Allocation
70% 60% 50% 40% 30% 20%
Trademark Capital Target Retirement 2010 R6 10%
0%
40
35
30
25
20
15
Q2: June 30, 2014
10
5
Fund Description
0
-5
Retirement Age
Maturity Age
-10
Trademark Capital 2010 Fu
Years to Retirement
Growth of $10,000 Class R6 U.S Equities Non-US Alternatives Cash Equivalents The Trademark Capital Target Retirement 2010 Fund seeks a moderate level Equities of total return and the preservation of purchasing power of accumulated Income Fixed Income assets prior to and beyond the target retirement date. The Trademark Capital Target Date Series are collective investment funds (“CIFs”) created by the Large Cap Growth Europe REITs U.S Investment Grade Hand Composite Employee Benefit Trust and sponsored byValue Hand Benefits & Trust Company, a BPAS company, that invest in the strategies of Trademark Asia High Yield Large Cap United Kingdom TIPs Capital which serves as the sub-advisor to the CIFs.Mid Cap Growth U.S. Fixed
Non-U.S.
1) Vanguard Total Bond Market Inde Japan Europe ex-UKpath design adjusts the broadly diversified asset mix on a quarterly The Trademark glide Cash ex-Japan Small Cap Value basis, gradually Asia moving toward a more conservative allocation up to2)and “through” retirement Emerging Markets to life expectancy. This approach takes into account investor behavior assumptions both before 3) Vanguard S&P 500 and after the target retirement date, which are used to create the slope of the glide path. 4) Vanguard FTSE Developed Marke Mid Cap Value
Small Cap Growth
Trademark Capital Portfolio Management Team Joseph Ezernack, MBA CEO & Chief Investment Officer
Equity
Risk Management Overlay
Fixed Income
5) Vanguard Mid‐Cap Index
100%
Don Beasley Managing Director
90%
L. Gregg Johnson, CFA®, CIMA® Senior Portfolio Manager
Share Class
Allocation
70%
Investment Approach
60% 50%
CUSIP
Risk Management Overlay contracts under positive market conditions
40%
Fund Expense Ratio
30%
A tactical risk strategy that increases drawdown protection in volatile markets and as a participant nears retirement.
Weighted Average ETF
20%
Total Expense Ratio*
10% 0%
31/2007 ‐ 6/30/2014
FUND FACTS
Risk Management Overlay expands in adverse market
80%
40
35
30
25
20
15
Benchmark
10
Morningsta
5 0 -5 -10 *The total expense ratio includes Retirement Maturity the fund expense r Age Age ETF expense.
Years to Retirement
Advisor
($10.70 pe
P 10 HOLDINGS Trademark Capital The Risk Management Overlay, can reduce exposure to the “equity” glide path during Capital Management, Inc. is a ND Vanguard Small‐Cap Index 6) Trademark VB periods of elevated market risk. While the level of the Risk Management Overlay is lower registered investment advisor with Vanguard FTSE Emerging Markets 7) federally VWO for younger investors, the pre-determined maximum levels of protection increase up to and a team of experienced and credentialed OO 8) SPDR Barclays International Treasury Bond BWX “through” retirement. professionals. For over two decades, Trademark Q2: June 30, 2014 VEA Market Vectors Emerging Mkts Local Currency 9) Capital EMLC At age 65, the target retirement date, the maximum equity exposure is 50%. At age 70, the target maturity date, the maximum equity has been steadfast in holding true to exposure is 40%, which represents the lowest allocation to equities along the glide path. VO Vanguard REIT Index 10)its VNQ core principles: putting client’s interest Trademark Capital 2010 Fund Class R6 first and delivering goal-oriented1 solutions. FUND DATA Growth of $10,000 Class R6 Shares 05/31/2007 ‐ 6/30/2014 The Trademark Capital investment philosophy R6 Alpha centers on the idea of “winning by not losing.” 3.64%$15,000 $14,136.56
2) Cash
8) SPDR Barclays International Treasury Bond
VEA
9) Market Vectors Emerging Mkts Local Currency
Trademark Capital 2010 Fund Class R6
2.99%
4.51%
13.24%
3.05%
Morningstar Target Date 2010 TR
0.12%
