About Bison Bond IV

The Bison Bond IV 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 (short and long) and gold bullion exchange traded funds (ETF) 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 IV program may utilize no-load mutual funds and/or exchange traded funds. The Bison Bond IV 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.

At the investor’s request, the Bison Bond IV 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 IV

The Bison Bond IV program builds on the Austrian economic fundamentals of investing with government bonds and the added value of short selling the bond market as wells as the ability to invest in ETFs of gold bullion. The asset allocation will depend on our outlook for inflation, disinflation, and deflation.

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 on the other hand, a gold bullion exchange traded fund (ETF) commencing 1/1/09.

This program takes advantage of funds that short sale the government bond market. Short sales are transactions in which the fund sells a security it does not own. If the security the fund sold short goes down in price between the time the fund sells the security and closes its short position, the fund will realize a gain on the transaction. Conversely, if the security goes up in price during the period, the fund will realize a loss on the transaction. The risk of such price increases is the principal risk of engaging in short sales.