BCM GrowthPortfolio DescriptionBCM Growth is designed to be a "core growth" portfolio solution with a 80% Risk Rating - Moderate Growthequity, 20% high quality ﬁxed income target composition. This strategyincorporates both BCMs quantitative signals and a fundamental macro-economic overlay. Target buy allocations are 55% U.S. equity, 20% high qualityﬁxed income, 13% international equity and 12% "non-traditional" investments.The strategys U.S. equity sleeve may include any or all of the nine sectorexchange traded funds (ETFs) which comprise the S&P 500 Index. Theinternational portion of the strategy may include both developed internationaland emerging markets reﬂecting the global nature of our investment world. The Conservative Aggressive"non-traditional" portion is based on the long-term investment themes of BCMs Quick Facts (12/31/2011)parent Registered Investment Advisor (RIA). Examples include precious metals,clean energy and clean water. Similarly, BCMs parent RIA will manage the Portfolio Inception 2009duration/inﬂation risk in the income allocation in an attempt to further reduce the Portfolio Holdings 9 as of 1/17/2012volatility in the portfolio. The objectives of this strategy are to outperform its Trade Management Envestnet Manager Portalbenchmark (80% S&P 500/20% BCAB) while also outperforming cash. Another (EMP1) Tradedmain goal is to reduce volatility and downside risk in virtually all market Portfolio Yield2 1.72% as of 1/17/2012conditions by using signiﬁcant risk controls. The portfolio can rebalance asfrequently as monthly. Weighted Average Gross 0.19% Expense Ratio3All BCM strategies are "tactically unconstrained" they can be 100% invested inETFs or go to 100% "cash" (or 1-3 month T-Bills) as the model dictates. Using a Weighted Average Net 0.19%"defensive allocation" strategy, the BCM portfolios seek to provide superior Expense Ratio4downside risk management, especially in weak markets. While BCM maintains Hypothetical Performance Statistics (3yr)5discretion over the portfolio, the 55% Alpha Core and 13% international are Standard Dev. 11.61traded in whole or in part based on our proprietary signals taken from the Sharpe Ratio 1.26AlphaSector Index maintained by F-Squared Investments, Inc.. While theAlphaSector model determines the S&P 500 sectors to be owned, BCM will Alpha 7.06determine which international and "non-traditional" ETFs are to be owned. The Beta 0.56high quality ﬁxed income allocation will invest in ETFs predominantly owning R Squared 66.04investment grade corporate bonds or bonds backed by the U.S. Government. Hypothetical Performance Statistics (5yr)5Minimum purchase size for each ETF will be 2.5% and the maximum purchasewill be 25% of the portfolio. BCM Growth will seek to maximize tax efﬁciency by Standard Dev. 10.24avoiding wash sales and harvesting tax losses at year end. Sharpe Ratio 0.89BCM strategies use only "long" ETFs and thus avoid complicating factors such Alpha 9.51as leverage, derivatives or shorting. The BCM Growth portfolio was developed tohelp meet the needs of investors who have a long-term time horizon, are looking Beta 0.49for diversiﬁed equity growth strategy, yet desire less volatility and downside risk. R Squared 64.64For more information, please see our ADV and marketing literature found at Down Capture Ratio 0.23www.bfpcm.com. Up Capture Ratio 0.84 Note: See Hypothetical Pe r fo r m a n c e Description below for more information about hypothetical performance.BFP Capital ManagementBFP Capital Management (BCM) is a wholly owned subsidiary of Beaumont Financial Partners, LLC (Beaumont), separate accountmoney management arm and the manager of the BCM Alpha, BCM Alpha Premium, BCM Alpha IDX and the BCM Collective TrustSuites. BCM only provides separate account and wrap program money management services.The BCM IDX Series were created after years of experience with clients who seek risk controls in down markets and robust participationin up markets. BCM deploys defensive allocation underneath our strategic allocations. Defensive allocation creates value by seeking toavoid extreme market losses-enabling alpha and potential systematic reduction in volatility.Beaumont was founded in 1981 as Beaumont Trust Associates. Beaumont was reorganized and recapitalized in late 1999. For moreinformation on BCM, please go to www.bfpcm.com.
