Portfolio Illustrator

HYPOTHETICAL TACTICAL OVERLAY PRESENTATION
IMPORTANT DISCLOSURE INFORMATION

One-on-One Presentation

Grimes & Company, Inc. (“Grimes”) has provided the above presentation as a tool to help assist a client (or prospective client) to make a determination as to which asset allocation mix and/or strategy is most appropriate for his/her individual financial situation and investment objective. The presentation is for education purposes only, and is to be reviewed in conjunction with a Grimes investment professional. This presentation has material limitations as discussed below.

Please Note: The above does not reflect past, current or anticipated projected performance or returns for any specific investment or investment strategy/asset class. No such inference should be drawn from this presentation. Rather, the exclusive purpose of the above presentation is to demonstrate, using historical data, the potential impact on a standard “buy and hold” asset allocation portfolio of employing a tactical overlay strategy. The objective of the tactical overlay strategy is to actively adjust a portfolio's asset allocation for the potential of improving the portfolio’s risk-adjusted returns (i.e., to potentially enhance upside and buffer downside performance). There can be no assurance such strategy will be successful.

No Assurance: Past Performance may not be indicative of future returns. Different types of investments and/or investment strategies involve varying levels of risk and uncertainty, and there can be no assurance that any specific investment or investment strategy (including instructing Grimes to employ a tactical overlay strategy) will be successful. Therefore, no current or prospective client should assume that by employing a tactical overlay strategy that future performance will be profitable, that positive investment returns will be enhanced and/or negative returns will be lessened, or that any of the above reflected past impact of the employment of a tactical strategy will occur in the future.

The corresponding impact of employing the tactical strategy as depicted in this presentation is the result of the application of a back-tested data, and, as such, the corresponding results have inherent limitations, including that the reflected impact of the tactical strategy does not reflect the results of actual trading by Grimes using investor assets, but was achieved by means of the retroactive application of the back-tested data to each of the referenced portfolios.

Please see below for corresponding definitions/explanation of terms.

Important Definitions

Standard Deviation – a measure of variability of returns. Higher variability is traditionally associated with higher risk due to greater uncertainty and an increased potential for loss, all things equal.

Upside capture – the extent that the subject portfolio participated in the measured gains of a benchmark during months when the benchmark advanced.

Downside capture – the extent that the subject portfolio participated in the measured losses of a benchmark during months when the benchmark declined.

Relative Extreme Drawdown – measures the relative drawdown of a stated allocation relative to a blended equity benchmark, the Global Equity Allocation (defined above), during a period of extreme market loss. The period analyzed for this measure was 2008. During this period the Global Equity Allocation lost 54% from peak to trough before recovering and setting a new high water mark.

Benchmarks - The benchmark for the stock portion of the study are based on a composite benchmark entitled “Global Equity” and are daily returns of Indexes in the following allocation (daily rebalance) and with the following descriptions: 50% S&P 500 Index (an index of large U.S. domiciled companies), 15% Russell 2000 Index (an index of small cap U.S domiciled companies), 20% MSCI EAFE Index (an index of large cap foreign, non U.S domiciled, companies. EAFE stands for “Europe, Australasia, Far East), and 15% MSCI Emerging Markets Index (an index of companies domiciled in nations categorized as emerging markets).

The benchmark for the bond portion of the study is the Bloomberg Barclay's Aggregate Bond Index which is a common proxy for broad U.S. investment grade corporate and government fixed income securities.