NorthCoast Retirement Portfolios: ETF Solutions for Tomorrow s Retirement. NorthCoast Investment Advisory Team

Transcription

1 NorthCoast Retirement Portfolios: ETF Solutions for Tomorrow s Retirement NorthCoast Investment Advisory Team info@northcoastam.com

2 NORTHCOAST ASSET MANAGEMENT: OUR HERITAGE An established leader in the field of tactical investment management, specializing in quantitative research and constructing institutional-caliber portfolios designed for the individual investor. E XPERIENCE. Founded in 1988 $2.6 billion in AUM (as per March 2016 ADV) S TABILITY. Proprietary, quantitative, and tactical investment strategies Legacy of preserving capital during the bear markets of and 2008 P ERFORMANCE. Long-term portfolio performance Exclusive Agreement with Investor s Business Daily ETF Partnership with BlackRock ishares Recognized as a Financial Times Top 300 Registered Investment Adviser (2014, 2015)

3 AN OUTLINE The Retirement Boom Has Begun Today s Retirement Dilemma Introduction to ETFs NorthCoast Overview Retirement Portfolio Solutions Tactical Income Diversified Core Diversified Growth Tactical Growth 3

4 THE RETIREMENT BOOM HAS BEGUN In the U.S., the baby boom generation represents 76 million people Everyday 10,000 people turn a trend that will continue until 2030 By 2030, 1 in 5 persons will be over Years: average time Baby Boomers can expect to spend in retirement Huge wealth transfer from 401k/pension plans to IRAs Institutional investing to personal responsibility Data complied from BlackRock, U.S. Census Bureau 4

5 TODAY S RETIREMENT DILEMMA 54% of investors are worried they will outlive their savings Lifestyle Factors Market Factors 8 in 10 seniors are living with at least one chronic health condition Health Income Traditional low-risk yield options do not meet the inflation hurdle 10% of 529 contributions (college savings plans) generated from grandparents Family Market Drawdown Market drawdowns of and 2008 eliminate years of equity growth 62% of U.S. employees expect to work longer due to the global financial crisis Work Growth Growth in portfolios continues to be necessary in retirement plans as investors live longer Data compiled from United Health Foundation, U.S News & World Report, Transamerica for Retirement Studies, BlackRock, MommyNoire 5

6 RISE OF THE ETF (EXCHANGE TRADED FUND) What is an ETF? A security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange What an ETF Looks Like KXI ishares S&P Global Consumer Staples Procter & Gamble PG 7.6% Nestle NSRGF 7.3% Coca-Cola Company KO 5.1% Pepsico, Inc. Common Stock PEP 4.3% Wal-Mart Stores, Inc. WMT 4.2% Philip Morris International PM 3.9% CVS Caremark Corp CVS 3.4% Brit Amer Tobacco BATS.L 3.1% Altria Group, Inc DEO 3.0% Anheuser-Busch InBev BUD 2.9% Top 10 holdings (44.7% of assets) Competitive Advantages Liquid Trades intra-day Multi-Asset Classes - Equities, commodities, fixed income, alternatives Hedging Ability - Selling short, placing stop-loss or limit orders, buying on margin, etc Low Cost 0.6% average expense ratio versus 1.4% of mutual funds ETF Market Growth $1.8 Trillion: Current AUM in ETFs (July 2014) - Up from $500 Billion from ,500: Number of ETFs (January 2014) - Up from 650 at the end of 2007 ETF flows have outpaced index mutual funds every year since 2003 Data sources: Daily prices and volume of individual ETPs (ETFs, ETNs, ETVs) from Norgate Premium Data. Fund counts and all other information compiled by Invest With An Edge ETF and Mutual Fund Expenses provided by morningstar.com. TheStreet.com. IndexUniverse. 6

7 CREATING CORE PORTFOLIO SOLUTIONS Meeting primary investment objectives of retirees Systematic & Active Investing utilizing ETFs 7

8 3-STEP INVESTMENT PROCESS 1 Analyze Market Environment / Create Asset Allocation 2 Select Risk-Adjusted ETFs Identify current risk environment through analysis of four marketmoving indicators Technical Macroeconomic Sentiment Valuation *Investments demonstrating the most favorable relationship between risk and return are purchased. The relationship between risk and return is determined through analysis of technical, macroeconomic, sentiment, and valuation indicators across a series of ETFs within each asset class. ETF Selection = Return Potential *Market Risk Meter provides optimal investment level between asset classes 3 Manage Risk Associated Risk ETF Selection Low cross-correlation Diversify among asset classes Optimize Return/Risk ratio Monitoring positions daily Analyze volatility and drawdown Active market outlook monitors macro environment Assessing model behavior Learn more about NorthCoast s market analysis by checking out our whitepaper at *Source data provided by NorthCoast. 8

