Any and all data and performance shown are for illustrative purposes only.


Selection disclosures

The Securities employed in Portfolio123 Advisor Client accounts are issued by publicly traded companies and/or exchange traded funds or other publicly traded funds (“ETFs”), which generally are registered investment companies as listed under the investment company act of 1940. Securities in modeled investments are derived from rules applied to strategies, and although Portfolio123 Advisor believes its selection process identifies securities of high investment merit and that feature high liquidity, low tracking error and very low expenses, Portfolio123 Advisor does not at all provide any guarantees regarding the foregoing, nor does Portfolio123 Advisor guarantee any investments will be profitable or tradable is any sort of liquid fashion.

Portfolio123 Advisor reserves the right to change at any time the selection of any security that it recommends in Portfolio123 Advisor at the Portfolio123 Advisor’s sole discretion. For any reason whatsoever, any security believed to not meet any requirements for continued listing on the Portfolio123 or Portfolio123 Advisor platform can be removed at the Portfolio123 Advisor’s sole discretion. All clients of Portfolio123 and Portfolio123 Advisor should be aware that any changes in selection of securities by Portfolio123 Advisor’s investment management service may result in changes and sales of their holdings and these changes and sales may subject them to additional tax liabilities.


ETF Fee and ETF Performance Disclosure

An ETF typically includes embedded expenses. These embedded ETF expenses can reduce its net asset value, which will in turn directly affect performance. Any performance affected because of a result of the change in net asset value will affect a client’s investment portfolio performance or any index benchmark comparison.

Expenses for ETFs could include but are not limited to: management fees charged by the fund, custodian fees, and legal and accounting fees. Any ETF expenses could change from time to time at purely the sole discretion of the ETF issuer. Portfolio123 discloses expense ratios and current information for each ETF on the website. Expense ratios and current information for the ETFs may vary.

Multiple factors can affect the ETF performance and cause them not match those performances of market or index benchmarks in which the ETF may be designed to track. Such reasons could include, but are not limited to 1) Expenses incurred by the ETF that are not incurred by the benchmark indexes or markets 2) the potential temporary unavailability of securities that make up or are involved in these ETFs or benchmarks, 3) the potential ETF share prices to trade at either discounts or premiums to Net Asset Value. Portfolio123 Advisor may at any time change ETF strategies to include any or all of the following: commodities, foreign securities, fixed income, American Depositary Receipts or any other securities the advisor deems appropriate. Any changes in ETF expenses are reflected in the Net Asset Value of the ETF and that, in turn, is reflected in the share price and the value of the client’s position which is held in the client’s brokerage account at Interactive Brokers. The expenses for any of the new strategy holdings may change at any time and the expenses data held by Portfolio123 could sometimes be very limited or in harsher instances be inaccurate.

Clients should at all times be aware that sometimes it can become extremely hard/difficult or sometimes even impossible to trade for the client into or out of any securities.Potential factors that may contribute to such liquidity risk include but are not limited to: 1) a decision made by any or all of the exchange participants to, at any time(s), withhold either some or all of their quoted market bids, 2) extreme market volatility, 3) any or all halted or delisted securities for trading, 4) any technical issues at the exchange or any closure(s) at or of the exchange, 5) any or all position(s) across the client’s account that could be or is large or relatively large to the average trading volume of the security or securities itself.


Portfolio123 Fee

Portfolio123 Advisor only charges the Assets Under Management (“AUM”) management fee originally agreed to by the client at the time of signup or any fee change agreed to by the client when moving to a higher tier of management investment portfolio models. Portfolio123 will not charge fees on performance of model(s) at any time. Clients of a fully managed Portfolio123 Advisor and Advisor Managed accounts (not Pooled Trading Group clients) will not be charged trading commissions at any time.

By default, Portfolio123 Advisor will reinvest dividends and income into the client’s account. The client, may, at any time, transfer such accumulated cash back into strategies that generated the cash, or into other strategies.

For each investor, actual results may be different and there can be and is no guarantee made as top any level of returns. Actual investor portfolio(s) may incur a loss or a gain at any time due to market volatility. Advisor clients at any time may experience different results in their actual portfolio(s) from any hypothetical results presented or shown by the adviser on its web site(s) or in any other communication(s). Any or all hypothetical performance results shown/presented are not a representation or any actual trading using any client assets, however such hypothetical results were achieved by basis and means of multiple retroactive applications of a single or multiple model(s) designed with hindsight benefit. Any and all information presented and any hypothetical comparison information presented by Portfolio123 Advisor should be thoroughly and carefully reviewed by the investor(s).

