2014_07_22 USE!!!Final_Portfolio_Project

Global Economic Outlook
INSIGHTS OF THE GLOBAL ECONOMY

RISI-VISION
FIN-6909 – June 22n, 2014
Eric Risi, Brendan McCauley, Carl Schachter, Courtney Fenwick

*Note: This publication contains forward-looking statements and, there can be no guarantees that they will come to pass. 2
Introduction:
As progression into 2014 continues,
projected forecasts reflect on past
economic performance and our current
belief is that the global economy will
continue to experience a slow, but
gradual recovery spawned from systemic
risk factors from 2007. As we progress
into 2015, there is a visible continuing
upward trend in GDP growth amongst
advanced economies. Moody’s credit
rating data suggests a slow, but
continuing .20% increase in US
economic growth by the beginning of
fiscal year 2015.
GDP Growth:
GDP and inflation suggest stronger
economic growth in 2014. With a GDP
of more than $16 trillion, the U.S.
economy accounts for nearly 23% of
world GDP. According to The Bureau of
Economic Analysis, YOY statistics show
U.S. GDP increased from 2.8% to 2.6%
in the fourth quarter of 2013. Data shows
GDP expanded 1.0% in the first quarter
of 2014.
Structural shifts in U.S. growth stalled
for the first three months of 2014
marking the second-worst quarterly
performance since the recession ended in
mid-2009. With the Federal Reserve
unlikely altering its course in the coming
months as it continues to wind down its
bond-buying program, future strategies
imply a bolster in the economy and
overall GDP. More importantly, macro
economists predict GDP in the second
quarter will expand at a 4% annual rate.
As global activity continues to
strengthen, a decrease in downside risks
indicate further improvement for 2014-
2015.
US Unemployment:
The International Labor Organization
shows the U.S. labor market
unemployment rate declined 2.5%,
starting from 10% in October 2009 to
7.5% in April 2013. The national jobless
rate fell to 6.3% from March 2014 and
was 1.2%age points lower than in April
2013. This decrease was accompanied by
a monthly increase of 200,000 new jobs,
contributing to a rise in consumer
spending and economic recovery.

Furthermore, average median income
employees saw a 1.7% pay increase.
The following table provides an in-depth
analysis of unemployment rates. The
table measures year over year
unemployment rates and proves there is a
steady decline from 2012 to 2013.
Consumer Confidence:
Heading into 2014, consumer confidence
now stands at 80.7% from 77.5% back in
December, a total increase of 4.12%.
Data presently suggests that consumers
are feeling more optimistic about US
financial market conditions, the job
market, and economic recovery.
As 2014 progresses, expectations suggest
that there will be an increase by 5.04%
from the previous month of 79.0% to
81.8%. For investors, statistical data
show that there is an increasing trend in
terms of domestic growth. As for
consumer sentiment, as long as inflation
remains below 3.5% (currently 2%)
future returns will not be impacted
significantly. Due to a rise to 2% from
1.5% last April, investors can expect a
lesser expense for unadjusted cost of
living expenses as long as inflation does
not exceed 3%.
Housing:
According to Moody’s forecasting from
2014 to 2015, median-home prices will
increase from 205.2 to 209.1
(thousands). As jobless rates decrease,
consumer confidence in the housing
markets will increase thus allowing
housing markets to gradually rebound.
At this rate of 1.9% price growth, the
housing market will recover partially
within the near future. This uptrend
would allude to a gradual increase in
consumer confidence for related markets
such as transportation, medical care, and
education.
Freddie Mac forecasts the 30-year fixed
mortgage rate to steadily rise, ending at a

4.6% rate by the end of 2014 from the
previous rate of 4.3% in 2013. By the
end of 2015, Freddie Mac estimates 30-
year fixed mortgage rates around 5.4%.
In addition, fixed interest rates are
expected to climb as a direct result of the
Federal Reserve’s reduction of MBS
acquisitions. *Government bonds may
be an attractive option for investors
moving forward into 2015 for principal
security.
Jobless Claims:
Despite being a number associated with
short term volatility, US jobless claims
have slowly, but steadily, declined over
the last three years. April 2011 showed
us an unemployment rate of 9.1%, by
comparison, the current unemployment
rate sits at a much lower 6.7%. This
represents a decline of roughly 1% year
over year. Unemployment forecasts for
September 2014 are at 6.3% continuing
the downward trend. Jobless claims
should reflect this proportionately.
Jobless claims do fail to account for
several important factors, such as
workers who have dropped out of the
workforce entirely, the under-employed,
and those people who are ineligible for
unemployment benefits.
The decreasing jobless claims coupled
with recovering real estate values, has
greatly contributed to a modest increase
in average household spending. This is
contributing to recovery as GDP is
forecast to grow at a lean 2.8% in 2014.
Though it may be slow, upward growth
is happening in the economy and an
inverse correlation exists in the form of
an equally slowly decreasing amount of
jobless claims. These conditions are
projected to stay at the same
performance levels for the next year.
Conclusion:
Based upon this economic outlook, we
feel that it is prudent to invest with
realistic goals in mind in terms of return
on investment (ROI). Our suggestion for
our long-term investors is to adopt a
moderately conservative risk preference.
An example of this asset allocation
model would include an overweight
allocation of government bonds and
investment grade corporate debt. In
conjunction with this particular
allocation, it is advised to maintain
underweight positions in dividend paying
equities. Investors should simultaneously
take advantage of dividend yields
amongst exchange traded funds with
strong performance.