9 NORTHCOAST RETIREMENT PORTFOLIOS Income Growth Tactical Income Diversified Core Diversified Growth Tactical Growth 9

10 TACTICAL INCOME Description: Seeks a target yield of inflation +2-3%, protection against rising interest rates & inflation with real assets, potential for appreciation through growth assets, and downside protection. Past performance is not a guarantee of future profits and must be viewed in concert with Disclosure Information in the Appendix 10

11 DIVERSIFIED CORE Description: Invests in a basket of global ETFs with the flexibility of modest tactical shifts across equity, fixed income, and alternative solutions designed to deliver a balanced approach to investing Past performance is not a guarantee of future profits and must be viewed in concert with Disclosure Information in the Appendix 11

12 DIVERSIFIED GROWTH Description: Invests in a basket of global ETFs with the flexibility of modest tactical shifts across equity, fixed income, and alternative solutions designed for long-term growth Past performance is not a guarantee of future profits and must be viewed in concert with Disclosure Information in the Appendix 12

13 TACTICAL GROWTH Description: Invests in a basket of global ETFs with the flexibility of full tactical shifts to invest opportunistically as market outlook improves and protect capital as market outlook weakens Past performance is not a guarantee of future profits and must be viewed in concert with Disclosure Information in the Appendix 13

14 SUMMARY NorthCoast Retirement Portfolios are a methodical alternative to passive buy and hold strategies. Consider the following benefits for your investment: Accessible 0.65% % management fee with a $100,000 account minimum Disciplined Institutional Managed with a Personal Touch Quantitative, Systematic, and Rules-Based Management Built with ishares ETFs and assets held/traded with Fidelity Investments Experienced advisory team to manage and advise client needs and up to date performance reporting. 24/7 online access. 14

15 Appendix 15

16 DISCLOSURE INFORMATION This information contained herein has been prepared by NorthCoast Asset Management, LLC ("NorthCoast") on the basis of publicly available information, internally developed data and other third party sources believed to be reliable. NorthCoast has not sought to independently verify information obtained from public and third party sources and makes no representations or warranties as to accuracy, completeness or reliability of such information. All opinions and views constitute judgments as of the date of writing without regard to the date on which the reader may receive or access the information, and are subject to change at any time without notice and with no obligation to update. This material is for informational and illustrative purposes only and is intended solely for the information of those to whom it is distributed by NorthCoast. No part of this material may be reproduced or retransmitted in any manner without the prior written permission of NorthCoast. NorthCoast does not represent, warrant or guarantee that this information is suitable for any investment purpose and it should not be used as a basis for investment decisions. PAST PERFORMANCE DOES NOT GUARANTEE OR INDICATE FUTURE RESULTS. This material should not be viewed as a current or past recommendation or a solicitation of an offer to buy or sell any securities or investment products or to adopt any investment strategy. The reader should not assume that any investments in companies, securities, sectors, strategies and/or markets identified or described herein were or will be profitable and no representation is made that any investor will or is likely to achieve results comparable to those shown or will make any profit or will be able to avoid incurring substantial losses. Performance differences for certain investors may occur due to various factors, including timing of investment. Investment return will fluctuate and may be volatile, especially over short time horizons. INVESTING ENTAILS RISKS, INCLUDING POSSIBLE LOSS OF SOME OR ALL OF THE INVESTOR'S PRINCIPAL. The investment views and market opinions/analyses expressed herein may not reflect those of NorthCoast as a whole and different views may be expressed based on different investment styles, objectives, views or philosophies. To the extent that these materials contain statements about the future, such statements are forward looking and subject to a number of risks and uncertainties. 16

17 DISCLOSURE INFORMATION Tactical Income is a fully tactical investment strategy designed to produce income while managing principal risk. The strategy invests in a diversified basket of global ETFs across the income spectrum using U.S. bonds, international bonds, corporate bonds, mortgages, and U.S. and international dividend equities. The strategy seeks a target yield of inflation +2-3%, protection against rising interest rates & inflation with real assets, potential for appreciation through growth assets, and downside protection through a tactical allocation to yield sources with diversification benefits. Diversified Core is a moderately tactical investment strategy designed to produce a balanced approach to growth and income. The strategy invests in a diversified basket of global ETFs (global equities, global bonds, real estate, alternative investments, and cash equivalents) with a balanced objective of capital appreciation and income generation. Diversified Growth is a moderately tactical investment strategy designed to produce long-term capital appreciation. The strategy invests in a diversified basket of global ETFs (global equities, global bonds, real estate, alternative investments, and cash equivalents) with a primary objective of capital appreciation and secondary objective of income generation. Tactical Growth is a fully tactical investment strategy designed to generate long-term growth. The strategy invests in a diversified basket of global ETFs across the asset class spectrum using global equities, global bonds, real estate, alternative investments, and cash equivalents. The primary objective is long-term capital appreciation with secondary objective of capital preservation. Returns are presented net-of-fees. Net-of-fee returns are reduced by trading costs and the portfolio s actual management fee. Valuations are computed and performance is reported in U.S. dollars. A complete list of composite descriptions is available upon request. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. To obtain a compliant presentation for the associated strategy, please contact one of our advisors at

