Beacon Profile

8/8/2019 Beacon Profile

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PERSONALIZED INVESTMENT

PROPOSAL FOR:

IS YOUR CURRENT PORTFOLIO WORKING AS HARD FOR YOUR MONEY AS YOU ARE?

Discover a dynamic way to visualize and compare your current portfolio with other asset

allocation models that may be well-suited to your investment goals. Through the application of a

proprietary, groundbreaking portfolio analysis methodology, Beacon Capital Management offers

you this personalized investment portfolio.

Contact Information:

Email: Telephone:

Name:

Date: Prepared by:



PERSONALIZED INVESTMENT PROPOSAL

DISCLOSURE

Introducing the Beacon Personalized Investment Proposal

The Beacon Personalized Investment Proposal offers a powerful way to test investment assumptions against a variety of computer-generated

scenarios. This tool is provided through Beacon Capital Management and Gravity Investments and has been made freely available to your investment

professional. This tool is, is in effect, a proposal publishing system. A nancial advisor can congure and generate a detailed proposal for each clientalong with the necessary disclosures governing the sale of investment products. This web-based tool draws upon extensive investment and index

data and is designed to help you and your advisor allocate your assets, make adjustments and monitor the progress of your investments.

It’s important to keep in mind that the Personalized Investment Proposal provides illustrations only and is not intended to predict the outcome of

any investment strategy. There can be no assurance that an investment strategy based on the Personal Investment Portfolio will be successful. The

data, information, and content provided are for information and educational purposes only. There is no proprietary technology or asset allocation

model that can guarantee against loss of principal. Your investment professional’s use of this tool and its output is undertaken knowing that Beacon

Capital Management and Gravity Investments are not creating, endorsing or providing investment advice regarding any security, manager or market.

The Personal Investment Portfolio is provided on an “as-is” basis. Beacon Capital Management and Gravity Investments expressly disclaim all

warranties, express or implied, statutory or otherwise with respect to the tool (and any results obtained from its use) including, without limitation,

all warranties or merchantability, tness for a particular purpose or use, accuracy, completeness, originality and/or non-infringement.

Portfolio selections for each proposal may use any of the securities in the vast Beacon Capital Management universe, including mutual funds and

exchange traded funds. Based on the holdings entered by the nancial professional, the portfolio is ranked on a risk spectrum which ranges from

stable to aggressive. The nancial professional can choose to ll out the risk prole questionnaire available at http://www.beaconinvesting.com, which

is used to determine the client’s position on the risk spectrum and to recommend the type of portfolio that would be suitable for the client. The

recommendations for the market capitalization and style ranges in the target asset allocations are based on quarterly Beacon Capital Management

forecasts, and are updated accordingly. A nancial professional can opt not to complete the risk prole questionnaire and instead assign a portfolio

type to his/her client.

Accuracy In order for these analyses to be performed as accurately as possible, the tool requires that an investment have at least two years of

performance history. Any fund with less than two years of performance is placed in the ‘Other’ style category and excluded from any risk/return

analysis. Other investments not considered might have characteristics similar or superior to those proposed by your investment professional. The

risk and return assumptions represent long-term expected returns in the general market. The risk and return of each security, and as a result each

portfolio, is derived from the general market assumptions and the expected sensitivity of the specic securities to the market. As a result, some

portfolios will appear less risky while others will appear more risky.

There are risks involved with investing, including possible loss of principal. In addition to the normal risks associated with equity investing, narrowly

focused investments, investments in smaller companies and investments in single countries typically exhibit higher volatility.

Large capitalization• (large cap) investments involve stocks of companies generally having a market capitalization between $10 billion

and $200 billion. The value of securities will rise and fall in response to the activities of the company that issued them, general market

conditions and/or economic conditions.

Middle capitalization• (middle cap) investments involve stocks of companies generally having a market capitalization between $2 billion and $10

billion and considered more volatile than large cap companies. Mid cap investments are often considered to offer more growth potential than

larger caps (but less than small caps) and less risk than small caps (but more than large caps).

Small capitalization• (small cap) investments involve stocks of companies with smaller levels of market capitalization (generally less than $2

billion) than larger company stocks (large cap). Small cap investments are subject to considerable price uctuations and are more volatile than

large company stocks. Investors should consider the additional risks involved in small cap investments.

