Managing Managing Your YourPortfolio Portfolio with Confidence

Genworth Financial Wealth Management

We believe there are times to take advantage of the market environment and times when the priority is simply to avoid market risk. This is why we feel a flexible approach to investing is needed.

page 1

Stocks experience both bull and bear market cycles

Long-Term Market Cycles Jan. 1906 to Dec. 2012
1
Market Period Time (Years) Annualized Return 100,000

19061920
(15 YEARS)

19211928
(8 YEARS)

19291932
(4 YEARS)

19331936
(4 YEARS)

(5 YEARS)

19371941
-9%

(24 YEARS)

19421965
9%

19661981
(16 YEARS)

(18 YEARS)

19821999
15%

20002012
(13 YEARS)

BEAR BULL

1%

20%

-33%

32%

-1%

1%

10,000
DOW JONES INDUSTRIAL AVERAGE

1,000

100

1 1910 1920 1930 1940 1950

YEAR

Past performance is no guarantee of future results.

1960

1970

1980

1990

2000

2012

Used with permission: Crestmont Research, www.crestmontresearch.com. The Dow Jones Industrial Average ("Dow"), a registered trademark of Dow Jones & Co., Inc., is an unmanaged index composed of 30 common stocks. It is not possible to invest directly in an index. Returns shown above do not reect the reinvestment of dividends or other distributions; these total return gures are not available for the Dow prior to October 1987. Returns shown represent only the price appreciation of the index. page 2

Even in a long-term bull market, investors can experience sharp declines

Long-Term Bull Market 1942-1966

Long-Term Bull Market 1942-1966 Secular Bull & Bear Markets Jan. 1942 to Dec. 2012
1 Bull Market 2 1942-1966 3 Market PeriodLong-Term
Time (Years) 4.1 122.63% 1 -20.27% 1.1 11.94%

BULL

BEAR

4
0.9 -11.12%

5
3.6

6
0.7

7
2.6 95.93%

8
1.6
10521 7549 -13.82% 5417 3887 2789 2001 1436 1031 739

9
2.2 54.04%

10 11 Market 12 Long-Term Bull 1983-2000 13

0.8 -14.57% 1.1 24.34% 0.6 -22.22% 3.6 75.22%
BEAR BULL
TOTAL NUMBER OF YEARS

905 677 507 379 284 212 159 119 89 1047 905 783

Percent Change

TOTAL NUMBER 73.33% OF -10.51% YEARS

23.8
1 2 3 4 5 6 CUMULATIVE
RETURN

17.4
8 9 10 11 12 13
CUMULATIVE RETURN

1943
DOW JONES INDUSTRIAL AVERAGE

677 586 507 439 379 328 284 246 212 184 159 137 119 103 89

931.46%
1950 1960 1966

1321.87%
1983 1985 1990 1995 2000 Long-Term Bear Market 2000-2012
TOTAL NUMBER OF YEARS

Long-Term Bear Market 1966-1982

1065 985 911 843 780 722 668 618 572

23.8
TOTAL NUMBER OF YEARS

16.5
CUMULATIVE RETURN

-17.78%
1943 1975 1980 1982 1950
YEAR

14399 13102 11922 10849 9872 8982 8174 7437 6768

TOTAL NUMBER OF YEARS CUMULATIVE RETURN

931.46% 13
Past performance is no guarantee of future results.
CUMULATIVE RETURN

13.98%

1967

1970

2000

1960

2005

2010 1966

DEC 2012

Past performance is no guarantee of future results.

