| An investment utilizing our investment methodologies involve significant risks, including the potential risk of loss of a substantial portion (or all) of the amount invested. This document is informational in nature and for use only by sophisticated investors who meet certain minimum financial requirements. Our investment program may not be suitable for all types of investors. The Athena Select Equity Portfolio ("Portfolio") is concentrated in a small number of equity holdings. As a result, the portfolio is more volatile than is the broad equity market as a whole. The returns are uncorrelated with the appropriate market indices and thus annual returns can differ significantly from broad equity market returns. This information is not intended to constitute legal, tax, accounting or investment advice. Prospective clients should consult their own advisors about such matters. No independent party has audited the hypothetical model portfolio performances, nor has any independent party undertaken to confirm that the model adheres to the assumptions or conditions specified in our investment theses. There are risks involved with investing, including the risk of loss of principal. There is no assurance that the investment process will consistently lead to successful results. Nothing herein is intended to imply that an investment in our investment methodology may be considered "conservative," "safe," "risk free" or" risk averse." No regulatory authority has passed upon or endorsed this summary or the merits of an investment using our strategy. Actual portfolios may differ as a result of client-imposed investment restrictions, the timing of client investments and market and economic considerations. The holdings shown should not be considered a recommendation or solicitation to buy or sell any particular security, do not represent all of the securities purchased, sold or recommended for any particular advisory client, and in the aggregate may represent only a small percentage of an account's portfolio holdings. You should not assume that an investment in any of the securities was or will be profitable. PAST PERFORMANCE DOES NOT GUARANTEE OR INDICATE FUTURE RESULTS. The performance information shown reflects the performance of a model portfolio that does not necessarily reflect the performance that any particular client account investing in the same or similar securities may have had during the period. Actual account performance is likely to differ from the composite performance shown for a variety of reasons, including but not limited to: differences in market conditions, portfolio turnover, and in the number, types, availability and diversity of securities that can be purchased; economies of scale and other factors applicable to the management of separate accounts; client-imposed investment restrictions; the timing of client investments and withdrawals; the deduction of taxes; tax considerations; and other factors. Model portfolio and index performance results reflect realized and unrealized appreciation and the reinvestment of dividends, interest and/or capital gains. Taxes have not been deducted. Custodians and brokers may charge different fees for custody and trading services. AthenaInvest's maximum management fee of 1.0% is deducted monthly and is netted from the returns reported. Charts and statistics that contain information prior to the portfolio launch date contain data based on a model portfolio back test of the steps of the Athena Investment Process described on page 1 of this brochure. The performance data presented in this brochure does not reflect performance of an actual client's account. Actual investment in the Athena Portfolios may result in different performance from what is presented in the model. PRE-INCEPTION MODEL PORTFOLIO METHODOLOGY: This portfolio utilizes a blended multi-strategy approach: 40% Pure Valuation | Profitability , 40% Tax Sensitive Equity and 20% International Equity. For Pure Valuation|Profitability portfolio returns prior to its inception on July 1, 2002, the portfolio is assumed to have earned the same monthly return as the Russell 2000 Index. For Tax Sensitive returns prior to its inception on April 1, 2011, the back test portfolio held all US stocks that were Diamond Rated 4 or 5 and fell into the bottom divided yield quintile. For International returns prior to its inception on July 1, 2009, the back test portfolio started by holding the top 20 Diamond Rated International stocks (limited to American Depository Receipts or ADRs). Each month, if one or more of the stocks in the portfolio fell below a predetermined Diamond Rating level, it was exchanged for the highest ranking International stock not currently in the portfolio. After each portfolio’s inception date, actual portfolio returns are used in the back test. The reported results assume a $50,000 minimum account, an average stock price of $25, trading fees of $10 per trade, and a 5¢ per share commission charge. Dividends and capital gains are reinvested. All returns are pre-tax and include AthenaInvest's maximum management fee of 1.0%. In addition, please note that the results of the hypothetical portfolio testing we have performed to attempt to validate our investment methodology must be viewed carefully. Model performance results are provided strictly for educational and illustrative purposes only, and may not be a reliable indicator of future investment results over any particular time period. We do not yet have full actual performance results across the modeling period from client trading to be able in any meaningful way to compare actual results with those of the model. Accordingly, please note the following: The model performance was derived from the retroactive application of a methodology that was developed with the benefit of hindsight. Hypothetical or simulated performance results have inherent limits. Unlike an actual performance record, simulated investments do not represent actual investments. Also, since the investments were not actually executed, the results may have over or under compensated for the impact, if any, of certain market factors that can impact the performances of stocks by reason of the securities trading activities such as lack of liquidity, money flow, interest and exchange rates, economic and/or political conditions and other factors. Results may have been better or worse than the results portrayed. No representation is being made that any account will or is likely to achieve profits or losses similar to those achieved by the simulated investments. There is always potential for loss of capital with an investment using our model over any particular time period. There is no assurance that investors will not lose capital. Complete information about how the model performance was generated is available on request. Market indexes are included in these materials only for comparative purposes and as context reflecting general market results. In addition, as noted above, we use as a benchmark an index comprised of 40% S&P 500 Index, 40% Russell 2000 Index, and 20% MSCI EAFE Index. This benchmark is used for a general performance guideline. Our methodology does not seek to replicate the composition, or mirror the performance or volatility, of any such index, and can be expected to have investments that differ substantially from the securities or other instruments included in any such index. Accordingly, no representation is made that the performance or volatility of our methodology will track or otherwise reflect any particular index. Index returns may not reflect transaction costs or the deduction of fees and it is not possible to invest directly in an index. The S&P 500 Index is a market-capitalization weighted index which measures price movements of the common stock of 500 large U.S. companies within leading industries. Stocks in the Index are chosen for market size (large cap), liquidity and industry group representation. S&P 500 is a registered trademark of The McGraw- Hill Companies. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 8% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000 is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small-cap opportunity set. Morgan Stanley Capital International's Europe, Australia and Far East ("EAFE") Index is an unmanaged index that is a generally accepted benchmark for the major overseas markets. Data is dollar-adjusted. Investors may not actually make investments in this index. This information is not intended to be complete, and material aspects of the descriptions contained herein may change at any time. While the information prepared in this summary is believed to be accurate, we make no express warranty as to the completeness nor can we accept responsibility for errors made in good faith. All of the information included in this brochure is current as of the date indicated and is subject to change. Certain information has been obtained from various third-party sources believed to be reliable, but we cannot guarantee its accuracy or completeness. |
Portfolio = $32,864
Benchmark = $17,236
