| 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. 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 mutual fund investing, including the risk of loss of principal. There is no assurance that the investment process will consistently lead to successful results. Investing in fixed income securities such as bonds involves interest rate risk. When interest rates rise, the value of fixed income securities generally decreases. An investment concentrated in sectors and industries may involve greater risk and volatility than a more diversified investment. Nothing herein is intended to imply that an investment in our investment methodology may be considered "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. Information concerning portfolio allocations is representative of the target portfolio for this Athena Portfolio and does not necessarily reflect an actual client account. Actual portfolios may differ as a result of client-imposed investment restrictions, the timing of client investments and market, economic and individual fund 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. 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. 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. Annual returns reported above are simple averages over funds in a particular portfolio for a particular month. Returns are net of AthenaInvest's maximum 1% management fee, automatically deducted fund management and other fees, CDSC charges, custodial fees, and trading costs. Returns include the reinvestment of all dividends and capital gain distributions. Performance reported is pre-tax. Charts and statistics that contain information prior to the portfolio launch date contain data based on a model portfolio back test following the steps 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: Portfolio rebalancing occurs at the beginning of each month using data available at that time. The investing process is described on page 1. When equity funds drop below a rating of DR4, they are sold and replaced with DR5 funds. The model portfolios prior to actual portfolio inception hold an average of 250 funds at a given time. In practice, the portfolio will generally hold 6 equity funds at a time. Select aggregate bond fund returns were used for the fixed income allocation in the back test and Three Month Treasury Bill yields were used for the cash allocation. 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 mutual funds 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. · While our methodology is quantitatively based on a variety of data, we may make subjective decisions on whether to follow the model's recommendation on a buy or sell decision. For example, major economic events and market conditions such as major wars, recessions, and very volatile markets could influence investment decisions. Accordingly, the model results may not reflect the effect of material economic and market factors on decision-making if we were actually managing investments during the periods indicated. · While the results presented are based on certain assumptions that are believed to reflect actual trading conditions, these assumptions may not include all variables that can affect, or have affected in the past, the execution of trades indicated. Furthermore, the individual funds selected through the model change as time passes such that there can be no guarantee that funds used in the past for actual or model results will be available for investment in the future. · 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 S&P 500 Index, MSCI EAFE Index, BC US Aggregate Bond Index, and a Cash Index. These benchmarks are used for a general performance guideline of the various portfolios based on the mix of US equity and International equity funds in the portfolio. 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. 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. The Barclays Capital U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. The Cash Index equals the month-end yield on the Three Month US Treasury Bill, which can be obtained from the website of the Federal Reserve of St. Louis. 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. |
Portfolio = $19,465
Benchmark = $16,781