Recommended Asset Allocation
In unpredictable market cycles,
diversification allows the offset of
possible losses in one investment type
with the potential for gains in another,
reducing overall levels of risk. We
believe lead macro indicators, illustrated
in our outlook, contribute to our rationale
behind a moderate allocation risk profile.
In our report, we review 2013 past
performances and identify future
projections for 2014-2015. Considering
an improving economy and the
substantial returns from 2013 we
recommend an allocation model
consisting of 20% in Equities, 35% in
Bonds, 40% MF/ETF, and 5% Cash.
We advise that clients use our dividend
reinvestment plan (DRIP) strategy to
take advantage of high yielding
dividends which will be reinvested into
the principal amount of each chosen
security. We recommend our clients to
allocate liquidity needs into a CD,
accruing an interest rate of .06%.
Due to expanding energy consumption
across the globe, we endorse overweight
positions in Mid-Cap growth stocks with
a hedge strategy encompassing
consistent Large-Cap performers.
Aggregate Asset
Allocation
Moderately
Conservative
Stocks 20.00%
Bonds 35.00%
MF/ETF 40.00%
Cash 5.00%
Total 100.00%

IPS:
Purpose: This document will describe
client(s) investment objectives, risk
tolerance, and other important factors in
order to monitor and evaluate overall
portfolio performance. We describe our
investment objective
General Information:
Client Name: Jordan Belfort
Date of Birth: 06/01/1969
Occupation: Architect
Co-Client Name: N/A
Date of Birth: N/A
Occupation: N/A
Current Investable Assets: $1,000,000
Investment Advisors: Eric Risi,
Courtney Fenwick, Brendan McCauley,
Carl Schachter
Investment Objective/s:
LONG-TERM GROWTH:
After-tax & after-expense annual
portfolio return that is at least five
percentage points greater than the rate of
inflation. Additionally, this portfolio
will exist within a tax-deferred vehicle
such as an Individual Retirement
Account (IRA), while simultaneously
utilizing a Dividend Reinvestment Plan
(DRiP) to reinvest dividend payments
into the principal amount.
*Inflation is measured by the U.S.
Consumer Price Index (CPI)
**A plan offered that allows investors to
reinvest their cash dividends by
purchasing additional shares or fractional
shares on the dividend payment date.
Time Horizon: 1 Year
Cash Flow & Portfolio Withdrawals:
Mr. Belfort is currently working and
believes he will work for the next 5-10
years in the architecture industry. Cash
flow requirements will be covered by
salary, certificate of deposit and money
market accounts. With these accounts in
place, we do not foresee any drastic
withdrawals from portfolio.
Income Taxes:
The accounts managed by our
investment advisors and managers are
subject to federal taxation excluding any
retirement accounts. Our accounts will
be managed and structured towards long-
term growth and tax deferred strategies
within the portfolio. Our advisors and
managers recognize the importance of
conversing with our tax accountant the
effects of the current tax position.
Risk Tolerance:
MODERATELY CONSERVATIVE:
Due to the volatility of capital markets,
investment risk will need to be accounted
for to achieve our investment goals.

