What Is ACTIVE PORTFOLIO ENHANCEMENT^®?
ACTIVE PORTFOLIO ENHANCEMENT is our proprietary technology for selecting no-load mutual funds on behalf of each client. It has been Bell Investment Advisors' core investment strategy since our inception in 1991.

ACTIVE PORTFOLIO ENHANCEMENT has its roots in performance momentum where investment is maintained in funds that demonstrate market leadership.

The market moves in trends. Different investment styles and sectors move in and out of favor over time. Our goal is to be invested in the specific areas of the market that demonstrate current leadership.

ACTIVE PORTFOLIO ENHANCEMENT allows short-term past performance to expose the funds that are participating in the latest upward trends. Because these trends can last anywhere from months to years at a time, we are able to take advantage of the excess returns provided by these top-performing mutual funds. At the same time, and perhaps more importantly, we are able to avoid the troubled areas of the market.

How Does It Work?
The first step is to narrow the 10,000 or more mutual funds and Exchange Traded Funds (ETFs) now in existence to an available universe of about 700 equity-oriented, no-load mutual funds and ETFs covering the entire range of growth potential, risk, volatility, investment style, market cap, geographical area, fund size, diversification, sector concentration, etc.

After dividing the  funds into four classes based on risk and investment style, we rank the funds in each class using a Bell-developed, disciplined methodology. The result of these rankings is a monthly recommended list of funds.

We use this list to:

• design individual portfolios for new clients, to meet their individual goals of balancing their desire for growth versus their tolerance for risk.
• monitor each client account on a monthly basis, or more frequently if necessary, to upgrade the funds in the portfolio.

How Regularly Do We Assess Fund Performance?
We monitor the mutual funds and ETFs on our monthly ranking list on a daily basis to gauge performance versus other no-load funds as well as the overall stock market.

Based on our knowledge of competing offers in the marketplace, we believe this is a level of proactive involvement that exceeds market standard.

©2008 Bell Investment Advisors, Inc.