Cyclical market data courtesy of Ned Davis Research. Used with permission. Further distribution prohibited without prior permission. 2011 Ned Davis Research, Inc. All rights reserved. Cyclical market data courtesy of Ned Davis Research. Used with permission. Further distribution prohibited without prior permission. 2013 Ned Davis Research, Inc. Jones All rights reserved. Return data sourced from Bloomberg. Total cyclical market returns are calculated using the closest month ends. The Dow Jones Industrial Average (a registered trademark of Dow & Co., Inc.) Return data sourced from Bloomberg. Total cyclical market returns are calculated using the closest month ends. The Dow Jones Industrial Average (a registered trademark of Dow Jones & Co., Inc.) is an unmanaged index composed of 30 common stocks. It is not possible is an unmanaged index composed of 30 common stocks. It is not possible to invest directly in an index. Returns shown above do not reect the reinvestment of dividends or other distributions. to invest in an index. shown above do not reect the reinvestment of dividends or other distributions. Returns shown represent only the price appreciation of the index. Returns showndirectly represent only the Returns price appreciation of the index. page 3

Protecting your portfolio in down markets is as important as participating in up markets

Long-Term Bear Market 1966-1982

Long-Term Bear Market 1966-1982 Secular Bull & Bear Markets Jan. 1942 to Dec. 2012
1 2 3 Bull Market 1942-1966 Market PeriodLong-Term
Time (Years) 0.7 2.2
27.24%

BULL

BEAR

4
0.7
23.17%

5
0.6
-11.70%

6
1.1

7
1.9

8
1.8
10521

9
1.4
-25.05%

10 12 1983-2000 13 Long-Term11 Bull Market

0.5
18.15%

1.8
-22.38%

1.7
-6.82%

1.0
22.11%

1.3
-18.96%

BEAR BULL
TOTAL NUMBER OF YEARS

905 677 507 379 284 212 159 119 89

1065 1024 985 947 911 877 843 811 780 750 722 694 668 642 618 594 572
TOTAL NUMBER OF YEARS

Percent Change -21.28%

TOTAL NUMBER 22.70% OF YEARS -39.35%

60.05%
5417 3887 2789 2001 8 1436 1031 739

7549

23.8
1 2 3 4 5 6 7 CUMULATIVE RETURN

17.4
9 10 11 12 13
CUMULATIVE RETURN

931.46%
1950 1960 1966

1321.87%
1983 1985 1990 1995 2000 Long-Term Bear Market 2000-2012

1943
DOW JONES INDUSTRIAL AVERAGE

Long-Term Bear Market 1966-1982

TOTAL NUMBER OF YEARS

1065 985 911 843 780 722 668 618 572

16.5 16.5
CUMULATIVE RETURN

-17.78%
1967

14399 13102 11922 10849 9872 8982 8174 7437 6768

TOTAL NUMBER OF YEARS CUMULATIVE RETURN

-17.78% 13
CUMULATIVE RETURN

Past performance is no guarantee of future results.

13.98%

1967

1970

1975

1980 1970

1982

1975
YEAR

2000

2005

1980

2010 1982

DEC 2012

Past performance is no guarantee of future results.

Cyclical market data courtesy of Ned Research. Used Used with permission. Further distribution prohibited without prior permission. 2011 Ned Davis Research, Inc. All rights reserved. Cyclical market data courtesy ofDavis Ned Davis Research. with permission. Further distribution prohibited without prior permission. 2013 Ned Davis Research, Inc. All rights reserved. Return data sourced from Bloomberg. Return data sourced from Bloomberg. Total cyclical market returns are calculated using the closest month ends. The Dow Jones Industrial Average (a registered trademark of Dow Jones & Co., Inc.) of 30 common stocks. It is not possible Total cyclical market returns are calculated using the closest month ends. The Dow Jones Industrial Average (a registered trademark of Dow Jones & Co., Inc.) is an unmanaged index composed is an unmanaged indexin composed 30 common stocks. isnot notreect possible invest directly an index. shown above do not shown reect the reinvestment ofprice dividends or other of distributions. to invest directly an index.of Returns shown above It do theto reinvestment of in dividends orReturns other distributions. Returns represent only the appreciation the index. Returns shown represent only the price appreciation of the index.

page 4

This bull market offered attractive results over the long term
Long-Term Bull Market 1983-2000

Long-Term Bull Market 1983-2000 Secular Bull & Bear Markets Jan. 1942 to Dec. 2012
1Bull Market 1942-1966 2 Market PeriodLong-Term
Time (Years) 1.3 57.81% 0.7 -12.60%

