El Dorado Income - hbwadvisory.com

El Dorado Income

Prepared for

2021 Q3Oct 7, 2021

Prepared: Oct 7, 2021

Allocation

Please read back page for important information about this report Page 1

El Dorado Income

Weight (%)

US stocks large cap 72.8

US stocks mid cap 20.1

US stocks small cap -

Non US stocks 5.3

US bonds investment grade -

US bonds high yield -

US bonds inflation protected -

Non US bonds -

Alternative -

Cash & equivalents 1.8

100

Stocks 98.2

Bonds -

Cash & equivalents 1.8

100

Cash & equivalents comprises money market holdings, and fixed-income securities with maturity of less than 90 days.Alternative comprises commodity, precious metals and alternative funds.


Stocks Analysis


Sectors

El Dorado Income

Weight (%)

Cyclical

Basic Materials -

Consumer Cyclical 5.2

Financial Services 5.4

Real Estate 5.2

Sensitive

Communication Services 9.6

Energy 5.4

Industrials 9.4

Technology 20.6

Defensive

Consumer Defensive 9.7

Healthcare 24.7

Utilities 4.8

100

Percentage of portfolio analyzed 98.2

Cyclical 15.8

Sensitive 45

Defensive 39.2

100

Values are based on the percentage of portfolio analyzed.


Stocks Analysis


Style

El Dorado Income

Average style

Percentage of portfolio analyzed 98.2

Values are based on the percentage of portfolio analyzed.


Estimated Income


Next 12 months:

El Dorado Income: $3,052. Distribution rate = 4.04%

Frequency Estimate yield Yearly income ($)

Altria Group MO Quarterly 7.64% 285

Enbridge Inc ENB Quarterly 6.62% 263

AT&T Inc T Quarterly 7.7% 260

W.P. Carey Inc WPC Quarterly 5.74% 222

AbbVie Inc ABBV Quarterly 4.71% 183

International Business Machines Corp IBM Quarterly 4.71% 170

Huntington Bancshares Inc HBAN Quarterly 3.88% 156

Consolidated Edison Inc ED Quarterly 4.26% 151

Pfizer Inc PFE Quarterly 3.56% 145

Omnicom Group Inc OMC Quarterly 3.8% 143

Bristol-Myers Squibb Co BMY Quarterly 4.07% 133

Merck & Co Inc MRK Quarterly 3.38% 127

3M Co MMM Quarterly 3.37% 118

Kimberly-Clark Corp KMB Quarterly 3.39% 117

Broadcom Ltd AVGO Quarterly 2.97% 115

Cisco Systems Inc CSCO Quarterly 2.68% 107

Lockheed Martin Corp LMT Quarterly 3.01% 104

Johnson & Johnson JNJ Quarterly 2.56% 87

McDonald's Corp MCD Quarterly 2.14% 83

Texas Instruments Inc TXN Quarterly 2.12% 82

CASH $CASH Monthly 0.04% 1

3,052


Estimated Income


The values shown are an estimate based on the projected annual dividend, multiplied by the number of shares owned. The actual distributions may vary depending on the security issuer's approval. There is no guarantee that the actual distributions will be equal to the values shown. Past performance is not an indication of future results.


Performance


Return5%

Risk10%

-5%0

Return10%

Risk10%0

Return20%

Risk15%0

3 months 6 months Ytd

Annualized Total Return

El Dorado Income -1.6% 1.7% 10.5%S&P 500 TR 0.6% 9.2% 15.9%

Risk (standard deviation)

El Dorado Income 6.1% 8.3% 9.6%S&P 500 TR 7.7% 9% 11.6%

Alpha

El Dorado Income -2.3% -4.6% 0.7%S&P 500 TR 0% 0% 0%

Beta

El Dorado Income 0.63 0.69 0.60S&P 500 TR 1.00 1.00 1.00

Sharpe ratio

El Dorado Income -0.42 0.75 1.70S&P 500 TR 1.53 2.59 2.20

Maximum drawdown

El Dorado Income -4.9% -4.9% -4.9%S&P 500 TR -5% -5% -5%

Up capture ratio


Down capture ratio


Distribution rate: El Dorado Income: 4.04%

The benchmark used to calculate alpha, beta is: S&P 500 Index TR


Performance


Periodic returns 3y


Stress Test


Past performance for historical scenarios

Tech bubble (2000-2001): Deflating of the dot-com bubble caused a prolonged decrease in equity prices.

WTC attack (2001): Terrorist attack disrupted trading in the US markets and triggered a sell-off.

Subprime crisis (2008-2009): A rise in subprime mortgage delinquencies led to a financial crisis and recession.

Debt ceiling crisis (2011): Political deadlock in Congress prevents budget decisions and raises the possibility of US debt default. The US is downgraded by rating agency S&P.

CoronaVirus (2020): Virus infection spreads worldwide, threatening to slow down the global economy


Securities


Average annual return as of Sep 30, 2021Total returns, assuming reinvested dividends

