Compak Asset Management aspires to enhance the life experience

of our clients by providing customized solutions for their financial goals.

 Dear Investor,

Thank you for your interest in Compak Asset Management. We have

developed this brochure to provide you with some basic information
about Compak and how we can help you realize your financial objectives.
Compak I founded the company on four basic tenets. First, success can only be
Capabilities: achieved by being fully committed to client goals. Second, there must be
an unrelenting focus on research. Third, investment solutions have to
Your one-stop be customized to individual needs. Lastly, only a proactive approach
integrated wealth can keep investments on track.

management solution. Our mission is to live up to these principles and in so doing, earn our
client’s trust and confidence by helping them achieve their financial
Access to proactive goals. All activities of the firm and actions of our staff are guided by the
money management, desire to add value to our clients.

comprehensive financial In today’s complex financial environment, even sophisticated investors

find it difficult to monitor changing trends and investment choices. The
planning, no-load last few years have challenged the fundamentals of investing. Unlike
mutual funds, bond previous decades, when investors could passively invest and reap benefits,
the future financial world requires greater skill, more involvement and
ladders, life insurance, better selection of investment alternatives.
annuities, estate At Compak Asset Management we are committed to helping you build a
planning , and strong financial future. Whether you are planning for retirement, investing
for your child’s education or trying to manage your investments profitably,
long-term care you can benefit from the skills and commitment of all Compak advisors
insurance programs. and my experience of over 29 years.

I again thank you for contacting us and I look forward to welcoming you
as a client and the challenge of satisfying your financial needs.

Sincerely,

Moeez Ansari
President

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The Compak Integrated Wealth Management Process

Compak Asset Management is an SEC-registered investment advisor

dedicated to providing comprehensive and customized wealth management
solutions to its clients. Compak Asset Management’s mission statement
is to “enhance the life experience of its clients by providing customized
solutions for their financial needs”. Compak’s philosophy is to deliver
world-class wealth management, with proactive asset management as the
underlying foundation. The Compak process begins with understanding
each client’s needs and developing an appropriate risk profile. The profile
is used to create a basic asset allocation and to select an appropriate
investment strategy.

Once a client has a sound asset management strategy, the focus moves
to Personal Financial Planning. Compak employs a team of Certified
Financial Planners (CFP®) that can provide a comprehensive plan. These
financial plans include retirement planning, tax analysis, net-worth
projections, personal risk review, and estate planning along with
Monte Carlo probability analysis.

While prudent asset management is vital and financial planning plays an

important role, these activities have to be integrated to align financial
resources with life goals. Compak has relationships with leading estate
planning attorneys and accountants for coordination and seamless
delivery of world-class wealth management solutions.

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 The Compak Research Process
Compak’s portfolio management philosophy is to provide the client with
an attractive risk adjusted return and reduce the harsh impact of market
volatility. Our research results are obtained from a combination of
fundamental research, fund research, and technical analysis.
Fundamental Research involves a top-down analysis of global economic
and market conditions.
Mutual Fund Research is required to determine the best mutual funds
to invest in each asset class.

Compak Technical Analysis is the method of evaluating securities by analyzing

statistics generated by market activity, past prices, and volume.
Capabilities:
We construct a diverse portfolio with numerous asset classes, and then
Proactive asset invest client assets into the best-of-breed mutual funds in each asset
class. Compak uses multiple managers,
management strateg y. multiple styles and multiple asset
classes to construct our clients’
Through the use portfolios. Our attempt is to not
only deliver maximum benefits
of technical and
of sector diversification but also
fundamental research, deliver the benefit of superior
asset selection by some of the
and mutual fund world’s best and brightest mutual
fund managers.
analysis, the firm
operates with The Compak Money
“Buy Triggers” and Management Implementation
“Exit Strategies”. The mutual funds selected are segmented into core, strategic or tactical
allocations. This allocation is determined by the holding period
appropriate for the particular asset class and mutual fund. A time-tiered
segmentation and constant monitoring of each asset holding is the heart
of a proactive investment strategy.
Core Asset Allocation is the basic building block that accounts
for 30% to 60% of the portfolio. These funds usually display strong
and consistent performance and are expected to be held for
the long term.
Strategic Asset Allocation is used to gain access to
areas of the market that the investment team believes
to offer an attractive risk-return proposition. These are
market segments that provide good valuations or strong
momentum. A portfolio could carry 20% to 40% in such
strategic funds.
Tactical Asset Allocation is a unique Compak strategy
to increase and decrease the beta (market risk) in a portfolio.
Tactical allocations could range from 5% to 20% in the form
of cash or indexed funds. If the managers feel that the market
outlook is negative, mutual funds that track the inverse returns
may be used to hedge (reduce risk) the portfolio.

