Tri-Universities in Arizona Choose Artificial Intelligence for Faculty Retirement Funds.

Legend Advisory's Groundbreaking Investment Model Sees New Dimensions for Universities' Retirement Planning

TUCSON, Ariz. -- Legend Advisory Corp., a registered investment advisor, today announced that it has received an initial $5 million in faculty retirement funds from The University of Arizona, Arizona State University and Northern Arizona University, collectively the Tri-Universities, to be managed on Legend Advisory's Strategic Asset Management platform, which utilizes groundbreaking artificial intelligence. Artificial intelligence is essentially a science that allows a computer system to think and "learn" like humans but at lightning speed and with the ability to see dimensions far beyond that of the human brain or traditional computer models. Faculty members and appointed personnel now have the choice to opt-in to Legend's money management program, Strategic Asset Management, which utilizes a system called AANN for Asset Allocation Neural Network. The artificial intelligence system is designed to forecast the relative strength of global asset classes, with those asset classes then invested in via a portfolio of mutual funds. The announcement comes at a time when artificial intelligence is of growing interest in the investment field while also making major advancements in other fields from medical and the military to music, real estate and even robotic personal assistants. The University of Arizona itself boasts an artificial intelligence lab internationally known and among the most respected in the U.S., where it is using artificial intelligence for everything from tracking and preventing terrorism and managing infectious disease outbreaks, to e-commerce, multi-lingual systems and more.

"A decade ago, many people thought artificial intelligence was science fiction, but it is now breaking frontiers in so many fields," says Dr. Terry Riffe, director of the University Teaching Center and financial author from the University of Arizona. When applied to investments, says Riffe, "It's a groundbreaking financial tool that can be invaluable." Dr. Riffe was a catalyst in the effort at the Tri-Universities to offer Legend Advisory's money management programs to faculty members and staff members in the University's Optional Retirement Program. Riffe anticipates contributions to the program will quickly grow from the initial $5 million, as the staff becomes more familiar with the notable program.

AANN is a form of artificial intelligence known as a "neural network", an analogy to human brain cells, called neurons. Neural networks sift through data using highly interconnected processes, and like brain cells, can learn the structure of data and detect patterns. AANN is able to scan thousands of pieces of data at a time at lightning speed, examining their interrelationship to make predictions as to the best performing asset classes in domestic and international stock and bond markets. AANN was developed and has been rigorously tested for more than a decade. AANN's forecasts, designed to look four-months ahead, have historically proven 74% accurate over the last decade with that rate even higher in recent years as her learning capabilities continue to be refined.

Says James Leos, Regional Vice President for Legend Advisory's Arizona region, "The Tri-Universities were drawn to AANN's mission to optimize returns while mitigating risk. Another important attribute which attracted the universities to Legend Advisory' money management systems, was that the program constantly re-examines investment portfolios for the optimal asset mix."

Every month, AANN's neural network analyzes 32 customized inputs, each of which is compressed from huge volumes of global financial data, in order to rank the relative strength of seven asset classes: large and small capitalization domestic stocks, investment grade and high-yield domestic debt, international debt and equity, and cash. AANN's recommendations are then fed into an optimization program, which creates weightings to suit the individual risk tolerances of Legend's model portfolios. Still more screens pick a mix of mutual funds to fill the designated asset allocations to fund the investment program model's offered to Tri-University faculty members that have opted-in to the program.

Added Dr. Riffe, "Given the prominence of The University of Arizona's artificial intelligence lab, it's only natural that the university would turn to artificial intelligence for its own needs, including the retirement planning of its faculty." Dr. Riffe is the author of Money Matters: First Steps to Financial Freedom for College Students.

The University of Arizona, founded in 1885, was Arizona's first university and is located in Tucson. Arizona State University, in the greater Phoenix area, has the second-largest university campus in terms of student enrollment in the U.S., with a student body of over 50,000 at its main campus. Northern Arizona University is located in Flagstaff.

"The next step is to make this artificial intelligence available to all universities and public employees in Arizona," added Leos. Other non-profits like the Tucson Unified School District and Catholic Health Care West are currently utilizing Legend Advisory's money management programs, among others, with a total of approximately $45 million in assets throughout the state.

Legend Advisory Corporation, www.legendadvisorycorp.com, is a registered investment advisor headquartered in Palm Beach Gardens, Florida. Its regional Arizona office is situated in downtown Tucson. Legend Advisory Corp. is a subsidiary of Waddell & Reed (NYSE:WDR), one of the oldest mutual fund companies in the U.S. with $50 billion under management. As of July 25, 2007, Legend Advisory has over $1.5 billion in assets under management from public and private retirement plans, endowments, foundations, institutions and individuals. AANN's Investing with Intelligence is available to clients through Legend Advisory's national network of brokers and financial advisors.