PFS SUB PortfolioS

SUB-pORTFOLIO STRATEGIES

This sub-portfolio is employed for taxable accounts and high income-tax bracket investors. Similar to the Income sub-portfolio, the purpose of this portfolio is to generate stable income and reliable cash flow, reduce risk of the overall portfolio, and to serve as a time buffer to protect the rest of the portfolio against volatility of other investments and corresponding sequence of returns risk in case the downturns occur at a time when withdrawals are planned.

This sub-portfolio will consist of liquid investments that are designed to deliver periodic interest payments and predictable return of capital for taxable rather than tax-advantaged accounts such as IRAs, Roth IRAs, and other types of tax-deferred or tax-advantaged investment accounts.

This sub-portfolio is focused on generating a return with lower risk and volatility than the overall stock market with substantial portion of the return being paid out as income on periodic basis. Examples include stock dividends and bond interest payments.

Growth and Diversification

Growth is a diversified and return-focused sub-portfolio which includes investments in global stocks, high yield bonds, and other traded investments with risk-return profile of stock-like investments and risk, volatility and appreciation potential of the overall stock market.

This sub-portfolio will target a higher risk-growth balance than the Growth Sub-portfolio and as such is more likely to outperform the average US stock market return over a market cycle but also with higher level of risk and volatility than the overall market. Similar to Growth Sub-portfolio, these investments are designed to be risk managed to enhance long-term returns by reducing large losses with appropriate position management, including growing or reducing the size of each specific investment, as well as exiting investments as conditions change.

This sub-portfolio will include traded securities in alternative asset classes and strategies, as well as multi-asset, cross-asset and multi-strategy investments. The purpose of this sub-portfolio is to reduce the risk and enhance returns of the traditional stock and bond portfolio by incorporating assets and strategies that are less correlated or less volatile or have higher return potential, especially under certain market conditions, such as for example when traditional stock and bond markets appear to be at risk due to deteriorating economy, high valuations, shrinking profits and high volatility accompanied by declining price trends.

This is a fully customized sub-portfolio of non-traded, limited entry and exit, long-term investments for high net worth investors that will be considered as they become available in appropriate amounts for each specific client to enhance the risk-return profile of their overall portfolio as well as satisfying their needs for additional diversification, income, growth and risk reduction. Examples include non-traded real estate investment trusts and non-traded business development companies.