10 years Yield SEC YieldSymbol 1 year 5 years or inception † 12 month 30 day

CASH $CASH 0% 1.1% 0.6% 0.04% -

AT&T Inc T 1.7% -2.1% 5.2% 7.7% -

AbbVie Inc ABBV 29.3% 16.5% 18.5% 01/02/13 4.71% -

Altria Group MO 26.8% -0.5% 11.2% 7.64% -

Bristol-Myers Squibb Co BMY 2% 5.1% 9.9% 4.07% -

Broadcom Ltd AVGO 37.3% 27.4% 34.3% 2.97% -

Cisco Systems Inc CSCO 42.6% 14.9% 16.8% 2.68% -

Consolidated Edison Inc ED -2.8% 3% 6.4% 4.26% -

Enbridge Inc ENB 46.8% 3.2% 6.6% 6.62% -

Huntington Bancshares Inc HBAN 75.8% 13.8% 16% 3.88% -

International Business Machines Corp IBM 20% 1.8% 1.2% 4.71% -

Johnson & Johnson JNJ 11.3% 9.3% 12.9% 2.56% -

Kimberly-Clark Corp KMB -7.2% 4.3% 10.4% 3.39% -

Lockheed Martin Corp LMT -7.3% 10.4% 20.6% 3.01% -

McDonald's Corp MCD 12.4% 18.8% 13.8% 2.14% -

Merck & Co Inc MRK -1.8% 8% 12.8% 3.38% -

Omnicom Group Inc OMC 52% 0.3% 10.3% 3.8% -

Pfizer Inc PFE 28.6% 10.1% 14% 3.56% -

Texas Instruments Inc TXN 37.9% 25.6% 25.1% 2.12% -

3M Co MMM 13% 2.9% 12.4% 3.37% -

W.P. Carey Inc WPC 18.7% 8.8% 13.6% 5.74% -

† if less than 10 years history, performance since inception and inception date are indicated.

ETF performance is calculated based on the last closing price for the period.

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. To obtain current month-end performance information, please consult the websites referenced above. The performance quoted, reflects the reinvestment of dividends and capital gains, is net of expenses and does not reflect the maximum sales load. Such a fee, if taken into consideration, will reduce the performance quoted above.

Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus and, if available, the summary prospectus contain this and other important information about the investment company. You can obtain a prospectus and summary prospectus from your financial representative. Read carefully before investing. Amounts in mutual funds are subject to fluctuations in value and market risk. Shares, when redeemed, may be worth more or less than their original cost.


Securities


An investment in Exchange Traded Funds (ETF), structured as a mutual fund or unit investment trust, involves the risk of losing money and should be considered as part of an overall program, not a complete investment program. An investment in ETFs involves additional risks such as not diversified, price volatility, competitive industry pressure, international political and economic developments, possible trading halts, and index tracking errors.


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IMPORTANT DISCLOSURE INFORMATION Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future

performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended in this article) will be

profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. No portion of the content should

be construed as an offer or solicitation for the purchase or sale of any security. References to specific securities, investment programs or funds are for

illustrative purposes only and are not intended to be, and should not be interpreted as recommendations to purchase or sell such securities. To the extent

that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to

consult with the professional advisors of his/her choosing.

Hypothetical Presentations: To the extent that any portion of the content reflects hypothetical results that were achieved by means of the retroactive

application of a back-tested model, such results have inherent limitations, including: (1) the model results do not reflect the results of actual trading using

client assets, but were achieved by means of the retroactive application of the referenced models, certain aspects of which may have been designed with the

benefit of hindsight; (2) back-tested performance may not reflect the impact that any material market or economic factors might have had on the adviser’s

use of the model if the model had been used during the period to actually mange client assets; and, (3) HBW’s clients may have experienced investment

results during the corresponding time periods that were materially different from those portrayed in the model.

References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations

to purchase or sell such securities. The author or HBW Advisory Services LLC (HBW) may or may not own or have owned the securities referenced and if

such securities are owned, no representation is being made that such securities will continue to be held. Maximum Annual Fee: 1.25% - report performance

net of 0.50% fee.

Definitions

Alpha: the excess return of the investment over the benchmark, after adjusting for risk. A positive value implies that the investment has performed better than

expected, relatively to its risk. The benchmark used for alpha calculation in this report is the S&P500 Index Total Return.

Backfill: for investments with an inception date that is later than the beginning of the reporting period, the returns of a similar investment are used to fill the

missing data, when indicated. For example, a mutual fund class with long history can be used to backfill the history of another class that has a recent

inception date.

Beta: the volatility of the investment compared to the volatility of the benchmark. A value lower than 1 indicates that the investment is less volatile than the

benchmark. A value greater than 1 indicates a higher volatility. The benchmark used for beta calculation in this report is the S&P500 Index Total Return.

Cash and equivalents: short term, high credit quality and highly liquid investments such as money market funds. Correlation: a measure of association

between two investments. A positive value indicates that the investments tend to move up and down at the same time. A negative value indicates that the

investments tend to move in opposite directions. The maximum value is 1; the minimum value is -1.

Expense ratio: for investment funds, the expense ratio as reported in the fund's prospectus.

Information ratio: A risk-adjusted measure which captures excess or active returns and relates them to excess or active risk. The higher the information ratio,

the better.

Maximum drawdown: the largest percent retrenchment from an investment's peak value to the investment’s valley value for a given period.

Risk (Standard Deviation): a measure of dispersion of returns around their historical average. The higher the standard deviation, the more widely the

investment's returns vary over time.

Sharpe ratio: compares the investment return against the risk-free return (US Treasury Bill), after adjusting for risk. The greater the Sharpe ratio, the better

its risk-adjusted performance.

Sortino ratio: a modification of the Sharpe ratio, using downside deviation for the risk adjustment instead of standard deviation. The downside deviation only

considers periods of negative returns.

Yield 12-month: the sum of distributions from the asset(s) over 12 trailing months, divided by the current market price of the asset(s).

Yield SEC: for fixed income investments, the annualized yield based on the 30-day period ending on the last day of previous month

The information and analysis contained herein does not constitute investment advice offered by Kwanti and Morningstar, and is not warranted to be correct,

complete or accurate. Kwanti and Morningstar are not responsible for any damages or losses arising from use of this information and analysis. Asset


Page 12

allocation data ©2021 Morningstar. All rights reserved. The asset allocation data contained herein is proprietary to Morningstar and/or its content providers.

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El Dorado Income - hbwadvisory.com