18 BENCHMARK DESCRIPTIONS The Barclays Aggregate Bond Index and JP Morgan Global Aggregate Bond Index are used for comparison purposes. The Barclays Aggregate Bond Index is a broad based index designed to represent global investment grade bonds traded in the United States. The JP Morgan Global Aggregate Bond Index is a broad-based index designed to represent multi-currency, global investment grade bonds. Morningstar Moderate Index : Morningstar Moderate Target Risk Index: The Morningstar Moderate Target Risk Index represents a portfolio of global equities, bonds, and traditional inflation hedges, such as commodities and TIPS. This portfolio is held in a static allocation of 60% equities and 40% fixed income, which is appropriate for U.S. investors who seek average exposure to equity market risk and returns. Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. 50/50 Global Blend = The blended benchmark of 50% MSCI ACWI / 50% J.P. Morgan Global Aggregate Bond Index. The MSCI ACWI index is designed to measure the equity markets of developed and emerging markets outside of the United States and is generally considered a proxy for the global market. The JP Morgan Global Aggregate Bond Index is a broad-based index designed to represent multi-currency, global investment grade bonds. Moderately Aggressive Index : Morningstar Moderately Aggressive Target Risk Index: The Morningstar Moderately Target Risk Index represents a portfolio of global equities, bonds, and traditional inflation hedges, such as commodities and TIPS. This portfolio is held in a static allocation of 80% equities and 20% fixed income, which is appropriate for U.S. investors who seek higher exposure to equity market risk and returns. Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. 70/30 Global Blend = The blended benchmark of 70% MSCI ACWI / 30% J.P. Morgan Global Aggregate Bond Index. The MSCI ACWI index is designed to measure the equity markets of developed and emerging markets outside of the United States and is generally considered a proxy for the global market. The JP Morgan Global Aggregate Bond Index is a broad-based index designed to represent multi-currency, global investment grade bonds. Aggressive Competitor Avg = Morningstar Aggressive Allocation Category Average. Aggressive allocation portfolios seek to provide both capital appreciation and income by investing in three major areas: stocks, bonds, and cash. These portfolios tend to hold larger positions in stocks than moderate-allocation portfolios. These portfolios typically have 70% to 90% of assets in equities and the remainder in fixed income and cash. Tactical Competitor Avg = Morningstar Tactical Allocation Category Average. Tactical Allocation portfolios seek to provide capital appreciation and income by actively shifting allocations between asset classes. These portfolios have material shifts across equity regions and bond sectors on a frequent basis. To qualify for the Tactical Allocation category, the fund must first meet the requirements to be considered in an allocation category. Next, the fund must historically demonstrate material shifts within the primary asset classes either through a gradual shift over three years or through a series of material shifts on a quarterly basis. The cumulative asset class exposure changes must exceed 10% over the measurement period. World Index (ACWI) = MSCI All-Country World Index (ACWI). The MSCI ACWI index is designed to measure the equity markets of developed and emerging markets outside of the United States and is generally considered a proxy for the global market. 18

