2011 year-end report

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					ASB AllEgIAncE REAl EStAtE Fund 2011 yEAR-EnD REPORT
Returns as of 12/31/11

Gross Return, Fourth Quarter                  5.34%
Gross Return, One year                       21.02%
Gross Return, Five years                       1.96%
Gross Return, Inception to Date                7.63%
net Asset Value                              $1.64 Billion

All returns shown are gross of investment advisory fees
through 12/31/11. Past performance is not necessarily
indicative of future results. The advisory fees and any other
expenses the Fund may incur in the management of its
investment advisory account will reduce client returns.

In 1984, ASB Capital Management launched an equity real estate investment product

designed to provide qualified pension plans with an opportunity to invest in high quality

commercial real estate. The investment objectives of the ASB Allegiance Real Estate Fund

are to provide a competitive rate of return, stable and predictable income, increasing

cash flows, potential for appreciation in value, a hedge against inflation, and meaningful

portfolio diversification. We thank our investors, past and present, that have made the

Fund a success.

On THE COvER: StAtIon lAndIng –                         Medford, Massachusetts
                                                                  RoBERt B. BEllIngER, CFA

Dear Clients and Friends,
We are pleased to present the 2011 Annual Report for the          For most of 2011, economic data has been mixed and vola-
ASB Allegiance Real Estate Fund. This year, the Allegiance        tility has remained elevated. Employment gains have been
Fund produced an annual return of 21.0%, outperforming            steady, but over six million jobs are still unrecovered since
the nFI-ODCE value-weighted index by more than 500                the recession and unemployment levels remain unaccept-
basis points. The Fund’s twelve-month performance was             ably high in many markets. There is little doubt that real
the single best among the eighteen open-end funds that            estate investing in this landscape requires caution, experi-
comprise the ODCE index and represents a continuation of          ence, and strategic insight. Although the national economy
a long track record of successful top quartile real estate        as a whole continues to muddle through a recovery, diversi-
investing. The ASB Allegiance Fund’s multi-year returns also      fied regional economies with strong technology sectors like
rank first or second among ODCE funds in the five-year,           Boston, Los Angeles, Washington, D.C., and San Francisco,
seven-year and ten-year periods.                                  all markets where ASB has a strong presence, have signifi-
                                                                  cantly outperformed peer geographies. These markets offer
All investors in every asset class have been severely tested      superior real estate fundamentals as a result of competitive
over the past ten years through the challenges of two deep        economies that produce above average employment growth
recessions and extraordinary volatility. Through this turmoil,    and real estate markets that feature meaningful supply
the Allegiance Fund has produced a long-term track record         constraints. As we head into 2012, we expect that the Fund
at the top of our industry by generating alpha through good       will continue to benefit from its primary market investment
markets and bad. In an environment where fundamentals             strategy as core real estate in strong economies is poised
and economic growth vary greatly across geographies and           to experience the best improvement in fundamentals. We
by asset class, this enduring outperformance is a testament       will continue to focus our investment efforts in markets
to our successful strategy of investing in markets with healthy   with these characteristics.
diversified economies and in assets that have sustainable
competitive advantages that drive tenant demand over the          In 2011, the Allegiance Fund attracted $138 million in new
long term.                                                        capital with repeat contributions from 34 existing clients,
                                                                  or 25% of our investor base, underscoring the loyalty and
In 2011, the Fund benefitted from exceptional income growth       satisfaction felt by our investors. As we continue to deliver
that was driven both by increasing tenant absorption and          on our promise to provide significant portfolio diversifica-
by rent growth that exceeded national averages. After             tion benefits and superior risk-adjusted returns, we extend
increasing occupancy by 700,000 square feet in 2010,              our thanks and appreciation for the continued support and
portfolio income grew to $74 million in 2011, representing        confidence of our investors.
a 17% increase year-over-year. This income growth was a
key ingredient in the Fund’s strong return performance.           Respectfully,
This year, we continued to enhance the strength of the
Fund’s long-term income stability, consummating 1.6 million
square feet of gross leasing activity to increase operating
occupancy by 90 basis points, generating approximately            Robert B. Bellinger, CFA
$2.2 million in additional nOI.                                   Fund Portfolio Manager and President,
                                                                  ASB Real Estate Investments

