Portfolio Objective

A Minimum investment of $50,000 into the Clarus Income Portfolio. The current asset allocation for this account is as follows:

The objective of the Clarus Income Portfolio is to seek positive, risk-adjusted returns by determining how asset classes are valued relative to each other. The portfolio is constructed using an asset allocation that seeks current income without elevated risks to the principal value of the securities.

All asset classes are utilized through Exchange Traded Funds (ETF’s) that replicate the particular asset class. ETF’s provide a true asset class match without the “style-drift” of mutual funds. ETF’s are generally a less expensive asset to use in portfolio construction. ETF’s are tradable throughout the day, in the event market volatility creates opportunity.

Based on market volatility, the portfolio will typically be rebalanced quarterly. Tax sensitivity will be considered in individual accounts, but will not override the decision to rebalance.

The portfolio manages risk through the use of trailing stops on each position, individually. This helps maintain a client's risk tolerance during periods of high market volatility and uncertainty.

Ideal ClientThe Clarus Income Portfolio is appropriate for clients with a three to five year time horizon. Clients investing in the Clarus Income Portfolio are likely to define their risk tolerance as “conservative”.

T-NotLong-TMunicHigh YLarge Small Small CommIntern

es/CD’sTerm Gov’t Bcipal BondsYield CorporCap Value SCap Value SCap Growth

modities/Basnational Stoc

Bonds

ate Bondstockstocks

h Stockssic Materialscks

13.60%

9.20%

5.60

s

%4.30%

1.60%3.70% 3.90%

26.90

31.20%

0%