BULL

BEAR

3
3.1 138.77%

4
0.2

5
2.8

6
0.2
10521 7549 -15.58% 5417 3887 2789 2001 1436 1031 739

7 Long-Term Bull 8 Market 1983-2000 9

7.8 262.22% 0.1 -15.13% 1.3 52.50%
BEAR BULL
TOTAL NUMBER OF YEARS

905 677 507 379 284 212 159 119 89

12420 10521 8912 6395

Percent Change

TOTAL NUMBER -25.14% OF YEARS 45.73%

23.8
1 2 3 4 5 6 CUMULATIVE RETURN

17.4
7 8 9
CUMULATIVE RETURN

931.46%
1960 1966

1321.87%
1983 1985 1990 1995 2000 Long-Term Bear Market 2000-2012
TOTAL NUMBER OF YEARS

1943
DOW JONES INDUSTRIAL AVERAGE

75491950 5417 3887 3293 2789 2363 2001 1695 1436 1217 1031 873 739

Long-Term Bear Market 1966-1982 4589

1065 985 911 843 780 722 668 618 572

17.4
TOTAL NUMBER OF YEARS

16.5
CUMULATIVE RETURN

-17.78%
1983

14399 13102 11922 10849 9872 8982 8174 7437 6768

TOTAL NUMBER OF YEARS CUMULATIVE RETURN

1321.87%13
Past performance is no guarantee of future results.
CUMULATIVE RETURN

13.98%

1967

1970

1975

1985

1980

1982

1990
YEAR

2000

1995

2005

2010 2000

DEC 2012

Past performance is no guarantee of future results.

Cyclical market data courtesy of Ned Davis Research. Used with permission. Further distribution prohibited without prior permission. 2011 Ned Davis Research, Inc. All rights reserved. Cyclical market data courtesy of Ned Davis Research. Used with permission. Further distribution prohibited without prior permission. 2013 Ned Davis Research, Inc. All rights reserved. Return data sourced from Bloomberg. Return data sourced from Bloomberg. Total cyclical market returns are calculated using the closest month ends. The Dow Jones Industrial Average (a registered trademark of Dow Jones & Co., Inc.) Total cyclical market returns are calculated using the closest month ends. The Dow Jones Industrial Average (a registered trademark of Dow Jones & Co., Inc.) is an unmanaged index composed of 30 common stocks. It is not possible is an unmanaged index composed of 30 common stocks. It is not possible to invest directly in an index. Returns shown above do not reect the reinvestment of dividends or other distributions. to invest directly in an index. Returns shown above do not reect the reinvestment of dividends or other distributions. Returns shown represent only the price appreciation of the index. Returns shown represent only the price appreciation of the index.

page 5

This long-term bear market has been challenging

Long-Term Bear Market 2000-2012

Long-Term Bear Market 2000-2012 Secular Bull & Bear Markets Jan. 1942 to Dec. 2012
1 Bull Market 1942-1966 2 Market PeriodLong-Term
Time (Years) 1.7 -23.05% 0.5 17.59%

BULL

BEAR

3
0.5 -27.03%

4
5.0
TOTAL NUMBER 83.03% OF YEARS

5
1.4
10521

6
2.2 81.38%

7 Market 1983-2000 8 Long-Term Bull

0.4 -14.81% 1.3 20.07%
BEAR BULL
TOTAL NUMBER OF YEARS

905 677 507 379 284 212 159 119 89

Percent Change

-49.17%

7549 5417 3887 2789 2001 1436 1031 739

23.8
1 2 3 4 CUMULATIVE
RETURN

17.4
5 6 7 8
CUMULATIVE RETURN

1943
DOW JONES INDUSTRIAL AVERAGE

1065 985 911 843 780 722 668 618 572

14399 1960 13735 1950 13102 12498 11922Long-Term Bear Market 1966-1982 11373 10849 10348 9872 9417 8982 8568 8174 7797 7437 7095 6768 6456

931.46%
1966

1321.87%
1983 1985 1990 1995 2000 Long-Term Bear Market 2000-2012

TOTAL NUMBER OF YEARS

13
TOTAL NUMBER OF YEARS

16.5
CUMULATIVE RETURN

-17.78%
1980 1982
2005
YEAR

14399 13102 11922 10849 9872 8982 8174 7437 6768

TOTAL NUMBER OF YEARS CUMULATIVE RETURN

13.98% 13
CUMULATIVE RETURN

Past performance is no guarantee of future results.

