Managed Portfolios

The Conservative Growth Portfolios The investment objective of the Conservative Growth portfolios is to preserve capital while achieving modest growth in value over the long-term. The portfolios consist of funds that invest in both stocks and bonds but are weighted toward bonds. The return objective over a five-year period is 2% to 4% above inflation. The risk objective is to limit the loss in portfolio value to between 1% and 11% over any moving four quarter period. The Moderate Growth Portfolios The investment objective of the Moderate Growth portfolios is to provide growth in value that is consistent with prudent investment risk over the long-term. The portfolios consist of funds that invest in both stocks and bonds but are weighted toward stocks. The return objective over a five-year period is 5% to 7% above inflation. The risk objective is to limit the loss in portfolio value to between 12% and 20% over any moving four quarter period.

The High Growth Portfolio The investment objective of the High Growth portfolios is to maximize growth in value over the long-term. The portfolios consist of funds that invest exclusively in stocks and, thus, will experience greater volatility than the Conservative Growth and Moderate Growth portfolios. The return objective over a five-year period is 8% above inflation. The risk objective is to limit the loss in portfolio value to between 21% and 25% over any moving four quarter period. The Domestic Stock Portfolio The investment objective of this portfolio is to maximize growth in value over the long-term by investing in approximately 35 stocks.  The return objective over a five-year period is to provide investment returns that are comparable to the returns of the broad domestic stock market as represented by the S&P 500 andWilshire 5000 indexes.  The risk objective, as measured by market volatility, is expected to also be comparable to that of the above listed indexes.

The bond allocation may vary within the Conservative and Moderate portfolios depending upon each portfolio’s individual risk return objectives.  There is no assurance that the structuring of portfolios using the PDM approach to managing liquid assets will result in positive or negative returns falling within the parameters described above.