Champion’s income strategies use classic asset allocation principles to develop income generating investment strategies designed with specific income targets.  Long term excess return relative to investment grade fixed income benchmarks is the primary goal of this buy and hold strategy.  The Income Portfolios are structured and managed to generate dividend and interest income based on annually defined yield targets. These targets are determined by anticipated domestic monetary policies, business cycle analyses and inflation expectations.  Fixed income allocations are diversified along the yield curve. The investor benefits from a spectrum of short, intermediate and long maturity and duration opportunities. Duration management is expected to contribute to overall portfolio total return.

As with all of Champion's products, these income generating portfolios make use of top down factors as well as fundamental equity and fixed income analyses.  Champion begins by evaluating the economic well being of global markets and specific stock sectors before increasing or decreasing exposure. 

YTD Performance as of 06/30/10

Performance results are calculated using model based portfolios on a monthly total return basis and include all realized and unrealized capital gains and losses (trade-date basis), as well as dividends and interest on cash balances. These portfolios do not experience any inflows or outflows. The model portfolio performance reflects all of the changes made to the asset allocation and fund selection throughout the history of the portfolios. Performance results are stated after (net of) management fees, and before (gross of) advisory fees, custodial and transaction fees. Returns are net of mutual fund and exchange-traded fund expenses. The historical rates of return should not be relied on as indicative of future results.

Quarterly Performance as of 06/30/10