STAR had yet again another successful year. Once more we outperformed our benchmark, the S&P 500. While the S&P 500 had a total return of 15.79%, STAR achieved a total return of 15.84%. STAR has maintained its standard of excellence by surpassing this benchmark every year since 2001.

In addition to meeting our goal of beating the S&P 500, STAR surpassed total assets of $300,000. We finished the year of 2006 with total assets of $319,256.54. There were many top performers in 2006. American Eagle Outfitters (103.7%), NVIDIA Corporation (61.7%), and Cisco Systems Inc. (59.6%) were the top three performers in the portfolio.

In the spring of 2006 STAR had 12 managers working with the portfolio. We added 5 new members in the fall for a total of 13 managers. Dr. Jack Griggs, Dr. Terry Pope, and Dr. Jonathan Stewart continued to oversee the fund and provide meaningful guidance and support to the students. One of the benefits of being a student manager in STAR is the opportunity to serve as peers with the professors. It is a valuable learning experience and allows all participants to build meaningful relationships with fellow students and faculty that cannot be as easily achieved within the classroom.

We are looking forward to another great year in 2007. At the end of 2006 we had an overwhelming number of applicants for the spring 2007 semester. Joining us this spring are 7 new members, with 9 returning managers. With 16 student managers and 3 professors we will start 2007 at our largest size. We believe STAR will continue to be a good investment for ACU and allow students valuable real life investment experience.

Heather Weems

STAR President