Power Income

Portfolio
Returns for Period Ending March 31, 2010
This portfolio has the objective of maintaining
long-term capital appreciation while producing
Power Income Portfolio BarCap Aggr Bond Index S&P 500 Index high current returns. It invests primarily in high-
65.00 yield bonds (sometimes termed “junk bonds”) and
49.75
55.00 money market funds, utilizing our proprietary
defensive trading system to switch between these
Perrcent Return

45.00
investments. This is a relatively conservative
35.00
23.42
portfolio and we use defensive trading to minimize
25.00
risks and back out of the market and into money
8.36 8.23 7.77 market funds when conditions warrant. The goal
15.00 6.15 7.13 5.44 6.29 is to beat an index of all bonds, corporate and
2.431.78 5.38 1.91
5.88
2.36
5.00 7.70 government.
-5.00 -4.17 -0.65

-15.00
YTD Total 1 Yr. Return: 3 Yr. Annl. 5 Yr. Annl. 10 Yr. Annl. Annl. Return
Return: Return: Return: Return: Inception: RISK PROFILE AND INVESTOR SUITABILITY

The Power Income Portfolio is based on a

Growth of $100,000 proprietary trading model constructed to move
$260,000.00 investments from high-yield bond funds to cash
Power Income Portfolio (money market funds) to minimize losses during a
$240,000.00
BarCap Aggr Bond Index downturn and maximize gains during upturns.
$220,000.00 S&P 500 Index
The portfolio, as with our other Portfolios, is based
$200,000.00
on the momentum of the markets themselves, and
$180,000.00
does not rely on subjective judgments to
$160,000.00 determine when the markets are changing.
$140,000.00
$120,000.00
This portfolio is an appropriate choice for
conservative investors who may need to access
$100,000.00
their funds within the next six to 24 months and
$80,000.00
Value of $100,000 since 5/31/1998 anyone whose primary goal is preservation of
$60,000.00 capital. It is an appropriate alternative for investors
8 9 0 1 2 3 4 5 6 7 8 9 considering buying government or corporate
-9 -9 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0
ay ay ay ay ay ay ay ay ay ay ay ay bonds. The portfolio is often used in conjunction
M M M M M M M M M M M M
with our other portfolios for the conservative
portion of a larger balanced portfolio.
Year to 1 Year 3 Year 5 Year 10 Year Incept.
Date Total Annl. Annl. Annl. Annl.
Power Income Portfolio 2.43 23.42 8.36 7.13 8.23 7.77
S&P 500 Index 5.38 49.75 -4.17 1.91 -0.65 2.36
Aggregate Bond Index 1.78 7.70 6.15 5.44 6.29 5.88

Standard Deviation 3 Years

S&P 500 Index 20.16

BarCap Aggr Bond Index 4.40 *All Returns are composite client returns, net of all fees,
applicable loads and expenses; and normally include the
Power Income Portfolio 5.97 reinvestments of all dividends and distributions. When this
portfolio is used inside a variable annuity additional fees will
0 00 5 00 10 00 15 00 20 00 apply. This strategy can utilize open-end mutual funds or
variable insurance sub-accounts. W. E. Donoghue & Co., Inc.’s
maximum annual advisory fees are 2.50% on first $100,000,
1.95% on next $150,000, 1.75% on next $250,000, 1.50% on
next $500,000 and 1.00% on amounts over $1,000,000.
Individual client account results will vary from composite client
returns. Past performance is no guarantee of future results or
629 Washington Street I Norwood, Massachusetts 02062 returns. Bonds in the comparative charts represent the
average of all U.S. corporate and government bonds using the
phone: 800-642-4276 I fax: 774-290-0006 Lehman Brothers Aggregate Bond Index. Inception 5/31/1998.
e-mail: info@donoghue.com I website: www.donoghue.com