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There are over 50 different markets worldwide, including stock indexes, financial instruments, agricultural and tropical products, precious and nonferrous metals, currencies and energy products. Selecting the right combination of these markets creates an important enhancement to portfolio performance of the Fund. Another benefit is that a properly diversified portfolio structure actually reduces overall volatility of the investment return. This risk-reduction contribution is possible because of the low to slightly negative correlation of the portfolio's investment components. In The Atlantic International DJIA Enhanced Index Fund those components are DJIA and EIES. One of the key tenants of Modern Portfolio Theory is that more efficient investment portfolios can be created by diversifying among asset categories with low to negative correlations.

Principal Protected Investment

Under the Structured Investment Agreement, after one year a major international bank is obligated to return the full amount of the principal invested, plus the positive return of the DJIA, plus or minus the return of EIES. This is the "principal protected" feature of the Fund. The protection is against losses resulting from a year-to-year drop in the Dow Jones Industrial Average. Losses that may occur from a drop in the value of the EIES are not protected.