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Morningstar Investment ServicesMutual FundPortfoliosAsset AllocationBroad diversification, distinctive, independent researchand progressive risk management in five core model portfoliosthat span the risk spectrum.

A range of core choices for every stage of your lifetimeOur investment team creates these diversified portfolios using a research-drivenprocess supported by independent fund analysis from Morningstar, Inc. and regularmeetings with fund managers.Ibbotson Asset AllocationIn investing, the essentials matter. That’s why westart with research from our affiliate, IbbotsonAssociates—a leading authority on asset allocation—to build our portfolios. Ibbotson Associates haveshown that the mix of assets in a portfolio can havea greater impact on investment returns thantiming markets or picking stocks. Guided by this research,we use Ibbotson’s risk and return forecasts todevelop a strategic asset allocation for our portfolios.Morningstar DataWe think our independent approach sets us apart.Once we’ve determined a portfolio’s asset allocation, wesift through thousands of investments to identifythose which we think are worthwhile. Our research process is backed by trusted data from our parent company,Morningstar, Inc. From there, we evaluate each potentialholding using a proprietary methodology. Only thosewith our highest conviction make it into your portfolio.Active ManagementBecause markets are in constant motion, we don’ttake a ‘set it and forget it’ approach. We’re firm believers in active investing, and embrace an independentapproach by selecting flexible managers or lesser-knownboutique shops—seeking those with the potentialto deliver above-average risk-adjusted results over thelong term.Face-to-Face ResearchBefore we invest in a fund, we want to understandthe people behind it. We meet one-on-one withfund managers, asking detailed questions to uncoverhow they make decisions. We look for those who’eat their own cooking’ by investing their own personalsavings in the funds they oversee.Inside Our Investment ProcessEach portfolio is created using a continual, five-step process.33 Capital Markets Assumptions 3 S trategic and DynamicAsset AllocationIbbotson Associates’ respectedasset class research formsIn this step, we use Ibbotsonthe building blocks of our portresearch to develop anfolios—starting withefficient asset allocation mixreal-world data on how assetdesigned to maximize returnclasses perform over time.for a given level of risk.3 Manager SelectionOur investment professionalsmeet personally withmanagers and evaluate theirinvestment styles using afive-pillar system to identifythe most appropriatestrategies to include inour portfolios. Portfolio Construction3Each potential holdingundergoes careful scrutiny—including risk and expensereviews—to help determine if it’s a good fit withina portfolio. Ongoing MonitoringAs markets change, so doour portfolios. Our investmentteam monitors them eachday to stay well-positionedand risk-aware throughthe market’s ups and downs.

eveeRangeAsset AllocationPortfoliosOur model portfolios are designed to put your needsfront and center—where they belong. To selecta portfolio, talk to your financial advisor, who can helpyou build a wealth strategy with your long-termgoals in mind.Active/Passive20 / 80PortfoliosAggressive teGrowthGrowthIncome & GrowthIncome &Long-RangeGrowthU.S. onal StocksIncome &Long-RangeGrowthActive/Passive60 / 40Active/Passive80 / 20%Asset Allocation58305052U.S. StocksInternational StocksReal Estate REITSTaxable BondsAlternativesShort Term Reserves48U.S. StocksLong-term capital appreciation. Allows investors to take72AlternativesShort Term Reservesfixed-income securities.381843082Long-term growth with moderate volatility. Built with a focusU.S. StocksMomentumon providing balancedMomentumand varied exposure by Momentuminvesting in bothInternational StocksActive/Passiveequity and fixed-incomeReal Estate REITS 20/8040/60 securities.60/4020 / 80Taxable BondsAlternativesShort Term ReservesGoalLong-term capital appreciation. Designed to allow investors toparticipate fully in the growth the stock market can offer,the portfolio invests primarilyin domestic and /Passive20 / 8030 U.S. Stocks40 / 6060 / 40Moderate capital appreciation combined with current income.Combines the growthpotential of equities withMomentumthe balanceMomentumthat fixed-income20/80securities can provide.40/6010 International StocksAggressive0 Real Estate REITSGrowth45105ConservativeActive/Passive40 / 60MomentumMomentumadvantage of the Momentumpotential for stock market growthby investing23 International veprimarily in domesticand foreign equities, while80/20seeking5 Real Estate REITS 40/60to cushion equity marketwith modest exposure15 Taxable Bonds20 /downturns8040 / 60 toModerate GrowthGrowthWe offer both taxable and tax-deferred (shown below)portfolios for investors in non-qualified and qualified accounts. The taxable versions are designed to avoidasset classes that are not tax efficient and willinvest in municipal bonds to earn tax-exempt income.Taxable BondsAlternativesShort Term ReservesProtection from capital loss and a safeguard against inflation.19 U.S. StocksInvestedin fixed-income and equity securities,Momentumit’s best6InternationalStocksGrowthAggressiveand stability over0 Real Estate REITS Growth suited for investors who value current income20/80all else.55 Taxable Bonds13 Alternatives7Short Term ReservesReal Estate REITSTaxable IncomeGrowthShort Term s are based on a recent allocation, and are subject to change. Asset classes shown are Morningstar, Inc. category groups. Allocation of portfolios at the individual account levelmay ome &GrowthModerateGrowth

