International Value Stock Fund

Schultz Financial Mgmt Corp

Risk-Controlled Portfolios for Serious Investors

International Value Fund

Fund Statistics

(Through 12-30-2005)

	Intl Value	MSCI EAFE
2005 Return	16.80%	14.02%
2004 Return	21.83%	20.70%
2003 Return	41.41%	39.17%
2002 Return	12.50%	-16.00%
2001 Return	5.40%	-21.40%

The "International Value Fund" is third party mutual fund (actual fund name not given) that we have used for our clients since 2001. The investment return shown is the net total return of the fund as reported by Morningstar.com and does not include our fees.

Investment Objective

The primary objective of this strategy is to earn long term investment returns comparable to stock market averages while adding supplemental diversification to positions in U.S. stocks

Investment Approach

The international value fund that we use seeks to achieve capital growth by purchasing undervalued stock that trade in established foreign markets, but can also include assets from developing countries.

Because the fund is widely diversified and has exhibited low volatility in the past, we expect that this fund will realize long-term returns consistent with international stocks, but with less risk.

Why International?

We view international stocks as an investment strategy that presents additional political and currency risks. However,

studies have shown that international value stocks have a low correlation to U.S. stocks and as a result can help reduce risk when combined with U.S. stocks in a portfolio.

Ordinarily we favor owning international stocks in our risk controlled market timed stock strategy when international stocks are in an up-trend and out-performing most domestic stock categories. However for investors who do not employ a market timing strategy, we believe it makes sense to have a small portion of their portfolio in international value stocks.

© Schultz Financial Management 2002