About Bison Bond III

The Bison Bond III program is designed to take into account the possibility of both deflation and inflation. In so doing, it takes positions in both government bond no-load mutual funds and/or exchange traded funds (long only) and in gold exchange traded funds, commencing 1/1/09. Austrian economic fundamentals are used in forecasting the economy and the possibility of both deflation and inflation. A technical model with a possible fundamental override is used to make purchase and sale decisions. The program should be used as an “insurance” position in an overall asset allocated total portfolio.

The Bison Bond III program may utilize zero-coupon government bonds since they are more volatile than bonds making regular interest payments. This volatility – although involving market risk – is essential in achieving higher capital gains.

The Bison Bond III program may utilize no-load mutual funds and/or exchange traded funds. At the investor’s request, the Bison Bond III program can be applied to annuities that have compatible fund options, primarily those annuities offered by Nationwide and American Skandia. These work well with our investment style. Please keep in mind that all annuities have costs, which should be investigated to your satisfaction. Central Plains Advisors, Inc. does not participate in any compensation from these funds or any other funds. The investment results will differ with annuities.

Why Use Bison Bond III

The Bison Bond III program builds on the Austrian economic fundamentals of investing with government bonds, as well as the ability to invest in various gold securities. The asset allocation will depend on our outlook for inflation, disinflation, and deflation. This is a good option for investors who are averse to shorting the bond market.

Risks Associated with this Investment

The funds used in managing this program have vastly different organic and market characteristics. On the one hand, it uses arguably the highest quality asset in the world, U.S. government bonds and/or exchange traded funds, and on the other hand, a position in gold bullion commencing 1/1/09.

The Bison Bond III program’s fixed income investments will change in value in response to interest rate changes and other factors. In addition, the value of securities with longer maturities will fluctuate more in response to interest rate changes.

This program participates in the gold bullion market, using gold bullion mutual funds and/or exchange traded funds. These funds are subject to legislative or regulatory changes, adverse market conditions, as well as the volatility of global prices of gold bullion. The price of gold bullion may fluctuate widely due to changes in inflation or inflation expectations, currency fluctuations, speculation, worldwide demand, and political developments in precious metals producing countries. Losses may occur.