WealthCreator Portfolio

Wealth Creator Portfolio Summary

KYUR’s PMO portfolios are designed to suit your risk-of-capital-loss tolerances, as well as certain of your personal circumstances. KYUR uses quantitative algorithms to evaluate the fundamental strengths and risks of the individual securities to be included in each PMO portfolio; most important are the probabilities and possible amounts of losses of the securities, and consequently the portfolios overall.

The WealthCreator Portfolio is structured to generate potential capital appreciation for your investment; income is not a primary goal. Generally, this is a portfolio for growth-oriented investors seeking to maximize long-term growth of principal, and willing to tolerate potentially larger losses. Nevertheless, it is paramount that the Investor Portfolio seeks to maximize the chances that potential capital losses do not exceed the amounts you are willing to tolerate, as you have indicated. Although there is no guarantee, implied or otherwise, that losses can be avoided, or losses not larger than expected, KYUR manages your portfolio with the focus of limiting the probabilities of such losses.

Avoidance of losses allows gains to accumulate over time and produce optimal returns. However, in certain periods and market conditions, this strategy may result in your investments lagging behind market benchmarks; especially in strongly rising markets when securities are valued at unusually high multiples relative to their intrinsic values, or when markets are impacted by exogenous factors, such as war or political changes.

Furthermore, avoidance of losses could reduce the volatility of the periodic returns of your investments without hurting investment returns. Volatility is the measure of the risk of an investment in Modern Portfolio Theory and Mean Variance Optimization.

The WealthCreator Portfolio has multiple variations, depending on your personal Risk Temperatures. Each Portfolio contains the same securities, except their weightings in each Portfolio are different.

KYUR offers three categories of portfolios: Saver, Investor, and WealthCreator Portfolios. Each portfolio category has multiple variations. The securities in the three Portfolios may be different although some may overlap. Also, the methodologies to construct them are different. This is because the value functions or behavioral reactions to risks are different among different individuals; in math-speak, they are neither linear nor uniform with regards to gains or losses. This real-world behavior is demonstrated clearly by 2002 Nobel Laureate Daniel Kahneman and other innovators in behavior finance and Modern Portfolio Theory

Our current WealthCreator Portfolio contains Exchange Traded Funds (“ETF”), not individual stocks or bonds. Generally, ETFs are portfolios or funds which comprise a number of equity or fixed income securities. These stocks and bonds share certain common characteristics. They may be within an industry (Consumer Staples), sector (Technology), index (S&P 500), factor (low volatility), or country (France).

The Securities in This Portfolio

Asset Allocations

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SPY |SPDR S&P 500 Trust ETF
The investment seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500® Index. The Trust seeks to achieve its investment objective by holding a portfolio of the common stocks that are included in the Index, with the weight of each stock in the Portfolio substantially corresponding to the weight of such stock in the Index.

SDY | S&P Dividend ETF
The investment seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P High Yield Dividend Aristocrats Index. The fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index is designed to measure the performance of the highest dividend yielding S&P Composite 1500® Index constituents that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 consecutive years. The ETF is non-diversified.

XLF | Financial Select Sector SPDR ETF
The investment seeks investment results that, before expenses, correspond to the price and yield performance of publicly traded equity securities of companies in the Financial Select Sector Index. The fund generally invests substantially all, but at least 95%, of its total assets in common stocks that compose its index, either directly or through investment in the Real Estate Select Sector SPDR Fund. The index includes companies from the following industries: diversified financial services; insurance; banks; capital markets; REITs; consumer finance; thrifts and mortgage finance; and real estate management and development. The fund is non-diversified.

VHT – Vanguard Health Care ETF
The investment seeks to track the performance of a benchmark index. The fund employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index (IMI)/Health Care 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the health care sector, as classified under the Global Industry Classification Standard (GICS). The Advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. The fund is non-diversified.

SPLV | PowerShares S&P 500 Low Volatility Portfolio
The investment seeks investment results that generally correspond (before fees and expenses) to the price and yield of the S&P 500 Low Volatility Index (the “underlying index”). The fund generally will invest at least 90% of its total assets in common stocks that comprise the underlying index. Volatility is a statistical measurement of the magnitude of up and down asset price fluctuations (increases or decreases in a stock’s price) over time. It generally invests in all of the securities comprising the underlying index in proportion to their weightings in the underlying index. The fund is non-diversified.

XLI | Industrial Select Sector SPDR ETF
The investment seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Industrial Select Sector Index. Under normal market conditions, the fund generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes securities of companies from the following industries: aerospace and defense; industrial conglomerates; marine; transportation infrastructure; machinery; road and rail; air freight and logistics; commercial services and supplies; etc. It is non-diversified.

XLY | Consumer Discretionary Select Sector SPDR ETF
The investment seeks investment results that, before expenses, correspond to the price and yield performance of publicly traded equities of companies in the Consumer Discretionary Select Sector Index. The fund employs a replication strategy. It generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes securities of companies from the following industries: media; retail; hotels, restaurants and leisure; textiles, apparel and luxury goods; household durables; automobiles; auto components; distributors; leisure products; and diversified consumer services. It is non-diversified.

IJR | iShares S&P SmallCap 600 Index ETF
The investment seeks to track the investment results of the S&P SmallCap 600 Index (the “underlying index”), which measures the performance of the small-capitalization sector of the U.S. equity market. The fund generally invests at least 90% of its assets in securities of the underlying index and in depositary receipts representing securities of the underlying index. It may invest the remainder of its assets in certain futures, options and swap contracts, cash and cash equivalents, as well as in securities not included in the underlying index, but which the advisor believes will help the fund track the underlying index.

VGT | Vanguard Information Technology ETF
The investment seeks to track the performance of a benchmark index. The fund employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index (IMI)/Information Technology 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector, as classified under the Global Industry Classification Standard (GICS). The Advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. It is non-diversified.

HDV | iShares Core High Dividend
The investment seeks to track the investment results of the Morningstar® Dividend Yield Focus IndexSM composed of relatively high dividend paying U.S. equities. The fund generally will invest at least 90% of its assets in the component securities of the underlying index and may invest up to 10% of its assets in certain futures, options and swap contracts, cash and cash equivalents. The underlying index is comprised of qualified income paying securities that are screened for superior company quality and financial health as determined by Morningstar, Inc.’s (“Morningstar” or the “index provider”) proprietary index methodology. The fund is non-diversified.

BONDS-BND | Vanguard Total Bond Market ETF
The investment seeks the performance of a broad, market-weighted bond index. The fund employs an indexing investment approach designed to track the performance of the Barclays U.S. Aggregate Float Adjusted Index. This index represents a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States-including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities-all with maturities of more than 1 year. All of the fund’s investments will be selected through the sampling process, and at least 80% of the fund’s assets will be invested in bonds held in the index.