Both our advisers and managers realize
that a risk-free investment is not realistic
and if employed, investment principal
could be at a loss. In measuring our
ability to endure short and intermediate
market price and total return volatility,
several factors have been measured.
These factors are:
Loss tolerance:
Our risk tolerance target level will not
exceed more than 3%
Liquidity Reserve:
A liquidity reserve in the form of CD and
money market accounts will be at Mr.
Belfort’s disposal to prevent liquidation
of the portfolio during adverse times.
The CD account will accrue interest
annually at 6% while the money market
account will enable the client to disperse
checks.
Risk Allocation & Asset Allocation:
RISI-VISION recognizes the levels of
risk associated with the asset classes in
the current market and are classified in
three large categories of higher risk,
medium risk and lower risk. Through
time the financial position, objectives
and risk tolerance may be altered, in
effect the asset allocation strategy will be
examined annually.
Tactical Portfolio Positioning:
Asset Allocation Percentages 20%
Equities, 40% Bonds, 35% ETF, 5%
cash. The portfolio will be designed
with a long-term asset allocation
strategy. With investment markets and
their volatile behaviors, opportunities
may be presented to increase return and
reduce risk by deviating from the long-
term asset allocation plan. Various asset
classes may be evaluated by RISI-
VISION as being undervalued involving
a higher expected return or overvalued
meaning a lower rate of return with
increased risk. Consequently, RISI-
VISION will under or overweight
multiple risk categories and the asset
classes of each category reflecting its
evaluation of the investment markets.
These strategic adjustments are restricted
to the limits of each risk category
designed within the Risk Allocation and
Asset Allocation sections.
Rebalancing the portfolio will incur costs
to the client that include transaction costs
and taxes. These costs will be accounted
for by RISI-VISION prior to rebalancing
the portfolio. Lastly, illiquid
investments may limit rebalancing
actions in the portfolio.
Portfolio Rebalancing:
The Portfolio should be assessed against
its asset allocation model within client
risk tolerances as stated in the IPS.
Rebalancing will occur, if necessary,
through the sale of over performing
securities and the buy-back of
underperforming securities. If this
proves insufficient, cash shall be added
to the portfolio until equilibrium is
achieved.
*Transaction costs, taxes, and fees may
be incurred if rebalancing is necessary.
Portfolio manager may recommend
rebalancing at any time.

Portfolio Performance Expectations:
Bases upon extensive buy side market
research and analysis from RISI-VISION
Investments, it is the belief that an 8%
return can be achieved on an annual
basis. Clients should benefit from better
than average market returns through an
increase of 5% on their portfolio above
the rate of inflation (3%).
*Performance may differ based upon
market and global conditions. The
portfolio will not always be perfectly
allocated due to market fluctuations and
as such is subject to rebalancing. These
terms are merely illustrations and are
subject to change.
Account Manager:
Mr. Risi’s performance in equity, bond,
and fund markets have been impressive
in the past few years. He has averaged
10% returns (7% above inflation) for the
last three years. He hopes to raise to the
bar this year with new upgrades to the
OMEGA Algorithm.
 Past performance consistency and
improvement YoY
 Acceptable risk-reward ratios
 Allocation Strategy, Turnover,
Capacity
 Organizational structure,
compensation, strategy,
performance bonuses
 Consistent and repeatable
processes
 “In Person” attention to clientele
 Extensive Experience with above
target performance
Mutual Funds-Evaluation & Selection
Process:
RISI-VISION takes into account
geopolitical factors, market signs/trends,
and a blended approach from many
quantitative and qualitative sources to
form a selection of the appropriate
securities to match the desired
performance of the fund.
 Track record of performance,
consistency, and over/under
performance relative to
appropriate benchmarks.
 Appropriate returns for risk
incurred
 Asset cap, class, turnover, and
returns
 Sound investment processes
 Ability of manager to keep fees
low and fund returns tax efficient
 Reasonable cost structure
including, but not limited to,
Transaction costs, fees, and taxes.

Risk & Return Assumptions:
Asset Class Pre- Tax
Return Goal %
Beta (Risk%)
Large Cap Equity 8% 0.584
Medium Cap Equity 15% 0.71
ETF's (High Yield) ETF's 10% 1.009
Bonds (Fixed Income)
PUERTO RICO ELEC PWR AUTH
PWR REV BDS (74526QED0)
5% BBB
BNP PARIBAS US MTN LLC 5% A
GOLDMAN SACHS GROUP INC
(GS.JCT - 38143UVG3)
5% A
ANGLOGOLD ASHANTI HLDS FIN
PL (03512TAC5)
5% BBB
T-NOTE 3.125% 31-JAN-2017 3.10% AAA
T-NOTE 3.625% 15-FEB-2020 3.60% AAA
Cash
MM 1% 0
CD 1% 0

Performance Benchmarks:
Assets:
Market
Benchmark: Peer Group Benchmark:
Large Cap Equity
(Hedge)
S&P 500 Composite
Index S&P 100 INDEX (OEX)
High-Yield Fixed
Income
Barclay's Aggregate
Bond Index
Vanguard Intermediate Term
Corporate Bond Index (VICSX)
ETFs
S&P 500 Composite
Index
Vanguard High Dividend Yield
Index (VHDYX)
CDs US. T-Bill Synchrony Bank Optimizer Plus
Cash US. T-Bill N/A
Additional Information:
We understand the asset allocation
software used to estimate certain
portfolio statistics, mainly risk and
return, is maintained by RISI-VISION
INVESTMENTS. In addition, we
realize the returns, standard deviations
and correlation coefficients of the
various asset classes used in the program
are based upon data provided by RISI-
VISION INVESTMENTS. We
understand these measurements are not
intended to accurately predict future
investment performance, but are
intended to be used as tools to gauge our
tolerance for volatility. Accordingly, we
recognize the information contained in
this analysis should be viewed as an
illustration and not as prediction and
does not guarantee results.
Additional Risks Associated with
Investments in Hedge Funds, Private
Equity, and Private Real Estate:

 Liquidity Risk: We have adequate
means of providing for current and
future cash flow needs to have no
need for liquidity with respect to our
investment in hedge funds, private
equity and private real estate. RISI-
VISION INVESTMENTS has
explained that these investments are
illiquid interests in private
partnerships and may subject us to
certain lock-up periods where we
may not be able to access some or all
of the funds we have invested in such
vehicles (the specific lock-up periods
are contained in the subscription
document of each investment) and
that RISI-VISION INVESTMENTS
cannot control (or influence) the
lock-up period on any of these
investments.
 Transparency Risk: Investment in
hedge funds, private equity and
private real estate are often made
through investment in limited
partnerships. The assets of the
partnership are not transparent as is
the case with traditional stocks and
bonds. Transparency in this sense
refers to the ability of an investor to
look directly into an investment
portfolio and see all its components,
providing the opportunity to clearly
gauge performance and assess risk
exposure.
 Lack of Marketability Risk: Once a
commitment is made, it can be
difficult or impossible to transfer
ownership in the investment to
another investor.
Client Responsibilities:
We will meet with our investment
advisor, RISI-VISION INVESTMENTS,
at least annually to confirm the accuracy
and appropriateness of this IPS and RISI-
VISION INVESTMENTS
implementation of this IPS.
We will provide RISI-VISION
INVESTMENTS information necessary
to update this IPS, including:
 Any changes to our projected cash
flow, portfolio withdrawal
requirements, or tax situation;
 Any changes in risk tolerance or
investment constraints;
 Any significant change to our net
worth.
We have reviewed and understand this
IPS and confirm that it is a suitable
approach given our financial situation,
objectives, return expectations, and risk
tolerance.
______________ _______
(Client 1 Signature) Date
______________ _______
(Client 2 Signature) Date

Portfolio Positions - Equity Rational:
RISI-VISION has compiled data from a
vast array of sources to produce a
diversified equity allocation
complimentary to a moderately
conservative risk position. The main
focus is on the energy sector and its
growth that will be hedged through a
diversified allocation of remaining
securities to ensure minimal downside
and a positive return within risk reward
tolerances as stated by the IPS.
Allocation of 50% of the equity budget
to growth ensures appropriate risk
tolerances are adhered to while allowing
for increases to equity and revenue
through gains in stock value and
dividend payments. The advent of
fractal mining for oil has led North
Dakota and Texas to be the 5th largest
oil producer in the world. This hint at
energy independence for the U.S. has
started a wave of awareness that spills
over to every form of energy production
within that sector.
The popularity of clean and renewable
sources of energy, solar, wind, and
hydroelectric are preferred methods of
power generation that can be charged a
premium price for. Expansion into these
environmentally friendly sources of
power generation offers investors
astronomical growth prospects and
promises strong returns from the energy
sector.

Moderately Conservative Asset Allocation for Equities:
SYMBOL: WEIGHT: BETA: DIV PAY
DATE:
INDUSTRY/ SECTOR:
LMT:US 0.09959 0.65 8/28/2014 Aerospace & Defense/ Industrials
(Large)
MRK:US 0.10010 0.43 6/12/2014 Biotech & Pharmaceuticals:
Health Care (Large)
T:US 0.10004 0.47 6/8/2014 Telecom: Communications
(Large)
PEP:US 0.09985 0.38 6/4/2014 Consumer Products: Consumer
Staples (Large)
TEG:US 0.50058 0.71 5/28/2014 Utilities: Utilities (Medium)
CME:US 0.09984 0.99 6/6/2014 Institutional Financial Services:
Financials (Large)
Equity Selection Rational:
Lockheed Martin (LMT) – Aerospace &
Defense:
LMT was chosen based upon a long
history of equitable gains and the
payment of dividends over the life of the
stock. With the government ceasing
funding for NASA, the price for
aerospace design and engineering for
national defense is at a premium.
Increases in private spending for space
tour logistics is also on the rise and in the
news. This selection is a blue chip
performer with a track record of
dependable gains.
Merck & Co. Inc. - Biotech &
Pharmaceuticals:
Merck is another company with an
admirable track record of returns and
performance. A standard bearer for the
pharmaceutical industry, Merck has a
proven history of positive slope

