SAMPLE CLIENT QUARTERLY REPORT 6789 MAIN STREET SUITE 100 CHICAGO, IL 54321

Transcription

1 SAMPLE CLIENT QUARTERLY REPORT 6789 MAIN STREET SUITE 100 CHICAGO, IL Notice to Investors Regarding Custodian Account Statements: You are encouraged to read the statements you receive from the custodian and compare the information on these statements to this report. Please see the Notice on page 2 of this report for an explanation of differences you may find. Quarter Ending March 31, of 19

2 PORTFOLIO SUMMARY REPORT Quarter Ending March 31, 2012 ACCOUNT NAME PREPARED FOR Sample Client Quarterly Report ACCOUNT NUMBER Sample Report ABC Investments ABC Sample Report GHI Investment Partners ABC Sample Report DEF Financial ABC Sample Report JKL Finincial Management ABC YOUR FINANCIAL CONSULTANT JOHN SMITHSON Advisory Financial, Inc. 1 Market Street 10th Floor, Suite ABC Dallas, TX Prepared by: Lockwood Notice Regarding Portfolio Accounting Differences: Please note that the data shown on this report is for informational purposes and does not constitute an official tax document. The data shown on this report may differ from the data on reports generated by other sources. These differences can be explained by a number of factors, including, but not limited to, the use of trade date versus settlement date for reporting purposes, the treatment of accrued income on securities, the security pricing source utilized and reports generated by different reporting systems for the same account. Please refer to your 1099 form in all instances for tax reporting purposes. If you have any questions, please feel free to contact your financial representative. Please refer to the end of the document for important information regarding this report. 2 of 19

3 PORTFOLIO SUMMARY Since Inception (11/27/2001) Fiscal YTD Current QTR Taxable Account Information 01/01/ /31/2012 Sample Client Quarterly Report Portfolio Change Beginning Market Value $250,000 $4,835,826 $4,835,826 Income Received $0 Net Contributions/Withdrawals $4,533,872 $0 $0 Short Long Gain/Loss + Income Earned $422,393 $370,439 $370,439 Net Gain or Loss 1 Term Term Quarter Ending 03/31/2012 Year Ending 12/31/2012 Ending Market Value $5,206,265 $5,206,265 $5,206,265 Realized Unrealized $0 $0 $0 $-220,113 Investment & Benchmark (%) Allocation Since Inception Fiscal YTD Current QTR Market Value Accruals Total Value Your Portfolio 100.0% 2.10% % 7.66% $5,194,414 $11,851 $5,206,265 Barclays Government Credit 5.57% % 0.08% S&P 500 Total Return 4.00% % 12.59% Barclays Aggregate Bond 5.53% % 0.30% ABC Investments 24.0% 0.79% % 8.59% $1,248,086 $1,400 $1,249,486 GHI Investment Partners 13.6% 1.65% % 9.46% $704,366 $3,202 $707,567 DEF Financial 37.8% 3.68% % 2.52% $1,960,709 $6,407 $1,967,115 JKL Finincial Management 24.6% 5.79% % 14.46% $1,281,254 $842 $1,282,096 1-Gain/Loss data excludes positions without a cost basis or purchase date. 2-Annualized Return Please see important disclosures regarding performance, fees, and benchmarks at the end of this report. 3 of 19

4 PORTFOLIO SUMMARY Sample Client Quarterly Report Quarter Ending 03/31/2012 Year Ending 12/31/2012 Portfolio Change Since Inception (11/27/2001) Fiscal YTD Current QTR Beginning Market Value $250,000 $4,835,826 $4,835,826 Net Contributions/Withdrawals $4,533,872 $0 $0 Gain/Loss + Income Earned $422,393 $370,439 $370,439 Ending Market Value $5,206,265 $5,206,265 $5,206,265 Portfolio Growth Over Time Taxable Account Information 01/01/ /31/2012 Income Received $0 Short Long Net Gain or Loss 1 Term Term Realized $0 $0 Unrealized $0 $-220,113 8,000,000 6,000,000 4,000,000 $5,206,265 $4,783,872 2,000,000 0 Incep 12/01 12/02 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/113/12 Total Value Total Contributions/Withdrawals Asset Allocation Style Allocation 43.0% - International Equity 26.0% - SMA Corporate Bonds 13.4% - Miscellaneous Style Allocation 91.6% - Equity 6.4% - Cash 2 1.1% - Fixed Income 0.9% - Mutual Fund / ETF Equity 5.7% - U.S. Equity Large Cap Core 4.1% - U.S. Equity Large Cap Value 2.5% - U.S. Equity Mid Cap Value 2.0% - U.S. Equity Large Cap Growth 1.5% - U.S. Equity Mid Cap Core 0.9% - Global Equity 0.8% - U.S. Equity Mid Cap Growth 0.1% - U.S. Equity Small/Mid Cap Value 1-Gain/Loss data excludes positions without a cost basis or purchase date. 2-Cash, Money Funds, and FDIC Deposits Please see important disclosures regarding performance, fees, and benchmarks at the end of this report. 4 of 19