13.98%

1967

1970 2000

1975

2000

2005 2010

2010 DEC 2012

DEC 2012

Past performance is no guarantee of future results.

Cyclical market data courtesy of Ned Research. Used Used with permission. Further distribution prohibited without prior permission. 2011 Ned Davis Research, Inc. All rights reserved. Cyclical market data courtesy ofDavis Ned Davis Research. with permission. Further distribution prohibited without prior permission. 2013 Ned Davis Research, Inc. All rights reserved. Return data sourced from Bloomberg. Return data sourced from Bloomberg. Total cyclical market returns are calculated using the closest month ends. The Dow Jones Industrial Average (a registered trademark of Dow Jones & Co., Inc.) of 30 common stocks. It is not possible Total cyclical market returns are calculated using the closest month ends. The Dow Jones Industrial Average (a registered trademark of Dow Jones & Co., Inc.) is an unmanaged index composed is an unmanaged indexin composed 30 common stocks. isnot notreect possible invest directly an index. shown above do not shown reect the reinvestment ofprice dividends or other of distributions. to invest directly an index.of Returns shown above It do theto reinvestment of in dividends orReturns other distributions. Returns represent only the appreciation the index. Returns shown represent only the price appreciation of the index.

page 6

Market volatility can shake investor confidence and impact performance

The Cycle of Emotions and the Returns of the Average Investor
Average Annual Returns Equity Market Returns vs. Equity Mutual Fund Investor Returns from Jan. 1993 to Dec. 2012

8.21%

The Cycle of Emotions may impact investor decision-making

GREED

4.25%

ENTHUSIASM
BUY

INDIFFERENCE DENIAL FEAR PANIC

SELL

CONFIDENCE CAUTION DOUBT & SUSPICION

DESPAIR

S&P 500 INDEX

AVERAGE EQUITY FUND INVESTOR

TIME

Source: Dalbar, Inc., Quantitative Analysis of Investor Behavior, March 2013. The bar chart depicts the average annually compounded returns of equity indices vs. equity mutual fund investors based on the length of time shareholders actually remain invested in a fund and the historic performance of the funds appropriate index. Past performance is no guarantee of future results. Investors cannot invest directly in an index.

page 7

Making up portfolio losses may be difficult

Impact of Volatility Three Hypothetical Portfolio Recovery Scenarios

SCENARIO

SCENARIO

SCENARIO

STARTING BALANCE

$1,000,000

$1,000,000

$1,000,000

AMOUNT LOST

-$100,000 -10%

-$300,000 -30%

-$500,000 -50%

PERCENTAGE LOSS FROM YOUR PORTFOLIO

WHAT WOULD IT TAKE TO RECOVER YOUR LOSSES?

+11%

+43%

+100%

This is a hypothetical example used for illustrative purposes only and is not indicative of any particular investment.
page 8

Volatility can affect your results

Impact of Volatility Two Hypothetical Portfolios over Three Years
SIMPLE AVERAGE CUMULATIVE RETURN ANNUALIZED RETURN STANDARD DEVIATION

PORTFOLIO A high volatility

3.00% 3.00%

-3.36% 7.89%

-1.13% 2.56%

33% 11%

$1,300,000

$1,260,000

PORTFOLIO B low volatility

$1,200,000
up
PORTFOLIO AMOUNT

26

do wn
35

$1,100,000
up 8%

$1,078,920 $972,000
up 11%

$1,000,000
$900,000

$1,080,000

down

10%

8% up 1

$966,420

$800,000

$819,000
$700,000 1
NUMBER OF YEARS

This is a hypothetical example used for illustrative purposes only and is not indicative of any particular investment.
Standard deviation measures historical volatility, with a more volatile investment having a higher standard deviation than a less volatile investment. page 9

Historical research highlights the importance of asset allocation

Factors Contributing to Portfolio Variance

4.6%
SECURITY SELECTION

1.8%
TIMING

Studies suggest that asset allocation, including market participation, is responsible for over 90% of the variance in portfolio performance.

