Our Mission... Trident Advisors, Inc. is committed to providing superior portfolio management...

Our Mission...

Trident Advisors, Inc. is committed to providing superior portfolio management services along with a level of personal attention that exceeds client expectations.

FINANCIAL GOALS

With so many investment choices, two of the most pressing concerns faced by today’s investor are: “Which is the best alternative for me?” and “Whom can I trust?”

CDs UNIT TRUSTS

STOCKS

BONDSINDEXES

MUTUALFUNDSANNUITIES

SEPARATE ACCOUNTS

MONEYMARKET

At Trident Advisors, it is our belief that the presence of a trusted advisor addresses these pressing concerns.

“...If I could find an advisor in whom I have complete faith and trust, I would feel comfortable that a qualified professional is helping me chart a course to financial independence.” Does such an arrangement exist?

Trident Advisors believes that it does.

We believe that the key to attaining your financial goals is not so much making the right investment choices, but rather choosing the right financial professional to guide you through today’s complicated maze of products and services. This allows you to focus time and energy on aspects of your life beyond the day-to-day worry of managing your investments.

We are committed to meeting the investment needs of our clients without conflict of interest. We are not compensated to sell products - our compensation depends solely upon the quality of the clients’ experience with our firm and the performance of their assets. This philosophy assures our diligence in helping clients to achieve their goals.

Quite simply, our clients want to trust us to execute their long-range plans without any confusion as to whose interests we serve.

METHODOLOGY...

Our overall philosophy focuses on the rewards of long-term investing. We have found that portfolio decisions that are based upon emotion rather than a sound discipline result in a short-term focus that invariably distorts “the view from 30,000 feet.”

Our approach emphasizes style allocation as the first and most important step in the construction of a client portfolio. Once the style allocation matrix is established, rigid requirements are adhered to in the selection of third-party managers or individual securities.

The Trident Style Matrix is constructed only after the appropriate asset allocation is established based upon input from the client concerning risk tolerance, income needs and time horizon. Once allocation percentages are established, the equity component of the client portfolio is constructed based upon a careful evaluation of the parameters suggested by client risk tolerance and time horizon.

THE TRIDENT DISCIPLINE

RISK PROFILE QUANTIFIED

STYLE ALLOCATION MATRIX ESTABLISHED

PRODUCT SCREENING

CLIENT GOALS ESTABLISHED

PORTFOLIO MODEL CONSTRUCTION

DETAILED

CLIENT

FEEDBACK

PRODUCT SCREENS AND

SELECTION USING

ESTABLISHED INDEPENDENT

SERVICES

CURRENT CLIENT ASSET MIX

CLIENT PORTFOLIO

THE IMPACT OF INVESTMENT STYLE

There are a variety of investment disciplines and style concentrations thathave emerged over the last twenty years, and investment management firmsare identified by their focus and style of investing. For a portfolio manager to besuccessful, a critical component is that he or she strictly adhere to the discipline towhich they subscribe. The difficulty for the investor emerges when market conditionsfavor a different style than your portfolio manager adheres to.

The following illustrations show that over the last eight years, a differentapproach has prevailed as the best performer in each of those years. The obviousquandary created by these results suggests that portfolio diversification not onlymeans spreading your risk over a number of securities, but also allocating your assetsstrategically by investment style.

Economic and political conditions change rapidly, favoring different disciplinesdepending upon factors such as market risk, economic growth, political uncertaintyand geo-political events. For this reason, a strategic style allocation is as important

asdiversification in determining the success of your portfolio. At Trident Advisors, wehave developed a “style allocation matrix” that allows our clients to participate in awide array of disciplines, allowing for greater diversification and more consistentperformance while reducing the risks created by concentration in one particular style.