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The Compak Process

• Risk profile determination through

Identifying Your
Investment Profile
interaction with Compak advisor.
Factors to consider: time frame,
personality, income, and asset base.
• Meet with Moe Ansari to finalize
investment goals, review investment
alternatives and determine initial
asset allocation model.

Small Value International

36% 24%
Initial Asset
Allocation Model Bonds
Large Growth Small Growth 15%
9% Large Value 11%
5%

• Some of Best Performing Mutual Funds

• Bond Ladder
• Fixed Annuities
Product & Asset • Variable Annuities
Selection • Life Insurance
• Long-Term Care
• Futures and Options
• Estate Planning

• Asset Allocation and Periodic

Proactive Portfolio Re-Balancing
Management & • Technical Analysis for Buy Triggers
Performance and Exit Strategies

Review • Fundamental and Geo-Political

Analytical Framework

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 Compak’s Money Ma
The first step in developing a wealth management solution is to understand
one’s financial profile. Your financial profile is a function of your propensity
for risk, income, assets, liabilities, investment horizon, and personality. With
Compak, you will experience a proactive and professional approach for
determining your needs, recommending the right solutions, and managing your
investment portfolio:

Compak The Initial Contact

Capabilities: Planning starts with listening. To develop a plan, it is necessary to develop a true
rapport between a client and a trusted advisor. Compak’s advisors are trained
Client’s interest is experts at listening carefully to understand you and your financial situation. At
Compak we would like to fully understand your aspirations and then work with
the #1 Guiding you to select the most appropriate asset mix and financial solutions.

Principle. Fee based

Your Profile
on assets under In order to develop a portfolio that fits your needs and matches your profile we
will ask a number of questions relating to your investment horizon, liquidity needs,
management. income needs, income trends, dependents, and previous investment experience.
This dialogue should help us to understand if you are looking for Capital
Preservation, Income, Income & Growth, Growth or Aggressive Growth.

Integrated Wealth Management Components

There are many components to a wealth management solution. Our advisors
and staff can ascertain how your financial goals interact and provide you with an
integrated solution. Our product offering is designed to meet a diverse set of needs
including investment management, planning for retirement, saving for education,
transfer and protection of wealth, risk mitigation, and estate planning.
Asset Management: Preservation of capital and growth of financial assets is
an essential and vital part of any successful wealth management plan. Asset
management is Compak’s core competence and we bring all our expertise and
experience in the financial markets in managing your assets. The following
analytical tools are used by Compak to strive for superior risk adjusted returns.
Asset Allocation is developed using your responses in the financial profile
questionnaire to develop a model that provides a balance between various asset
classes. This strategy is based on the basic principal that not all investments
behave the same way at the same time because different economies, industries,
and companies are usually at different stages of global business cycles. Asset
allocation provides a basic hedge against over-concentration of investments in
a particular class or sector like bonds or technology stocks.
For the asset allocation process we use the efficient frontier model bases on
“Modern Portfolio Theory” introduced by Harry Markowitz with his paper
“Portfolio Selection” which appeared in the 1952 Journal of Finance. Thirty-eight
years later, he shared a Nobel Prize with Merton Miller and William Sharpe for
what has become a broad theory for portfolio selection.

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nagement Process
Fundamental Analysis involves a top-down analysis of global economic and
market conditions. Apart from in-house research, Compak utilizes the world-class
research resources of Russell for insight into markets. Fundamental analysis
examines factors such as GDP growth, inflation, capital flows, interest rates,
currency movements, etc., to determine the risks and return opportunities
of different sectors of the global economy. Fundamental research is used to
determine the appropriate level of exposure to the markets and the sector
diversification, both from an industry and geographical perspective.
Fund Research is required to determine the best mutual funds to invest in Compak
each asset class. Our fund selection model is based on a combination of Alpha
generation capability, maximum drawdown analysis, standard deviation study, Capabilities:
and the momentum of net returns. We attempt to employ the most consistent
and talented managers to work for our client’s advantage
Your account assets
Technical Analysis models are used to determine the trends in a particular
market, asset class, and instrument. We believe that market trends can be are protected by
intelligently used to determine entry and exit points for investments. During the
past quarter century, Moeez Ansari worked with numerous technical indicators. unlimited asset
He has selected technical studies based on their appropriateness for a particular
market or index. The technical tool-kit includes Elliott Wave Analysis, MACD, 20, protection insurance.
50 & 200 Days Moving Averages, Momentum, RSI, Oscillators, etc.
Assets up to $500,000
are insured by SIPC
and Fidelity provides
additional coverage
through a private
insurance company.

