Indices

On January 1, 2008, New Frontier launched three Indices on the American Stock Exchange. They are strategic, globally diversified, modified capitalization-weighted strategies comprised entirely of Exchange Traded Funds (ETFs). The objective is to optimally invest in global economic growth on a risk-adjusted basis. PowerShare provides the majority of the ETFs, though additional fund providers complete the global asset exposure.

New Frontier constructs and maintains the indices with New Frontier’s patented Resampled Efficiency™ (RE) optimization and rebalancing technology. RE optimization, the only provably effective optimization process in the world today, improves likely risk-adjusted performance by treating investment information realistically, which results in more effectively diversified risk-controlled indices.* Though New Frontier reviews the index allocations on a monthly basis, trading only occurs when there is a statistical need as identified by the patented RE rebalancing test.

The New Frontier indices represent a unique combination of advanced technology with institutional investment experience, cutting-edge research, and patented processes. This combination produces cost-effective, optimized, highly risk-controlled investments.

The three indices target three distinct risk levels to maximize long-term returns for a given level of risk:
--The New Frontier Global Dynamic Balanced Index targets a risk profile of 60% equities and 40% fixed income. It is listed on the AMEX as NFABI. NFABI Amex Values and Consituents
--The New Frontier Global Dynamic Balanced Growth Index targets a risk profile of 75% equities and 25% fixed income. It is listed on the AMEX as NFABG. NFABG Amex Values and Constituents
--The New Frontier Global Dynamic Growth Index targets a risk profile of 90% equities and 10% fixed income. It is listed on the AMEX as NFAGI. NFAGI Amex Values and Constituents

* See the Research section for more information on Resampled Efficiency.