CALENDAR YEAR RESULTS ($) 5/31/07 ‐ 12/31/13 1.07% Total Expense Ratio* ($10.70 per $1,000 invested)
Benchmark
Morningstar Target Date 2010 TR
5.87%
2014-05
2014-02
2013-11
2013-08
2013-05
2013-02
Inception to Date 5.01%
2012-11
Beta
2012-08
Alpha
5 Year
Morningstar Target Date 2010 R2 9.59% 3.93%
Morningstar Target Date 2010 TR $13,000
0.00%
0.21
6.15%
Sharpe Ratio
0.70
Annual Portfolio Turnover 4.57%
7.00%
Inception Date
3.64%
0.33
Standard Deviation
0.00% 0.47% 7.88% 8.33% ‐2.76% Trademark Capital 2010 Fund Class R6 *The total expense ratio includes the fund expense ratio and the weighted average ETF expense. $10,590 Growth of $10,000 $14,000
BWX
EMLC
VNQ
12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013
$15,000
VWO
FUND DATA1
410235196
2010 Trademark Fund R6 Fund Expense Ratio 0.95% 2.96% 4.50% 11.37% 6.44%
Weighted Average ETF
10) Vanguard REIT Index
2012-05
2010-11
2010-08
2010-05
2010-02
2009-11
2009-08
2009-05
2009-02
2008-11
2008-08
2008-05
1 1963. VO 5) Vanguard Mid‐Cap Index serving the retirement industry since Fund vs. the S&P 500 $8,000 $7,000 HB&T, headquartered in Houston, is regulated FUND FACTS by the Texas Department of Banking and is $6,000 TRAILING RETURNS (%) ‐ CLASS R6 SHARES one of the country’s largest full service trust Share Class R6 QTD YTD 1 Year 3 Year companies dedicated to retirement plans.
2012-02
4) Vanguard FTSE Developed Markets $9,000
CUSIP
$13,009.11
VOO
2011-11
3) Vanguard S&P 500
VB
7) Vanguard FTSE Emerging Markets
2011-08
0.70$11,000
Annual Portfolio Turnover Hand Benefits & Trust Company (HB&T), a BPAS 119%$10,000
company, is a state-chartered trust company 9/1/2013 Inception Date
6) Vanguard Small‐Cap Index
2011-05
Hand Benefits & Trust Company
Sharpe Ratio
BND
6.15%$12,000
2011-02
Standard Deviation
2008-02
erage
0.33$13,000 1) Vanguard Total Bond Market Index
2007-11
TR
Trustee
TOP 10 HOLDINGS
0.21$14,000
2007-08
7%
Beta
R2
2007-05
196
$10,639
$11,477
$12,433
$12,090
$12,642
$13,527
‐22.46%
22.05%
10.55%
0.75%
9.65%
8.28%
119%
$13,705.25 1
9/1/2013
Fund vs. the S&P 500
$12,000 Growth of $10,000
$10,050 $7,793 $9,511 $10,515 $10,594 $11,617 $12,577 $11,000 Illustrates a $10,000 investment made on 5/31/2007 with no additional deposits. $12,269.26 Performance prior to February 1, 2011 is back-tested while performance after February 1, 2011 is based on actual results. Hypothetical, back-tested performance information for the Fund is for illustrative $10,000 purposes only and does not represent actual Fund performance. Hypothetical, back-tested performance has inherent limitations and is not indicative of future results. No representation is being made that the $9,000 Fund will achieve performance similar to that shown. The hypothetical performance does not reflect brokerage fees but is net of stated Fund expenses. $8,000 Trademark Capital 2010 Fund Cl $7,000 $6,000
Morningstar Target Date 20
vested)
Sharpe Ratio
1.07%
0.70
Date 2010 TR
Annual Portfolio Turnover
e weighted average
Inception Date
119% 9/1/2013
Trademark Capital Target Retirement 2010 Fund R6 Fund vs. the S&P 500 1
TRAILING RETURNS (%) ‐ CLASS R6 SHARES QTD
YTD
1 Year
3 Year
5 Year
Trademark Capital 2010 Fund Class R6
2.99%
4.51%
13.24%
3.05%
5.87%
Inception to Date 5.01%
Morningstar Target Date 2010 TR
2.96%
4.50%
11.37%
6.44%
9.59%
3.93%
Past Performance is no guarantee of future results and the actual performance of the benchmark and the Fund may be lower or higher than the hypothetical past performance shown above. Fund returns are calculated net of fees. Fund returns are compared to the Morningstar Target Date 2010. Performance prior to February 1, 2011 is back-tested while performance after February 1, 2011 is based on actual results. CALENDAR YEAR RESULTS ($) 5/31/07 ‐ 12/31/13 Date prior to actual inception is representative of the manager’s performance of a like strategy. Inception date used in the hypothetical return is May 31, 2007.
