ALTERNATIVE INVESTMENT SUITABILITY GUIDELINES

1 Revised 01/04/2013 ALTERNATIVE INVESTMENT SUITABILITY GUIDELINES NOTE: MUST FOLLOW STATE AND PROSPECTUS CONCENTRATION GUIDELINES IF MORE RESTRICTIVE THAN GRID BELOW ALTERNATIVE INVESTMENT GUIDELINES CLIENT UNDER 70 OLDRisk Tolerance < 1 Million Net Worth 1-5 Million Net Worth >5 Million Net Worth Conservative **(not appropriate for clients with a Preservation of Capital objective) 5% of investable assets 5% of investable assets 5% of investable assets Moderate Conservative 10% of investable assets 10% of investable assets 10% of investable assets Moderate 15% of investable assets 20% of investable assets 25% of investable assets Moderate Aggressive 20% of investable assets 25% of investable assets 25% of investable assets Aggressive 25% of investable assets 30% of investable assets 30% of investable assets ALTERNATIVE INVESTMENT GUIDELINES CLIENT 70 AND OLDERRisk Tolerance < 1

2 Million Net Worth 1-5 Million Net Worth >5 Million Net Worth Conservative **(not appropriate for clients with a Preservation of Capital objective) 5% of investable assets 5% of investable assets 5% of investable assets Moderate Conservative 5% of investable assets 5% of investable assets 10% of investable assets Moderate 10% of investable assets 10% of investable assets 15% of investable assets Moderate Aggressive 15% of investable assets 15% of investable assets 20% of investable assets Aggressive 15% of investable assets 20% of investable assets 20% of investable assets Additional Considerations.

3 ** No more than 10% of INVESTABLE ASSETS in any one product **No more than 20% of INVESTABLE ASSETS in any one asset category ** No more than 30% of INVESTABLE ASSETS for highest allocations NET WORTH is defined as the total value of all assets (such as securities, real estate, ALTERNATIVE investments, etc, exclusive of the client s home equity, home furnishings, and automobiles) minus all outstanding liabilities. INVESTABLE ASSETS include any investable assets in the client s portfolio such as stocks, bonds, mutual funds, variable annuities, Non-Traded REITs and other ALTERNATIVE Investments, insurance products or banking products.

4 Non-investable assets include real property, such as homes, farm land, jewelry, cars or real estate For TRS reviews Investable Assets are equal to Liquid Net Worth plus the total of all ALTERNATIVE Investments