III to I Equity Fund QP

Transcription

1 III to I Equity Fund QP The fund s investment objective is long-term capital appreciation. It may invest the majority of its net assets in common stocks of companies of any size. The selected investment managers or mutual funds ( Sub-Advisors ) may employ a wide variety of strategies and valuation methodologies in order to meet this objective. The fund may hold investments in US dollar denominated foreign securities and from time to time, based on market factors, the underlying managers may hold cash in order to mitigate market risk. The benchmark used for performance comparison is the S&P 500 Index. Sub-Advisor: Greenfield Seitz Capital Management, 12 th Street Asset Management 14.3% FedEx Corp. 5.0% Mid America Apt Communities 4.6% Advanced Auto Parts Inc. 4.5% Walgreen Co. 4.3% ADT Corporation 4.0% LKQ Corp. 3.8% Dycom Inds Inc. 3.7% Mobile Mini Inc. 3.5% Clean Harbors Inc. 2.9% % of fund in Top % Equity QTD 4.34% 4.93% YTD 10.78% 13.69% 1-Year - % - %

2 III to I Large Cap Value Fund QP The fund s investment objective is long-term capital appreciation. It will generally invest the majority of its net assets in common stocks of larger companies, whose current market values are attractive, relative to their intrinsic value. The asset managers who make the investment decisions will employ in-depth financial research to identify those undervalued companies. Stock selection will generally be based on companies with a market capitalization of $10 billion or greater at the time of initial purchase; however, there will be cases in which the market capitalization will be less than that amount. Securities in the fund will generally have a low price to earnings multiple, a low price to book value, and an established track record of earnings and dividend growth. From time to time, based on market factors, the underlying managers may hold cash in order to mitigate market risk. The benchmark used for performance comparison is the Russell 1000 Value Index. Sub-Advisor: Yacktman Asset Management Co. 23.7% Procter & Gamble Co. 9.4% PepsiCo Inc. 8.5% Twenty-First Century Fox, Inc. 7.3% Coca Cola Co. 6.5% Oracle Corp. 5.6% Cisco Systems 5.4% Sysco Corp. 4.4% Microsoft Corp. 3.2% Johnson Johnson 3.0% % of fund in Top % Large Cap Equity QTD 5.17% 4.98% YTD 12.16% 13.45% 1-Year 12.16% 13.45%

3 III to I Small Cap Fund QP The fund seeks long-term growth of capital. It will generally invest the majority of its net assets in common stocks of small to mid-size companies. The asset managers who make the investment decisions will generally look for companies which have opportunity for growth, yet are currently trading at attractive values. Stock selection will generally be based on companies with a market capitalization of $250 million to $10 billion. Securities will have strong underlying fundamentals and will generally have a value-biased orientation. From time to time, based on market factors, the underlying managers may hold cash in order to mitigate market risk. The value of securities of smaller, less well-known issuers can perform differently from the market as a whole and other types of stocks and can be more volatile than that of larger issuers. The benchmark used for performance comparison is the Russell 2000 Index. Sub-Advisor: River Road Asset Management, The London Company 34.5% Old Dominion Freight Line 4.4% New Market Corp. 4.0% Cabelas Inc. 3.0% Pricesmart Inc. 3.0% Service Corp. Intl. 2.9% Alliant Techsystems Inc. 2.6% Small Cap Equity Tenet Healthcare 2.5% Deckers Outdoor 2.2% Albemarle Corp. 2.1% % of fund in Top % QTD 0.01% 9.73% YTD -1.49% 4.89% 1-Year -1.49% 4.89%

4 III to I International Fund QP The fund s investment objective is long-term capital appreciation. It will generally invest the majority of its net assets in American Depositary Receipts of foreign companies. Investments can include exposure to both developed and emerging markets. The asset managers will look for companies with attractive values, combined with high levels of quality. The investment style of the fund is a blend of both value and growth oriented investing. Investments in the fund are made upon careful analysis of global economic trends. The fund may concentrate its investment holdings in certain counties or regions, as does its benchmark index. Concentrations in any one country generally will not exceed 25%. This fund is most appropriate for investors seeking exposure to a well-diversified portfolio of international equities. Foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. Emerging markets can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile. From time to time, based on market factors, the underlying managers may hold cash in order to mitigate market risk. The benchmarks used for performance comparison is the MSCI EAFE. Sub-Advisor: Neuberger Berman, First Eagle Investment Management Vanguard FTSE Dvlpd Mkts ETF 51.0% First Eagle Overseas 48.4% 0.6% % of fund in Top % First Eagle VEA QTD -3.39% -3.53% YTD -4.58% -4.48% 1-Year -4.58% -4.48%