22 West Washington StreetChicagoIllinois 60602 USA 1 877 r.comAbout Morningstar Investment ServicesWe’re committed to helping financial advisors create better outcomesfor investors like you.Together, we offer the professional guidance and access to strategiesthat can help you achieve your goals. Our model portfolios aredesigned to be part of a long-term investing plan that helps meetyour needs at each stage of your lifetime.Important InformationIt is important to note that investments insecurities (e.g., mutual funds, exchange-tradedfunds, common stocks) involve risk and willnot always be profitable.Neither diversification nor asset allocation ensurea profit or guarantee against a loss.Morningstar Investment Services does not guarantee that the results of its advice, recommendations,or the objectives of your portfolio will be achieved.Morningstar Investment Services does not guaranteethat negative returns can or will be avoided in anyof its portfolios. An investment made in a security maydiffer substantially from its historical performanceand as a result, you may incur a loss. Past performance is no guarantee of future results.The Morningstar Managed Portfolios program(“Program”) is offered by Morningstar InvestmentServices and is intended for citizens or legalresidents of the United States or its territories.This Program can only be offered by a registeredinvestment advisor or investment advisorrepresentative.The Program includes various strategies availableto individuals and institutions primarily througharrangements Morningstar Investment Services haswith various unaffiliated registered investmentadvisors. Within the Program, Morningstar Investment Services or its investment advisory affiliateprovides discretionary investment advisory services.In addition to the Program, Morningstar InvestmentServices also offers model portfolios to third-partyadvisory programs (“Advisory Program”) of financialinstitutions on a non-discretionary basis as a strategist. Under a strategist arrangement, the AdvisoryProgram has full discretion to invest the AdvisoryProgram client accounts in accordance withthe model or deviate from the model provided byMorningstar Investment Services. 2015 Morningstar Investment Services, Inc. All rights reserved. The Morningstar name and logo are registered marks of Morningstar, Inc. All other marks are the property of the respective owners.Morningstar Investment Services, Inc. is a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. TAMP-200-010915

Morningstar Investment ServicesMutual FundPortfoliosRetirement IncomeDesigned for all stages of retirement, each model portfolioin the series follows a targeted, endowment-likeapproach to help support the shift from accumulating assetsto spending them.

Risk-managed portfolios for each stage of retirementWe created the Retirement Income series of portfolios to help deliver a mixof capital appreciation and income to support your spending needs as you moveinto retirement.The Shift Into RetirementRetirees often face a quandary—preserving wealthwhile achieving the growth needed to sustainfuture withdrawals. To help ease the shift into retirement, the portfolios aim to strike a balancebetween capital stability and growth by spreadinginvestments across a broad range of assetclasses. This helps support regular payouts withoutcourting some risks common to other incomeoriented strategies.Inside the Retirement Income PortfoliosTo help meet the targeted spending goals, the Retirement Income portfolios invest in stock,bond, and alternative mutual funds, with each type of fund playing its own valuable role.Stocks: Growth3 Stocks of companies large andsmall, the world over3 Emphasize undervalued, not justhigh-yielding, stocks3 Aim to responsibly compoundportfolio valueBonds: Stability3 Widely diversified across sectors,geographies3 Emphasize total return, not yield alone3 Aim to generate income, stabilizeportfolio value Alternatives: Manage Volatility3 Different than traditional stock orbond funds3 Returns less sensitive to broadmarket currents3 Aim to further diversify, cushion portfoliosThe Total Return AdvantageMany “income” strategies rely on high-yielding bonds,dividend-paying stocks, or complex securities togenerate payouts. Investors often like this approach,as it suggests income payments alone can fundtheir spending—without dipping into principal. Yet suchincome strategies can court excessive risks, withthe potential for jarring volatility. By contrast, a “totalreturn” approach aims to both generate incomeand grow capital, helping retirees avoid the shortcomings of singularly income-focused approaches.Endowment-Like ApproachThe portfolios adapt an approach widely used byuniversities and philanthropic organizations, who investacross a wide variety of asset classes to supporttheir future spending needs and reinvest the excess backinto the fund, reaping the benefits of compounding.Like endowments, the portfolios invest not just in traditional stocks and bonds, but also in less traditionalstrategies to help diversify and stabilize their returnswithout forsaking the opportunity for growth.Powerful Asset Class ResearchIn constructing the portfolios, we start with researchfrom our affiliate, Ibbotson Associates—a leadingauthority on asset allocation. They’ve shown that themix of assets in a portfolio can have a greaterimpact on investment returns than timing marketsor picking stocks, and they estimate the futurereturns and volatility of every asset class we includein the portfolios. This helps us set expectationsfor the spending rate each portfolio will support, andalter the mix of investments as needed.