2.1%
OTHER FACTORS

91.5%
ASSET ALLOCATION*

*Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Sources: Brinson, Hood & Beebower, Financial Analysts Journal, 1986 and Brinson, Singer & Beebower, Financial Analysts Journal, 1991 page 10

Investors have used multiple asset classes to address volatility

Evolving Diversication Strategies A Historical Perspective

PRESENT

2000s 1980s
Intl. Stocks Bonds

1990s
Emerging Markets Intl. Bonds Intl. Bonds Intl. Stocks US Bonds US Bonds Cash Intl. Stocks

Emerging Markets

Intl. Bonds US Bonds

Cash Real Estate

Cash

Cash High Yield

Commodities High Yield US Stocks

Stocks US Stocks US Stocks

See page 23 for important disclosures.

page 11

However, investing in a variety of asset classes has not provided compelling diversification in recent years
Maximum Drawdowns

0 -10% -20%

The largest percentage decline from a high (peak) to a low (trough) from Oct. 2007 to Feb. 2009

-30%

-39.06%
-40% -50% -60%

-50.17%
US STOCKS

COMMODITIES

-54.99%
INTL STOCKS

-64.40%
REITs

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Tech Wreck

Credit Crisis

Flash Crash

Tsunami in Japan

See pages 23-24 for important disclosures and index denitions.

There is no guarantee that any investment product will achieve its objectives, generate prots or avoid losses. Past performance is not indicative of future results. An investor cannot invest directly in an index. Moreover, indices do not reect commissions or fees that may be charged to an investment product based on the index, which may materially affect the performance data presented. INDICES: Intl Stocks: MSCI AC World ex-US Index; US Stocks: S&P 500 Total Return; Commodities: Dow Jones UBS Commodity Index; REITs: FTSE NAREIT Equity Index. Source: Zephyr StyleADVISOR.

page 12

We believe the next step forward must reach beyond asset classes to also encompass a mix of investment approaches
Evolving Allocation Models

1980s

1990s

2000s

PRESENT

STRATEGIC

TACTICAL CONSTRAINEDSM

TACTICAL UNCONSTRAINEDSM

ALTERNATIVE INVESTMENTS

ABSOLUTE RETURN

See page 23 for important disclosures.

page 13

We can create a combination of approaches to address your financial goals

Four Asset Allocation Approaches and Alternative Investments Sailing strategies They are benchmark-sensitive strategies that are primarily driven by the market.
STRATEGIC TACTICAL CONSTRAINEDSM

They seek to take advantage of the tailwinds of bull markets to capture investment returns.

TACTICAL UNCONSTRAINEDSM

ABSOLUTE RETURN

Rowing strategies They have the freedom to delink from the market and are not constrained by a benchmark. They strive to avoid risks in bear markets when headwinds threaten an investors progress.

ALTERNATIVE INVESTMENTS

Alternative investments They use various alternative investment strategies that are largely uncorrelated with the stock market.

See page 23 for important disclosures.

page 14

Sailing approaches are market oriented

STRATEGIC

TACTICAL CONSTRAINEDSM

 Designed to closely track the broader

 Designed to track the broader investment markets

investment markets  Aims to put the positive winds of sailing markets to work in your portfolio  Relative market exposure and market performance are the important drivers of this strategys risk and return results

with flexibility to make moderate allocation shifts  Aims to both benefit from sailing markets and some active allocation decisions  Relative market exposure and market performance are important drivers of this strategys risk and return results with further impact from tactical decision making

See page 23 for important disclosures.

page 15

Rowing approaches and alternative investments are market independent

TACTICAL UNCONSTRAINEDSM

ABSOLUTE RETURN

 Designed to make allocation decisions without

 Designed to seek modest returns regardless

constraint  Aims to provide flexibility for active management particularly to address rowing markets  Relative return exposure will vary and, as a result, the decisions made regarding the magnitude and types of asset class exposure taken over time are important drivers of this strategys overall risk and return results
ALTERNATIVE INVESTMENTS

of general market direction using highly active risk management  Aims to limit the downside participation of your portfolio especially during rowing markets  Seeks to maintain low volatility while striving to maximize total return. It is important to note that the strategy is likely to underperform during strong market rallies

 Low correlation to the stock market  Access to multiple asset classes (equities,

 Alternative investments are not suitable for all

bonds, currencies, commodities)  Positions can be either long or short

investors as the risk of loss is substantial. Please consider the investment objectives, charges, expenses, investor financial suitability requirements and risk factors carefully before investing.