5 ACCOUNT SUMMARY Sample Report ABC Investments Asset Allocation Broad Markets Conservative Inception Date 06/06/2005 Quarter Ending 03/31/2012 Year Ending 12/31/2012 Account Change Since Inception Fiscal YTD Current QTR Beginning Market Value $350,000 $1,150,594 $1,150,594 Net Contributions/Withdrawals $1,014,451 $0 $0 Gain/Loss + Income Earned $-114,965 $98,892 $98,892 Ending Market Value $1,249,486 $1,249,486 $1,249,486 Account & Benchmark (%) Your Account 0.79% % 8.59% Blended Index* 5.64% % 7.56% Account Growth Over Time Account Number : ABC Income Received Year to Date $0 Net Realized Gains/Losses (YTD) Short Term $0 Long Term $0 Total $0 Unrealized Gains Losses Short Term $0 $0 Long Term $298,390 $-104,248 Total $298,390 $-104,248 2,500,000 2,000,000 1,500,000 1,000,000 $1,364,451 $1,249, ,000 0 Incep 12/05 12/06 12/07 12/08 12/09 12/10 12/11 3/12 Sector Allocation 34.0% - Financials 3.9% - Utilities 16.7% - Energy 3.9% - Materials 12.2% - Consumer Discretionary 3.4% - Information Technology 2 9.2% - Cash 2.7% - Industrials 6.1% - Consumer Staples 2.2% - Telecommunication Svcs 5.7% - Multi-Sector Holdings Security Name Total Value Top 10 Account Holdings Total Contributions/Withdrawals % of Account Brookfield Asset Management Inc 6.60% Philip Morris Intl Inc Com 6.10% Imperial Oil Ltd Shs 5.20% Hong Kong Exchanges and Clearing Ltd 4.00% Berkshire Hathaway Inc Del Cl B New 3.90% El Paso Corporation 3.90% Market Vectors ETF Tr Gaming ETF 3.70% Mastercard Inc Com 3.30% London Stock Exchanggroup Plc London Isin#Gb 3.20% Time Warner Inc Com New 3.10% 1-Annualized Return 2-Cash, Money Funds, and FDIC Deposits *Please see important disclosures regarding performance, fees, and benchmarks at the end of this report. 5 of 19

6 ACCOUNT SUMMARY Sample Report GHI Investment Partners Dividend Growth Inception Date 11/27/2001 Quarter Ending 03/31/2012 Year Ending 12/31/2012 Account Change Since Inception Fiscal YTD Current QTR Beginning Market Value $250,000 $646,408 $646,408 Net Contributions/Withdrawals $355,007 $0 $0 Gain/Loss + Income Earned $102,560 $61,159 $61,159 Ending Market Value $707,567 $707,567 $707,567 Account & Benchmark (%) Your Account 1.65% % 9.46% Barclays Municipal 5.27% % 1.75% Account Growth Over Time Account Number : ABC Income Received Year to Date $0 Net Realized Gains/Losses (YTD) Short Term $0 Long Term $853 Total $853 Unrealized 1 Gains Losses Short Term $0 $0 Long Term $112,072 $-253,661 Total $112,072 $-253,661 1,500,000 1,000, ,000 $707,567 $605,007 0 Incep 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/113/12 Sector Allocation Total Value Account Characteristics Total Contributions/Withdrawals 20.4% - Information Technology 4.6% - Materials Number of Holdings % - Health Care 4.1% - Energy 16.2% - Telecommunication Svcs 2.2% - Industrials Average Market Capitalization $63.7 billion 12.7% - Financials 1.9% - Cash 9.9% - Consumer Staples 1.0% - Utilities 3 Average Dividend Yield 3.7% 7.8% - Consumer Discretionary Average Earnings Growth (next 5 years) N/A 1-Gain/Loss data excludes positions without a cost basis or purchase date. 2-Annualized Return 3-Cash, Money Funds, and FDIC Deposits Please see important disclosures regarding performance, fees, and benchmarks at the end of this report. 6 of 19