                     In the fourth quarter, the Fund posted a gross return of                     above average rent growth, both commercial and resi-
                     5.34%, with 1.43% from income and 3.88% from                                 dential tenants are shifting demand towards large urban
                     appreciation. For the year, the ASB Allegiance Real                          areas with strong economic drivers, particularly those
                     Estate Fund generated a gross return of 21.02%, with                         in the technology, healthcare, and education sectors.
                     5.17% from income and 15.13% from appreciation.                              These factors have greatly benefitted the Allegiance
                     This performance ranked the Allegiance Fund as the                           Fund’s portfolio which has experienced robust occu-
                     top performing Fund in the ODCE Index in 2011.                               pancy and income gains from strong leasing activity
                     Additionally, the Fund ranks either first or second                          attributable to its strong weighting in the nation’s top
                     among ODCE funds in the five-year, seven-year and                            real estate markets like Boston, Washington, D.C., San
                     ten-year periods.                                                            Francisco, West Los Angeles and Denver.

                     The Fund’s strong performance during 2011 was attrib-                        With ongoing foreclosure challenges and a tight lending
                     utable to marked gains in investment income. Portfolio                       environment, the fundamentals for multi-family have
                     income at the Fund increased by 17% to $74 million,                          been exceptional, especially in markets where job growth
                     as superior fundamentals drove rent growth at multi-                         has been strong. Although the Fund benefitted from
                     family assets and rents commenced from new office                            16% rent increases at its largest multi-family asset in
                     leases signed in 2010. In those markets experiencing                         Boston, above inflation rent growth was broad based in
                                                                                                  the Fund’s multi-family portfolio, which ended the year
                                                                                                  with 95% occupancy, a 200 basis points improvement
ASB vs. NFI-ODCE Return Quartiles 12/31/11                                                        over the prior year end. Overall, multi-family was the
                                                                                                  Fund’s best performing sector generating a 38% total
                                                                                                  return comprising 6.6% from income and 29.8% from
30%                                                                                               appreciation.

            21.02%                                                                                The office portfolio was also a significant driver of returns
20%                                                                                               for the Fund as leasing activity drove occupancy increases.
                                                                                                  Strong leasing at Colorado Center, the Fund’s mixed use
                                                                                                  office and retail asset located in Denver, CO, resulted
 10%                                                                   7.50%
                                                                                                  in over 70,000 square feet of net absorption pushing
                                -0.07%              1.96%                                         occupancy to 94% by year-end. Outside of Colorado
                                                                                                  Center, many other large office assets in the portfolio
                                                                                                  including 455 Massachusetts Avenue (Washington, D.C.),
                                                                                                  Infomart (Dallas), and Two Financial (Boston) experi-
-10%                                                                                              enced growth in income from positive net absorption.
                                                                                                  As a result, the office sector saw the greatest improve-
                                                                                                  ment in portfolio operating occupancy with a 280 basis
-20%                                                                                              point increase year-over-year in 20111.
              1-yr               3-yr                5-yr               10-yr

                                                                                                  The broad-based occupancy and income gains are a
              ASB                First Quartile                   Third Quartile
                                 Second Quartile                  Fourth Quartile
                                                                                                  reflection of the high quality of the Fund’s portfolio.
                                                                                                  On an unlevered basis, the Fund’s total return of 16.4%
                                                                                                  for 2011 outperformed the NPI total return of 14.3%
The ASB Allegiance Real Estate Fund is benchmarked against nCREIF Fund Index-Open-End             by over 200 basis points.
Diversified Core Equity (nFI-ODCE), presented on an equal weighted basis, which tracks the
performance of other national open-end core equity real estate investment vehicles. All perfor-
mance is presented gross of investment fees through 12/31/11, as of the Fund’s Inception date
of June 1984. Past performance is not necessarily indicative of future results.                   1
                                                                                                      Includes office assets owned for the entire year.

