LAKEPO NTE PREMIER. Structured Investment Program. Shore up your financial future

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1 LAKEPO NTE PREMIER Structured Investment Program Shore up your financial future

2 HORIZON TRUST & INVESTMENT MANAGEMENT A Proud & Rich Tradition of Trust & Investment Management Nestled on the shores of Lake Michigan, Horizon Trust & Investment Management has fittingly named its structured portfolio program Lakepointe. Horizon Trust & Investment Management is one of the Midwest s earliest providers of financial services, including asset management, trust services, employee benefit services, and financial planning. With the Chicago skyline serving as a backdrop, and wrapped in its own historic blanket, the firm is a distinct part of the financial services district. Horizon Trust & Investment Management strives to deliver exceptional service and sensible advice in a personal and professional manner. An industry innovator, Horizon Trust & Investment Management is dedicated to helping clients achieve their financial objectives. As a mariner knows, a charted course with foresight and direction is imperative. To that end, the beacon that provided vision for the firm s founders continues to light the way for future generations. INVESTING WITH YOU IN MIND Asset Allocation Is Crucial Unfortunately, the asset allocation decision is one that most people do not spend nearly enough time pondering. Furthermore, those that do invest for themselves often spend inadequate time monitoring and qualifying their success. Lakepointe Premier was specifically designed to ease the burden of these tasks and to help investors achieve their goals, build better lives, and maintain the standard of living to which they have grown accustomed. What Makes the Lakepointe Premier Program Unique? The Lakepointe Premier program is unique because it provides the ability to combine Horizon s individual security offerings in the large-capitalization and individual fixed income space, with Horizon s carefully screened Bellwether asset managers. The allocation to individual securities, may boost yields and, over time, boost returns. In the Premier program, Horizon may also elect to utilize alternative asset classes to further diversify risk. Further, in taxable situations, Horizon may attempt to defer capital gains and reduce overall tax liability.

3 The Meaning of Asset Allocation Asked to define the meaning of asset allocation, most would say it has something to do with the way one allocates investments among asset classes such as Growth and Value stocks, Bonds, SmallCap, MidCap, LargeCap, and International stocks or other alternative asset classes. Unfortunately, this overlooks the major objective of asset allocation: reducing the correlation between these asset classes and enhancing risk-adjusted returns. The Benefits of the Lakepointe Premier Program Today, investors face major dilemmas: How much should be invested among different asset classes? How will these asset classes correlate, and how will the state of the economy affect them? How often should the investments be re-allocated? This is where we can help. We continually monitor both macro- and microeconomic events and manage your portfolio according to your objective. The major benefits of the Lakepointe Premier program include: Helping you better understand your objective and qualifying your goals Monitoring the investment management process and helping you avoid investment pitfalls Rebalancing your portfolio so that you maintain an optimal blend of securities Ongoing monitoring of portfolio managers who provide sub-account asset management for differing asset classes Continuous communication to help keep you informed of our outlook for the economy and our current strategy with regard to maximizing the risk-adjusted return of your portfolio Consolidated tax reporting, which provides a tax summary for your tax professional Online reporting of your holdings as well as online statements delivered in a secure format or paper statements sent to your home or business address Access to Horizon s professional staff of Advisors who can help ensure that your goals are commensurate with your financial posture In a nutshell, we will help remove the guesswork so that you can concentrate on other important areas of your life such as managing your business, raising your family, or enjoying your retirement. In essence, by utilizing Horizon and the Lakepointe Structured Investment program, you have hired a lifelong financial partner.

4 5 STEPS To Launch Your Own Structured Investment Program The Lakepointe Structured Investment program considers whether your goals call for long-term growth, a stream of current income, or a combination of both. We not only provide you with a customized plan, we provide the ongoing resources necessary for you to fulfill your objective. Through one carefully constructed account, you will receive professional asset management, investment counseling, and the ongoing assistance you need to ensure that you stay on course. Step 1: Complete your Client Investment Profile (CIP). The Lakepointe Structured Investment program CIP will help ensure that we understand you, your goals, your risk tolerance level, and your timeframe, better known as the three T s: Time, Tolerance, and Temperament. Your answers to this questionnaire help ensure that we select the portfolio that best suits your investment objective. Step 2: Conduct a careful analysis of your overall financial situation. While the CIP can help us gain knowledge about you, it is still imperative that your Horizon Advisor ensures that the portfolio you select truly matches your objective. Together, we will review the results of your CIP, your individual holdings, and any potential capital gains. At this time, we may also review investment matters such as an impending retirement, the quality of your estate plan, or any other financial concerns you may have. Step 3: Determine your asset allocation & discuss the transition of your portfolio. From conservative to aggressive, Lakepointe Premier portfolios span a significant range of potential investment objectives. Finding the allocation that is correct may take time, but will help ensure that you are on course for successful financial endeavors. We will have an in-depth discussion of the initial transition of your portfolio including changes in estimated income and capital gain exposure. At this time, if necessary, we may also discuss tax overlay strategies to try to ease the realization of capital gain tax exposure. Step 4: Rebalance your portfolio. Once the above has been completed, we will transition your assets to a Lakepointe Premier structured portfolio. At this time, you will receive a summary of your tax exposure. Going forward, we will observe portfolio valuation characteristics, concentrations, and performance to ensure that your portfolio remains diversified. Given the changes and increased volatility in the marketplace, rebalancing a portfolio has become more important. We attempt to shift gains when appropriate from asset classes that have appreciated to asset classes that we feel remain undervalued. This process, known as dynamic asset allocation, helps to reduce risk because asset classes that have appreciated tend to have increased volatility. Step 5: Track your results. To help ensure your progress, Horizon provides written confirmation of portfolio changes and quarterly statements. We also provide market and strategy updates through our Viewpointe publication. In addition, we offer Internet access to your account at any time through the convenience of our secure Website. Your Horizon Advisor will also be available to meet with you on a quarterly basis.