7 ACCOUNT SUMMARY Sample Report DEF Financial U.S. Equity All Cap Growth Inception Date 04/25/2005 Quarter Ending 03/31/2012 Year Ending 12/31/2012 Account Change Since Inception Fiscal YTD Current QTR Beginning Market Value $300,000 $1,918,695 $1,918,695 Net Contributions/Withdrawals $1,514,413 $0 $0 Gain/Loss + Income Earned $152,702 $48,420 $48,420 Ending Market Value $1,967,115 $1,967,115 $1,967,115 Account & Benchmark (%) Your Account 3.68% % 2.52% Barclays Int Government Credit 5.12% % 0.61% Account Growth Over Time Account Number : ABC Income Received Year to Date $0 Net Realized Gains/Losses (YTD) Short Term $0 Long Term $0 Total $0 Unrealized 1 Gains Losses Short Term $0 $0 Long Term $248,469 $-468,582 Total $248,469 $-468,582 3,000,000 2,000,000 $1,967,115 $1,814,413 1,000,000 0 Incep 12/05 12/06 12/07 12/08 12/09 12/10 12/11 3/12 Total Value Total Contributions/Withdrawals Asset Allocation Account Characteristics Equity Fixed Income 90.0% - Equity Number of Holdings 53 Number of Holdings 2 7.0% - Cash 3 Avg Market Cap. $33.5 billion Average YTW 0.0% Average Dividend Yield 3.3% Average Duration 0.0 years 3.0% - Fixed Income Earnings Growth Rate N/A Average Coupon 0.00% (next 5 years) 1-Gain/Loss data excludes positions without a cost basis or purchase date. 2-Annualized Return 3-Cash, Money Funds, and FDIC Deposits Please see important disclosures regarding performance, fees, and benchmarks at the end of this report. 7 of 19

8 ACCOUNT SUMMARY Sample Report JKL Finincial Management Corporate Bonds Inception Date 11/01/2007 Quarter Ending 03/31/2012 Year Ending 12/31/2012 Account Change Since Inception Fiscal YTD Current QTR Beginning Market Value $1,000,000 $1,120,129 $1,120,129 Net Contributions/Withdrawals $0 $0 $0 Gain/Loss + Income Earned $282,096 $161,967 $161,967 Ending Market Value $1,282,096 $1,282,096 $1,282,096 Account & Benchmark (%) Your Account 5.79% % 14.46% Barclays 5 Year Muni 5.75% % 0.58% Account Growth Over Time Account Number : ABC Income Received Year to Date $0 Net Realized Gains/Losses (YTD) Short Term $0 Long Term $0 Total $0 Unrealized Gains Losses Short Term $0 $0 Long Term $507,229 $-24,907 Total $507,229 $-24,907 1,500,000 $1,282,096 1,000,000 $1,000, ,000 0 Incep 12/07 12/08 12/09 12/10 12/11 3/12 Sector Allocation Total Value Account Characteristics Total Contributions/Withdrawals 43.5% - Information Technology 5.1% - Cash 2 Number of Holdings % - Industrials 4.7% - Consumer Staples Average Market Capitalization $34.6 billion 15.1% - Financials 4.6% - Materials Average Dividend Yield 1.3% 8.0% - Consumer Discretionary Average Earnings Growth (next 5 years) N/A 1-Annualized Return 2-Cash, Money Funds, and FDIC Deposits Please see important disclosures regarding performance, fees, and benchmarks at the end of this report. 8 of 19

9 PERFORMANCE SUMMARY March 31, 2012 For Sample Client Quarterly Report Investment Account Index Inception Date Since Inception Std Dev Five Years Since 03/31/2007 Std Dev Three Years Since 03/31/2009 Std Dev Last 12 Months Fiscal YTD Current QTR Equity Asset Allocation Fixed Income Cash 2 EQUITY Asset Allocation Broad Markets Conservative ABC Investments ABC /06/ % 23.9% -4.6% 26.5% 18.9% 22.5% -4.4% 8.6% 8.6% Blended Index* 5.6% 10.6% 4.6% 12.0% 17.0% 11.8% 8.6% 7.6% 7.6% 91% 0% 9% Dividend Growth GHI Investment Partners ABC /27/ % 22.0% -7.5% 22.2% 12.9% 22.2% -4.8% 9.5% 9.5% Barclays Municipal 5.3% 4.2% 5.4% 4.9% 7.7% 5.2% 12.1% 1.7% 1.7% 98% 0% 2% U.S. Equity All Cap Growth DEF Financial ABC /25/ % 16.2% -2.3% 17.4% 8.5% 18.6% -13.9% 2.5% 2.5% Barclays Int Government Credit 5.1% 3.2% 5.7% 3.4% 5.9% 2.6% 6.1% 0.6% 0.6% 90% 3% 7% FIXED INCOME Corporate Bonds JKL Finincial Management 1 1 ABC /01/ % 18.9% % 18.0% 13.9% 14.5% 14.5% 1 1 Barclays 5 Year Muni 5.8% 2.7% % 2.6% 6.9% 0.6% 0.6% 95% 0% 5% 93% 1% 6% 1-Annualized Return 2-Cash, Money Funds, and FDIC Deposits *Please see important disclosures regarding performance, fees, and benchmarks at the end of this report. 9 of 19

