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How a Model is Created from Start to Finish

How a Model Makes a Selection

How a Portfolio is Constructed

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Scofield & Company, LLC

Since the signing of the Buttonwood Agreement, the agreement that began the US stock market in 1792, stocks have historically outperformed virtually all other financial assets over the long run. Through wars, recessions, and periods of economic growth, owning stocks has been an excellent way to build wealth, but at the cost of subjecting investors to greater volatility.

Scofield and Company, LLC was founded on the premise that employing computer technology could offer an unemotional alternative to traditional management methods. With that strategy in mind, we developed multiple investment models that seek above-average returns focusing on the risk/reward relationship. These dynamic risk management techniques provide the Advisor a system to potentially maximize the performance of shareholders and maintain assets within a defined investment complex.

A defined investment complex can be comprised of mutual funds, variable annuity and variable life sub-accounts, 401(k) groupings or any other platform that offers well diversified grouping of investments. The key to investment modeling is focusing on potential risk, volatility and being informed on how all the investments in the group are currently performing. Just as the economy experiences cycles, so do the financial markets. There are times to own bonds, stocks and commodities and more importantly there are times to sell them. Using sophisticated computer technology coupled with market and economic data, Scofield and Company's computer models monitor market trends to detect periods of sustained up or down movements.

Scofield & Company's investment philosophy is to buy strength and avoid weakness. Dynamic Asset Allocation uses computer models to select investments based on in-depth analysis of the share price of the investments available to a given model. The model will recommend exchanging assets into the fund with the highest current productivity. However, the system also contains some minimum holding periods that limit the amount of trading. A typical model may trade 4 to 6 times per year.

The allocation of assets becomes dynamic by changing its allocation in response to changing market conditions. The objective for each model is to reduce risk on behalf of investors, while achieving returns equal to or greater than that of static allocation investments with greater risk. The success of the Dynamic Asset Allocation depends upon the ability of the models to identify those asset classes achieving the highest returns in each market phase.

Not every investment decision will be profitable. During periods of "trend-less" market behavior, the models can and will have a difficult time identifying the best investment sector. However, the allocations often employed by trained investment Advisors that use this program involve focus on asset diversification that may help buffer a "trend-less" market much like traditional asset allocation programs, thereby, allowing for the next "trending" market to be identified and allocated appropriately.

Scofield & Company, LLC

Active Management for Active Markets^SM