Implementation & Management

Compak Asset Management uses Fidelity Institutional Brokerage Group for clearing and
custody of assets. The firm benefits from an online Fidelity trading platform and
sophisticated modeling solutions that allow quick and timely re-balancing of portfolios.
Compak Asset Management can provide you access to expert financial specialists
in each sphere to provide a world-class integrated wealth management solution.

Feedback & Reviews

One of the most important aspects of Compak’s investment strategy is to ensure
that our clients are fully aware of all developments in their account and that
there is an open channel of communication. Our clients have 24/7 internet access
to their accounts. We also encourage our clients to undertake frequent reviews.
The typical client review meeting at Compak includes investment performance,
asset suitability analysis, and discussion of future strategy. These meetings also
allow us to note the changes in our client’s profile, circumstances or objectives,
and the portfolios can be re-balanced accordingly.

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 Financial Planning
In addition to sound investment strategy, our clients are faced with other
financial challenges that require specific steps to be taken for achieve-
ment of personal goals. We would like our clients to have access to some
of the best advice, ideas, and products.

Compak is proud to offer its clients comprehensive personal financial

planning by our team of Certified Financial Planners (CFP®). While most
firms charge a large sum of money for similar plans, we offer this service
at no additional cost. We believe that as our client, you deserve the best
Compak solution we can provide, and we believe creating and implementing a
Capabilities: comprehensive plan will add tremendous value.

Financial planning is a usually an enlightening process. First, you meet

Advanced trading with your Compak Advisor and our CFP® to identify and prioritize
systems for quick your life goals. We will determine what is reasonable and realistic
for your circumstances. The Advisor and CFP® will gather data, review
and efficient your current cash flow, insurance policies, and net worth, and then
portfolio rebalancing assess your investments, retirement needs, taxes, and estate plan. The
Financial Plan addresses the following issues:
and execution of
• Net Worth Planning
“Buy Triggers” and
• Cash Flow Analysis
“Exit Strategies”.
• Income Tax Planning

• Retirement Planning

• Probability Study (Monte Carlo)

• Estate Planning

With your goals and resources in mind, the financial planner can design
a personalized financial approach that can best help you reach your
goals. Once a comprehensive plan is developed your Compak Advisor
will work with you to
implement appropriate
strategies. This may
include building an
emergency fund, estab-
lishing a spending and
savings plan, reviewing
your investments for
ensuring suitability
of assets, purchasing
disability or long-term
care insurance, assisting
you with creating a trust
or developing a business
succession plan.
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Strategic Relationships
Compak has formed strategic relationships with the most
reputable firms in each aspect of wealth management. Our
strategic relationships enable us to deliver world-class wealth
management services while retaining superior customer service.
While large brokerage houses possess similar resources in-house,
they do not offer access to their top talent to the average client.
In fact, important financial advice is often provided by sales
staff. Smaller investment advisors, while accessible to their
clients, lack resources and expertise in different aspects of
wealth management. Compak Asset Management provides the
organizational strengths of large firms while maintaining the
services and relationship management of small firms. We provide
a unique combination of expertise, skills, and values aligned
to help our clients achieve financial security.

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 Moe Ansari Founder and the Principal Asset Manager
Compak Asset Management is owned and managed by its founder Moeez
Ansari, who has been involved in the financial markets for over 29 years.
Moe began his financial career in 1977 as a licensed broker. He is now a
nationally recognized expert in the financial industry with a nationally
syndicated radio broadcast “Market Wrap”.

During the past quarter century Moe has witnessed a full range of economic
and political climates and was able to successfully navigate the markets.
He has experienced the birth of financial futures market such as Treasury
Bond & S&P 500 futures. He was trading when interest rates exceeded 20%
and short-term rates fell below 1%. He was trading gold when it crossed
$800 per ounce and when it fell below $260 per ounce. From inflation to
deflation, from runaway bull markets to prolonged bear markets, he has
been through it all!

This experience has helped Moe in managing the investment portfolios

of thousands of Compak Asset Management clients. As the host of Market
Wrap, Moe has access to some of the world’s foremost experts in
economics and finance. His tenure in the financial markets has given
him the background and instincts required to understand the global
marketplace and its intricate inter-linkages. As a leading financial
expert, his advice is sought by individuals and corporations nationwide
and internationally. His professional experience includes options trading,
portfolio optimization, futures trading, mutual fund selection modeling,
and financial risk management. He is a nationally sought speaker and
has conducted numerous financial seminars since the 1980s.

Individuals and corporations from all over the United States and other
countries seek his expert advice about the financial markets. He has pub-
lished a number of articles and is widely quoted by numerous publications.