200 PowEll StREEt –              San Francisco, California

Performance as of 12/31/11
                                                    3 Mos              12 Mos                 3 Yrs                5 Yrs               10 Yrs

Real Estate
ASB Allegiance Real Estate Fund                    5.34%               21.02%              -0.07%                 1.96%                7.50%
nFI – ODCE Equal Weight                            3.02%               15.96%               -2.26%               -0.57%                5.79%

Equity Indices
S&P 500                                            11.82%                2.11%               14.11%              -0.25%                2.92%
EAFE (US$)                                         3.33%               -12.14%               7.65%               -4.74%                4.66%

Bond Indices
Barclays Aggregate                                  1.12%               7.84%                6.77%               6.50%                 5.78%

All Returns shown are gross of investment advisory fees through 12/31/11. Past performance is not necessarily indicative of future results. The
advisory fees and any other expenses the Fund may incur in the management of its investment advisory account will reduce client returns. Part
II of ASB Capital Management’s Form ADv describes the investment advisory fees.

     As of December 31, 2011, the ASB Allegiance Real Estate    Strong outperformance: Our performance is among the
     Fund had 51 investments in 131 properties in 22 major      highest of any open-end core fund in the country. We
     markets. Here are some of the Fund’s important recent      rank in the top tier of the top quartile of ODCE funds
     accomplishments:                                           in the 1-year, 3-year, 5-year, 7-year and 10-year periods.
                                                                In the six quarters of negative returns after the NFI-
     capital overview:    The Fund ended 2011 with $1.64        ODCE index peaked in June 2008, ASB’s cumulative
     billion in net assets under management. The Allegiance     returns outperformed the NFI-ODCE benchmark by
     Fund attracted $138 million in new capital during 2011     more than 460 basis points. ASB’s sustained outperfor-
     from 12 new clients and 34 existing clients. Withdrawals   mance in both up and down markets is a clear indication
     for the year totaled $63 million, with only four clients   that our strategy and operating model generate sustain-
     leaving the Fund. The Fund has available liquidity of      able alpha for our investors.
     approximately $200 million in cash which includes $165
     million in available borrowing from our line of credit.

                                                                coloRAdo cEntER –       Denver, Colorado

Robust leasing: Our portfolio continues to experience
strong tenant demand and leasing activity that outpaces         Fund Facts
the market. We generated over 1.6 million square feet
of gross leasing this year, producing $2.2 million in           Inception Date                 6/1/1984
incremental NOI for the portfolio. On average, “same            number of Investors            142
store” NOI increased by 18% over calendar year 2011.            number of Investments          51
                                                                number of Properties           131
Playa Vista Sale: In the first quarter, the Fund sold the       Leverage                       27.87%
Fox Media Center at Playa Vista, a 487,000 square foot,         Rentable SF                    11.7 million SF
class-A office asset located in West Los Angeles. The           Operating Occupancy            87%
building was 90% leased to Fox Interactive Media, a
subsidiary of News Corp and was sold for $605 per
square foot, a new high water mark for this submarket.
The sale price represented a 30% premium to our total       investment liquidity, and produce meaningful cost sav-
cost basis.                                                 ings, we believe that the strategy not only benefits the
                                                            environment but also enhances value for our investors,
ncREIF odcE Admission:     In the second quarter, the       tenants, and partners.
ASB Allegiance Real Estate Fund was accepted into the
nation’s leading index for open-end core real estate        design Excellence:  Playa Vista won five Calibre awards
funds: the NCREIF Fund Index Open-End Diversified           for excellence in lobby interior design. The annual
Core Equity (NFI-ODCE). ODCE admission criteria             award sponsored by the International Interior Design
include conservative leverage constraints, asset class      Association of Southern California evaluated submis-
and geographic diversification requirements, primary        sions based on project statement, design philosophy,
NAV composition in operating assets from the core           and creative solutions to special challenges.
property types, and comprehensive reporting in
compliance with NCREIF Real Estate Information              liability Management:   In 2011, ASB refinanced a group
Standards (REIS).                                           of the portfolio’s largest loans as part of a liability man-
                                                            agement strategy designed to create a more balanced
Altus Engagement: The ASB Allegiance Real Estate Fund       debt maturity profile, capitalize on historically low
has retained The Altus Group as part of our policy to       interest rates and diversify the financing base with a
have 100% of our assets externally appraised each           broader group of top-tier lenders. ASB executed $320
quarter. Altus manages asset appraisals for most of the     million in debt financing at 455 Massachusetts Avenue
core real estate funds in the ODCE index.                   (Washington, DC), Capella Tower (Minneapolis), and
                                                            Arborpoint at Station Landing (Boston). The loans
Environmental Stewardship:   To date, a number of port-     financed by Wells Fargo, Mass Mutual and MetLife have
folio assets have obtained certification in Leadership in   a weighted average maturity date of 2017, and a weighted
Energy and Environmental Design (LEED), recognized          average current interest rate of 3.76%.
for a broad range of asset characteristics that reduce
waste, conserve natural resources, and improve air
quality. Capella Tower, Colorado Center and Playa Vista
all received LEED Gold status in 2011. Given that
LEED certification can improve leasing velocity, increase

