Concepts in Wealth Preservation & Management

1. Concepts in Wealth Preservation & Management Trade Center

2. PRESENTATION DISCLOSURE THE FOLLOWING PRESENTATION MENTIONS WEALTH PRESERVATION. THERE ARE NO GUARANTEES THAT BY USING ANY OF THE STRATEGIES PRESENTED HERE, YOU WILL PRESERVE YOUR WEALTH OR INVESTMENT. THE RISK OF TRADING COMMODITY FUTURES, OPTIONS AND FOREIGN EXCHANGE ("FOREX") IS SUBSTANTIAL. THE HIGH DEGREE OF LEVERAGE ASSOCIATED WITH COMMODITY FUTURES, OPTIONS AND FOREX CAN WORK AGAINST YOU AS WELL AS FOR YOU. THIS HIGH DEGREE OF LEVERAGE CAN RESULT IN SUBSTANTIAL LOSSES, AS WELL AS GAINS. YOU SHOULD CAREFULLY CONSIDER WHETHER COMMODITY FUTURES, OPTIONS AND FOREX IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IF YOU ARE UNSURE YOU SHOULD SEEK PROFESSIONAL ADVICE. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE SUCCESS. IN SOME CASES MANAGED ACCOUNTS ARE CHARGED SUBSTANTIAL COMMISSIONS AND ADVISORY FEES. THOSE ACCOUNTS SUBJECT TO THESE CHARGES, MAY NEED TO MAKE SUBSTANTIAL TRADING PROFITS JUST TO AVOID DEPLETION OF THEIR ASSETS. EACH COMMODITY TRADING ADVISOR ("CTA") IS REQUIRED BY THE COMMODITY FUTURES TRADING COMMISSION ("CFTC") TO ISSUE TO PROSPECTIVE CLIENTS A RISK DISCLOSURE DOCUMENT OUTLINING THESE FEES, CONFLICTS OF INTEREST AND OTHER ASSOCIATED RISKS. A HARD COPY OF THESE RISK DISCLOSURE DOCUMENTS SHOULD ACCOMPANY THIS MATERIAL. THE FULL RISK OF COMMODITY FUTURES, OPTIONS AND FOREX TRADING CAN NOT BE ADDRESSED IN THIS RISK DISCLOSURE STATEMENT. NO CONSIDERATION TO INVEST SHOULD BE MADE WITHOUT THOROUGHLY READING THE DISCLOSURE DOCUMENT OF EACH OF THE CTAS IN WHICH YOU MAY HAVE AN INTEREST. REQUESTING A DISCLOSURE DOCUMENT PLACES YOU UNDER NO OBLIGATION AND EACH DOCUMENT IS PROVIDED AT NO COST. THE CFTC HAS NOT PASSED UPON THE MERITS OF PARTICIPATING IN ANY OF THE FOLLOWING PROGRAMS NOR ON THE ADEQUACY OR ACCURACY OF THE DISCLOSURE DOCUMENTS. OTHER DISCLOSURE STATEMENTS ARE REQUIRED TO BE PROVIDED TO YOU BEFORE AN ACCOUNT MAY BE OPENED FOR YOU. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS

3. Preservation Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

4. Wealth Preservation & Management Have you built or inherited a substantial amount of wealth? Do you seek ways to preserve and manage it more effectively? We may have some solutions for you. Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

5. Over time, taxes, inflation, and traditional overhead erode your wealth. The need to draw income from your investment portfolio also erodes the wealth you have built. You’ve worked hard to secure your goals and transform your dreams into reality. We understand that preserving your wealth is a critical component to building a legacy that will live on. Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

6. We’ll work with you to focus on asset allocation strategies that will help you attain your goals. From semi-managed to fully managed futures programs featuring global futures, forex and derivates markets, we’ll help you understand all aspects of alternative investing. With the right investment strategies, you can enjoy your wealth while keeping it intact. To be sure, there are no guarantees, and all investments have risk of sometimes substantial loss. Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

7. Elusive Markets Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

8. Prior to the year 2000, it was an easier environment in which to invest in. Investments in the equities markets prospered in virtually every sector Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

9. Times Have Changed Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

10. Investors need flexibility to adapt to market conditions. Our opinion is that a lack of portfolio diversification could have a substantial impact on your overall performance. Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

11. Bonds offer relative safety, but the specter of rising rates could impact or mitigate performance Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

12. Stocks offer long-term growth on returns but higher volatility has pushed many to the sidelines in avoidance of potentially severe market downturns Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

13. Understanding Risk Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

14. Real Risk According to UBS Global Asset Management, the S&P 500 experienced a severe bear market from March 24, 2000 to October 9, 2002, declining 49.1% The current market climate presents unique challenges. Investors must also address current draws and needs from their portfolio, provide for retirement income, and establish a legacy for their heirs. Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

15. Our opinion is that for wealth preservation and management, investors must diversify beyond traditional long-only investments. Long-only means the investment not only is limited to prospering during up-trends but is further tied to an underlying benchmark. While there are certainly exceptions, when the markets decline, so does the traditional portfolio. Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

16. How Hard is it to Recover from a Decline? Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

17. Let’s look back at the 49%+ decline in the S&P 500 in 2000 through 2002. Hypothetically, a $100,000 investment would have declined to nearly $50,000. Thus, to get back to breakeven the now $50,000 investment would need to generate nearly 100% returns to get the portfolio back to it’s original $100,000 value! Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

18. Alternative Investments Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

19. Alternative investments such as managed futures or semi-managed portfolios employing computerized trading systems are not tied to an underlying benchmark involving the stock or bond markets. These investments seek positive returns regardless of whether the overall market is up or down. Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

20. Stocks Bonds Futures Real Estate Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

21. Potential Benefits Diversification Alternative investments supply portfolios with diversification that is difficult to emulate with stocks or bonds. Investors enjoy full transparency. All investors are able to understand the investment, see activity, and get a full breakdown of fees and risks. Transparency By spreading portfolio exposure to non-stock and bond vehicles, potentially the overall effect is a smoothing of the equity curve. Lower Volatility Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

22. Adding Managed Futures & Forex to your Stock and Bond Portfolio Managed futures & forex can be combined with stock and bond portfolios providing an opportunity for investors to potentially significantly improve the overall risk characteristics of their portfolio without giving up much in terms of expected return. The chart at the right provides an example of adding a 20% managed futures portfolio to an even mix stock & bond portfolio. All data is derived from indexes. The following chart shows the affects of reallocating 20% of a stock and bond investment portfolio to Autumn Gold CTA Index (blue area). The green area represents a portfolio consisting of 50% Barra S&P and 50% Lehman Aggregate Bond Index

23. We Offer Two Solutions Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

24. Semi-Managed Futures • $15,000 Minimum • Investor controlled • Choose among dozens of systems • Fully Managed Futures • $50,000 minimum • Trading done by professional manager • Choose among hundreds of programs • Evaluate actual trading performance Solutions Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

25. Would you Like Some Additional Information? • Call us toll-free at 800.894.8194 or use our local & international line at 949.643.7100 • Send us an email at info@tradecenterinc.com • Visit us on the web at www.tradecenterinc.com Futures trading involves substantial risk and is not suitable for all investors Wealth preservation is a goal, not a guarantee

26. Thank You!