performance in the market. Backed by
strong management and a string of
popular products, Merck has the revenue
stream and medical patents to ensure
dividend payments and positive equity
for several years to come.
AT&T – Telecom and Communications:
An established blue chip on the NYSE,
AT&T has been a leader in the
communications industry since the
telephone was introduced to the public in
the early 1900’s. AT&T has a strong
history of growth and dividend payment
to its investors. Having achieved a high
degree of horizontal integration has put
AT&T in front of customers in almost
every aspect of public telecom while also
carrying sizable contracts for industry
and the government. AT&T has a strong
revenue stream that will stay lucrative
for the foreseeable future.
Pepsi - Consumer Products/Consumer
Staples:
Currently in a recognized “Duopoly”
with COKE for its share of the American
soda industry, Pepsi has horizontally and
vertically integrated to a moderate extent
through acquisitions under the name of
YUM brands. It has established a strong
distribution network with a reliable
infrastructure for its core and ancillary
products. Pepsi pays regular dividends
and has a proven track record of success
with growth and earnings.
Integrys Energy Group, Inc. – Utilities:
Integrys is a medium size market cap
equity in the growth stages of its
company life cycle. Specializing in coal,
wind, hydroelectric, solar, and peak
power generation to supply the national
grid, Integrys is also a leader in natural
gas production and distribution. With
the popularity of energy independence in
the U.S., increasing demand for more
energy from cleaner sources is a major
topic of national focus. While individual
home solar power generation is currently
1.5% of the consumer energy market, in
5 years it will comprise 15%. Unusually
cold winters have put natural gas in high
demand and reduced national reserves.
Major growth and expansion is
happening now in the energy industry
and Risi-vision models predict that this
trend will continue to increase over the
next several years.
*Relevant Asset Information (Weekly)

Equity News:
SYMBOL: WEEK 1
- 5/30/14
WEEK 2 -
6/6/14
WEEK 3 -
6/13/14
WEEK 4 -
6/20/14
WEEK 5 -
6/27/14
WEEK 6 -
7/3/14
WEEK 7 -
7/11/14
LMT:US 162.1 166.33 164.04 164.2 162.7 159.9 160.31
5/28/2014 -
Ex-Date for
dividend
payment of
$1.33 N/A N/A N/A
Lockheed
Martin Releases
Industrial
Defender
Platform
Update To
Improve
Critical
Infrastructure
Cyber Security
7/1/2014 -
LOCKHEED
MARTIN
CORP Files
SEC form 8-K,
Change in
Directors or
Principal
Officers,
Regulation FD
Disclosure
Lockheed Martin
and Lewis Innovative
Technologies
Collaborate Under
the Department of
Defense Mentor-
Protégé Program
MRK:US 56.4 58.1 58.24 58.3 57.53 59.2 58.44
5/29/2014 -
MERCK &
CO. INC.
Files SEC
form 8-K,
Submission
of Matters to
a Vote of
Security
Holders
Data on
Merck's MK-
3475 from
Largest Study
to Date of
Investigational
Anti-PD-1
Antibody in
Advanced
Melanoma
Highlighted at
ASCO 2014
6/11/2014 -
Ex-Date for
dividend
payment of
$0.44
Merck Launches
Global Patient
Registry Supporting
Expanded
Commitment to
Real-World
Outcomes Research
in Type 2 Diabetes
Award-
Winning
Actress S.
Epatha
Merkerson and
Merck
Challenge
African
Americans with
Type 2 Diabetes
to Get to Their
Goals N/A N/A
T:US 35.34 35.1 35.03 35.36 35.41 35.84 35.76
6/3/2014 -
AT&T INC.
Files SEC form
8-K, Other
Events
6/10/2014 -
AT&T INC.
Files SEC
form 8-K,
Other Events,
Financial
Statements
and Exhibits
New AT&T Store
In Sandy Features
An Innovative
Design That Mirrors
Customers' Mobile
Lifestyle
6/27/2014 -
AT&T INC.
Files SEC form
8-K, Entry into
a Material
Definitive
Agreement,
Financial
Statements and
Exhibits
AT&T Street
Charge Solar
Charging
Stations Arrive
At City Beaches
Just In Time
For Fourth Of
July Fun
7/7/2014 - Ex-Date
for dividend payment
of $0.46
PEP:US 87.07 87.76 87.19 90.01 88.76 90.02 89.85
6/3/2014 - Ex- 6/11/2014 - PepsiCo Announces Review on 7/1/2014 - N/A