COMPARISONS OF ANY KIND TO ANY INDICES ARE STRICTLY PROVIDED ONLY FOR ILLUSTRATIVE PURPOSES. AN INDEX IS AN UNMANAGED, BROADLY DIVERSIFIED GROUP OF SECURITIES THAT MAY ONLY INCLUDE EITHER LARGE CAPITALIZATION COMPANIES OR COMPANIES OF A CERTAIN SIZE. NO INDICES SHOULD BE RELIED ON AT ANY TIME AS ACCURATE COMPARISON(S) SINCE ALL INDICES HAVE THEIR OWN UNIQUE RESULTS AND VOLATILITY AND AS SUCH THESE INDICES ARE NOT DIRECTLY COMPARABLE TO ANY PERFORMANCE MEASURE FOR CLIENT ACCOUNTS AND ALLOCATIONS.


Website Content

Compiled third-party sources of index information and independent market quotations are and/or were used to shown information on the site and/or App to show information about performance(s), composites(s) and return(s). Portfolio123 Advisor cannot, does not and will not guarantee accuracy on the site of such and/or App information as Portfolio123 Advisor may receive incorrect information from any third-party providers even though Portfolio123 Advisor has a strong belief that the information coming from third-party sources comes from reliable sources. Any information on the Site and/or App has been prepared by Portfolio123 Advisor, unless otherwise noted and/or indicated has not been in any way reviewed, audited or compiled by any public accountant or any independent third-party.

Data and Performance returns shown are for illustrative purposes only. Though we have made an effort to closely match performance results shown to that of portfolios over time, these results are entirely the product of a model, including the results from when we began operations in 2018 to the present day. Actual individual investor performance has and will vary depending on the time of the initial investment, amount and frequency of contributions, intra-period allocation changes and taxes. Additionally, this tool illustrates past performance, but is not and cannot be indicative of future results.

For Models comprised of Exchange Traded Funds (ETFs), they are each similar to a number of common equity and bond indices. Model results and volatility of the Asset Allocation over a given timeframe are likely to be similar to a comparable blend of these indices, but it is possible that the model portfolios would have performed better or worse than the comparable blend of indices. These differences may be due to, but are not limited to, portfolio rebalancing, dividend reinvestments, fees and the impact of market conditions.

When viewing discussions or presentations of past performance anywhere on Portfolio123 ADVISOR or Portfolio123 Research, it is important to recognize whether it is about live performance achieved by a real-money or paper portfolio in the past, or hypothetical results achieved by back-testing a strategy (examining historical data to see what securities would have been bought or sold at particular times had the strategy been in use during the specified time periods). If you are unsure, assume the results are hypothetical.

Whether such performance information is based on live or hypothetical results, it is important to understand that past performance cannot be relied upon as an indication of future outcomes. Results achieved with live money and/or with the most perfectly constructed backtest are inseparable from the conditions (economic conditions, market environment, business conditions, company-specific events which may or may not have been representative of sustainable trends, and so forth). Future performance will likewise be inseparable from comparable conditions which may differ from what has been experienced in the past.

Also, performance figures contained herein are hypothetical, unaudited and prepared by Portfolio123 Advisor; hypothetical results are intended for illustrative purposes only.

Hypothetical performance results (e.g., quantitative backtests) have additional inherent limitations, some of which, but not all, are described herein. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading or investing decisions. For example, the ability to withstand losses or adhere to a particular strategy in spite of losses are material points which can adversely affect actual results. The hypothetical performance results contained herein represent the application of the quantitative models as currently in effect on the date first written above and there can be no assurance that the models will remain the same in the future or that an application of the current models in the future will produce similar results because the relevant market and economic conditions that prevailed during the hypothetical performance period will not necessarily recur. Also, hypothetical buy or sell orders can never influence bid-ask prices available in the real-world markets. But it is possible that had those hypothetical orders been real, the bid and/or ask prices might have adjusted to account for the additional demand for or supply of securities.

