ITS Income Portfolio -- Capital Income Plus

Utilizing DAPM, our Capital Income Plus (CIP) program offers investors a precise balance of offensive and defensive investment techniques in a strategic investment range. The goal is to allow for greater performance potential and reduced volatility and risk within the portfolio's defined range.

The principal objective of our Income CIP portfolio is to utilize fixed income and certain equity funds to seek capital preservation with a focus on income generation and total return.

As with all of our portfolio programs, the CIP is managed through a disciplined and active investment approach. Disciplined is derived from a structured framework that is unique to each program. The portfolio framework for the Income CIP program consists of the following parameters:

(1) Allowable investment types are primarily bond and money market funds, as well as stock and inverse funds to be used within the satellite position only
(2) Asset allocation range is a maximum 100% fixed income to a maximum 17% equities
(3) Number of sectors held are six minimum in the standard "full-core" allocation and seven maximum when there is a split satellite position
(4) Trading is conducted on a market-driven basis to maintain desired allocations