Date for
dividend
payment of
$0.655
PEPSICO
INC Files
SEC form 8-
K, Entry into
a Material
Definitive
Agreement,
Termination
of a Material
Definitive
Agre
Timing of Second
Quarter 2014
Earnings Release and
Investor Call
Consumer
Staples Stocks -
- Research on
Mondelez Intl.,
Hershey, Coca-
Cola
Enterprises, and
PepsiCo
PEPSICO INC
Files SEC form
8-K, Other
Events
TEG:US 57.23 58.77 57.7 60.8 70.92 68.5 69.23
5/27/2014 -
Ex-Date for
dividend
payment of
$0.68
N/A N/A
SHAREHOLDER
ALERT: Brodsky &
Smith, LLC
Announces
Investigation of
Integrys Energy
Group, Inc. - TEG
INVESTOR
ALERT: Levi
& Korsinsky,
LLP Notifies
Investors of
Integrys Energy
Group, Inc. of
Class Action
Against Its
Board of
Directors in
Connection
With the Sale
of the Company
to Wisconsin
Energy Corp. --
TEG
LAWSUIT
ALERT: The
Law Firm of
Andrews &
Springer LLC
Announces That
A Class Action
Lawsuit Has
Been Filed
Against Integrys
Energy Group
Inc. -- TEG
INTEGRYS
ENERGY GROUP,
INC.
SHAREHOLDER
ALERT: Rigrodsky
& Long, P.A.
Announces
Investigation Of
Buyout
CME:US 71.93 69.51 71.45 71.73 70.42 72.36 70.49
5/28/2014 -
CME
GROUP
INC. Files
SEC form 8-
K, Entry into
a Material
Definitive
Agreement,
Submission
of Matters to
a Vote of Sec
6/5/2014 - Ex-
Date for
dividend
payment of
$0.47
CME Group
Announces
Record
Trading
Volume for
NYMEX
Brent (BZ)
and British
Pound
Futures
(GBP/USD)
CME Group and
BarclayHedge Honor
Managed Futures
Leaders at Third
Annual Managed
Futures Pinnacle
Awards
CME Group
Inc. Announces
Date of
Second-Quarter
2014 Earnings
Release,
Conference Call
CME Group
Volume
Averaged 12.7
Million
Contracts per
Day in June
2014, Down 2
Percent from
May 2014
CME Group
Announces Record
Trading Volume and
Open Interest for
NYMEX Brent (BZ)

Exchange Trade Funds-Evaluation &
Selection Process:
RISI-VISION’s moderately conservative
approach within Mr. Belfort’s portfolio
focuses on a high concentration of
conservative Exchange Traded Funds
(ETF). Formation of ETFs in the
portfolio is based on diversification of
the indexes they span and also their
longevity. Our evaluations on both
domestic and international ETFs will be
measured against the S&P 500 and the
Vanguard benchmarks.
Selection of Exchange Trade Funds
(ETF) by RISI-VISION develops a
selection criteria based on the following:
 Morning Star Ratings
 Expense ratios (Category Average)
 Portfolio turnover
 Sales
 Manager Tenure

The table below illustrates these criteria on selected ETF’s for the portfolio.
SYMBOL: Net Expense Ratio:
Category Average
Morning
Star Rating
Portfolio
Turnover
Sales Loads Manager
Tenure
CVY:US (15%) 0.32% 3 108.00% YES 1 year
DHS:US (5%) 0.32% 5 30.00% YES 6 years
IYLD:US (20%) 0.31 3 51.00% YES 2 years
PCEF:US (30%) 0.31% 3 33.00% YES 4 years
SDIV:US (20%) .50 % 2 46.64% YES 3 years
XLU:US (10%) 0.54% 3 3.53% NONE 14 years
Guggenheim Multi-Asset Income ETF
Selection Rationale:
The Guggenheim Multi-Asset Income
ETF (CVY) will provide the portfolio
substantial exposure to dividend paying
equities and diversification with a
heavier weight in financials and energy
securities, ADRS and closed-end funds.
Within diversifying the portfolio in
conjunction with lower asset classes,
CVY will provide appealing yields.
CVY’s investment performance will
reflect the Zacks Multi-Asset Income
Index. The Zacks Multi-Asset Income
Index selects a group of securities that
have the capability of producing yields
of outperforming the Dow Jones US
Select Dividend Index. This index
consists of 125 to 150 securities
organized based on liquidity. (Will
utilize DRiP policy as mentioned before
in the economic outlook.) Payments
from dividends will hedge the ETF
portfolio against risk along with low
Beta value.
WisdomTree Equity Income ETF
Though Wisdom Tree Equity Income
ETF (DHS) only consists 5% of the ETF
allocation, its potential for high yielding
dividends gives it strength. DHS asset
allocation is differentiated through heavy
investments in drugs & pharmaceuticals,
electric utilities, REITS and financials. .
(Will utilize DRiP policy as mentioned
before in the economic outlook.)