Growth investments• focus on stocks of companies whose earnings/protability are accelerating in the short term or have grown consistently

over the long term. Such investments may provide minimal dividends which could otherwise cushion stock prices in a market decline. Stock

value may rise and fall signicantly based, in part, on investors’ perceptions of the company, rather than on fundamental analysis of the stocks.

Investors should carefully consider the additional risks involved in growth investments. Sector investing such as real estate can be subject to

different and greater risks than more diversied investments. Declines in the value of real estate, economic conditions, property taxes and tax

laws and interest rates all present potential risks to real estate investments.

Investments in emerging or developing markets• involve exposure to economic structures that are generally less diverse and mature, and to

political systems which can be expected to have less stability than those of more developed countries. Securities may be less liquid and more

volatile than US and longer-established non-US markets.




The expected risk and return of a portfolio is generated by assigning proxy benchmark indices weighted by the various asset styles in the portfolio. T

historical monthly returns of the benchmarks are used to calculate the expected risk and return of the portfolio over the previous ten year period. O

course, investors cannot invest directly in an index. Indexes used include:

S&P 500 Index:• an index, with dividends reinvested, of 500 issues representative of companies in the U.S. large cap market.

Russell 2000• ® Index: measures the performance of the 2,000 smallest companies in the Russell 3000® Index, representative of the US small

capitalization securities market.

Lehman Brothers Aggregate Bond• TM Index: an index, with income reinvested, generally representative of intermediate-term government bonds

investment grade corporate debt securities, and mortgage-backed securities.

MSCI• ® EAFE Index: an index, with dividends reinvested, representative of the securities markets of 20 developed market countries in Europe,

Australasia, and the Far East.

Dimensional Fund Advisors (DFA)• has been developing and managing funds for more than twenty-ve years. With over $85 billion under

management, DFA develops and maintains the strictest value portfolios in markets throughout the world. As a result, investors achieve a more

consistent portfolio structure.

Lehman Brothers• is an innovator in global nance and maintains leadership positions in equity and xed income sales, trading and research,

investment banking, private investment management, asset management and private equity.

Bond investors• should carefully consider risks such as interest rate, credit, repurchase and reverse repurchase transaction risks. Greater risk,

such as increased volatility, limited liquidity, prepayment, non-payment and increased default risk, is inherent in portfolios that invest in high yie

(“junk”) bonds or mortgage backed securities, especially mortgage backed securities with exposure to sub-prime mortgages.

Dynamic Intellidexes• Using rules-based quantitative analysis, the Intellidex Indexes consistently evaluate their index composition on fundamen

growth, valuation, and risk factors.

Wilshire Associates• is a leading global investment technology, investment consulting and management rm.

Deutsche Bank • is a leading global investment bank with a strong and protable franchise investing in commodities and currency.

BlackRock • ® is a premier provider of global investment management, risk and advisory services to institutional and retail clients.

Other Important information and disclosures Fund objectives, risks, charges and expenses should be carefully considered before investing.

A prospectus containing this and other important information can be obtained by calling 937.439.9093 or visiting www.BeaconInvesting.com.

Please read the prospectus carefully before investing.

Not FDIC insured

Has no bank guarantee

May lose value




PORTFOLIO SUMMARY: CURRENT HOLDINGS VS. PROPOSED

Your Personal Investment Portfolio provides a three-dimensional way to compare your current portfolio against a proposed, alternative portfolio.

In addition, you will see a full complement of analytical data that focuses on return, as well as risk and diversication.

Current Holdings (original) Beacon Proposal (original)

Merged from standard Beacon portfoliosCP 80/20 (original) (100%)

Return 8.77% 5.59%

30% 15% 0% 0% 15% 30%

Risk measure

Standard Deviation 11.50% 9.36%

0% 20% 40% 40% 20% 0%

Semi-Variance 8.29% 6.76%

0% 20% 40% 40% 20% 0%

Maximum draw down 14.15% 11.70%

0% 20% 40% 40% 20% 0%

Ulcer Index 36.41% 35.93%

0% 20% 40% 40% 20% 0%

Ratio measure

Shape Ratio 0.44 0.20

2 1 0 0 1 2

Sortino Ratio 0.61 0.28

2 1 0 0 1 2

Calmar Ratio 0.36 0.16

2 1 0 0 1 2

Diversification

IPC 12.80% 35.53%

100% 50% 0% 0% 50% 100%

CC 25.00 21.78

30 15 0 0 15 30

TERMS TO KNOW

Standard deviation With its ups and downs

more pronounced, a volatile stock will have a

higher standard deviation and more risk, than a

less volatile stock.

