The purpose of the First Trust Focus Five Model is to identify major themes in the market, have exposure to those sectors controlled by demand, and eliminate exposure to those sectors controlled by supply. The Model is designed to hone in on the strongest ETFs in the Model inventory. The Portfolio will attempt to capture the strongest trends and avoid the weakest trends. It is dispersion of returns within the Model inventory that creates the opportunity for a relative strength evaluation process to identify worthwhile trends to follow, as well as those critical to avoid. The First Trust Focus Five Model inventory of funds provides a diversity of investments that is generally advantageous to trend-based tactical rotation strategies.

The Dorsey Wright Invesco Sector Four Model is designed to gain exposure to the strongest relative strength sectors in the US through the use of nine sector momentum ETFs: PYZ, PEZ, PSL, PXI, PFI, PTH, PRN, PTF, and PUI. When equities are not in favor, the portfolio can raise varying amounts of cash, up to 100%.

This Mid and Large Cap U.S. equity strategy seeks to achieve long-term capital appreciation. It invests in securities that demonstrate powerful relative strength characteristics and requires that the securities maintain strong relative strength in order to remain in the portfolio.

This Mid and Large Cap U.S. equity strategy seeks to achieve long-term capital appreciation. This portfolio invests in securities that demonstrate powerful relative strength characteristics and requires that the securities maintain strong relative strength in order to remain in the portfolio. This strategy tends to have lower turnover and higher tax efficiency than our Aggressive strategy.

This Mid and Large Cap U.S. equity strategy seeks to achieve long-term capital appreciation with some degree of risk mitigation. This portfolio invests in securities that demonstrate powerful relative strength characteristics and requires that the securities maintain strong relative strength in order to remain in the portfolio. This portfolio also has an equity exposure overlay that, when activated, allows the account to hold up to 50% cash if necessary.

This All-Cap International equity strategy seeks to achieve long-term capital appreciation through a portfolio of international companies in both developed and emerging markets. This portfolio invests in those securities with powerful relative strength characteristics and requires that the securities maintain strong relative strength in order to remain in the portfolio. Exposure to international markets is achieved through American Depository Receipts (ADRs).

The DWA Global Factor Model seeks to provide global equity exposure based upon investment themes identified through Relative Strength within Dorsey Wright?s Dynamic Asset Level Investing (DALI) tool. The DALI tool relies upon 2,500 Relative Strength comparisons across every major asset class of the market. Ultimately, DALI ranks the six asset classes (US Equities, International Equities, Commodities, Currencies, Fixed Income, and Cash) from strongest to weakest based on these Relative Strength comparisons. The DWA Global Factor Model is concerned only with the rankings of US Equities, International Equities, and Cash relative to one another. The Model uses those rankings to determine whether to overweight (at 70%) or underweight (at 30%) US Equities relative to International Equities, while also accounting for time periods where global equities at large lack adequate Relative Strength by allowing Cash to rotate in to the Model. Once the composition on the asset class level is determined, the Model then utilizes the same Relative Strength tool, DALI, to determine whether to overweight or underweight the Momentum Factor relative to the Low Volatility Factor within each equity allocation. To accomplish this, the Model has an investable inventory that consists of four sets of complimentary momentum and low volatility ETFs, along with Cash.

This strategy includes equities from our Core strategy (see above) and high-quality U.S. fixed income in approximately a 60% equity / 40% fixed income mix. This strategy seeks to provide long-term capital appreciation and income with moderate volatility.

This global tactical asset allocation strategy seeks to achieve meaningful risk diversification and investment returns. The strategy invests across multiple asset classes: Domestic Equities (long & inverse), International Equities (long & inverse), Fixed Income, Real Estate, Currencies, and Commodities. Exposure to each of these areas is achieved through exchange-traded funds (ETFs).

The DWA Tactical Tilt portfolios are an adaptive suite of risk management solutions for investors, each with the primary objective of pivoting between wealth accumulation strategies (i.e. offense), and wealth preservation strategies (i.e. defense), in a timely fashion. The methodology used is rules-based, and designed to follow the strongest sector & asset class trends within a broad array of investment options. Dorsey Wright employs its relative strength-based ranking process for each major asset class (including cash), and each major investment sector within them. The rankings are then used to construct and manage multi-asset class portfolios, ?tilting? toward the strongest of asset classes, but doing so within the guidelines of basic strategic investment boundaries. In this manner Dorsey Wright?s ?Tactical Tilt? methodology can capture powerful investment trends, yet mitigate the impact of a bear market in stocks, or rising trend in interest rates, along the way.

   1. Tactical Tilt Aggressive
   2. Tactical Tilt Conservative
   3. Tactical Tilt Moderate

This strategy seeks to provide current income and strong risk-adjusted fixed income returns. The strategy invests across multiple sectors of the fixed income market: U.S. government bonds, investment grade corporate bonds, high yield bonds, Treasury inflation protected securities (TIPS), convertible bonds, and international bonds. Exposure to each of these areas is achieved through exchange-traded funds (ETFs).