CLIENT PROSPECTUS
| Introduction |
| This Prospectus contains important information about investing with Fiduciary Investment Risk Management hereto forth referred to as FIRM. Please read this contract carefully before you make any investment decisions. |
| Who We Are |
| FIRM is a registered private equity investment partnership that serves investors seeking long term capital growth. |
| Portfolio Investment Orientation |
| FIRM employs a disciplined, quantitative approach designed to optimize the trade of volatility minimization and the maximization of capital gains to the client`s portfolio. |
| FIRM Client Relationship and Portfolio Management |
| The contract between the client and FIRM is at will. The contract is in effect with mutual consent by the signatures of both parties in situ. The contract is terminated by either or both parties upon request. The contractual arrangement is simple: |
|
1. Client assets are placed in a mutually accepted brokerage account. 2. FIRM retains complete discretion over said account throughout the contractual relationship. 3. The client promises to pay FIRM two percent annually, of assets under management, in quarterly installments, in arrears. 4. Assets under management are determined on the last day of the fiscal quarter, by the custodial brokerage. 5. FIRM promises to abide by all state and federal regulations concerning the fiduciary relationship. The primary consideration in this relationship is capital gains through active management, within the caveats outlined in this contract. Principal Risks |
| The FIRM`S investment objective is an active model seeking capital gains through quantitative analysis and discipline; using proprietary algorithms. The model is designed for conservation of capital while seeking profits in a diversified portfolio; where discipline is essential. There is risk to capital with FIRM investments; as risk is inherent to every investment: |
| FIRM Portfolio Risks |
|
1. FIRM investments may be subject to Market liquidity risk. 2. FIRM investments may be subject to exchange rate risks. 3. FIRM cannot foresee, nor does it insure against, incredible circumstances: Acts of terrorism, war, natural disasters, market interruptions, or otherwise, acts of God. 4. The assets are actively managed to reduce passive risk. The model cannot guarantee against consequences of short-term market fluctuations or long period market downturns. 5. Custody risk is the property of the brokerage and not of the FIRM. 6. The FIRM does not use leverage to facilitate its investments. |
| Portfolio Holdings |
| The investor may withdraw funds from or add funds to the account at any time, with normal brokerage settlement times and fees. The investor may take charge of the brokerage accounts at any time; terminating the relationship with FIRM. FIRM management fees are assessed on the quarter and not prorated for early withdraws. |
| Fees and Expenses |
| The brokerage firm with custody of the client`s assets sends a monthly statement to the client with all account activity including expenses. Expenses will include normal trading commissions, of which the FIRM does not receive any portion thereof. Additional expenses may include stock exchange fees, SEC fees and similar costs. Notification of the FIRM fees is reported separately to the client. |
| Assignment |
| FIRM will not assign the investment advisor contract without the consent of the client. FIRM will notify the client of any changes in the membership of the partnership within a reasonable time after the change. The contract stipulates an offer by FIRM to manage the client`s assets for best performance and capital gains. FIRM offers five different investment orientations, with different minimum capital requirements, diversification, and asset allocation. |
| Domestic allocated aggressive growth |
| This fund maintains a $25,000 initial minimum capital requirement. The fund is as aggressive and diversified as asset allocation allows at this capitalization level. The fund aims to take in the breadth of the domestic market with minimal hedging. |
| Domestic allocated balanced growth |
| This fund maintains a $50,000 initial minimum capital requirement. The fund is as aggressive and diversified as asset allocation allows at this capitalization level. The fund is focused on the breadth of the domestic sectors with no hedging. |
| International allocated balanced growth |
| This fund maintains a $100,000 initial minimum capital requirement. The fund is as aggressive and diversified as asset allocation allows at this capitalization level. The fund utilizes the strategy of the two domestic funds and includes a balance of broad international exposure with no hedging. |
| International allocated aggressive growth |
| This fund maintains a $100,000 initial minimum capital requirement. The fund is as aggressive and diversified as asset allocation allows at this capitalization level. The fund is slightly more aggressive in global orientation to include emerging markets and minimal hedging. |
| International Balanced Aggressive growth |
| This strategy maintains a $200,000 initial minimum capital requirement. The orientation is focused on the breadth of the international market, with hedging. The strategy creates diversification encompassing the global market with managed risk utilizing all the tools FIRM has to offer. |
