Risk Management

1. Our primary goal is not investment performance but to help investors build a brighter America. We limit ourselves to investing only in American Hero Company stocks which make up a very small segment of the market. There are many other stocks which have better prospective investment merit but are not considered for our portfolios.
2. Figures are shown as percentages (%).
3. The above figures were computed by a third party, Bridge Portfolio. Performance results for the strategies are calculated based on the actual weighted performance of the underlying components of the firm’s model portfolios and reflect any historical changes, rebalances and updates to the model portfolios. Although the models were applied to actual accounts during the time periods shown, performance is not that of actual accounts. Therefore, performance results should not be construed as indicative of the performance of any one of the accounts or the group of accounts assigned to each respective model. Performance results for clients that invested in accordance with the portfolios will vary from the model performance due to market conditions and other factors, including investments cash flows, frequency and precision of rebalancing, tax-management strategies, cash balances, advisory fees, varying custodian fees, and/or the timing of fee deductions. As the result of these and other potential variances, actual performance for client accounts may differ materially from (and may be lower than) that of the portfolios. Past performance does not indicate future returns.
4. An allowance of .6% per annum (60 basis points) for fees and/or expenses has been deducted from both models which reflects an estimate of fees charged by American Values Investments. The fee is prorated and assessed on a quarterly basis. Returns include the reinvestment of all income, including capital gains. Calculations do not include transaction costs, which would serve to reduce an investor’s return.  A client’s financial advisor will typically charge additional fees, which will vary by advisor, and would be in addition to American Values Investments’ fees.
5. The primary benchmark is the Wilshire 5000 Index Equal Weight which contains over 6,500 stocks that trade in the U.S. including issues on the New York Stock Exchange (NYSE), NASDAQ Stock Market, and the American Stock Exchange (AMEX). It is often referred to as the ‘Total Market Index’ because it covers a wide variety of publicly traded companies. Performance assumes all dividends are reinvested; you cannot invest directly in the index. We use an “equal weighted” index as a benchmark because once each year we adjust all of our holdings so that each individual stock position represents an equal dollar amount (or close to an equal dollar amount) of the portfolio.
6. We believe the Wilshire 5000 Equal Weight index is a reasonable benchmark on which to evaluate the financial effectiveness of our individual equity selections. The S&P 500 Total Return Index is shown to give an idea of how an “equal weighted” strategy might compare to some of the more traditional “cap weighted” indexes. Performance of the strategies and the indices shown may not be comparable due to differences amongst them including, but not limited to, risk profile, liquidity, volatility and asset composition.  An investor cannot invest directly in an index.
7. One, three and five year figures are annualized percentage returns. The “since inception” returns are simple, cumulative returns.
8. The figures are not audited and do not represent performance of individual accounts.
9. The American Hero Equity Model is a concentrated (20-30 stocks) selected exclusively from the American Hero Universe, equal weighted representing at least 7 of 10 sectors as defined by Standard & Poor’s. The stocks can range from small to large and from value to growth as defined by Morningstar. Any sector represented is at least 50% of the S&P 500 weighting and no more than 200%. No stock represents more than 5% of the model at initial purchase. The model is rebalanced annually. The stocks are selected based on a proprietary investment merit analysis based on 10 -15 fundamental matrices.
10. The American Hero Index Model consists of the total American Hero Company Universe of 100-125 public companies. To be included in the American Hero Universe a company must score a minimum 400 out of 500 on a proprietary analysis of the company’s corporate culture. The analysis focuses on the three key values of Integrity, Caring and Courage.
11. As of yet, there is not a 10 year history for the American Hero Index Portfolio. But, the simple accumulative performance from the inception date of 12/31/2009 is 180.4%. Corresponding benchmark return was Wilshire 5000 Equal Weight 156.0%.
12. Past performance is no assurance of future results. Investing in equity markets involves risk; you could lose a significant portion or all of your original investment. All recommendations are based on our experience and may or may not have been profitable in the past, now or in the future. These performance figures may not reflect the impact that material economic and market factors might have had on our decision making if we had actually managed clients’ accounts.

More complete disclosure/risk information can be found in our firm disclosure brochure.