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Asset Allocation Discussion

Note that Alternative Investments can provide diversification benefits not obtained from more traditional investments, but should be carefully considered based on the risk associated with these investments and your investment objectives, risk tolerances and net worth. Alternative Investments are often long-term, illiquid investments that are not easily valued.

Equity Allocation

Securities identified reflect only a selection among investments and products available for your consideration. For more complete information about any of the funds identified in this report, including investment objective, risks, charges and expensed, obtain a prospectus from your Financial Advisor. Read it carefully before you invest. For money managers, program agreements, and disclosure statements can provide information on applicable fees, restrictions and other terms. See important information at the end of the report.

Fixed Income Allocation

Securities identified reflect only a selection among investments and products available for your consideration. For more complete information about any of the funds identified in this report, including investment objective, risks, charges and expensed, obtain a prospectus from your Financial Advisor. Read it carefully before you invest. For money managers, program agreements, and disclosure statements can provide information on applicable fees, restrictions and other terms. See important information at the end of the report.

Alternative Investment Allocation

Note that Alternative Investments can provide diversification benefits not obtained from more traditional investments, but should be carefully considered based on the risk associated with these investments and your investment objectives, risk tolerances and net worth. Alternative Investments are often long-term, illiquid investments that are not easily valued.

Securities identified reflect only a selection among investments and products available for your consideration. For more complete information about any of the funds identified in this report, including investment objective, risks, charges and expensed, obtain a prospectus from your Financial Advisor. Read it carefully before you invest. For money managers, program agreements, and disclosure statements can provide information on applicable fees, restrictions and other terms. See important information at the end of the report.

Cash Flow & Fee Schedule
MANAGER APROXIMATE YIELD MANAGER FEE
EQUITY
DOMESTIC
Vanguard Large Cap Fund 1.77% 0.12%
Vanguard Small Cap Fund 1.38% 0.14%
GLOBAL
Vanguard World Stock Fund 0.00% 0.30%
INTERNATIONAL
MSCI EAFE Small Cap Fund 0.54% 0.40%
MSCI EAFE Index Fund 0.91% 0.35%
Vanguard Emerging Markets 0.00% 0.27%
PREFERREDS
S&P US Preferred Index Fund 6.70% 0.48%
FIXED INCOME
TAXABLE
Barclays Aggregate Bond Fund 1.48% 0.24%
Vanguard Intermediate Corp Bond Fund 3.84% 0.15%
HIGH YIELD
iShares High Yield Corp Bond 8.13% 0.50%
GLOBAL
JPMorgan Emerging Markets Bond Fund 4.43% 0.60%
SPDR International Corp Bond 4.49% 0.55%
ALTERNATIVE INVESTMENTS
REAL ASSETS
Market Vectors Gold Miners 0.00% 0.54%
Vanguard REITs 2.59% 0.13%
HEDGE STRATEGIES
IQ Hedge Multi Strategy 0.00% 1.08%
IQ Merger Arbitrage 0.00% 0.75%

*These numbers are approximations and are subject to change with market fluctuations

**Please see Program Fund Descriptions, Underlying Fund Offering Documents, Prospectuses, & Confidential Program Memorandum for more information on the risks, fees, and expenses of the proposed investments.

***The information set forth herein was obtained from sources which we believe reliable, but we do not guarantee its accuracy or completeness. The information is for discussion purposes, and neither the information, nor any opinion expressed, constitutes a solicitation by us of the purchase or sale of any securities, commodities, or other financial instruments. We are providing the above information as you requested. The information is provided as a service to you and is obtained from data we believe is accurate.

Fees are all inclusive (management, trading costs, etc.). These numbers are APPROXIMATIONS and are SUBJECT TO CHANGE. Fees for all Mutual Funds and Alternative Investments are based on A and I share pricing respectively. A share Mutual Funds may have an up front load fee, C Shares do not. Hedge Funds and Managed Futures may have an incentive fee which can be found in the prospectus and are based on fund performance.

Important Information About This Report

Proposed investments identified reflect only a selection among investments and products available for your consideration. Please find the enclosed corresponding materials for more complete information about any of the proposed investments identified in this report. Prospectuses, program agreements, client agreements, partnership agreements, offering memorandums and disclosure statements have been included for your review and can provide more complete information on the applicable risks, fees, expenses, restrictions and other terms of the proposed investments.

Investment Risk and Tax Disclosure

You should understand that all investments involve risk (the amount of which may vary significantly) that investment performance can never be predicted or guaranteed and that the values of their portfolios will fluctuate due to market conditions and other factors. You should also understand that if you sell securities, you will be responsible for the tax liabilities arising from such transaction. You are encouraged to seek the advice of a qualified tax professional.

Alternative Investment Risks

Any Private Investments mentioned in this Report, such as hedge funds, private equity or managed futures investments, may only be offered to suitable pre-qualified investors and may only be made through the applicable Offering Memorandum, which contains a detailed description of the investment including investment strategies and risk factors (including strategy and market risk). For investors who may want to consider alternative investments as a part of a diversified portfolio, careful consideration should be given to the associated risks of these investments. The investor’s investment objectives, risk tolerance and net worth should be appropriate for this asset class as alternative investments are often long-term, illiquid investments that are not easily valued. Often specific levels of net worth and liquidity are required in making certain alternative investments (e.g., for some alternative investments, net worth of $5 million or more is required). In addition, the timing of capital calls and distributions may not be predictable; periodic pricing or valuation information may not be available; and complex tax structures may be utilized and there may be delays in distributing important tax information.

Whether a particular investment meets the investment objectives and risk parameters of any particular client must be determined on a case by case basis. No assurance can be given that the investment objectives of any particular alternative investment will be achieved. Many alternative investment products are sold pursuant to exemptions from registration with the SEC and may not be subject to the same regulatory requirements as other investment products, such as mutual funds. In addition to certain general risks identified below which are not exclusive, each product will be subject to its own specific risks, including strategy and market risk. Certain alternative investments require tax reports on Schedule K-1 to be prepared and filed. As a result, investors will likely be required to obtain extensions for filing federal, state, and local income tax returns each year.