Semivariance Another risk measurement,

Semivariance, focuses only on downside

uctuations; and, by averaging out the declines,

provides a gauge for potential portfolio losses.

Maximum draw down This is the largest

percentage decline between two equity peaks.

Ulcer Index Factoring in the depth and

duration of drawdowns, the Ulcer Index

provides another measurement of risk. A high

UI would indicate undue risk.

Sharpe Ratio This measurement distinguishes

whether a portfolio’s returns are due to

intelligent decisions or excess risk. The

greater a portfolio’s Sharpe Ratio, the better

its risk-adjusted performance has been.

Sortino Ratio Similar to the Sharpe Ratio

above, this measurement removes the effectsof upward price movements to focus on the

downside only, indicating how sustainable an

investment’s price is during adverse periods.

Calmar Ratio This hedge fund tool gauges

return relative to drawdowns. Generally, the

higher the better.

IPC, Intra-Portfolio Correlation This

statistical measurement determines the

degree to which the various assets in a

portfolio can be expected to perform in a

similar fashion or not. A measure of -1 means

that the assets within a portfolio performperfectly in opposite.

CC, Concentration Coefcient Another

measure of portfolio concentration, CC will

be equal to the number of assets if equally

weighted. The number will be proportionally

less as concentration increases.

Please keep in mind that this information is provided for general and educational purposes only, and is not intended to provide specic

investment advice. Beacon Capital Management encourages you to contact your advisor regarding your specic investments situation.




PORTFOLIO SUMMARY: CURRENT HOLDINGS VS. PROPOSED

Current Holdings (original) Beacon Proposal (original)

Merged from standard Beacon portfoliosCP 80/20 (original) (100%)

Key Name Percentage Key Name Percentage




DIVERSIFICATION OF YOUR PERSONAL INVESTMENT PORTFOLIO

In our analysis, diversication is more than a concept; it is a concrete attribute of your investment portfolio that can be

visualized. Using Beacon’s advanced technology, we can actually see that diversication in a way that integrates a new

dimension to portfolio analysis.

Broader diversication may help provide a higher level of risk-adjusted return in your portfolio recommendation.

Intra-Portfolio Correlation is a means to quantify the degree of diversication. The meter on the right shows the

amount of market risk eliminated from a portfolio. A value of 100% or -1 represents perfect diversication.

However, most traditional portfolios cannot achieve an IPC value substantially less than 0 (or greater than 50%).

Your IPC Percent Value for your new portfolio is:

56.17%

CC is a measure of portfolio concentration. CC will be equal to the number of assets if equally weighted, the

number will be proportionally less as concentration increases.

Your CC value for your new portfolio is:

9.38

HISTORICAL PERFORMANCE

Through up and down markets, your Personal Investment Portfolio would have pursued an attractive level

of risk-adjusted return.

This chart illustrates the hypothetical future growth of the proposed asset allocation strategy. This example is for illustrative purposes only and does

not reect the actual return of any particular investment. Hypothetical returns are not a guarantee of future performance and are not indicative of

any specic investment. Hypothetical returns do not reect the deduction of any related fees and charges.






THE VALUE OF PROFESSIONAL ADVICEFrom setting goals to selecting investments and ne-tuning strategies, your nancial professional will help you

maximize your opportunities and minimize your exposure to investment risks. There is a wealth of services that

your nancial professional provides; here is a sampling:

As market conditions change, your nancial professional will help you keep a long-term perspective and

provide context. As your personal situation evolves, your nancial professional will help you determine the

most effective response.

When you look to the future, you can count on your nancial professional to help every step of the way.

Guidance in evaluating and selecting investment options•

Objective advice to help you make the most informed decisions•

Educational resources that inform and empower•

Ongoing portfolio monitoring and periodic rebalancing•

Regular consultation and review of your portfolio•

Documents

Beacon Profile