BCM GrowthAsset Allocation6 21.51% Large-Cap Growth XLK Technology Select Sector SPDR (10.74%) XLY Consumer Discret Select Sector SPDR (10.77%) 21.5% Large-Cap Core IYH iShares Dow Jones US Healthcare (10.73%) XLP Consumer Staples Select Sector SPDR (10.77%) 10.88% Large-Cap Value XLU Utilities Select Sector SPDR 6.86% Short Bond SHY iShares Barclays 1-3 Year Treasury Bond 2.45% International Bond WIP SPDR DB Intl Govt Inﬂ-Protected Bond 7.84% Inﬂation-Protected Bond TIP iShares Barclays TIPS Bond 7.84% Commodity IAU iShares Gold Trust 21.12% Cash Core Money MarketPerformance SummaryThe chart below shows this portfolios historical performance as compared to a relevant benchmark. Performance data for each periodis the annualized total return as of 12/31/2011 (periods of less than one year are not annualized). Reported benchmarks areunmanaged indices that do not have any fees or expense charges.The returns shown are for illustrative purposes only and are not indicative of future returns for this investment. The following chartscontain hypothetical performance data. The performance covering actual inception date to current is a composite return calculatedfrom actual client holdings. Performance data for periods prior to the actual inception date of the Portfolio (Oct 31, 2009) representhypothetical performance results7 . The hypothetical performance results are calculated based on the hypothetical back-testedperformance of the portfolios holdings as of the actual inception of the portfolio or the performance of the investment managerscomprising the portfolio as of the actual inception date of the portfolio for multi-manager investment strategies. Performance data foreach period is the annualized total return as of 12/31/2011 (periods of less than one year are not annualized). The returns shown arefor illustrative purposes only and are not indicative of future returns for this investment. Performance vs. Benchmark as of 12/31/2011 Period Return8 Benchmark9 Hypothetical performance shown to the right of the separator below. 15% Q4 2011: 2.68% 9.68% 1 Year: 3.08% 3.64% 10% Hypothetical performance shown below Total Return 3 Year: 14.71% 13.03% 5 Year: 10.48% 1.49% 5% 10 Year: 10.20% 3.82% 0%Benchmark: 80% S&P 500, 20% Barclays Capital U.S.Aggregate Bond Index. -5% Q4 2011 1 year 3 year 5 year 10 year Time Period Portfolio Performance8 Benchmark9
BCM Growth Hypothetical Performance Description The performance shown in the chart is the hypothetical investment return based on the proposed investment strategy of this presentation. The performance shown does not reﬂect any customized investment screens or other investment restrictions that an investor may place on an investment strategy. There can be no assurance that had the investment strategy been offered during the period shown above, an investors investment returns would have been as shown due to the possibility that the allocations and/or investment decisions during the period may not have matched the allocations and/or investment decisions as of the date of this presentation. Hypothetical investment returns have the beneﬁt of hindsight in that the returns are being presented after the fact and the allocations and investment strategies could be slanted to provide the best performance possible. Performance is shown gross of fees (unless otherwise noted), except for the internal expenses of any investment products (e.g., fees charged directly by a mutual fund or ETF) and does not reﬂect the effect of income taxes on the investment returns. Actual performance results will be reduced by fees including, but not limited to, investment management fees and other costs such as custodial, reporting, evaluation and advisory services. Actual fees will vary depending on, among other things, the applicable fee schedule, the time period, investment performance and account size. For example, if $100,000 were invested and experienced a 10% annual return compounded monthly for 10 years, its ending value, without giving effect to the deduction of advisory fees, would be $270,704 with annualized compounded return of 10.47%. If an advisory fee of 0.95% of the average market value of the account were deducted monthly for the 10-year period, the annualized compounded return would be 9.43% and the ending dollar value would be $246,355. For a description of all fees, costs and expenses, please refer to the advisors Form ADV Part 2A or Part 2A - Appendix 1, as applicable. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Portfolio Composition Analysis Stock Sector Distribution This Portfolio consists of approximately 53.8% Stocks, 16.5% Bonds, 21.8% Cash, and 7.9% Other Cons. Defensive 21.1% Investments. The composition represents the net values Not Avail 2% (long allocation - short allocation) of the four primary Comm. Services 4.9% Healthcare 19.9% asset categories - Equity, Bond, Cash, and Other. When an asset category net position is short (negative), net values that are long (positive) are rescaled after Technology 15.5% eliminating the asset category that is short. The Stock Sector Distribution is calculated only using the long stock position holdings of the investment. This Utilities 19.8% Cons. Cyclical 16.8% information is as of January 17, 2012 and should not be considered a recommendation to invest in a speciﬁc sector. Sector classiﬁcations are provided by Morningstar, Inc.10 Disclosures1 EMP: The Platform Manager (Envestnet Asset Management, Inc.) implements and places trade orders for this investment strategy pursuant to a licensing agreement with the money manager (the "Model Provider").2 An indication of the current dividends and interest vs. the current market value of the holdings. The yield represents the current amount of income that is being generated from the portfolio without liquidating the principal or capital gains on the portfolio. However the yield will ﬂuctuate daily and current or past performance is not a guarantee of future results.3 The weighted average of the gross expense ratios of the funds and/or ETFs used in the portfolio.4 The weighted average of the net expense ratios of the funds and/or ETFs used in the portfolio. The fund net expense ratios reﬂect fee waivers by the underlying fund management companies, which may not be permanent.