See page 23 for important disclosures.

page 16

We offer choices to further tailor investments to your life stage

Capital appreciation strategies They have longer horizons and accept more risk in exchange for greater potential return. These strategies may be most appropriate for investors who are accumulating wealth for retirement or legacy needs. Multi-asset income strategies They are designed to create an enhanced level of current income for retirees. In contrast to traditional fixed income strategies, they may reach across many asset classes as they strive to meet income goals regardless of market conditions.

STRATEGIC
Capital appreciation Multi-asset income

TACTICAL CONSTRAINEDSM
Capital appreciation Multi-asset income

TACTICAL UNCONSTRAINEDSM
Capital appreciation Multi-asset income

ABSOLUTE RETURN

ALTERNATIVE INVESTMENTS

See page 23 for important disclosures.

page 17

Together we can select from well-researched investment firms for your portfolio
Available Portfolio Strategists
STRATEGIC TACTICAL CONSTRAINEDSM
2

TACTICAL UNCONSTRAINEDSM

ABSOLUTE RETURN
3

A City National Company.

ALTERNATIVE INVESTMENTS
1

 Platform Strategists: Altegris Advisors, LLC; Avatar Associates; BlackRock Investment Management; Callan Associates Inc.; DoubleLine Capital LP; Eaton Vance Investment Managers; Forward Management; F-Squared Investment Management, LLC;

Genworth Financial Asset Management; J.P. Morgan Asset Management; Litman Gregory Asset Management, LLC; New Frontier Advisors, LLC; City National Rochdale; Stadion Money Management; State Street Global Advisors. 1Altegris Advisors, LLC is an affiliate of Genworth Financial Wealth Management. 2 Genworth Financial Asset Management (GFAM) is a division of Genworth Financial Wealth Management. 3 DoubleLine is a registered trademark of DoubleLine Capital LP. page 18

Investment Vehicles and Fees

The portfolio strategists can use a variety of investments and investment vehicles including individual stocks and bonds, ETFs, mutual funds and managed futures to implement these strategies. There are general risks associated with different types of investments such as mutual funds and ETFs. These include but are not limited to security selection risk, asset class risk and risk inherent in various investment strategies that the mutual fund or ETF may employ. Some of these types of risks are defined in more detail on page 23. Please refer to each prospectus for more complete information about the asset class and other risks specific to the underlying funds and ETFs these strategies may use. Mutual funds and ETFs are sold by prospectus. Before investing in a mutual fund or ETF, you should carefully consider its investment objectives, risks, management fees and expenses. The prospectus, which contains this and other information, can be obtained from your financial advisor. Read it carefully before you invest. Some expenses are inherent within the investments held in client accounts. Mutual funds may pay management fees to their investment advisers, and certain funds and bank money market accounts have other types of fees or charges, including 12b-1, administrative or shareholder servicing fees, bank servicing or certain other fees, which may be reflected in the net asset value of these mutual funds held in client accounts. Such expenses are borne by all investors holding such securities in their accounts and are separate from advisory fees or charges.

page 19

We believe combining approaches to asset allocation and aligning strategies to your life stage are the future of investing
A Diversified Investment Mix

STRATEGIC
Capital appreciation Multi-asset income

TACTICAL CONSTRAINEDSM
Capital appreciation Multi-asset income

TACTICAL UNCONSTRAINEDSM
Capital appreciation Multi-asset income

ALTERNATIVE INVESTMENTS

ABSOLUTE RETURN

page 20

Prepare your portfolio for changing markets by putting in place a thoughtful mix of asset allocation approaches and strategies based on your individual goals.