iShares Morningstar Multi-Asset
Income ETF Selection Rationale:
Fixed income investing will be
fundamentally incorporated throughout
the entire portfolio and RISI-VISION
continues that theme with a 20%
investment of capital in the iShares
Morning Star Multi-Asset Income ETF
(IYLD). This fund’s allocation strategy is
composed of 60% fixed income, 20%
equity and 20% income invested towards
alternative income sources. We feel that
the index IYLD allows the portfolio to
gain high current income and open the
possibility of capital appreciation
simultaneously. In the year-to-date
period, IYLD has returned 8.5%.
PowerShares CEF Income Composite
ETF Selection Rationale:
RISI-VISION believes a 30% portion of
the ETF would be best invested under a
conservative fund in the Powershares
CEF Income Composite ETF (PCEF).
While we have dedicated other portions
of the ETF strategy towards funds that
pay high yielding dividends, PCEF is
constructed of diversified funds within
the financial sector. This fund invests
assets in common shares of funds within
the S-Network Composite Closed-End
Fund Index instead of individual
securities pooled together. PCEF invests
90% of its assets into US closed end
funds that comprise the underlying
index.
Utilities Select Sector SPDR ETF
Through the first half of 2014, the
utilities sector has been on the rise. We
plan on capitalizing on this continuing
trend with a 10% allocation of our ETFs
under the Utilities Select Sector SPDR
ETF (XLU). Within the first half of the
year, XLU has shown a 16.57% increase
in their utilities sectors. This level of
increase is a product of the broadness of
sectors XLU covers within their portfolio
and outperforming their peer group
consistently. Growth in infrastructure
plays an underlying role in evaluating the
macro environment of the utilities sector.
Utilities and gas are major components
of infrastructure projects will be
profitable as efforts towards
infrastructure expansion both globally
and domestically.

Global X SuperDividend ETF
In our attempts to keep a well-diversified
allocation of global ETFs, the Global X
SuperDividend ETF (SDIV) fits very
well under RISI-VISION’s international
investment requirements with a 20%
allotment. The SDIV fund measures it’s
investment performance under the
Solactive Global Super Dividend Index.
We found that a fund that measures itself
under the top 100 international
companies that provide high dividend
paying securities aligns accordingly to
RISI-VISION’s conservative asset
allocation model. This fund is managed
under a “Passive Approach” and does not
solely focus its values against the
underlying index. In staying consistent
with our diversified approach, the figure
below illustrates how broad of an
investment horizon SDIV has
.

Equity News:
SYMBOL: WEEK 1 - 5/30/14 WEEK
2 -
6/6/14
WEEK 3 -
6/13/14
WEEK
4 -
6/20/14
WEEK
5 -
6/27/14
WEEK 6 - 7/3/14 WEEK 7 - 7/11/14
CVY:US 25.52 25.9 25.95 26.28 26.08 26.16 25.9
7/8/14 -
-LINN Energy is acquiring
and developing oil and gas
assets
-LINN Energy is interested in
the acquisition from Devon
7/7/14
-LINN Energy acquired assets
from Devon for $2.3 billion
DHS:US 57.86 58.73 58.56 59.66 59.37 59.55 59.51
Gentle slope with low volatility
- nothing significant.
IYLD:US 26.63 26.65 26.64 26.77 26.88 26.48 26.6
Gentle slope with low volatility
- nothing significant.
PCEF:US 25.27 25.25 25.23 25.32 25.46 25.33 25.46
5/29/14
-Invesco PowerShares
Lists First-of-Its-
Kind ETF
Referencing the
Morgan Stanley
Multi-Strategy
Alternative Index
(The PowerShares
LALT strategy is
designed to help
investors reach their
portfolio objectives by
reducing the volatility
of returns and
mitigating the risk of
drawdowns.)
7/8/14
-Invesco PowerShares
Announces Changes for
Municipal Bond ETFs (The
new indexes underlying the
PowerShares' Municipal Bond
ETFs include both insured and
uninsured municipal bonds.)
SDIV:US 25.39 25.84 25.83 26.04 26.05 26.06 25.73
6/12/14
-Super
Dividend ETF