19 NorthCoast Asset Management LLC Tactical Income Composite November 1, 2012 through December 31, 2015 Year Composite Net Return Benchmark Return Composite 3-Yr St Dev Benchmark 3-Yr St Dev # of Portfolios Internal Dispersion % of Non- Fee Paying Accounts % Wrap Accounts Composite Assets ($ M) , N/A N/A , N/A N/A , * N/A N/A 4 N/A ,353 *Performance from November 1, 2012 to December 31, 2012 Firm Assets ($ M) NorthCoast Asset Management LLC claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. NorthCoast Asset Management LLC has been independently verified for the periods August 1, 2006 through December 31, The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. The firm is defined as NorthCoast Asset Management LLC. NCAM was established in 1988 and is an independent Registered Investment Advisor (RIA) registered with the Securities and Exchange Commission (SEC). The firm is a full service investment management company. The firm specializes in quantitative investment programs. NCAM is located in Greenwich, CT, and is not affiliated with any parent organization and has no other offices operating under the same brand name. Tactical Income is a fully tactical investment strategy designed to produce income while managing principal risk. The strategy invests in a diversified basket of global ETFs across the income spectrum using U.S. bonds, international bonds, corporate bonds, mortgages, and U.S. and international dividend equities. The strategy seeks a target yield of inflation +2-3%, protection against rising interest rates & inflation with real assets, potential for appreciation through growth assets, and downside protection through a tactical allocation to yield sources with diversification benefits. The Benchmark is the JP Morgan Global Aggregate Bond Index. The JP Morgan Global Aggregate Bond Index is a broad-based index designed to represent multi-currency, global investment grade bonds. Net-of-fee returns are reduced by trading costs and the portfolio s actual management fee. Net returns are reduced by the actual bundled/wrap fee charged. The bundled/wrap fee will typically include, trading, investment management, portfolio monitoring and other administrative fees charged by the sponsor. Valuations are computed and performance is reported in U.S. dollars. Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were included in the composite for the entire year. The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. If any account makes an addition >/= 20% of the overall account value on the day prior to the addition, the account is removed from the composite for the month. The account is then added back to the composite after four(4) months. No changes are made for withdrawals. A complete list of composite descriptions is available upon request. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. The composite was created in November Fee Schedule: 0 - $99, % $100,000 - $249, % $250,000 - $499, % 500,000 - $999, % $1,000,000 - $1,999, % $2,000, % NorthCoast Asset Management info@northcoastam.com _v1.0

20 NorthCoast Asset Management LLC Diversified Core Composite February 1, 2013 through December 31, 2015 Year Composite Net Return Benchmark Return Composite 3-Yr St Dev Benchmark 3-Yr St Dev # of Portfolios Internal Dispersion % of Non- Fee Paying Accounts % Wrap Accounts Composite Assets ($ M) N/A N/A , N/A N/A , * N/A N/A 17 N/A ,056 *Performance from February 1, 2013 to December 31, 2013 Firm Assets ($ M) NorthCoast Asset Management LLC claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. NorthCoast Asset Management LLC has been independently verified for the periods August 1, 2006 through December 31, The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. The firm is defined as NorthCoast Asset Management LLC. NCAM was established in 1988 and is an independent Registered Investment Advisor (RIA) registered with the Securities and Exchange Commission (SEC). The firm is a full service investment management company. The firm specializes in quantitative investment programs. NCAM is located in Greenwich, CT, and is not affiliated with any parent organization and has no other offices operating under the same brand name. Diversified Core is a moderately tactical investment strategy designed to produce a balanced approach to growth and income. The strategy invests in a diversified basket of global ETFs (global equities, global bonds, real estate, alternative investments, and cash equivalents) with a balanced objective of capital appreciation and income generation. The Benchmark is the Morningstar Moderate Target Risk Index: The Morningstar Moderate Target Risk Index represents a portfolio of global equities, bonds, and traditional inflation hedges, such as commodities and TIPS. This portfolio is held in a static allocation of 60% equities and 40% fixed income, which is appropriate for U.S. investors who seek average exposure to equity market risk and returns. Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. Net-of-fee returns are reduced by trading costs and the portfolio s actual management fee. Net returns are reduced by the actual bundled/wrap fee charged. The bundled/wrap fee will typically include, trading, investment management, portfolio monitoring and other administrative fees charged by the sponsor. Valuations are computed and performance is reported in U.S. dollars. Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were included in the composite for the entire year. The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. If any account makes an addition >/= 20% of the overall account value on the day prior to the addition, the account is removed from the composite for the month. The account is then added back to the composite after four(4) months. No changes are made for withdrawals. A complete list of composite descriptions is available upon request. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. The composite was created in February Fee Schedule: 0 - $99, % $100,000 - $249, % $250,000 - $499, % 500,000 - $999, % $1,000,000 - $1,999, % $2,000, % NorthCoast Asset Management info@northcoastam.com _v1.0