5 THE BENEFITS OF LAKEPOINTE PREMIER Knowing You Are Properly Allocated Brings Peace of Mind Lakepointe Premier portfolios are available to individuals, businesses, not-for-profit organizations, and company retirement plans that seek the value of a disciplined asset management program. The benefits of the program are numerous and include: Dynamic asset allocation A Lakepointe Premier portfolio puts the most important investment decision of who allocates your assets in the hands of highly trained and qualified professionals. Horizon Trust & Investment Management s Trust Investment Committee determines your asset allocation mix based upon your CIP and their current assessment of market conditions. When managing and monitoring your portfolio, Horizon will focus on the following five attributes: Outlook Conduct a market outlook Valuation Compare valuations among asset classes Correlation Assess the correlation between asset classes and overall diversification Construction Build and allocate the structured portfolios Monitor Assess and reassess the portfolio allocations These attributes are shown in the portfolio construction decision wheel depicted to the right, which helps provide a guided overview when managing portfolios. By grouping and continually monitoring these areas and determining their impact on each other, we are able to maintain allocations that will provide you with optimal diversification even in a turbulent market. Diversification A portfolio of Bellwether asset managers provides exposure to multiple asset classes and investment styles that tend to perform well at different times. This should help you diversify risk and enhance your potential return. Moreover, Horizon Trust & Investment Management does not use proprietary funds and will seek to find the best manager. In addition to Horizon s carefully screened Bellwether asset managers, you have access to Horizon s individual security offerings in the large capitalization and individual fixed income space. Within the large capitalization equity spectrum Horizon offers a diversified portfolio of individual stocks designed to provide superior risk-adjusted returns over time. This large-cap blend portfolio offers exposure to all ten sectors of the S&P 500. PORTFOLIO CONSTRUCTION DECISION WHEEL Each portfolio attribute is interrelated.

6 For the individual fixed income component, we offer a wide array of fixed income instruments including corporate bonds, treasuries, certificates of deposit, government agencies, and municipal bonds. Utilizing these instruments we construct diversified portfolios that are customized to your individual needs, while taking into consideration our outlook for the fixed income markets. Experienced fund management Horizon s Bellwether selection process ensures that qualified professionals manage each asset class. Each portfolio manager pursues their individual portfolio management objective while Horizon Trust & Investment Management s asset allocation experts review and adjust portfolio allocations to take advantage of economic developments and market movements. Customized investment process We begin with a thorough understanding of your goals, and then help you select a portfolio that matches your needs. We will manage your portfolio day in and day out, and provide you with investment consulting to ensure that you are on course to achieving your investment goals. Convenience The Lakepointe Premier portfolio helps to eliminate the time-consuming and complicated task of managing your own portfolio. Your Horizon Advisor will handle the day-to-day responsibilities of managing your money. We will also provide consolidated tax reporting to help ease the drudgery of tax filings. Peace of mind Perhaps the greatest benefit of having a Lakepointe Premier portfolio is peace of mind. By allowing us to handle the day-to-day responsibilities of managing your portfolio, you will have more time to concentrate on other important areas of your life. PERSONAL, PROFESSIONAL & CONFIDENTIAL Relationships Are Built On Trust Your Horizon Advisor serves as the liaison between you and the portfolio managers who oversee your assets. Your financial particulars remain in strict confidence. As a participant in the Lakepointe Structured Investment program, your advisor will help you: Answer your investment questions and qualify concerns Choose the allocation that most closely matches your objective Continuously review your account Stay focused on long-term goals rather than short-term volatility Evaluate additional portfolio options Monitor your objective Identify other potential investment opportunities Finalize estate, retirement, or other financial planning

7 You will also have the ability to access your account at any time through our website at Day in and day out, you have the ability to monitor your account holdings. A NAME YOU CAN COUNT ON We Will Be There for You & Your Family Horizon Trust & Investment Management follows a strict and disciplined investment principle. For generations, Horizon Trust & Investment Management s investment team has helped guide individuals, businesses, and institutions through good times and bad. Working with Horizon s Trust Investment Committee, our investment managers adjust your asset allocation strategy to help ensure that you fulfill your objectives by altering course if market conditions warrant. The team at Horizon Trust & Investment Management stands ready to help you today. YOUR GOALS DESERVE Consistent Attention We have made participation in a dynamic asset allocation program less complex and more personal. With the help of your trusted Horizon Advisor, you will decide upon an appropriate allocation, and then we will help you select an objective that has been narrowed down between seven distinct portfolios. Whether you are seeking to save for retirement, increase your current stream of income, or prepare for a child s education, the Lakepointe Structured Investment program can help you. Which portfolio is right for you? Please call us toll-free at to arrange a confidential review with a Horizon Advisor today. A Better Way to Invest Investment vehicles made available through Horizon Trust & Investment Management are: Not deposits or other obligations of, or guaranteed by Horizon Bank or its affiliates; Not insured by the FDIC; Subject to investment risks, including possible loss of principal.

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