Tops $1 Billion
in Assets for
Global X.
XLU:US 42.34 43.08 42.55 43.37 43.91 42.5 42.84
6/11/14
-Utilities fund
faces bearish
trade (The
SPDR Utilities
Fund is facing a
huge short-
term bearish
position as
shares pull back
from recent
highs - The
XLU is down
0.68 percent to
$42.40 in
midday
trading.)
7/3/14
-Utilities, REIT ETFs Lose
Luster After Jobs Report (The
SPDR Utilities Sector ETF
(XLU) slipped 1.35% to
$42.39 after the opening bell
with more than 5.2 million
shares changing hands, while
the Vanguard REIT Index
ETF (VNQ) gave up 0.6% to
$74.43. / The yield on the 10-
year Treasury note climbed to
a two-month high of 2.678%,
after nonfarm payrolls
increased and the
unemployment rate fell more
than expected. As of 11 a.m.,
the yield sat at 2.659%. / The
XLU had dropped 2.9%
during the two previous
sessions after closing at a six-
year high on June 30.)
7/2/14
-S&P 500 Earnings Guidance
Trends Improving (In Q4
2013, just 15.9% of earnings
guidance was positive, marking
a record low. That number
ticked up to 18.6% in Q1, and
24.3% in Q2. And negative
guidance is 6.9% below
expectations, which is an
improvement over the five-
year average of -10.7%. In Q2,
just 39.5% of revenue guidance
was positive, down from 44.0%
in Q1. However, it's better
than the five-year average of
33% positive.)
7/11/14
-Utility & REIT Funds Come
Roaring Back (REITs turned
in solid first-half 2014
performance of their own, as
reflected in the 17.7 percent
total return from the largest
REIT ETF, the Vanguard
REIT ETF (VNQ | A-88).
-Utilities and REITs hold
appeal as income producers,
with yields of 3.69 percent and
3.44 percent for VNQ and
XLU, respectively, over the
past 12 months, beating that of
the broad market proxy SPDR
S&P 500 ETF (SPY | A-98).)
7/6/14
-Analysts Call Energy Rally,
But Strike Out In Utilities (On
December 31, the Utilities
sector had the lowest
percentage of Buy ratings of all
ten sectors in the S&P 500
(INDEXSP:.INX). Since that
date, the Utilities sector has
recorded the highest increase
in price of all ten sectors at
16.4% (to 224.93 from
193.21))

Overall Equity Performance:
Overall ETF Performance:

Portfolio Questions:
1. How did each portfolio perform in comparison to the S&P 500 and to the
Peer Group benchmark? What is the total dollar return on your portfolio?
A: The equity portfolio underperformed both the market benchmark (S&P500) and
peer groups (S&P100). Total dollar return: $23,055.62
The Exchange Traded Funds (ETF) Portfolio underperformed in relation to the
S&P500 and Vanguard Index. Total dollar return: $21,071.86
The bond portfolio performed both the Barclay's Aggregate Bond Index and the
Vanguard Intermediate Term Corporate Bond Index (VICSX). The total dollar
return: $15,680.12
2. Which portfolio’s performance was better and why? Give your best guess.
Was the performance a result of diversification? Was there some event
(merger, accounting issue, etc.) that significantly impacted a particular
company’s performance?
A: The “Stock” portion of the portfolio performed the best, this is most likely due
to the overweight position in TEG (Integrys Energy Group) which experienced a
significant positive spike in performance due to WEC Energy Inc’s acquisition of
TEG on June 23rd.
3. How did your global asset allocation model impact the performance of your
portfolio? Explain. What is your post-performance asset allocation model? Is
it not significantly different from your initial asset allocation model? Why or
why not? Explain.
A: Our asset allocation model generated a ($44,127.48) or 4.4% return on
investment, actual total return amounted in ($14,000) or 1.4% over inflation. Post-
performance rebalancing would consist of repurchasing more of underperforming
shares and selling over performing securities. It would be significantly different
than our initial asset allocation model because of such a low overall return.

4. Compare the average beta for each of the portfolios to the market beta and to
each other. Is there a relationship between the average beta for each of the
portfolios and their performance? Discuss the average beta for each portfolio
relative to the market beta in terms of risk and return.
A: Stock Portfolio: Avg. beta (.605), the relationship amongst assets in portfolio
represents a low correlation. In relation to the market beta (1), the stock portfolio’s
reduced level of risk correlates with its beta falling below the market’s risk. With
a low beta of .605, upside potential is limited in correlation with limited downside
risk. Returns were lower than original estimates under the asset allocation model.
ETF Portfolio: Avg. beta (1.009), the relationship amongst assets within the
portfolio represent a slightly high correlation in relation to the market beta (1), the
ETF portfolio may have upside potential but is somewhat exposed as far as market
risk is concerned. Returns were lower than original estimates under the asset
allocation model.
5. From an economic perspective, in your view, has the level of economic
recovery impacted the performance of your portfolio?
A: The level of economic recovery has had a slightly positive effect on the
portfolio due to bullish market trends and increasing consumer confidence, all of
this contributes to a gradual increase in the movement of investment capital, but
until there is a change in interest rates and investor sentiment, this time horizon is
very long.

2014_07_22 USE!!!Final_Portfolio_Project

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