21 NorthCoast Asset Management LLC Diversified Growth Composite February 1, 2013 through December 31, 2015 Year Composite Net Return Benchmark Return Composite 3-Yr St Dev Benchmark 3-Yr St Dev # of Portfolios Internal Dispersion % of Non- Fee Paying Accounts % Wrap Accounts Composite Assets ($ M) N/A N/A , N/A N/A , * N/A N/A 13 N/A ,056 *Performance from February 1, 2013 to December 31, 2013 Firm Assets ($ M) NorthCoast Asset Management LLC claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. NorthCoast Asset Management LLC has been independently verified for the periods August 1, 2006 through December 31, The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. The firm is defined as NorthCoast Asset Management LLC. NCAM was established in 1988 and is an independent Registered Investment Advisor (RIA) registered with the Securities and Exchange Commission (SEC). The firm is a full service investment management company. The firm specializes in quantitative investment programs. NCAM is located in Greenwich, CT, and is not affiliated with any parent organization and has no other offices operating under the same brand name. Diversified Growth is a moderately tactical investment strategy designed to produce long-term capital appreciation. The strategy invests in a diversified basket of global ETFs (global equities, global bonds, real estate, alternative investments, and cash equivalents) with a primary objective of capital appreciation and secondary objective of income generation. The Benchmark is the Morningstar Moderately Aggressive Target Risk Index: The Morningstar Moderately Target Risk Index represents a portfolio of global equities, bonds, and traditional inflation hedges, such as commodities and TIPS. This portfolio is held in a static allocation of 80% equities and 20% fixed income, which is appropriate for U.S. investors who seek higher exposure to equity market risk and returns. Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. Net-of-fee returns are reduced by trading costs and the portfolio s actual management fee. Net returns are reduced by the actual bundled/wrap fee charged. The bundled/wrap fee will typically include, trading, investment management, portfolio monitoring and other administrative fees charged by the sponsor. Valuations are computed and performance is reported in U.S. dollars. Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were included in the composite for the entire year. The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. If any account makes an addition >/= 20% of the overall account value on the day prior to the addition, the account is removed from the composite for the month. The account is then added back to the composite after four(4) months. No changes are made for withdrawals. A complete list of composite descriptions is available upon request. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. The composite was created in February Fee Schedule: 0 - $99, % $100,000 - $249, % $250,000 - $499, % 500,000 - $999, % $1,000,000 - $1,999, % $2,000, % NorthCoast Asset Management info@northcoastam.com _v1.0

22 NorthCoast Asset Management LLC Tactical Growth Composite February 1, 2013 through December 31, 2015 Year Composite Net Return Benchmark Return Composite 3-Yr St Dev Benchmark 3-Yr St Dev # of Portfolios Internal Dispersion % of Non- Fee Paying Accounts % Wrap Accounts Composite Assets ($ M) N/A N/A , N/A N/A , * N/A N/A 6 N/A ,056 *Performance from February 1, 2013 to December 31, 2013 Firm Assets ($ M) NorthCoast Asset Management LLC claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. NorthCoast Asset Management LLC has been independently verified for the periods August 1, 2006 through December 31, The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. The firm is defined as NorthCoast Asset Management LLC. NCAM was established in 1988 and is an independent Registered Investment Advisor (RIA) registered with the Securities and Exchange Commission (SEC). The firm is a full service investment management company. The firm specializes in quantitative investment programs. NCAM is located in Greenwich, CT, and is not affiliated with any parent organization and has no other offices operating under the same brand name. Tactical Growth is a fully tactical investment strategy designed to generate long-term growth. The strategy invests in a diversified basket of global ETFs across the asset class spectrum using global equities, global bonds, real estate, alternative investments, and cash equivalents. The primary objective is long-term capital appreciation with secondary objective of capital preservation. The Benchmark is the Morningstar Tactical Allocation Category Average for Open-End Funds. Tactical Allocation portfolios seek to provide capital appreciation and income by actively shifting allocations between asset classes. These portfolios have material shifts across equity regions and bond sectors on a frequent basis. To qualify for the Tactical Allocation category, the fund must first meet the requirements to be considered in an allocation category. Next, the fund must historically demonstrate material shifts within the primary asset classes either through a gradual shift over three years or through a series of material shifts on a quarterly basis. The cumulative asset class exposure changes must exceed 10% over the measurement period. Net-of-fee returns are reduced by trading costs and the portfolio s actual management fee. Net returns are reduced by the actual bundled/wrap fee charged. The bundled/wrap fee will typically include, trading, investment management, portfolio monitoring and other administrative fees charged by the sponsor. Valuations are computed and performance is reported in U.S. dollars. Internal dispersion is calculated using the asset-weighted standard deviation of annual gross returns of those portfolios that were included in the composite for the entire year. The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. If any account makes an addition >/= 20% of the overall account value on the day prior to the addition, the account is removed from the composite for the month. The account is then added back to the composite after four(4) months. No changes are made for withdrawals. A complete list of composite descriptions is available upon request. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. The composite was created in September Fee Schedule: 0 - $99, % $100,000 - $249, % $250,000 - $499, % 500,000 - $999, % $1,000,000 - $1,999, % $2,000, % NorthCoast Asset Management info@northcoastam.com _v1.0