Presentations and/or discussions of live-money performance, even when ongoing into the future, can likewise differ from what investors actually achieve. In addition to fees and costs (see below), presentations and discussions on Portfolio123 cannot know or reflect investor-specific circumstances that may lead to variations in outcome, including, but not limited to, the amount of money invested (which influences the exact number of shares and percentage allocations that can be achieved) and deposits to or withdrawals from the account, which will cause actual results to differ from the assumptions that underlie the strategies’ “model” presentations (no new deposits, no withdrawals, reinvestment of all income, and zero yield for surplus cash).

There is no guarantee, express or implied, that long-term return and/or volatility targets will be achieved. Realized returns and/or volatility may come in higher or lower than expected.


Third Party Authors and Data Sources

Certain economic and market information contained herein has been obtained from published sources prepared by other parties, which in certain cases have not been updated through the date hereof. While such sources are believed to be reliable, neither Portfolio123 Advisor nor its affiliates assumes any responsibility for the accuracy or completeness of such information and such information has not been independently verified by Portfolio123 Advisor.

Many authors provide material on our website. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Portfolio123 Advisor, its affiliates or its employees. This material has been provided to you solely for information and educational purposes and does not constitute an offer or solicitation of an offer or any advice or recommendation to purchase any securities or other financial instruments and may not be construed as such. The factual information set forth herein has been obtained or derived from sources believed by the author and Portfolio123 Advisor to be reliable but it is not necessarily all-inclusive and is not guaranteed as to its accuracy and is not to be regarded as a representation or warranty, express or implied, as to the information’s accuracy or completeness, nor should the attached information serve as the basis of any investment decision. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from Portfolio123 Advisor.


Tax-Related Matters

Neither Portfolio123 Advisor nor its affiliates provide tax advice. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any matters addressed herein. You should seek advice based on your particular circumstances from an independent tax advisor.

The information contained in this communication is not meant to substitute for a thorough estate planning and is not meant to be legal and/or estate advice. It is intended to provide you with a preliminary outline of your goals. Please consult your legal counsel for additional information.


Gross Performance Calculations

Results from the research we discuss may be shown gross of fees and do not reflect the effect of investment fees which would lower performance. Performance reflects the reinvestment of dividends and other earnings. Performance information shown does not reflect any charges or fees which may or may not be imposed by Portfolio123 Advisor or another money manager, which will reduce performance returns. The following hypothetical illustrates the compound effect fees have on investment return: For an account charged 1% with a stated annual return of 10%, the net total return before taxes would be reduced from 10% to 9%. A ten year investment of $100,000 at 10% would grow to $259,374, and at 9%, to $236,736 before taxes.

Indexes are unmanaged, do not reflect management or trading fees, and one cannot invest directly in an index.


Strategies

Data and Performance returns shown are for illustrative purposes only. Though we have made an effort to match as closely as possible performance results shown to that of portfolios over time, these results are entirely the product of a model, including the results from when we began operations to the present day. Actual individual investor performance has and will vary depending on the time of the initial investment, amount and frequency of contributions, trading commission levels and taxes. Additionally, this tool illustrates past performance, but is not and cannot be indicative of future results.

For Models comprised of Exchange Traded Funds (ETFs), they are each similar to a number of common equity and bond indices, which we use to calculate returns before the launch of selected ETFs. Model results and volatility over a given timeframe are likely to be similar to a comparable blend of these indices, but it is possible that the model portfolios would have performed better or worse than the comparable blend of indices. These differences may be due to, but are not limited to, portfolio rebalancing, dividend reinvestments, fees and the impact of market conditions.

Performance Data includes commissions, realistically mimicking Interactive Brokers tiered pricing

As “Backtest Performance” we refer to apply the strategy trading system to historical data to show you how a system would have performed during a specified past period.

As “Forward Performance”, we refer to a realistic simulation of actual trading and involves following the strategy logic in a live market. Trade entries and exits are documented along with any profit or loss for the system, but no real trades are executed.


Registration Information

Advisory services are offered through Portfolio123 Advisor, an SEC registered investment advisor firm domiciled in the State of Illinois. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute.

Follow-up or individualized responses to consumers in a particular state by our firm in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant an applicable state exemption.

For information concerning the status or disciplinary history of a broker/dealer, investment advisor and/or their associated representatives, a consumer should contact their state securities administrator or review information provided on the SEC’s website at www.adviserinfo.sec.gov.