STRATEGIC REALLOCATION PROGRAM

The Goal

The primary objective of the Strategic Reallocation Program ("SRP") is to actively manage your portfolio, consisting of various securities, in an effort to enhance total return and to manage risk. We attempt to limit the overall risk of the portfolio in significantly declining markets ("bear markets") and to seize opportunities for gain in rising markets.

The Process

We begin by assisting each client in determining their most suitable Asset Allocation Model from among our five models. The model selection is based on a number of individual factors including your financial objectives, the time available to meet those objectives, and your tolerance for risk. After your Asset Allocation Model is selected we then design your portfolio which may consist of a variety of securities including load-waived mutual funds, no-load mutual funds, exchange-traded funds, stocks, and/or bonds.

Once your portfolio is designed within the parameters of your selected Asset Allocation Model, we will provide continuous and regular monitoring of your portfolio to facilitate the strategy. As changes in economic conditions affect the specific components of your diversified portfolio, adjustments may be made in an effort to reduce risk and seize opportunities for gain.

The Management Approach

In rising markets, our strategy is to let profits run. We will not attempt to time the top of a rising market. When markets begin to fall, we determine whether we will maintain our positions or reduce risk by moving out of them. This decision is based on the factors causing the decline and our judgment of their potential effects. In addition, a downside target from the highest level for each position is carefully monitored which if approached or exceeded may cause us to move out of a position and cut our losses.

The Reporting

As part of our high-quality personalized service to you, we will provide quarterly performance reports. These reports will detail the performance of each of the positions in your portfolio as well as the portfolio as a whole. Graphic illustrations in the form of a pie chart (to show diversification) and a bar chart (to show the historical performance of your portfolio over time) will also be provided each quarter. We will review your portfolio with you by telephone or in person either quarterly, semiannually, or annually based on your preference.