10 PORTFOLIO HISTORY REPORT March 31, 2012 For Sample Client Quarterly Report Period Ending Date Beginning Market Value($) Gain/Loss($) Net Contributions/ Withdrawals($) Ending Market Value($) Your Portfolio Quarterly Cumulative 11/27/ ,000 12/31/ ,000 4, ,319 2% 2% 12/31/ ,319-94, , ,131 N/A -36% 03/31/ ,131-45, ,127-11% -43% 06/30/ ,127 99, ,198 27% -27% 09/30/ ,198 34, ,662 7% -22% 12/31/ ,662 86, ,835 17% -8% 03/31/ ,835 26, ,850 4% -4% 06/30/ ,850 6, ,428 1% -3% 09/30/ ,428-27, ,516-5% -8% 12/31/ ,516 82, ,936 14% 5% 03/31/ ,936-28, ,784-4% 1% 06/30/ ,784 18, ,170 1,562,110 0% 1% 09/30/2005 1,562, , ,016 1,859,493 9% 10% 12/31/2005 1,859,493-8,725 1,850,768 0% 10% 03/31/2006 1,850, ,958 1,170,000 3,247,726 9% 19% 06/30/2006 3,247, ,000 3,731,739 0% 19% 09/30/2006 3,731,739 83,845 60,000 3,875,584 2% 22% 12/31/2006 3,875, ,024 4,242,608 9% 33% 03/31/2007 4,242,608 68, ,000 4,811,188 1% 35% 06/30/2007 4,811, ,448 3,532 5,160,168 7% 45% 09/30/2007 5,160, ,251 13,342 5,399,761 4% 51% 12/31/2007 5,399, ,793 1,000,000 6,267,968-1% 49% 03/31/2008 6,267, ,924 5,505,044-12% 31% 06/30/2008 5,505, ,135 5,371,909-2% 28% Please see important disclosures regarding performance, fees, and benchmarks at the end of this report. 10 of 19

11 PORTFOLIO HISTORY REPORT March 31, 2012 For Sample Client Quarterly Report Period Ending Date Beginning Market Value($) Gain/Loss($) Net Contributions/ Withdrawals($) Ending Market Value($) Your Portfolio Quarterly Cumulative 09/30/2008 5,371, , ,553,849-15% 8% 12/31/2008 4,553, ,270 3,858,579-15% -8% 03/31/2009 3,858, ,989 3,455,590-10% -18% 06/30/2009 3,455, ,348 4,113,938 19% -2% 09/30/2009 4,113, ,527 4,705,465 14% 12% 12/31/2009 4,705,465 64,302 1,177 4,770,944 1% 14% 03/31/2010 4,770, ,663 4,944,607 4% 18% 06/30/2010 4,944, ,679 4,421,928-11% 5% 09/30/2010 4,421, ,249 4,924,177 11% 17% 12/31/2010 4,924, ,232 5,312,409 8% 26% 03/31/2011 5,312, ,675 5,460,084 3% 30% 06/30/2011 5,460,084-27,579 5,432,505-1% 29% 09/30/2011 5,432, ,160 4,599,345-15% 10% 12/31/2011 4,599, ,481 4,835,826 5% 15% 03/31/2012 4,835, ,439 5,206,265 8% 24% TOTALS 422,393 4,533,872 Please see important disclosures regarding performance, fees, and benchmarks at the end of this report. 11 of 19