The Importance of Style Diversification

-60

-40

-20

0

20

40

60

2005 2004 2003 2002 2001 2000 1999 1998% R

etur

n

Standard & Poor's 500 Morningstar Large Growth Morningstar Large Value

Morningstar Mid Growth Morningstar Mid Value Morningstar Small Growth

Morningstar Small Value Morgan Stanley EAFE Foreign

The Importance of Style DiversificationData Sheet

Name 2005 2004 2003 2002 2001 2000 1999 1998

Standard & Poor's 500 4.9 10.87 28.66 -22.09 -11.87 -9.1 21.03 28.57

Morningstar Large Growth 3.43 0.18 30.64 -33.15 -29.06 -33.51 42.59 51.23

Morningstar Large Value 7.04 14.04 26.26 -15.04 -3.38 5.65 0.57 17.85

Morningstar Mid Growth 16.26 15.45 40.01 -32.53 -21.58 -11.09 52.45 9.49

Morningstar Mid Value 11.53 24.29 35.93 -10 5.06 24.58 -6.82 5.85

Morningstar Small Growth 5.76 13.48 52.64 -36.87 -12.91 -12.1 46.79 -6.54

Morningstar Small Value 5.12 24.02 48.86 -8.24 18.57 18.65 -5.19 -3.67

Morgan Stanley EAFE Foreign 14.01 20.7 39.2 -15.6 -21.2 -14 27.3 20.3

Best performing style for each year is highlighted in yellow

Hypothetical Style Allocation

Large Cap Value

Mid Cap Value

Small Cap Value

Large Cap Growth

Mid Cap Growth

Small Cap Growth

International

The style allocation matrix is reviewed periodically and allocations are adjusted

based upon prevailing economic and political conditions. Client portfolios are

balanced against the corresponding modelat least semi-annually and more frequently

As conditions dictate

PORTFOLIOS…

Trident Advisors, Inc.

Investment Style Matrix

0%

20%

40%

60%

80%

100%

Conservative Income

Moderate Income

Long Term Income

Conservative Growth/Income

Moderate Growth/Income

Long Term Growth/Income

Conservative Growth

Moderate Growth

Long Term Growth

Fixed Income Large Cap Growth Large Cap Value Mid Cap Growth Mid Cap Value

Small Cap Growth Small Cap Value International Diversified International Emerging Mkt

Long Term Growth Portfolio

Asset Allocation 100% Equities

0% Fixed Income

0% Cash Equivalents

Portfolio Objective Long Term Growth

Risk Statistics:

Standard Deviation

Risk Statistics:

Sharpe Ratio

3yr: 9.59

5yr: 15.33

10yr: 23.15

3yr = 1.32

5yr = 0.28

10 yr = -0.01

Best/Worst 3 yr Performance**

04/2003 to 03/2006 23.25%

04/2000 to 03/2003 -19.96%

** See important information on disclosure page**

Large Cap Growth 38.0%

Large Cap Value 22.0%

Mid Cap Growth 10.0%

Mid Cap Value 10.0%

Small Cap Growth 6.0%

Small Cap Value 6.0%

International 8.0%

Fixed Income 0.0%

Long Term Growth and Income Portfolio


29% Fixed Income

0% Cash Equivalents

Portfolio Objective Growth and Income

Risk Statistics:

Standard Deviation

Risk Statistics:

Sharpe Ratio

3yr: 5.58

5yr: 9.29

10yr: 10.71

3yr = 1.11

5yr = 0.36

10 yr = 0.19


10/2002 to 09/2005 14.51%

08/1999 to 07/2002 -6.60%



Mid Cap Value 5.0%

US Government Securities

7.0%

Corporate Securities

13.0%

High Yield Bonds 6.0%

International Debt Securities

3.0%


Moderate Growth Portfolio


20% Fixed Income

0% Cash Equivalents

Portfolio Objective Moderate Growth

Risk Statistics:

Standard Deviation

Risk Statistics:

Sharpe Ratio

3yr: 7.47

5yr: 12.40

10yr: 15.28

3yr = 1.18

5yr = 0.33

10 yr = 0.23


10/2002 to 09/2005 18.67%

10/1999 to 09/2002 -7.29%



Mid Cap Growth 9.0%

Mid Cap Value 5.0%

Small Cap Growth 5.0%

Small Cal Value 5.0%

International Equity

5.0%

Corporate Bonds 6.0%


International Bonds 6.0%


Moderate Growth and Income Portfolio


46% Fixed Income

0% Cash Equivalents


Risk Statistics:

Standard Deviation

Risk Statistics:

Sharpe Ratio

3yr: 4.63

5yr: 7.22

10yr: 7.66

3yr = 0.81

5yr = 0.53

10 yr = 0.23


8/2002 to 07/2005 12.47%

08/1999 to 07/2002 -3.74%




16.0%


23.0%



Conservative Growth Portfolio


40% Fixed Income

0% Cash Equivalents

Portfolio Objective Conservative Growth

Risk Statistics:

Standard Deviation

Risk Statistics:

Sharpe Ratio

3yr: 6.25

5yr: 10.27

10yr: 12.09

3yr = 1.05

5yr = 0.45

10 yr = 0.32


10/2002 to 09/2005 16.87%

08/1999 to 07/2002 -3.77%



Mid Cap Growth 6.0%

Mid Cap Value 6.0%


18.0%


International Debt Securities

8.0%


Conservative Growth and Income Portfolio


63% Fixed Income

0% Cash Equivalents


Risk Statistics:

Standard Deviation

Risk Statistics:

Sharpe Ratio

3yr: 4.49

5yr: 7.28

10yr: 7.95

3yr = 0.56

5yr = 0.38

10 yr = 0.16


08/2002 to 07/2005 11.17%

08/1999 to 07/2002 -3.84%




30.0%


23.0%



DEFINITION OF TERMS

•Standard Deviation: Standard deviation tells how tightly a set of values is clustered around the average of those same values. It's a measure of dispersal, or variation, in a group of numbers. Higher standard deviation is often interpreted as higher volatility. In comparison, lower standard deviation would likely be an indicator of stability. The most consistent values will usually be the set of numbers with the lowest standard deviation. In other words, portfolios with higher standard deviation scores will tend to be more volatile and tend to assume higher risk.

•Sharpe Ratio: The Sharpe ratio tells us whether the returns of a portfolio are due to smart investment decisions or a result of excess risk. This measurement is very useful because although one portfolio or fund can reap higher returns than its peers, it is only a good investment if those higher returns do not come with too much additional risk. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been.

SERVICES OFFERED…

SEPARATE ACCOUNT MANAGEMENT

The Trident Managed Allocation Program is a service that is designed for the investor who seeks to manage wealth based upon a well defined action plan. The program emphasizes goal- based planning and a style allocation strategy that is tailored to the risk tolerance of the client.

The process starts with a detailed assessment of the goals, needs and risk tolerance of the client and utilizes independent allocation models in order to develop the optimal mix of asset class, equity management style and diversification. Once the style matrix is established, we execute the strategy by screening and selecting the appropriate managers within each style category. Each portfolio is monitored daily and balanced at least semi-annually to insure compliance with the original strategy.

Client objectives are reviewed annually and the strategy is updated based upon the changing needs and lifecycle of the client.

The following services will be included:• Quarterly Market Letter.

•Quarterly performance review.•Annual progress report.

•Bi-Annual tax gains/losses reporting.

ETF ALLOCATION

The Exchange Traded Fund Allocation Service is designed for those individuals who would benefit from focused guidance aimed at achieving established investment goals and objectives. The primary emphasis of this service will be to utilize our asset allocation strategy and equity style matrix to establish a game plan for the client. Once the appropriate strategy is established, execution of the plan is accomplished by carefully screening and selecting candidates from a universe of closed-end mutual funds and index shares that conform to the equity style matrix established earlier. After initial placement, the portfolio is monitored and re-balanced semiannually in order to maintain conformity with the agreed upon strategy. In addition, annual reviews with the client allow for adjustment of the allocation and matrix strategy to reflect changes in client circumstances.

The following services will be included:• Quarterly Market Letter.

•Quarterly performance review.•Annual progress report.

•Bi-Annual tax gains/losses reporting.

401(K) ADVISORY SERVICES

This service is offered to individuals who have a significant portion of their financial assets invested in employer sponsored 401(k) retirement plans. Recent market action has given rise to the need for active management and continued evaluation of these holdings to ensure that our employer sponsored retirement plans are invested in accordance with our overall financial goals.

Trident Advisors, Inc. will evaluate current holdings and allocation and make necessary changes in allocations consistent with your overall strategy. In addition, these holdings will be integrated with your other accounts managed by Trident Advisors, Inc. to provide a comprehensive approach to your financial well-being.

The following services will be included:

•Quarterly Market Letter.•Quarterly review of allocations and investment choices.

•Strategic implementation.•Quarterly performance review.

•Annual progress report.

FEE SCHEDULE...