               This year, new tenants leased approximately 500,000          income growth. The Allegiance Fund’s office portfolio
               square feet, renewing tenants leased approximately           enjoyed robust leasing at Colorado Center (Denver),
               1,000,000 square feet, and expanding tenants leased          Capella Tower (Minneapolis), and Infomart (Dallas),
               approximately 180,000 square feet. In the broader U.S.       which together generated over 800,000 square feet of
               market, many buildings, particularly in suburban loca-       gross leasing.
               tions, have struggled to maintain occupancy as renewing
               tenants have downsized and demand from new tenants           Leasing activity was also strong in the Fund’s residential
               has been lackluster. However, leasing fundamentals have      portfolio. As a result of exposure to strong local econo-
               been stronger for our properties, particularly in our core   mies experiencing positive job growth and steady
               markets where we benefitted from positive net absorp-        household formation, our residential occupancy
               tion in 2011, generating $2.2 million in annual net          increased two hundred basis points to 95% at the end
                                                                            of 2011. Demand was most notable in Boston and in
                                                                            Minneapolis where improving fundamentals led to
                                                                            meaningful rent spikes and exceptional NOI growth.
                                                                            During 2011, rental rates increased by 16% at Arborpoint
                                                                            at Station Landing (Boston), 8% at The Peninsula
                                                                            (Boston), and 5% at Blue (Minneapolis). While devel-
                                                                            opers are eager to add new supply in markets with the
                                                                            strongest fundamentals, we expect that landlords will
                                                                            maintain pricing power in supply constrained markets
                                                                            over the near to medium-term.

                                                                            Overall, the Fund’s operating occupancy increased by 90
                                                                            basis points to 86.9% in 2011. Please find an overview of
                                                                            the most notable leasing activity at select assets below:

                                                                            colorado center:   Leasing at the Colorado Center, the
                                                                            Fund’s class-A mixed-use office complex located in
                                                                            Denver was exceptional during 2011. Over 191,000
                                                                            square feet of new and renewing leases pushed occu-
                                                                            pancy to 94% by year-end, 8% higher than the Denver
                                                                            office market occupancy of 86%, according to PPR. In
                                                                            the third quarter, we executed a ten-year 51,000 square
                                                                            foot lease with Willis Group, a global insurance provider.
                                                                            The tenant consolidated its footprint from multiple
                                                                            locations and was attracted to Colorado Center’s central
                                                                            location and convenient access via the light rail station
                                                                            at the property.

                                                                            capella tower: During the third quarter, we signed an
cAPEllA towER                                                               early renewal with Capella Education, the Fund’s largest
Minneapolis, Minnesota                                                      office tenant which occupies 30% of Capella Tower in
                                                                            downtown Minneapolis. ASB proactively approached

