As more and more Americans move toward retirement, they will need portfolio solutions designed to meet their changing investment needs. We believe that the income needs of the investor are the most important determinant of their investment objective. Asset allocation models have traditionally focused solely on the needs of growth investors, investors that do not require income from their portfolios. We believe that meeting the needs of today's retirees requires taking asset allocation principles a step beyond that, creating asset allocation strategies specifically tailored for investors that need income from their portfolios. We believe that investors fall into one of three categories based upon their income requirements:

• Growth-orientated investors generally have little need for current account income. They seek the maximum capital appreciation possible, consistent with their risk tolerance.

• Growth & income-oriented investors need to receive current income, but they are equally concerned that income and capital grow over time. They are typically willing to forego a portion of current income in order to provide for longer-term growth in their income.

• Income-oriented investors need the maximum amount of income possible, given their risk tolerance, from their portfolio and are willing to forgo a portion of capital appreciation and growth of income in order to seek maximum current income.

Riverfront optimizes the asset allocation strategy for the needs of each of these three types of investors. In addition, we recognize that investors with the same investment objectives may have substantially different risk tolerances. Consequently, our asset allocation models provide allocation recommendations for investors across three degrees of risk tolerance—Conservative, Moderate and Long-term—for each of our three investment objectives (Income, Growth and Growth & Income), resulting in nine unique asset allocation solutions.  Although all investments involve some degree of risk—including the potential loss of principal—some securities such as emerging market equities and high-yield bonds, have more risk than others.

• Investors with lower risk tolerance give up some of the potential for higher returns in exchange for lower risk.
• Investors with a higher risk tolerance pursue higher returns through investments in higher risk securities.

High-yield bonds, also known as junk bonds, are subject to greater risk of loss of principal and interest, including default risk, than higher-rated bonds. Bond prices fluctuate inversely to changes in interest rates. Therefore, a general rise in interest rates can result in the decline of the value of your investment.

International investing presents certain risks not associated with domestic investing, such as currency fluctuations, political and economic instability, and different accounting standards. This may result in higher price volatility.