SEPARATE ACCOUNT MANAGEMENT

Trident Advisors’ Managed Allocation Program offers a wide array of services based upon the individual needs of the client. In addition to our standard discretionary fee schedule, fees for the various levels of involvement with outside professionals as well as enhanced services offered by our own professional staff will vary and are typically negotiated directly with the client. Fees for the Separate Account Program are all inclusive

First $250,000 1.75% Next $250,000 1.50% Next $500,000 1.25%Assets over $1 Million 1.00%

Fees for enhanced services will be negotiated and agreed upon in advance of services provided. The fee arrangement between the Client and Trident Advisors will be fully disclosed and approved by the Client on schedule A of the management agreement.

ETF ALLOCATION PROGRAM

DISCRETIONARY MANAGEMENT

Assets managed under the ETF Allocation Program are subject to a tiered management fee which declines based upon higher account values. In addition to the management fee, the cost of trade execution is passed along to the client by the executing broker.

First $250,000 1.75%Next $250,000 1.50%Next $500,000 1.25%Assets over $1 Million 1.00%

401(K) ADVISORY SERVICES

The scope and nature of the services rendered will determine the fees charged.

Our services will be divided into two categories:

Discretionary- This service involves the management of your 401(K) account based upon a pre-determined strategy consistent with your overall goal. Investment allocation will be made directly by Trident Advisors through your employer, with quarterly updates and review of your allocation strategy. The fee for this service shall be .50% of the asset value of the account.

•Non-Discretionary- This service will involve an initial review of your retirement plan as it relates to your overall strategy, followed by a written analysis of current holdings and recommendations for your consideration. The initial review will be billed as a flat fee of $500. If ongoing services are required, the initial fee will be waived in favor of an ongoing fee of .75% of the asset value based upon a one-year minimum commitment.

IMPORTANT DISCLOSURES

•Model percentages and holdings are for illustrative purposes only. Actual investment percentages may vary due to price fluctuations. Individual account performance and holdings may differ from the portfolio’s results due to, among other things, commissions, timing of order entry, change in model composition, or the manner of trade execution.

•Performance illustrations and risk characteristics are provided courtesy of Morningstar Associates, LLC. The information contained herein does not constitute investment advice by Morningstar Associates, LLC and is provided for informational purposes only and therefore not an offer to buy or sell a security. Statistical information provided by Morningstar Associates, LLC or any other third party are not warranted to be correct, complete or accurate except as otherwise required by law. Actual performance may vary and is not guaranteed. Performance calculations for various time periods quoted represent fixed portfolios as illustrated by Morningstar Associates, LLC and are not indicative of future results.

•Exchange traded funds are sold by prospectus. Please consider the investment objectives, risks and charges and expenses carefully before investing. The prospectus, which contains this and other information can be obtained by calling your Financial Advisor. Read it carefully before you invest.

•Exchange traded funds must distribute realized gains to shareholders.

•Fixed income investments are subject to interest rate risk, such that when interest rates rise, prices of bonds and the value of bond fund shares can decrease and investors can lose principal value.

•Global/International investing involves risks not typically associated with US investing, including currency fluctuation, political instability, uncertain economic conditions and differences in accounting methods.

•Small company funds are typically more volatile than large company funds. Small companies often involve greater risk because they may lack management expertise, product diversification, financial resources and competitive strength to endure adverse economic conditions.

•Technology and Internet stocks, particularly of smaller companies tend to be more volatile than the overall market.

•This communication is not an offer to sell or solicitation of offers to buy any securities mentioned herein. This report is not a complete analysis of every material fact in respect to any fund or fund type. The opinions expressed here reflect the judgement of the author as of the date of this report and are subject to change without prior notice. Information has been obtained from sources believed to be reliable but its accuracy is not guaranteed.

•The investments discussed herein may not be suitable for all investors. Investors must make decisions based upon their specific investment objectives and financial circumstances.

•Investments in stock and bond funds are subject to risk, including market and interest rate fluctuations.

•Investments are not insured by FDIC or any Federal Government Agency and may lose value.

•Representatives of Trident Advisors, Inc. may also be registered Representatives of Cresap, Inc. In the absence of client preference, securities may be offered through Cresap, Inc.

Our Mission... Trident Advisors, Inc. is committed to providing superior portfolio management...

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