NuWave Investment Mgmt, LLC

(Combined Futures Ltd)

Fund Investment Objectives

The Combined Futures Portfolio employs a pattern recognition-based forecasting methodology that is probability-based and forward looking in nature; as such, the portfolio eschews the typical tendency among trend followers to identify directional opportunities based solely upon momentum indicators. Rather, the portfolio seeks to identify repetitive patterns of price behavior that are historically indicative of a dominant directional outcome in future price (with a forecasting period ranging from a few weeks to several months in duration). While each of the portfolio's more than 30 sub-models trades the same set of broadly diversified futures markets (including stock indices, fixed income and currencies, as well as energies, metals, grains, softs and meats), each is also differentiated by a unique trading style and time frame. The aggregate portfolio is therefore broadly diversified across markets, time horizons and trading styles. *From August 2004, the table reflects actual performance of the Combined Futures Portfolio master trading account (Series 1), net of management fees (2% of equity) and incentive fees (20%). Through July 2004, the table reflects pro forma rates of return, which are the result of certain pro forma adjustments to the actual historical performance of managed accounts traded pursuant to the Combined Futures Portfolio (1x). The pro forma adjustments are an attempt to reflect the management fees (0% of equity) and incentive fees (25%) charged during the period from June 2001 through July 2004, as well as necessary adjustments to leverage. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.