Management provides equity money management to retail
and institutional investors. LCMs Income & Growth Composite (Composite) represents fee-paying accounts with assets
greater than $250,000 that are managed in accordance with LCM's Income & Growth investment strategy. LCM's Income &
Growth Composite combines income generating securities, including common equity, preferred stocks, convertible bonds, and
fixed income investments. Portfolios are managed to generate current income and with the objective of preserving capital.
Portfolios are subject to minimal security turnover. Objectives of the portfolio are to minimize: inflation risk through current
income, credit risk by focusing the majority of holdings in investment grade securities and market risk by diversifying between
various income sectors i.e. REITs, utilities and preferred stocks. The composite contains both taxable and tax-exempt portfolios.
2.) The Composite was created as of November 30, 1999 which coincides with the inception of this strategy. A complete list and
description of LCMs composites is available upon request. For the periods from April 1, 1999 through September 30, 2007, LCM
has been verified by Ashland Partners and Company LLP. For the period October 1, 2007 through June 30, 2008, LCM has been
verified by Beacon Verification Services. A copy of the verification report is available upon request. Additional information
regarding the firm's policies and procedures for calculating and reporting performance results is also available upon request.
3.) Prior to July 1, 2006 the Composite was known as the Pure Income Composite.
4.) The composite returns are compared to a custom blended benchmark. This static blended benchmark consists of 75% the S&P
500 Total Return Index and of 25% DJ Lehman Bond Composite Index. Benchmarks are selected based upon similarity to the
investment style of our composites and accepted norms within the industry.
5.) Valuations are computed and performance is reported in U.S. dollars.
6.) Composite returns are calculated using the Modified Dietz formula. This methodology has been applied consistently for all peri-
ods. Other methods may produce different results.
7.) Composite returns are presented gross and net of management fees and include the reinvestment of all dividends and income.
All returns are gross of withholding taxes. Gross returns will be reduced by investment advisory fees and other expenses that
may be incurred in the management of the account. Net of fee performance was calculated using the highest management fee
charged to clients in accordance with LCMs Income & Growth strategy fee schedule which is stated below. LCMs advisory fee
schedule is the following: 1.0% on all assets
8.) Quarterly and annual rates of return for the portfolio are computed by compounding the monthly rates of return over the appli-
cable number of months.
9.) LCM utilizes neither leverage nor derivative instruments as a material component of its investment strategies.
10.) Composite dispersion is calculated using the asset-weighted standard deviation of all portfolios that were included in the com-
posite for the entire year. N/A - Information that is not statistically significant due to an insufficient number of portfolios in the
composite for the entire year.
11.) Performance periods of less then 12 months are not annualized. Year 1999 results are for the period of December 1, 1999 through
December 31, 1999. Year 2008 results are for the period of January 1, 2008 through June 30, 2008.
12.) LCM defines a significant cash flow as an external flow of cash or securities (capital additions or withdrawals) that is client initi-
ated. An external flow of at least 10% of the portfolio market value is considered significant. A significant cash flow into or out
of an account is considered a temporary loss of discretion and as such, an account would be removed from the composite at the
end of the month before the cash flow arises. An account which is removed from the composite due to the occurrence of a sig-
nificant cash flow is to be included back in the composite once the account returns to fully-invested status. Additional informa-
tion regarding the treatment of significant cash flows is available upon request.
13.) Actual performance of client accounts may differ substantially.
14.) Past performance is not indicative of future results.
15.) The presentation of LCM's Top Ten Equity Holdings is based on a model portfolio for informational purposes only and is shown
as supplemental information to this full disclosure presentation, and should not be deemed as a recommendation to trade the
securities listed.
16.) The presentation of LCM's Portfolio Characteristics is based on a model portfolio for informational purposes only and is shown
as supplemental information to this full disclosure presentation.
Index returns shown in the performance comparisons where provided by Standard & Poor's, Dow Jones, Lehman Brothers, and
Bloomberg. All of this information comes from sources believed by LCM to be reliable. LCM, however, cannot guarantee the accu-
racy of the comparative returns and therefore shall not be held liable for inaccurate information obtained from data providers.