BCM Growth5 Alpha - A measure of a stocks risk-adjusted performance, considering the risk due to the speciﬁc stock, rather than the overall market. Alpha can be thought of as how the stock performed if the market has had no gain or loss. A large alpha indicates that the stock or mutual fund has performed better than would be predicted given its beta (volatility). Beta - A measure of a managers performance relative to the market (benchmark index). A manager with a beta coefﬁcient of 1.00 has experienced up and down movements of roughly the same magnitude as the market. Higher betas are associated with higher risk levels, while lower betas are associated with lower risk levels. Capture Ratio - Up(Down) Capture Ratio is a measure of managers performance in up(down) markets relative to the market itself. An up market is one in which the markets quarterly return is greater than or equal to zero. The higher the managers up-market capture ratio, the better the manager capitalized on a rising market. For example, a value of 1.10 suggests that the manager captured 110% of the market gain (performed ten percent better than the market) when the market was up. A down-market capture ratio of 0.90 suggests that the manager captured only 90% of the market loss when the market was down. R-squared - A measure of how much of a portfolios performance can be explained by the returns from the overall market (or a benchmark index). If a portfolios total return precisely matched that of the overall market or benchmark, its R-squared would be 100.00. If a portfolios return bore no relationship to the markets returns, its R-squared would be 0. Sharpe Ratio - A measure of risk-adjusted return. To calculate a Sharpe ratio, an assets excess returns (its return in excess of the return generated by risk-free assets such as Treasury bills) is divided by the assets standard deviation. Standard Deviation - A gauge used to measure risk, or volatility. It is a number indicating the variability of a set of numerical values about their arithmetic average. For example, a $1 million portfolio with a quarterly standard deviation of 5% will ﬂuctuate $50,000 (5% of $1 million) or less per quarter two-thirds of the time. The lower the managers standard deviation, the more stable the portfolios performance. High standard deviation suggests a portfolio with more ﬂuctuation and volatility.6 The Holdings information is as of January 17, 2012 and should not be considered a recommendation to buy or sell a particular security. There is no assurance that any speciﬁc securities listed will remain in a portfolio.7 The hypothetical back-tested information contained in this presentation is being provided to you solely in connection with your interest in the investment strategy to assist in understanding the possible long term performance of the portfolio. The returns presented reﬂect hypothetical performance an investor would have obtained had it invested in the current portfolio for the periods shown and does not represent returns that any investor actually attained. The information is based on data received from the investment strategy manager and/or other sources, such as reporting service providers, but has not been independently veriﬁed. Certain of the assumptions used to calculate the performance presented have been made for modeling purposes and are unlikely to be realized. No representation or warranty is made as to the reasonableness of the assumptions made or that all assumptions used in achieving the hypothetical returns have been stated or fully considered. Changes in the assumptions and changes in the current composition of the portfolio may have a material impact on the hypothetical returns presented. The management of the portfolio may be materially different than the model used to present the hypothetical back tested performance. These differences include different cash ﬂows, expenses, performance calculation methods, size and composition strategy constraints, and other factors.8 PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. The performance shown in the chart is the hypothetical investment return based on the proposed investment strategy of this presentation. The performance shown does not reﬂect any customized investment screens or other investment restrictions that an investor may place on an investment strategy. There can be no assurance that had the investment strategy been offered during the period shown above, an investors investment returns would have been as shown due to the possibility that the allocations and/or investment decisions during the period may not have matched the allocations and/or investment decisions as of the date of this presentation. Hypothetical investment returns have the beneﬁt of hindsight in that the returns are being presented after the fact and the allocations and investment strategies could be slanted to provide the best performance possible. Hypothetical results have certain inherent limitations, the most important of which is that past results give no assurance of future proﬁts.9 Reported benchmarks are not intended as direct comparisons to the performance of the portfolio. Instead, they are intended to represent the performance of certain sectors of the overall securities market (e.g. equities, bonds, etc.). Respectively, the volatility and performance of the reported benchmark may be greater than or less than the volatility and performance of the investment portfolio. The indices reﬂect the reinvestment of dividends and income and do not reﬂect deductions for fees, expenses or taxes. The indices are unmanaged and are not available for direct investment.10 2012 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar, Inc. is an independent organization that is not afﬁliated with Envestnet or your investment advisor. Past performance is no guarantee of future results.