5 III to I Core Fixed Income Fund QP *Internal Mortgage 17.1% ishares Floating Rate Bond 15.8% Vanguard Short Term Bond 15.8% *Internal US Government 11.0% *Internal Investment Grade 9.5% *Internal Real Return 8.5% *Internal Short Term Floating Rate 8.0% *Internal International 5.8% *Internal Emerging Market 2.0% *Internal Asset Backed 1.6% % of fund in Top % *All investments made through private PIMCO & Vanguard internal funds The fund s investment objective is to maximize total return to the investor through a combination of current income from and capital appreciation from the underlying fixed income investments. The fund invests primarily in a diversified portfolio of domestic and foreign investment-grade corporate bonds, assetbacked securities, mortgage-backed securities, agency issues, treasuries, and sovereign debt. However, the fund may invest up to 10% of its assets in noninvestment grade fixed income securities. The asset managers who make the investment decisions analyze and take advantage of movements in the yield curve in order to benefit from opportunities presented as well as perform rigorous fundamental research on specific companies. The Sub-Advisors attempt to achieve their objective by allocating their assets among bonds but may also utilize derivatives, including futures contracts to manage their desired exposures. This fund is most appropriate for investors seeking exposure to a well-diversified portfolio of intermediate, core fixed income securities. The benchmarks used for performance comparison is 66% Barclays Aggregate Bond Index, 33% Barclays 1-3 Year Govt/Credit Index. Sub-Advisor: Pacific Income Management Company (PIMCO) Mortgage Floating Rate Asset Backed Short Term Bond Emerging Market International Government QTD 0.94% 1.79% YTD 4.34% 5.97% 1-Year 4.34% 5.97% Short Term Floating Real Return Investment Grade

6 III to I High Yield Fund QP The fund s investment objective is to earn a high level of current income, while also maximizing the potential for capital appreciation of the underlying fixed income investments. The fund invests principally in a diversified portfolio of high yield corporate and convertible bonds. These investments are generally considered non-investment grade. Non-investment grade bonds are considered to have more credit risk than investment grade bonds. The asset managers who make the investment decisions will research a company s fundamentals and invest in companies they believe to have strong, stable balance sheets and quality assets. The mix of sectors, company size, credit quality and portfolio maturity will vary based on the asset manager s view of interest rates, the economy and relative value between the different sectors of the high yield fixed income market. From time to time, based on market factors, the underlying managers may hold cash in order to mitigate market risk. This fund is most appropriate for investors who are seeking a high level of current fixed income from their investments and who can diversify their total portfolio with other asset classes to reduce their overall portfolio risk. The benchmarks used for performance comparison is the Barclays High Yield Index. Sub-Advisor: Guggenheim Partners Bank Loans Guggenheim Floating Rate Fund 8.6% GRD Holding III 1.7% Vector Group Ltd. 1.6% Opal Acquisition Inc. 1.6% Central Garden & Pet Co. 1.6% MDC Partners Inc. 1.5% Credit Acceptance 1.3% Amerigas Fin Corp. 1.3% Contourglobal Pwr 1.3% Ceva Group PLC 1.2% % of fund in Top % High Yield Bonds QTD -1.74% -1.00% YTD 2.45% 2.45% 1-Year 2.45% 2.45%

7 III to I Strategic Income Fund QP The fund s investment objective is to preserve capital and attain long-term total returns through a combination of current income and moderate capital appreciation. The Fund may invest primarily in income bearing securities, including a wide range of debt and dividend paying equity securities. The selected investment managers or mutual funds ( Sub-Advisors ) may adjust their allocations among these securities as dictated by changes in interest rates, as well as the overall economic environment. The Sub-Advisors may elect to reduce portfolio risk through available hedging strategies, through tactical adjustments or by holding cash. The Fund may invest in US and US dollar denominated foreign securities, investment grade and non-investment grade credit, and any income producing security that meets the due diligence standards of the Sub-Advisors. While the Fund will seek an absolute return oriented strategy, the underlying portfolio may include securities that carry equity risk, credit risk and interest rate risk. Sub-Advisor: Frontier Investment Management Company Asset Weightings Equities 31.6% 20.3% Fixed Income 13.4% Mutual Funds 34.7% % of fund in Top % Equities Mutual Funds Fixed Income QTD -0.55% 1.26% YTD 1.81% 3.95% 1-Year - % - %

8 III to I Flexible Allocation Fund QP The fund s investment objective is to use tactical asset allocation to provide risk-adjusted exposure to a multitude of financial assets. The selected investment managers or mutual funds ( Sub-Advisors ) are not constrained by a narrow investment objective or style and they employ a multi-asset, flexible allocation investment approach to invest in a very wide range of domestic and foreign securities. They may invest in any market they believe provides a high probability of return or, alternatively, that provides a high degree of safety in uncertain times. The Sub-Advisors attempt to achieve their objective by allocating their assets among stocks, bonds, derivatives including futures contracts and swaps, private placements, structured products, distressed debt, real estate and hard assets, as they deem appropriate based on their economic view. They may invest 100% of assets in foreign or domestic securities and substantially all assets in any given asset class. Equity allocations are not restricted by market capitalization (size) or style classification, e.g., growth or value. Investment managers, who are not mutual funds, may have additional investment and trade restrictions to ensure liquidity of the assets under their management. The benchmark used is the S&P Target Growth Allocation Index. Sub-Advisor: First Pacific Advisors, International Value Advisors, PIMCO All Asset All Authority. PIMCO FPA Crescent 46.8% IVA Worldwide I 39.7% PIMCO All Assets All Authority 13.1% 0.4% % of fund in Top % IVA WorldWide FPA Crescent QTD -0.34% 2.54% YTD 3.48% 6.31% 1-Year 3.48% 6.31%