The Steps:

STEP 1: FINANCIAL ANALYSIS

What’s Your Financial Position?

Before providing you with an investment strategy, we first need to know where you stand – what your financial position is today. Together, we will work with you to explore fundamental issues:

• WHAT ARE YOUR INVESTMENT GOALS?

• WHAT IS YOUR TIME HORIZON?

• WHAT ARE YOUR NEEDS FOR LIQUIDITY?

• WHAT IS YOUR TOLERANCE FOR RISK?

• WHICH RESOURCES ARE YOU ABLE TO INVEST?

Based on answers to these and other questions, we’ll determine your appetite for risk. We take this information - - this financial intelligence about you – and use it to determine which of six risk/return profiles match your situation. Determining where you are in terms of risk and return is the foundation for moving forward. It sets the framework for moving forward. It sets the framework for recommendations regarding which Portfolio Strategists and Investment Managers will work best for you.

Our New Alliances of Investment Strategists and Managers Through AssetMark Include:

Wilshire Associates
Goldman Sachs Asset Management
Litman/Gregory Asset Management, LLC
Meeder Asset Management
Meridian Investment Management
Morgan Stanley Investment Management
PanAgora Asset Management
Standard & Poor's
UBS Global Asset Management


STEP 2: ASSET ALLOCATION

What’s the Best Way to Allocate Your Assets?

MORE THAN TIMING OR THE SPECIFIC SECURITIES YOU INVEST IN, THE WAY IN WHICH YOUR ASSETS ARE ALLOCATED IN STOCKS, BONDS AND CASH AND HOW THEY ARE REBALANCED OVER TIME ULTIMATELY DRIVES YOUR RETURNS.

In fact, according to a respected academic study, over 90% of portfolio performance is determined by how your assets are allocated.* This key finding underscores the advantage of relying on our disciplined investment process, which puts asset allocation at its core.

The world’s top economists and investment professionals have long studied asset class behavior and portfolio analysis. In 1990, Dr. Harry M. Markowitz won the Nobel Prize in Economics for his work on Modern Portfolio Theory – representing some 40-plus years of research and thinking.

TWO ASSET ALLOCATION APPROACHES:
STRATEGIC AND TACTICAL

We will also explore with you the two primary approaches to asset allocation, both of which start with the principals of Modern Portfolio Theory.

With the STRATEGIC approach, we continually rebalance your assets to your original target asset mix.

With the TACTICAL approach, we rebalance your asset classes based on more opportunistic market and economic changes, using permissible ranges for each class.

As your advisor, we will work closely with you to determine which approach is best for you.

*SOURCE: Brinson, Hood & Beebower, Financial Analysts Journal, 1986
Brinson, Hood & Beebower, Financial Analysts Journal, 1991


STEP 3: PORTFOLIO STRATEGIST SELECTION

Who’s the Right Strategist for You?

The Portfolio Strategist’s job is to lay the foundation for moving forward with your investment strategy. We adhere to the following criteria in selecting our Portfolio Strategists:

• ASSET ALLOCATION AND PORTFOLIO STRATEGY MUST BE A CORE COMPETENCY

• THE FIRM MUST CONDUCT SUBSTANTIAL ANALYSIS ACROSS GLOBAL CAPITAL MARKETS

• THE FIRM’S INVESTMENT POLICY COMMITTEE MUST BE COMPRISED OF SENIOR INVESTMENT PROFESSIONALS

• THE FIRM MUST ADHERE TO A DEFINED AND DISCIPLINED INVESTMENT PROCESS

In our opinion, because the asset allocation decision is the primary determinant of portfolio performance, the selection and work of your Portfolio Strategist is critical.

As your Financial Consultant, we’ll work with you to determine, based on your investment objectives and risk tolerance, whether you should select a Portfolio Strategist who provides:

• STRATEGIC OR TACTICAL ALLOCATION

• A GLOBAL OR DOMESTIC INVESTMENT STRATEGY

• TAX MANAGED MODEL PORTFOLIOS


STEP 4: INVESTMENT MANAGER SELECTION

What’s the Right Choice for You?

It’s time for the team to begin executing on the strategy we have selected. Each Portfolio Strategist has a unique and disciplined process for selecting Investment Managers. Regardless of the investment approach we ultimately recommend for you – if it includes mutual funds or variable annuities, exchange traded funds or privately managed accounts – you have the assurance that we are aligned with some of the industry’s top resources.

Our New Alliances of Investment Strategists and Managers through AssetMark Include:

Wilshire Associates
Goldman Sachs Asset Management
Litman/Gregory Asset Management, LLC
Meeder Asset Management
Meridian Investment Management
Morgan Stanley Investment Management
PanAgora Asset Management
Standard & Poor's
UBS Global Asset Management


STEP 5: MONITORING AND REBALANCING

We’re on Constant Watch for You.

Managing your investments takes proven capability, time and focus. Market forces and economic conditions are constantly changing, which can directly affect your asset mix and prompt the need for rebalancing.

AS MENTIONED EARLIER, THERE ARE TWO ASSET ALLOCATION APPROACHES AND HOW A TARGETED ASSET MIX MIGHT BE REBALANCED AS CHANGES OCCUR OVER TIME.

STRATEGIC ASSET ALLOCATION REBALANCING NORMALLY OCCURS QUARTERLY OR SEMI-ANNUALLY AND IS DESIGNED TO MANAGE THE RISK OF YOUR PORTFOLIO.

TACTICAL ASSET ALLOCATION ADJUSTMENTS CAN BE MADE AT ANY TIME TO CAPITALIZE ON THE GLOBAL CAPITAL MARKET OUTLOOK OF THE PORTFOLIO STRATEGIST.

It’s our job to always be on watch for you. As your Financial Consultant, it’s our responsibility to continually monitor your investment portfolio. Oversee the Portfolio Strategist’s decisions to rebalance and realign your portfolio, and then clearly communicate changes to you.


STEP 6: REPORTING

You Need Knowledge, Not Just Information.

An important part of our job is to keep you informed and in control. That’s why we provide you with clear, ongoing communications. And why, whenever you have a question, you can call on us.

As a client, you will receive from AssetMark:

• MONTHLY CUSTODIAL STATEMENTS

• QUARTERLY PERFORMANCE REVIEWS

• YEAR-END TAX REPORTS

In addition, our secure, online AssetMark ewealthmananger.com client resource center provides:

• DAILY UPDATED ACCOUNT INFORMATION

• MARKET COMMENTARY

• INVESTMENT RESEARCH BY THE PORTFOLIO STRATEGISTS AND INVESTMENT MANAGERS

We know that some clients prefer around-the-clock access to their financial information through the ewealthmanager web site, while others favor quarterly written reports. When you work with us, you have both.

INVESTING IS SERIOUS BUSINESS – AFTER ALL, IT IS YOUR FUTURE. WITH INFORMATION ABUNDANT AND READILY AVAILABLE, SOME INVESTORS DO OPT TO GO IT ALONE. BUT YOU KNOW HOW CHALLENGING THAT CAN BE, AND HOW VALUABLE IT IS TO HAVE A TEAM OF EXPERTS BACKED BY A DISCIPLINED PROCESS ON YOUR SIDE.