Trademark Capital Target Retirement 2010 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013
Trademark Capital 2010 Fund Class R6
0.00%
0.47%
7.88%
8.33%
‐2.76%
6/30/2014 Target Allocation
4.57%
7.00%
6/30/2014 Actual Allocation
Growth of $10,000
$10,590
$10,639
$11,477
$12,433
$12,090
Morningstar Target Date 2010 TR
0.00%
‐22.46%
22.05%
10.55%
0.75%
9.65%
8.28%
$10,515
$10,594
$11,617
$12,577
Target and Actual Allocation
Real Assets The actual allocation of the fund may differ from the $7,793 2% $9,511 Growth of $10,000 $10,050 target allocation depending on the current position of the Risk Management Overlay. The Risk Management Overlay can reduce exposure Int'l Stocks to the “equity” portion of the glide path when our 15% model indicates periods of elevated market risk. The Risk Management Overlay provides higher levels of Other capital protection up to and “through” retirement Bonds 41% for the near-dated Funds [2010, 2020 and 2030], US Stocks while allowing for a higher standard deviation (i.e. 33% up/down volatility) in the longer-dated Funds [2040 & 2050].
$12,642
$13,527
Int'l Stocks 12% Other Bonds 32%
A one-step, broadly diversified, ‘managed for you’ solution that adjusts to an investors age, as well as, changes in the financial markets. A balanced approach - The management style not only balances risk with return, but also seeks to improve performance per unit of risk over traditional “diversified” portfolios. A great value - The underlying securities are exchange-traded funds (ETFs) resulting in significant cost savings.
Year of Birth
Trademark Capital Target Retirement Fund
Before 1949 1950-1959
2010 2020
1960-1969
2030
1970-1979
2040
After 1980
US Stocks 29%
Cash & TIPS 27%
Q2: June 30, 2014
Key Considerations
Real Assets 0%
Trademark Capital 2010 Fund Class R6 Cash & TIPS 9%
Growth of $10,000 Class R6 Shares 05/31/2007 ‐ 6/30/2014 TOP 10 HOLDINGS BND
1) Vanguard Total Bond Market Index
2) Cash
6) Vanguard Small‐Cap Index
VB
7) Vanguard FTSE Emerging Markets
VWO
3) Vanguard S&P 500
VOO
8) SPDR Barclays International Treasury Bond
4) Vanguard FTSE Developed Markets
VEA
9) Market Vectors Emerging Mkts Local Currency
VO
5) Vanguard Mid‐Cap Index
10) Vanguard REIT Index
FUND FACTS
FUND DATA R6 410235196
Alpha
0.21 0.33
0.95%
R2
Weighted Average ETF
0.12%
Standard Deviation
Benchmark
($10.70 per $1,000 invested)
1.07%
Morningstar Target Date 2010 TR
*The total expense ratio includes the fund expense ratio and the weighted average ETF expense.
2050
IMPORTANT RISK CONSIDERATIONS
The Trademark Capital Target Retirement Funds are Collective Investment Funds (CIFs) sponsored by Hand Benefit & Trust Company. The CIFs are not mutual funds and shares are not deposits of Hand Benefits & Trust, a BPAS company, or Trademark Capital Management, and are not insured by the Federal Deposit Insurance Corporation or any other agency. The CIFs are securities which have not been registered under the Securities Act of 1933 and are exempt from investment company registration under the Investment Act of 1940. As defined in the Declaration of Trust and Participation Agreement documents, the Funds are available for investment by eligible qualified retirement plan trusts only. Principal invested is not guaranteed at any time, including at or after the fund’s specific target retirement date. Participants and beneficiaries may experience losses near, at or after the target date and there is no guarantee that the investment will provide adequate retirement income. The participants and beneficiaries on whose behalf assets are invested in a QDIA have the right to direct the investment to any other investment alternative under the plan, subject to any fees or limitation that may apply to such transfer under the plan. Principal Risks - Any of the principal risks summarized below may adversely affect the Fund’s net asset value, performance and ability to meet its investment objective. Active Management: The investment is actively managed and subject to the risk that the advisor’s usage of investment techniques and risk analyses to make investment decisions fails to perform as expected, which may cause the portfolio to lose value or underperform investments with similar objectives and strategies or the market in general. Target Date: Targetdate funds, also known as lifecycle funds, shift their asset allocation to become increasingly conservative as the target retirement year approaches. Still, investment in target date funds may lose value near, at, or after the target retirement date, and there is no guarantee they will provide adequate income at retirement. Underlying Fund/Fund of Funds: A portfolio’s risks are closely associated with the risks of the securities and other investments held by the underlying or subsidiary funds, and the ability of the portfolio to meet its investment objective likewise depends on the ability of the underlying funds to meet their objectives. Investment in other funds may subject the portfolio to higher costs than owning the underlying securities directly because of their management fees. ETF: Investments in exchange-traded funds generally reflect the risks of owning the underlying securities they are designed to track, although they may be subject to greater liquidity risk and higher costs than owning the underlying securities directly because of