Risk Controlled S&P 500 Account

A Risk Controlled Equity (RiCE) managed account program

This strategy offers investors the opportunity to match the S&P 500's annual returns up to 30% with a targeted downside of -15%.

Investment Objective

The RiCE managed account program is designed to offer investors the opportunity to meet, and over time exceed, the S&P 500 return. By using fixed income securities and simple call options in a managed account for each client, we focus on limiting potential loss to 15% over a 12 month period even if the market loss is over 15%. On the other hand, if the market gains over 30% a year, the maximum gain will likely be 30%. If the market return is between -15% and +30%, we expect that the account value will closely track the index.

Illustration: One Year RiCE S&P 500 and S&P 500 Index Returns

Over time, since the portfolio seeks to avoids significant losses (greater than 15%), it also is designed to measurably out-performs buying and holding the index. This out-performance can usually be achieved with significantly lower volatility, meaning you can own the account and sleep well at night.

Total Return

RiCE S&P 500 Return as of 12/31/08

Market Value of $100,000 investment

Period 1/1/1999 to 12/31/2008

For additional information please review our Product Brochure

Brookstone Partners Asset Management provides investment advisory services through Partnervest Advisory Services, LLC, an investment advisor registered with the Securities and Exchange Commission. Results relating to the RiCE S&P 500 account performance are based on back-tested model data and do not represent actual results realized by any individual investor. There may exist better benchmark comparisons than those offered herein for modeled performance data. Modeled returns are shown gross of fees. Fees associated with the RiCE and Cornerstone products will vary by investor based on each investor's assets with Brookstone Partners Asset Management and each within each respective product account. Material economic events or conditions will have positive or negative impacts on the performance of both Cornerstone and RiCE accounts. While RiCE accounts seek to limit losses to 15% when components are held to maturity, the market value of a RiCE account can from time to time have mark to market losses in excess of 15%. The RiCE and Cornerstone account model performance shown includes the value of re-investment of interest and dividends from prior periods. Consider the investment objectives, risks and charges and expenses of the Brookstone Partners Asset Management managed account investment programs carefully before investing. For this and other information about Brookstone Partners Asset Management investment programs, please contact Brookstone Partners Asset Management at (212) 302-7667; on the internet at www.BrookstonePAM.com or by mail to Brookstone Partners Asset Management, 317 Madison Avenue, Suite 405, New York, NY 10017.