Elite Mutual Funds | McCormick Capital Management

The Elite Funds are managed by McCormick Capital Management (MCM). If you have questions regarding the Elite Funds, MCM, or the markets in general, don't hesitate to contact us by e-mail (mcminfo@mcmelite.com) or by phone, 800.423.1068 Monday - Friday 7:30am-4:30pm PST.

The Elite Income Fund - [ELINX]
The Elite Growth & Income Fund - [ELGIX]

THE ELITE INCOME FUND - ELINX
PLEASE READ THE PROSPECTUS BEFORE INVESTING

Fund Objective - The Fund's objective is to achieve the highest income return possible by primarily investing in investment grade Government & Corporate debt (bond) securities. The Elite Income Fund is designed for investors who are:

Seeking a conservative intermediate-to-long-term investment
Seeking current income and are willing to forego growth of capital to get it, and
Can accept the risk of an aggressive investments of as much as 30% of the portfolio as a trade-off for boosting income potential.

Portfolio Manager - The Income Fund changed managers as of September 30, 2002. The New manager, Michael Cheung has over 18 years of investment experience. Michael's extensive fixed income portfolio management experience includes the direct responsibility for investing $26 billion at General Electric Financial Assurance and $8 billion at the State of Alaska. Michael's investment strengths include global economic and capital markets analysis as well as a diverse investment exposure in all sectors of the bond market. Michael received his BS degree from University of Wisconsin-Green Bay and an MBA from Texas Christian University. He has served on the CFA candidate curriculum committee and has participated in the CFA candidate grading effort extensively.Michael works closely with Kevin Loucks. Kevin's experience with financial and investment analysis includes extensive knowledge of financial modeling and income analysis operations. Prior to joining WCM, Kevin led the credit underwriting effort for various investment grade sectors at General Electric Financial Assurance. He is proficient at issuer credit analysis with emphasis placed on targeting credits poised to maintain or improve their credit matrix. Kevin earned his BS degree in finance from the University of Portland in 1993 and achieved his Chartered Financial Analyst (CFA) designation in 2001.

Investment Approach - The Fund balances U.S. Government bond instruments with investment grade Corporate bonds. The portfolio weightings generally range from 60/40 to 40/60 Government/Corporate. The approach taken in the past is to use longer maturity Government bonds and shorter maturity Corporate bonds. We find this approach is a good way to reduce default risk, while at the same time, benefiting from higher yields on the long maturity Government issues. The Fund's weighted average maturity generally is between 5-6 years.

Largest Holdings (as of June 3, 2008)

SECURITY	MATURITY	COUPON	% OF ASSETS
U.S. Treasury Bond	02/15/10	3.500%	4.7%
CCCIT	05/17/10	2.900%	4.2%
Puget Sound Energy	06/01/67	6.974%	3.9%
Trusteet Properties	04/01/15	7.500%	3.2%
U.S. Treasury Bond	08/15/13	4.250%	3.1%

THE ELITE GROWTH & INCOME FUND - ELGIX
PLEASE READ THE PROSPECTUS BEFORE INVESTING

Fund Objective - The Fund's goal is to maximize total return through an aggressive approach primarily in the equity markets and to a lesser degree the debt markets. Total return means any combination of capital gains and income.The Elite Growth & Income Fund is designed for investors who are:

Seeking an aggressive long-term investment
Seeking capital growth
Can accept the risk of an aggressive investment

Portfolio Manager - The Growth and Income Fund has been managed by Richard McCormick since the fund's inception (1987). Dick is the President and CEO of the investment manager (MCM), and Chairman of the Board of Trustees and President of The Elite Group. Dicks investment management experience dates back to 1969. Over the past 30 years, he has managed money for banks, labor unions, corporations, universities, municipalities, but what he likes best is managing money for individuals. Dick is a Chartered Financial Analyst.

Investment Approach - The manager's philosophy in finding investments can be classified as growth stocks at reasonable prices (GARP). With the majority of the portfolio, the manager looks for companies that meet the following criteria:

Clean balance sheet
Consistent earnings growth
Relative value compared with peers and the overall market
The fund is diversified among many sectors with healthcare, financial, and capital goods sectors having the heaviest emphasis.

Largest Holdings (as of June 3, 2008)

SECURITY	SYMBOL	SECTOR	% OF ASSETS
Bristol Myers	BMY	Health	5.1%
Antigenics	AGEN	Health	5.0%
Cummins Inc.	CMI	Cap. Goods	4.4%
AT&T	T	Utility	4.2%
Lincoln National	LNC	Finance	4.2%