their management fees. Shares of ETFs are subject to market trading risk, potentially trading at a premium or discount to net asset value. Suitability: Investors are expected to select investments whose investment strategies are consistent with their financial goals and risk tolerance. The target-date fund should be selected based on factors in addition to age or retirement date, including investment objectives, time horizon, risk tolerance and fees and the stated asset allocation may be subject to change. It is possible to lose money by investment in the fund including at and after the target date. The glide path methodology assumes at the target retirement age the participant or beneficiary withdraws 5% of the account value per year. The Trademark Capital Target Retirement Funds performance prior to February 1, 2011 represents hypothetical back-tested results for the funds while performance after February 1, 2011 is based on actual results. The performance results reflect the reinvestment of dividends and other account earnings, and the maximum Fund investment management fee that would have been charged by Trademark had Trademark managed the Fund during the corresponding
For more information, contact your financial advisor or call Trademark Capital at 1-800-808-8960 www.TrademarkCapital.com
3.64%
Beta
Fund Expense Ratio Total Expense Ratio*
VNQ 1
Share Class CUSIP
BWX EMLC
6.15%
Sharpe Ratio
0.70
Annual Portfolio Turnover
119%
Inception Date
9/1/2013 1
Fund vs. the S&P 500
TRAILIN
time period plus estimated corresponding Fund expenses (estimated at 0.90% annually), and any separate fees assessed directly by each security (mutual funds, exchange-traded funds, etc.) that comprised the portfolio. Therefore all results are net of fees. As market conditions fluctuate, the investment return and principal value of any investment will change. Diversification may not protect against market risks. There are risks involved with investing, including possible loss of principal. Different types of investments and/or investment strategies involve varying levels of risk, and there can be no assurance that any specific investment or investment strategy (including the investments purchased and/or investment strategies devised or undertaken by Trademark) will be profitable. Trademark Capital 2010 Fund Class R6
Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that future Morningstar Target Date 2010 TR performance will be profitable, equal the performance results reflected, or equal the corresponding historical benchmark index. The historical performance results for the benchmark does not reflect the deduction of transaction and custodial charges, or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing indicated historical performance results. Benchmarks are unmanaged and one cannot invest directly in a benchmark. The historical performance results for the benchmark is provided exclusively for comparison purposes only, so as to provide general comparative information to assist an individual client or prospective client in determining whether Trademark Funds meets, or continues to meet, his/her investment objective(s). Please Also Note: (1) performance results do not reflect the impact of taxes; (2) It should not be assumed that account holdings will correspond directly to any benchmark index; and, (3) comparative indices may be more or less volatile than the Trademark Funds. Trademark Capital 2010 Fund Class R6
Q
2
2
CALENDAR
The performance results (5/31/07-12/31/10) reflect hypothetical, back-tested results, that were achieved by means of the retroactive application of a back-tested portfolio and, as such, the corresponding results have inherent limitations, including: Growth of $10,000 (1) Fund results do not reflect the results of actual trading using client assets, but were achieved by means of the retroactive application of each of the referenced portfolios, certain aspects of which may have been designed with the benefit ofMorningstar Target Date 2010 TR hindsight; (2) back-tested performance may not reflect the impact that any material market or economic factors might have had on the adviser’s use of the hypothetical portfolio if the portfolio had been used during the period to actually mange client assets; and, (3) Trademark’s clients may have Growth of $10,000 experienced investment results during the corresponding time periods that were materially different from those portrayed in the portfolio. Hypothetical performance results have been compiled solely by Trademark, are unaudited, and have not been independently verified. Trademark maintains all information supporting the performance results in accordance with regulatory requirements. Information pertaining to Trademark’s advisory operations, services, and fees is set forth in Trademark’s current disclosure statement, a copy of which is available from Trademark upon request. Performance results have been compiled solely by Trademark, are unaudited, and have not been independently verified. Trademark maintains all information supporting the performance results in accordance with regulatory requirements. Benchmark performance reflects results as reported directly by each respective index and/or obtained by Trademark from other reliable sources, and have not been independently verified by Trademark.
12/3
0
$1
0
$1