12 CAPITAL GAINS SUMMARY REPORT January 1, March 31, 2012 For Sample Client Quarterly Report Account Number Net Realized Gains or Losses Account Tax Status Short Term Long Term ABC ABC Investments Tax Deferred/Exempt $0.00 $0.00 ABC GHI Investment Partners Tax Deferred/Exempt $0.00 $ ABC DEF Financial Taxable $0.00 $0.00 ABC JKL Finincial Management Tax Deferred/Exempt $0.00 $0.00 Total Taxable Realized $0.00 $0.00 Total Tax Deferred/Exempt Realized $0.00 $ Realized Total $0.00 $ Unrealized Gains or Losses 1 Account Tax Status Short Term Gains Short Term Losses Long Term Gains Long Term Losses ABC ABC Investments Tax Deferred/Exempt $0.00 $0.00 $298, $-104, ABC GHI Investment Partners Tax Deferred/Exempt $0.00 $0.00 $112, $-253, ABC DEF Financial Taxable $0.00 $0.00 $248, $-468, ABC JKL Finincial Management Tax Deferred/Exempt $0.00 $0.00 $507, $-24, Total Taxable Unrealized $0.00 $0.00 $248, $-468, Total Tax Deferred/Exempt Unrealized $0.00 $0.00 $917, $-382, Unrealized Total $0.00 $0.00 1,166, $-851, Gain/Loss data excludes positions without a cost basis or purchase date. Please see important disclosures regarding performance, fees, and benchmarks at the end of this report. 12 of 19

13 CAPITAL GAINS DETAIL REPORT: TAX DEFERRED/EXEMPT ACCOUNTS January 1, March 31, 2012 For Sample Report Account Number : ABC Shares/ Units Description Purchase Date Sale Date Cost Proceeds Gain/Loss There are no Gain/Loss records at this time Please see important disclosures regarding performance, fees, and benchmarks at the end of this report. 13 of 19

14 CAPITAL GAINS DETAIL REPORT: TAX DEFERRED/EXEMPT ACCOUNTS January 1, March 31, 2012 For Sample Report Account Number : ABC Shares/ Units Description Purchase Date Sale Date Cost Proceeds Gain/Loss Realized Gains or Losses Long-Term Equity 170 TELEFONOS DE MEXICO CL L ADR 02/05/ /30/2012 1, , $ Total Long-Term Realized Gains or Losses $1, $2, $ Please see important disclosures regarding performance, fees, and benchmarks at the end of this report. 14 of 19

15 CAPITAL GAINS DETAIL REPORT: TAXABLE ACCOUNTS January 1, March 31, 2012 For Sample Report Account Number : ABC Shares/ Units Description Purchase Date Sale Date Cost Proceeds Gain/Loss There are no Gain/Loss records at this time Please see important disclosures regarding performance, fees, and benchmarks at the end of this report. 15 of 19

16 CAPITAL GAINS DETAIL REPORT: TAX DEFERRED/EXEMPT ACCOUNTS January 1, March 31, 2012 For Sample Report Account Number : ABC Shares/ Units Description Purchase Date Sale Date Cost Proceeds Gain/Loss There are no Gain/Loss records at this time Please see important disclosures regarding performance, fees, and benchmarks at the end of this report. 16 of 19

17 DISCLOSURES This document provides personalized investment information and is not intended to meet the objectives of anyone other than the individual specified in this document. The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment will fluctuate, so that an investor s shares, when redeemed, may be worth more or less than their original cost. Call your financial professional for performance current to the most recent month-end. All returns are presented on a time-weighted basis unless indicated. All returns are presented net of all fees, including consultant s fee, manager fee and transaction costs except individual mutual fund returns, which are net of all internal fund expenses and transaction costs. The Managed Account shown on this report may not be the account from which the quarterly fee is deducted and therefore, the performance data provided would not reflect the deduction of fees. Performance returns are annualized for periods greater than one year. A dollar-weighted version of the returns is available upon request. Please contact your financial advisor with this request. If you requested that historical data (performance history or cost basis) which predates your Program Sponsor relationship be included in this report, that data is included on a "best efforts" basis as an accommodation to you, and is collected from information provided by you or your financial advisor. It may be incomplete, or inaccurate. Accordingly, Lockwood can make no representation as to the accuracy of that historical information or any calculations based on it. The rate of return for the current manager on accounts which have undergone a manager change begins at the month end following the actual change date. Rates of return for the account in its entirety (including all previous managers) are also provided on the Account Summary. If non-managed or outside custodied accounts are included in this composite report, information on those accounts is included only in the Portfolio Summary and Capital Gains reports. Net Contributions/Withdrawals consist of all receipts and deliveries of securities to the account for the specified period. Accrual amount indicates income that has been applied to the total value of the account, but is not reflected on your custodial statement. Blended Index Details: Account # ABC Blended Index: 60% S&P 500 Total Return / 40% Barclays Aggregate Bond Benchmark Definitions: The Barclays Capital U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis. Securities must have at least one year to final maturity regardless of call features and must have at least $250 million par amount outstanding. The Barclays Capital Government/Credit Bond Index is an unmanaged index of Treasury securities and other securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, including U.S. Agency mortgage securities and investment-grade corporate debt securities, in each case with maturities of not less than one year. 17 of 19

