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About Terror-Free Investing

Terror-Free Large Cap Select seeks to outperform the S&P 500 index with a bias toward downside risk management.

Terrorism is defined as "the unlawful use of force or violence against persons or property to intimidate or coerce a government, the civilian population, or any segment thereof, in furtherance of political or social objectives." –Federal Bureau of Investigation (FBI)

It has been widely reported that:

  • Both Iran and Syria utilize Hezbollah, a terrorist group based in Lebanon, as a proxy to further their regional objectives. Support has included financing, training and weaponry.
  • Iran has been and continues to function as the dominant foreign actor in the insurgency against the elected government in Iraq, including providing resources and support to a variety of militant groups.
  • Iran leads the world in executing juvenile offenders–judges can impose the death penalty for 9-year-old girls and 15-year-old boys.
  • The U.S. State Department characterizes the human rights situation in Sudan as "genocide."
  • North Korea has defiantly developed an active long-range missile program and maintains confirmed nuclear weapons capabilities. In addition, Iran successfully conducted a satellite launch in February of 2008. Most experts agreed that this launch essentially served as a test of that country's ballistic missile technology.
  • Many publicly traded companies legally do business or have commercial ties in terrorist-sponsoring states.1
  • Source: Conflict Securities Advisory Group - www.terrorfreeinvesting.com

Do you know there is something you can do about it? Terror-free investing refers to a socially responsible philosophy that excludes investing in individual stocks of companies that do business in countries deemed to be state sponsors of terror by the U.S. State Department (currently defined as Iran, Sudan, Syria and North Korea). Excluded businesses indirectly generate revenue for these governments that may enable the countries to underwrite terrorist activities. Advanced Equities Asset Management, Inc. (AEAM) is now pleased to offer a terror-free investment strategy to clients. Through their investment decisions, clients can register their disapproval to inhumane and terrorist activities that occur in these countries and to those corporations that choose to conduct business with them. Up until now, terror-free investing was difficult to implement other than by wellresourced institutions given the complexity of sorting through a multitude of public reports and filings of thousands of multi-national corporations and their related subsidiaries. AEAM relies on the extensive analysis of Conflict Securities Advisory Group (CSAG), a respected Washington, D.C. research and consulting firm. Founded in 2001, CSAG has been a pioneer in analyzing global security risk through the links between corporations and governments that sponsor terrorism. CSAG's Global Security Risk Monitor uses both a "bottom-up" and "top-down" methodology– producing a database used to screen out companies with ties to terroristsponsoring states. CSAG also reviews AEAM's model holdings on a quarterlybasis to certify the strategy "Terror-Free" from companies with active commercial ties to Iran, Sudan, Syria, and North Korea while also exempting those with purely humanitarian efforts.

Do you know how you can benefit from taking an investment stand? There are many reasons why an investor would contemplate adopting a terror-free approach to at least some portion of their portfolio. First, it can satisfy a moral or ethical objection to investing in companies that operate in countries that threaten our security, many of which routinely violate fundamental human rights. Secondly, this approach attempts to bring about positive behavioral changes in governments whose economies are typically highly dependent on foreign commercial investment and expertise. Shareholder dissatisfaction also seeks to educate and exert influence over profit-minded corporate boardrooms and management teams. Finally, it potentially introduces an element of portfolio risk management by avoiding firms that risk reputational (and potential subsequent share price) damage from their continued commercial ties to terrorist states. Whatever the motivation, the demand for this type of active, socially responsible investing is on the rise in light of ongoing global risks. Much as investor activism and divestment led to sustained change in South Africa a generation ago, today, we believe that personal investment decisions can contribute to positive change by helping to strip terror-sponsoring states of the commercial benefits and recognition afforded to responsible nations.

To invest now or learn more about Terror Free Investing please visit http://www.terrorfreeinvesting.com.

  • Terror_free Terror Free Investing

    Up until now, Terror-Free Investing was difficult to implement other than by well resourced institutions given the complexity of sorting through a multitude of public reports and filings of thousands of multi-national corporations and their related subsidiaries.

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