WHOLE PORTFOLIO RECOMMENDATION

How We Build Portfolios for Multiple Market Cycles

1. Equally allocate stock portion to Always Invested Stocks and Risk Managed Strategies to attempt to reduce downside over multiple market cycles.

2. Replace traditionally managed fixed income with tactical fixed income to potentially reduce interest rate and inflation sensitivity, and increase cash flow.

3. Identify managers employing investment disciplines within each strategy type that complement each other’s strengths and weaknesses, potentially further dampening downside risk.

4. Adjust allocations to meet varying levels of return objectives and potential max drawdown

Using managers with different performance attributes and investment styles may potentially help smooth the ride and eliminate the guesswork of trying to predict market direction. This may enable investors to stay committed to a portfolio through varying market cycles instead of focusing on short term returns.

Whole Portfolio Recommendation / Potential Benefits

 

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Past performance is no guarantee of future results. All investments involve risk, including the potential loss of principal invested. Consider the investment objectives, risks, charges, and expenses carefully before investing.The investment return and principal value of an investment will fluctuate. The investor’s account may be worth less than the original investment when liquidated. There is no guarantee that objectives will be met.

This presentation is limited to the dissemination of general information pertaining to its investment advisory/ management services. This document may include forward-looking statements. All statements other than statements of historical fact are forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” “potential,” and “expect”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Various factors could cause actual results or performance to differ materially from those discussed in such forward-looking statements.

1. Always Invested Stocks – refers to portfolios whose equity portion is continuously invested in the stock market. However, they may manage the risk of such equity by investing in vehicles containing defensive stocks. “Stocks” in “Always Invested Stocks” is used herein as a colloquial term to refer to equity. These portfolios may also invest in fixed income.

2. Risk-Managed Strategies – refers to portfolios that may move to cash in order to manage risk. These portfolios may also invest in fixed income, including having a majority of the portfolio in fixed income.

3. Tactical Fixed Income – refers to portfolios whose fixed income portion may move to cash in order to manage risk. These portfolios may also invest in equity. Traditional Fixed Income-refers to portfolios whose fixed income portion is continuously invested in fixed income.