Dock D. Treece, President

What is the Treece Money Management System?

Treece Investment Advisory Corp. uses a propriety money management system that is based on the premise of protecting the client’s investment. The service moves funds within various markets without a commission in order to increase the return on investment with minimal risk. The Treece money management system is not a method of making fast profits on high risk ventures. Rather, asset protection is the priority, and investments are made to steadily increase profits in more stable markets that are less subject to quick gains and losses.

Why use the Treece Money Management System?

Treece Investment Advisory Corp. stays abreast of market trends to cut losses short and allow profits to run. Treece Investment Advisory Corp.'s strategy operates contrary to the "buy and hold" method by taking a defensive position when a downturn is apparent and maintaining an aggressive posture as a market rises. Again, Treece Investment Advisory Corp. believes that the primary reason for management is to protect the investment. Treece Investment Advisory Corp. believes that mutual fund managers move into a defensive position to the extent allowed by the regulations under which they operate, and thus may be inclined to hold a security longer than economically warranted to comply with these regulations.

Advisory Services

Treece Investment Advisory Corp. is an Investment Adviser registered with the Securities and Exchange Commission. Its clients consist of individuals, high net worth individuals, trusts, and corporations or other business entities.

Treece Investment Advisory Corp. continuously monitors mutual funds and manages advisory accounts on a discretionary basis. Treece Investment Advisory Corp. manages investments in mutual funds by allocating clients' assets between different funds depending on changing economic conditions.

Treece Investment Advisory Corp. incorporates a professional asset management strategy that works within a family of mutual funds to accomplish two goals: First and foremost is to protect the principal invested, and second is to increase the amount of capital.

Investment Philosophy

Treece Investment Advisory Corp. seeks to achieve its dual goals of preservation and growth by utilizing certain mutual fund families which offer conversion privileges. They permit switching assets to different funds (without a commission) to increase profit potential and minimize risk. This method allows an investor's capital to grow in aggressive markets and be moved out of those markets when growth subsides. These funds can be moved to other markets, or if conditions warrant, be moved to a money market fund to protect the investment.

Treece Investment Advisory Corp. continually monitors mutual funds, but does not advise clients concerning short sales, margin transactions, options, commodities or individual stocks/bonds. Treece Investment Advisory Corp. manages investment advisory accounts not involving Investment Supervisory Services.

The Treece Money Management System

Methods of Analysis, Sources of Information, and Investment Strategies

The key to successful management is determining when to switch and where to place the investment. These decisions are based on a range of analytical methods, including technical analysis, fundamental analysis, charting, and cyclical analysis. Treece Investment Advisory Corp. makes use of financial newspapers and magazines from which money supply figures, interest rates and other information is taken that is helpful in analyzing trends in the investment markets. This data is coupled with special communications and analytical software to provide evaluation criteria for consideration by Dock D. Treece, President of Treece Investment Advisory Corp. By compiling and evaluating all of the above-mentioned sources, decisions are made as to the position and allocation of assets.

Investment decisions are determined partly by technical analysis performed by charting the Dow Jones Industrial Average against its 10-day moving average and charting the Dow Jones Composite against its 10-day moving average. Treece Investment Advisory Corp. also charts various mutual funds together with records of the New York Stock Exchange volume, and uses fundamental, charting, and cyclical analysis of economic conditions to determine appropriate positions for accounts. By comparing the relationship of the various charts and using fundamental analysis, Treece Investment Advisory Corp. determines whether and when to switch mutual funds. Thus, Treece Investment Advisory Corp. will utilize both long term and short term purchase strategies. Treece Investment Advisory Corp. does not take tax consequences into consideration when providing these services.