Feroz Ansari COO and Global Portfolio Strategist

Feroz has over 15 years experience at senior levels in treasury & portfolio
management, banking and economic analysis. He has graduate degrees
in International Finance and Business Administration. He is an alumni
of Oxford University and Thunderbird, The American Graduate School
of International Management. He has also completed numerous programs
at INSEAD (France), Citibank Training Center (Singapore) and Helsinki
School of Economics (Finland). Prior to joining Compak, Feroz held
appointments as Head of Corporate Finance, Treasurer, Global Treasury
Head and General Manager at numerous international financial institutions.
He has conducted financial seminars and his research papers on derivatives
and exchange rate mechanisms have been published in financial journals.

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Some Compak Capabilities:
1. A scientific and proactive approach to money management incorporating
asset allocation models, technical and fundamental analysis, and focus
on individual asset selection.
2. Access to over 4500 load waived mutual funds.
3. Personalized and professional service.
4. A comprehensive financial plan at no additional cost.
5. No trading cost for buying or selling non transaction fee mutual funds.
6. 24-hour Internet access to accounts.
7. Access to world-class financial research, including research from Russell,
one of the world’s leading manager research firms.
8. Access to competitive life insurance, annuities, estate planning and
long-term care insurance solutions.
9. Unlimited insurance protection against bankruptcy of the custodian (Fidelity).
This protection is provided by Fidelity Institutional through SIPC and by
purchasing additional private insurance to cover unlimited amount of
securities in a client’s account.
10. Availability of a wide range of fixed income solutions. Compak can create
bond ladders based on client’s risk profile and income needs.
11. Access to options program for selected high net worth clients.
12. Expertise to set-up and manage 401(k) plans, 403(b) plans, 529 plans,
and UTMA & UGMA accounts.
13. Consolidated financial statements on your Compak managed accounts.
14. Moe Ansari as your primary asset manager. Moe is a 29-year veteran of
the financial markets. You have listened to him on the radio and when
you establish an account with Compak Asset Management he will put his
expertise to work for you!

Fee Schedule
As an example, a Standard
Account with $3,000,000 under Value of Standard Quarterly Asset
management at the end of a Account Assets Based Fee
calendar quarter will be charged
$500,000 or less 0.50%
an Account Management Fee of
.50% of the first $500,000 under plus $500,001 to $1,000,000 0.375%
management, .375% of the next
$500,000 under management, plus $1,000,001 to $2,500,000 0.25%
.25 of the next $1,500,000 under
management and .1875% of the plus $2,500,001 to $5,000,000 0.1875%
final $500,000 under management.
plus $5,000,001 and above 0.15%

800-388-9700 10
 Peace of Mind
Compak has a clearing and custodial relationship with Fidelity Investments.
The valuable investment insight of Compak, along with industry-leading
financial products and services of Fidelity Investments Institutional
Brokerage Group, create a powerful combination to help you pursue
your financial goals.
You can count on Fidelity Investments half century of investment know-
how and innovative thinking to provide investors like you with industry
leading products and service. With more than $1.4 trillion in assets and
53 million customer accounts*, Fidelity Investments has grown to be one
of the most widely recognized names in financial services.
Compak
Capabilities: Working with Fidelity Institutional Brokerage Group, Compak can couple
individual attention and Fidelity’s vast resources and proven expertise
Have Moe Ansari as in the financial services industry. From unlimited asset protection
insurance, to one of the widest offerings of investment options, to leading
your primary asset edge technology, Fidelity Investments gives you the reliable support
your financial plan deserves.
manager. Moe is a
Asset Protection: Your account assets are covered by unlimited asset
29-year veteran protection insurance. All securities in accounts carried by National
Financial Services LLC (NFS), Fidelity Investment Company and the
of the financial clearing arm of IBG, have coverage of up to $500,000 (limited to $100,000
for claims in cash) from the Securities Investor Protection Corporation
markets. You have
(SIPC) and additional unlimited securities protection, in excess of SIPC
listened to him coverage, through private insurance coverage provided by Fidelity.
This coverage does not protect against a decline in the market value
on the radio, and of securities.

when you establish Consolidated Statements: To make your record keeping as seamless
as possible, each month you will receive a single, consolidated statement
an account with summarizing all your stock, bond, and mutual fund positions. You will
also receive confirmations by mail of all trades executed by Compak and
Compak Asset
a year-end summary statement, plus 1099 tax forms and 5498 forms.
Management, he
will put his expertise A detailed explanation of all Compak Asset Management products and
services is contained in Part 2 of the Compak’s SEC Registration Form
to work for you! and the Investment Management Agreement between Compak and its
clients. You should read these documents carefully before you decide to
become a Compak client.

8105 Irvine Center Drive, Suite 1100

Irvine, California 92618
800-388-9700 • phone: 949-679-2500 • fax: 949-679-2525
www.compak.com
* as of May 31, 2000
© 2006 Compak Asset Management. Printed in U.S.A.