              the tenant and executed an early renewal for 420,000                               band. This lease highlights the importance of our con-
              square feet with little additional tenant improvement                              tinued commitment to invest in our assets even during
              expenditure. The tenant slightly reduced its footprint in                          the downturn. In 2011, we continued other capital
              exchange for a longer lease term which now expires in                              projects in our retail portfolio including a site plan and
              seven years, providing enhanced income stability and                               facade upgrade at Spotsylvania Crossing and a parking
              security to the portfolio. Over 50,000 square feet of new                          lot refinishing project at Prince William Square.
              leases were also executed with a number of smaller ten-
              ants during 2011. The building’s recently expanded                                 2040 lofts:  At 2040 Lofts, our student housing asset
              amenity program, including a conference facility and                               located near the campus of Marquette University, we lev-
              concierge service, has been popular with tenants and                               eraged a proactive leasing strategy to increase occupancy
              has helped drive leasing.                                                          to 95%, representing a 10% increase year-over-year. In
                                                                                                 an effort to tap all pockets of demand, property man-
              Infomart: During the year, we executed two sizable lease                           agement has cultivated long-term relationships with
              expansions with existing tenants: 36,000 square feet with                          organizations including campus student groups, gradu-
              Equinix and 21,000 square feet with Cologix. Both                                  ate organizations, and summer internship employers.
              tenants are rapidly growing technology firms that were
              attracted to the important competitive advantages of                               lease Expirations: The Fund’s commercial lease rollover
              the asset including its superior fiber-optic capacity,                             over the next five years is less than 44% of total leased
              electrical infrastructure and telecommunications net-                              space. The majority of the Fund’s rollover is concen-
              work. Lease commencements from leases executed in                                  trated in its industrial portfolio, which will have a
              2010, contributed to year-over-year NOI growth of                                  modest impact on the Fund on an economic basis as a
              15.5%. Income has grown at this asset every year during                            result of the lower rents per square foot paid by indus-
              the past six years of our ownership.                                               trial tenants.

              dobbin center: We executed a major retail lease with
              Destination XL at Dobbin Center, our 126,000 square
              foot shopping center, located outside of Washington,
              D.C. The 10,000 square foot lease increased occupancy
              to 95% and was signed subsequent to a 2010 renova-
              tion at the property, upgrading the facade and signage

Real Estate Fund Lease Rollover Schedule                      1

                       Rentable SF 2           leased SF            % leased                 2012              2013              2014    2015        2016

Residential                2,781,994            2,651,039                95.3%                n/A               n/A               n/A     n/A         n/A
Industrial                 4,166,451            3,310,624                79.5%             32.9%              8.8%               4.3%    4.7%        6.6%
Office                    3,484,944            3,059,200                 87.8%              3.0%              8.4%               4.4%    4.3%        8.1%
Retail                      985,301               904,171                91.8%              3.0%              8.5%               9.4%    4.0%       17.2%

total                    11,418,690            9,925,034                86.9%              16.9%              8.6%              4.9%     4.4%        8.4%

                  Residential properties are excluded from the lease rollover analysis given rental apartments typically have one-year
                  leases, such that rollover is essentially 100% each year.

                  Excludes non-operating investments.
                    Fund GeoGraphic diversiFication
                    (by net asset value)

                         Pacific               20.8%
                         northeast             19.1%
                         Southwest             13.7%
                         East Central          12.3%
                         West Central          11.7%
                         Mountain              10.7%
                                                                                      Fund property type diversiFication
                         Mid-Atlantic           9.7%                                  (by net asset value)
                         Southeast              2.1%

                                                                                         Office                37.7%
                                                                                         Industrial            25.2%
                                                                                         Residential          20.4%
                                                                                         Retail                11.8%
                                                                                         Land                   3.2%
                                                                                         Cash                   1.8%

                    Target Markets Allocation (by net asset value)

        Boston                                                                           17.1%

         Dallas                                                          12.8%

    Minneapolis                                                      11.7%

    Washington                                                9.7%

        Denver                                            9.3%

San Francisco                                            9.1%

       Chicago                                         8.2%

    Los Angeles                                        8.2%

       Portland                2.2%

      new york         0.5%

        Seattle      0.0%

                  0.0%                  5.0%              10.0%               15.0%               20.0%                25.0%

                  Over 89% of the Fund’s portfolio is located in our target MSAs which are among the largest cities in the
                  nation with the strongest real estate fundamentals.