page 21

Additional Disclosures

Important Information
Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility. Investments in emerging market securities may magnify these risks. There are special risks associated with an investment in real estate, including credit risk, interest rate fluctuations and the impact of varied economic conditions. In addition to market risk, there are certain other risks associated with an investment in bonds, such as default risk, the risk that the company issuing debt securities will be unable to repay principal and interest, and interest rate risk, the risk that the security may decrease in value if interest rates increase. High-yield bonds, commonly known as junk bonds, are subject to greater loss of principal and interest, including default risk, than higher-rated bonds. This may result in greater share price volatility. Managed futures trading is speculative and volatile and involves a high degree of risk. Trading in futures and options on futures is not appropriate for all persons, as the risk of loss is substantial. Therefore, except for those considered to be bona fide hedgers, investors should only use risk capital in futures trading. There is no guarantee that an Absolute Return strategy will be profitable or prevent losses in a declining market. A short position or selling short is the practice of selling a security that one does not currently own.Investing in a short position is riskier than an investment in a long position. The maximum loss that can be incurred on a long position is limited to the total amount of the original investment; whereas, in addition to other risks, the maximum loss on a short position has no fixed ceiling because an assets price may rise indefinitely, resulting in the potential for unlimited losses. Trading in commodities is not appropriate for all persons, as the risk of loss is substantial. Therefore, except for those considered to be bona fide hedgers, investors should only use risk capital in futures trading. There is no guarantee that a multi-asset income or capital appreciation objective will be profitable or attain income goals. Consider the investment objectives and risk factors carefully before investing. Alternative investments are not suitable for all investors as the risk of loss is substantial. Please consider the investment objectives, risk factors, charges and expenses carefully before investing.

page 23

Index Definitions
International Equity: The Morgan Stanley Capital International (MSCI) All Country World Index (MSCI ACWI) ex US is a free floatadjusted capitalization weighted index that is designed to measure the equity performance of countries considered to represent both developed and emerging markets, excluding the US. US Stocks: The S&P 500 Index, a registered trademark of the McGraw Hill Companies, is an unmanaged basket of 500 US stocks that are considered to be widely held and thus believed to be a good indicator of overall market performance. Commodities: The Dow UBS Commodity Index is composed of futures contracts of 19 physical commodities traded on US exchanges, with the exception of aluminum, nickel and zinc, which trade on the London Metal Exchange (LME). The component weightings are also determined by several rules designed to insure diversified commodity exposure. US Real Estate: FTSE NAREIT Equity Index is a broad measure of the performance of publicly traded real estate securities, such as Real Estate Investment Trusts (REITs) and Real Estate Operating Companies.

page 24

Genworth Financial Wealth Management

For more complete information about the various investment solutions available on the platform and the fees associated with them, please refer to the Disclosure Brochure, which you can obtain from your financial advisor. Crestmont Research, founded by Ed Easterling, provides secular market research to Genworth Financial Wealth Management (GFWM). His book, Unexpected Returns: Understanding Secular Stock Market Cycles, discusses the Sailing and Rowing analogy which is also used by GFWM to describe asset allocation and portfolio construction strategies. Jeff Babajani Calpars Wealth Management 10604 Pinewood Ave Ste A Tujunga, CA 91042 Office: (818)217-8400 Email: jbabajani@innovationpartnersllc.com
12484 | C11073 | 06/2013 | REF

Calpars Wealth Management is not affiliated with Genworth Financial Wealth Management, Inc. (GFWM) and Capital Brokerage Corporation. GFWM, an investment adviser registered with the Securities and Exchange Commission, is a wholly owned subsidiary of Genworth Financial, Inc. Genworth and Genworth Financial are service marks of Genworth Financial, Inc. Capital Brokerage Corporation, 6620 West Broad Street, Building 2, Richmond, VA 23230. Member FINRA. Capital Brokerage Corporation and Altegris Advisors, LLC are Genworth Financial companies. Genworth Financial Asset Management is a division of GFWM. 2013 Genworth Financial Wealth Management, Inc. All rights reserved.