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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 Client The 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-Not Long-T Munic High Y Large Small Small Comm Intern es/CD’s T erm Gov’t B cipal Bonds Yield Corpor Cap Value S Cap Value S Cap Growth modies/Bas naonal Stoc Bonds ate Bonds tocks tocks h Stocks sic Materials cks 13.60% 9.20% 5.60 s % 4.30% 1.60% 3.70 % 3.90% 26.90 31.20% 0%