Property and Geographic Sector Diversification
     The ASB Allegiance Real Estate Fund maintained a              pursuing several potential acquisitions of residential
     balanced asset class mix and a diversified geographic         and retail assets.
     footprint in 2011.
                                                                   We believe that a large component of our ability to
     Driven primarily by the sale of Playa Vista in early 2011,    outperform during both the downturn and subsequent
     the Fund reduced its office concentration to 38% by           recovery resulted from the Fund’s strategy of investing
     year-end, in line with the NFI-OCDE office concentra-         in large, dynamic gateway cities characterized by mature
     tion. In 2012, the Fund plans to grow its exposure to         liquid markets with strong economies that drive
     transit-oriented multi-family residential and urban high      above-average employment and population growth.
     street retail. Initially, this will be achieved through the   Going forward, ASB plans to increase its exposure to
     development of the Fund’s 333 Fremont site in San             the Pacific, Mid-Atlantic and Northeast regions where
     Francisco, where the Fund will invest approximately           many of the nation’s strongest local and regional econ-
     $33 million in additional capital. The Fund is also           omies are located.

                                                                                            BluE –   Minneapolis, Minnesota

1315 lIncoln BoulEVARd –    Santa Monica, California

Fund Acquisitions
Property name                  use                location               Purchase date   Purchase Price (Millions)

1315 Lincoln Boulevard         Office             Santa Monica, CA       9/13/2011       $ 12.6
Fortune Oregon                 Industrial         Portland, OR           5/12/2011       $ 7.9

Fund Dispositions
Property name                  use                location               Sell date       Sales Price (Millions)

Fox Media Center               Office             West Los Angeles, CA   1/31/2011       $294.0
Resource–Tanglewood Court      Residential        Houston, TX            9/19/2011       $ 35.0

Outlook and Opportunity
     In 2011, the commercial real estate market continued        San Francisco, and San Jose where hiring in technology
     to rebound. With almost $211 billion in total sales,        drove office rent growth into the double digits. Nation-
     transaction volume has normalized back to 2003 levels,      ally, the outlook for 2012 looks somewhat better than
     representing a healthy 55% increase year-over-year.         2011 with expectations of 130,000 new jobs per
     Investment activity was most concentrated in major          month, likely not enough to cause a significant decline
     markets where pricing also saw the greatest gains. With     in unemployment which ended the year at 8.5%. With
     mixed economic news for most of 2011, volatility in the     the possibility of a Eurozone recession dampening
     stock market remained at elevated levels and demand         exports and ongoing government deficits potentially
     for core real estate was driven by defensive positioning    causing cutbacks in government spending, our outlook
     and increasing value placed on current income.              for the economy is guarded.

     Apartment fundamentals again outperformed in 2011           The 2012 outlook for commercial real estate however
     given continued weakness in home prices and steady          remains stable. Although expectations for fundamen-
     employment gains. Vacancies continued to decline            tals are modest, peaking productivity, flush corporate
     another 70 basis points to 6.6% nationally driving 4.6%     balance sheets and record private sector profits suggest
     rent growth, the strongest since 2005. Fundamentals         that hiring could pick up meaningfully once some of
     were strongest in the top employment markets like           the headline risk is mitigated and confidence returns.
     Boston and San Francisco, which averaged 9.5% rent          Furthermore, the technical macro factors bode well
     growth and 4.1% vacancy. In response, the development       for real estate. Treasury yields are not likely to move
     pipeline is growing. PPR expects new supply to add          higher until the economy gains substantial traction. In
     4.0% to inventories nationally in the next four years.      that scenario, hiring and spending will lead to higher
     While new development could cause the pace of rent          occupancy, rent growth and NOI. Core real estate will
     growth to decelerate in the medium-term, we expect          remain a favored asset class as it provides downside pro-
     rent growth to remain above inflation well into 2013.       tection as well as value upside. A third quarter investor
                                                                 survey conducted by RERC highlights this: commercial
     Fundamentals have been far weaker for office, industrial    real estate has a higher investment rating than stocks,
     and retail. Despite steady absorption in the strongest      bonds and cash and has widened its lead over the prior
     employment markets pushing vacancy moderately               12 months.
     lower, national vacancy rates still hover around peak
     recession levels with the exception of industrial which
     has seen a 70 basis point decline in vacancy driven
     by 110 million square feet of net absorption in 2011
     according to Grubb & Ellis. Despite this good news,
     office, retail and industrial rents were flat to slightly
     negative in 2011 with the exception of Santa Monica,

