Private Accounts First Step Second Step First Step Key Investment Team strategies include a four-part process, which integrates expertise in investment advisory services, research, and asset management. Our unique process constructs portfolios starting with a solid foundation in strategic asset allocation while providing flexibility and insight through strong underlying security selection and global tactical asset allocation. The 4 Keys — Our Unique Investment Management Process 1) Personal Relationship We know the Person, not just the Portfolio. Identifying our clients’ objectives is central to developing sound investment strategies that meet their needs. Whether you want fiduciary advice in managing your investment/retirement portfolio or want us to manage it for you, we can help you design an investment strategy tailored to your needs. 2) Developing a Strategy We discuss your financial situation, review your investments, and recommend steps to help put your portfolio on track. We work with our clients to identify the most appropriate asset allocation for their investment objectives. 3) Implementing the Strategy As an independent firm dedicated exclusively to managing assets for wealthy individuals, families, and foundations, we are rigorous in our investment selection process, truly acting as a trusted advisor and confidant. 4) Oversight and Performance Review We pride ourselves on the highest level of client communication and service. Why Develop an Asset Allocation Strategy? Asset Allocation Drives the Volatility of Performance Over Time Asset allocation is the key to helping you to achieve your goals. Diversifying across different investment styles, asset classes, geographic regions, and capitalizations may enhance your portfolio’s returns and manage risk. We believe that the twin pillars of successful investing are a long-term strategy and a well-diversified portfolio. Second Step Robert Venezia has been dedicated to finding and exploiting inefficiencies in the market since 1987. During his career, Mr. Venezia has cultivated an investment strategy utilizing quantitative and fundamental analysis, searching for securities that would outperform the overall market in the long term. For most of our portfolios, we use a highly disciplined “top-down” investment process: 1) Macroeconomic Trends The first step focuses on the movement and trends in the economy globally. 2) Quantitative Analysis The second step employs quantitative analysis of market and individual fund history. 3) Fundamental Screening In the third step, we apply fundamental screening. 4) Strategic Asset Allocation (Core Holdings) In the final step, we construct a strategic asset allocation portfolio that is well-diversified across various asset classes and investment styles. Sometimes, we employ leading investment managers through no-load funds, or we invest your portfolio in Exchange-Traded Funds (ETFs). Finally, after putting together the asset allocation portfolios, we may employ global tactical asset allocation. We assess a performance forecast for all the asset classes and markets in the asset allocation models and make decisions based on these forecasts. We analyze eight different areas: asset class timing, regional equity selection, regional bond selection, U.S. equity style timing, U.S. equity size timing, equity country selection, high yield timing, and emerging/developed equity timing. Markets are dynamic, and market conditions are constantly changing. This process allows our investors to be exposed to various changing market conditions. IMPORTANT: Unlike some financial planners, money managers, and brokers, Key provides active money management in any market condition. Key Investment Team may attempt to hedge against or seek profit from stock market declines. Although Key Investment Team does not use leverage in client accounts, we may use ETFs that utilize leverage and inverse exposure to major indices. These ETFs may correspond to up to 200% of the replicated index’s daily performance. We may also liquidate stocks up to 100% and move to cash for the preservation of capital.