18 DISCLOSURES The Barclays Capital Intermediate Government/Credit Bond Index features a blend of U.S. Treasuries, U.S. Agencies, and U.S. investment-grade corporate bonds limited to maturities of no more than 10 years. The Barclays Capital Municipal Bond Index is a market-value-weighted index engineered for the long-term tax-exempt bond market. It is comprised of fixed rate bonds that have a dated-date after December 31, 1990, must be at least one year from their maturity date, must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. Included bonds must be rated investment-grade (Baa3/BBB- or higher) by at least two of the following ratings agencies: Moody s, S&P, Fitch. If only two of the three agencies rate the security, the lower rating is used to determine index eligibility. If only one of the three agencies rates a security, the rating must be investment-grade. Remarketed issues, taxable municipal bonds, bonds with floating rates, and derivatives, are excluded from the index. The Barclays Capital 5 Year Municipal Bond Index is a component of the Barclays Municipal Bond Index, a market-value-weighted index. It is comprised of fixed rate bonds that have a dated-date after December 31, 1990, must have a maturity between four and six years, must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. Included bonds must be rated investment-grade (Baa3/BBB- or higher) by at least two of the following ratings agencies: Moody s, S&P, Fitch. If only two of the three agencies rate the security, the lower rating is used to determine index eligibility. If only one of the three agencies rates a security, the rating must be investment-grade. Remarketed issues, taxable municipal bonds, bonds with floating rates, and derivatives, are excluded from the index. The S&P 500 Index includes 500 of the largest stocks (in terms of stock market value) in the U.S.; prior to March 1957, it consisted of 90 of the largest stocks. Although the S&P 500 focuses on the large-cap segment of the market, with approximately 80% coverage of U.S. equities, it is also used as a reliable proxy for the total U.S. equity market. Certain benchmark values are not available on a daily basis. As a result, benchmark returns will not be included in the Performance Summary if the daily values were not available on the date of this report. The information on indices is presented for illustrative purposes only and is not intended to imply the potential performance of any fund or investment. Indices are not available for direct investment. Index performance assumes the reinvestment of all distributions but does not assume any transaction costs, taxes, management fees or other expenses. An investment advisory disclosure document that describes our firm s investment advisory services and those of any investment advisors managing your account is available to you at no cost. Please contact your financial advisor or Program Sponsor to request these documents. Please update your financial advisor if your investment objectives have changed or if the personal or financial information initially provided in your application has changed. The Global Industry Classification (GICS ) was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard and Poor s. GICS is a service mark of MSCI and S&P and has been licensed for use by Lockwood and its affiliates. Additional Definitions for Your Portfolio Summary Report Number of Holdings: The number of positions held in the Equity or the Fixed Income asset class. Preferred stocks are counted as fixed income. Average Market Cap: The weighted (by market value held) average market capitalization of all stocks held. Market capitalization is the price of a stock times the number of outstanding shares for that stock. 18 of 19

19 DISCLOSURES Average Dividend Yield: The weighted (by market value held) average dividend yield of all stocks held. Dividend yield is a financial ratio that provides an indication of how much a company has paid out in dividends (based on the most recent dividend paid) relative to its share price. The ratio is not a projection of the actual dividend payout that might be achieved. Earnings Growth Rate: [Field not currently used] Average Yield to Worst: The weighted (by market value held) average yield based on the lower of a bond s yield to call or yield to maturity, for all bonds held. Average Bond Duration: The weighted (by market value held) average duration of all bonds held. Bond duration is the measure of price sensitivity of a fixed income security to an interest rate change of 1%. A higher duration indicates greater relative price sensitivity to changes in interest rates. Average Coupon: The weighted (by market value held) average of the annual coupon interest rate of all bonds held. The coupon interest rate is a bond s stated interest rate. If you have any questions or need assistance in understanding your Portfolio Summary Report, please contact your Benjamin F. Edwards & Co. financial consultant. BFE&CO EXP 06/28/ of 19