Portfolio Strategy
      The ASB Allegiance Real Estate Fund is an open-end,          oPERAtIng ModEl

      commingled real estate fund managed by ASB Real              The Fund invests in partnerships with experienced
      Estate Investments, a division of ASB Capital Manage-        local real estate operators who have extensive local net-
      ment, LLC. Chevy Chase Trust Company, an affiliate,          works, deep product knowledge, and a track record of
      is the Trustee for the Fund. The Fund is comprised of        success. Many of the Fund’s operating partners have
      premium-quality, income-producing properties, which          a long-standing relationship with the Fund after years
      are diversified by product type, location, and lease         of repeat business. Through an investment structure
      exposures. The ASB Allegiance Real Estate Fund is one        that aligns operating partner economics with back-end
      of the top performing open-end diversified core funds        investment performance, the Fund is able to harness
      in the country. The Fund has consistently generated          the knowledge, creativity and energy of its partners to
      alpha for clients through an investment strategy focused     create value and drive returns for investors.
      on acquiring best-in-class commercial real estate assets
      in markets with the strongest long-term fundamentals.        The Fund’s organizational culture and size also provide
                                                                   a distinct competitive advantage. The ASB Allegiance
      InVEStMEnt StRAtEgY                                          Fund’s senior management team has worked together
      The Fund’s investment strategy has two important fea-        for over seven years, and the flat organizational struc-
      tures: 1) a proprietary top-down analysis to determine       ture allows the Fund’s acquisition team to move quickly
      the most compelling markets to target for long-term          when speed is important. In addition, the Fund has
      capital deployment and 2) a bottom-up approach to            the capacity to source smaller investments requiring
      identify assets that are well positioned to garner tenant    as little as $10 million in equity that may typically fall
      demand over the long term.                                   under the institutional radar. Investment professionals at
                                                                   ASB focus on both acquisitions and asset management,
      target Market Strategy: The Fund focuses on investment       providing accountability and team continuity over the
      opportunities in markets with three important criteria:      life of an investment.
      1) a diversified competitive economy with robust employ-
      ment that creates above average household formation,         Through strategic asset selection, active hands-on
      2) geographic or regulatory hurdles that constrain new       asset management, and prudent risk management, the
      supply, and 3) a dynamic urban core featuring a vibrant      Allegiance Fund’s investment objective is to generate
      pedestrian experience, mass-transit infrastructure, and      superior risk-adjusted returns for its clients. The Fund
      strong cultural institutions that enhance quality of life.   targets investments in which it can protect and pre-
      We believe that these markets will experience superior       serve clients’ capital, while at the same time generating
      real estate fundamentals that will drive rent and NOI        market-leading income returns and capital appreciation.
      growth, significantly enhancing value for investors over
      the long term.

      Asset Selection Strategy: We assume a tenant’s perspec-
      tive when evaluating acquisition targets for the Fund.
      We purchase high-quality real estate assets that satisfy
      the demanding needs of tenants in the marketplace
      and provide desirable spaces in which our residents
      and tenants can live, work and play. This approach drives
      tenant satisfaction, keeping the Fund’s portfolio more
      highly occupied over the long term.

responsible investment policy

The ASB Allegiance Real Estate Fund, throughout its 27-year history, has maintained a responsible

investment policy which seeks to promote responsible stewardship of the environment, safe living

and working conditions, and employment of the highest skilled workers from the building and

construction union trades. This investment policy extends the effective life of our assets, reduces

operating costs, and creates a better experience for our tenants.

ABOvE: thE dAllAS InFoMARt –          Dallas, Texas
ASB Real Estate Investments

7501 Wisconsin Avenue

Suite 1300W

Bethesda, MD 20814

(240) 482-2900


ASB Allegiance Real Estate Fund and ASB Capital Management LLC are
registered marks in the U.S. Patent and Trademark Office.

This report is published by ASB Real Estate Investments, a division of ASB
Capital Management LLC. Information and statements contained in this
issue are based on data obtained from sources we believe to be reliable,
but are not guaranteed as to accuracy and do not purport to be complete.
ASB Allegiance Real Estate Fund is an open-end, commingled equity real
estate fund that focuses on the Taft-Hartley market. For more information,
please contact Judy K. McCoy, Managing Director at (240) 482-2908 or
visit our website at asbrealestate.com.

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