Fee-Based

Berthold Model Portfolios are distinct asset allocation portfolios that have been developed over the past 21 years. These models go beyond the scope of traditional asset allocation. The Hybrid and Trend Models use a fee-based asset management arrangement. These portfolios and services are offered through Commonwealth Financial Network^® (see ADV Part II).

Berthold Model Portfolios use a combination of traditional and nontraditional investments following strategies to leverage a variety of asset classes and securities. We believe that by broadly diversifying assets among these investment options, our clients have a better chance to outpace inflation and potentially boost portfolio performance while helping to smooth out the market's ups and downs. Diversification does not ensure a profit or protect against a loss in declining markets.

Berthold Model Portfolios describe a distinct style of asset allocation. Once a client's risk tolerance, time horizon, and investment objectives have been identified, an asset allocation model is built for the investor. We use the following five investment objective descriptions:

• Income with Limited Growth
• Income with Moderate Growth
• Growth and Income
• Primarily Growth
• Growth