First Allied Asset Management

401(k) Investment Options Designed to Meet Varied Needs

First Allied's 401(k) offering features a variety of investment options for both Traditional and Roth 401(k) plans, utilizing mutual funds as the underlying investment vehicles.

Plan participants may choose one of two options to build their 401(k) portfolios:

• Pick from a variety of professionally managed portfolios in the 401(k) Select program
• Select from up to 25 different single asset class mutual funds to build their own portfolios

401(k) Select

Plan participants can choose to have First Allied Asset Management (FAAM) manage their retirement portfolios based upon specific goals, risk tolerance, age and years to retirement, using one of four highly diversified, actively managed portfolios that make up the 401(k) Select program. 401 (k) Select portfolios are designed as single, professionally managed investment vehicles that provide instantaneous diversification across more than 15 major asset classes through the purchase of mutual funds.

FAAM employs proprietary analytics and mathematical models to select the combination and weighting of more than 15 distinct asset classes, arriving at portfolios that seek to correspond to given levels of expected risk and return. Plan participants can then choose from one of four portfolio options that correspond to their financial goals, risk tolerance, age and/or years to retirement:

• Income Portfolio: below average risk tolerance or approaching retirement age (e.g. 60+ years old)
• Growth & Income Portfolio: slightly below average risk tolerance or between 50-60 years old
• Moderate Growth Portfolio: slightly above average risk tolerance or between 40-50 years old
• Growth Portfolio: above average risk tolerance or are far from retirement (e.g. 20-40 years old)

Because the asset allocation relies on a dynamic market model to make periodic adjustments among different asset classes, performance may diverge from the results of various indices. This adjustment process is not intended to act as a precise market timing tool and does not eliminate market risk. In addition, FAAM's analysis of various market phases and conditions may, in fact, prove incorrect.

Single Asset Class Funds

FAAM has selected 25 unique single asset class mutual funds to allow plan participants to construct their own portfolios from a variety of investment options across the spectrum of stocks, bonds, stable principal and real estate. Participants simply choose percentages of fund weightings in their Investment Election forms, and their portfolios will be set.

Single asset class funds include:

• Cash: AMERICAN FUNDS MONEY MARKET
• Agency Bond: PIMCO GNMA
• Commodity: PIMCO CommReal Return Strategy
• Corporate Intermediate-Term Bond: Vanguard IntTm Investment-Grade
• Corporate Investment-Grade Bond: Dodge & Cox Income
• Corporate Investment-Grade Bond: Vanguard Short-Term Investment-Grade
• Government Bond Intermediate-Term: Vanguard Interm-Term Treasury
• Government Bond Short-Term: Vanguard Short-Term Federal
• International Developed: American Funds Euro Pacific Growth
• International Developed: Columbia Acorn International
• International Emerging: American Funds New World
• International Emerging: Oppenheimer Developing Markets
• International Fixed Income: Templeton Global Bond
• Large-Cap Value: Eaton Vance Large-Cap Value
• Mid-Cap: Hartford Midcap
• REIT: Fidelity Advisor Real Estate
• Short-Duration Bond: DWS Short Duration Plus
• Short-Term Government Bond: Eaton Vance Government Obligations
• U.S. Large-Cap Growth: Fidelity Advisor New Insights
• U.S. Large-Cap Growth: Franklin Flex Cap Growth
• U.S. Large-Cap Growth: JHancock Large Cap Equity
• U.S. Large-Cap Value: Columbia Dividend Income
• U.S. Large-Cap Value: DWS Large Cap Value
• U.S. Mid-Cap: Franklin Growth Opportunities
• U.S. Small-Cap: Janus Triton

An investor should carefully consider investment objectives, risks, charges and expense before investing. This information and more complete information, including potential risks, is included in each mutual fund prospectus, which can be obtained from your financial advisor. Read the prospectus carefully before investing. There is no certainty that any investment or strategy will be profitable or successful in achieving investment objectives.

Mutual funds are subject to risks similar to those of stocks. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Past performance is no guarantee of future results.

There are unique potential risks associated with the specific asset classes that each mutual fund represents. Investments in smaller companies typically exhibit higher volatility. In addition to the normal risks associated with investing, narrowly focused investments typically exhibit higher volatility.

REIT investments are subject to changes in economic conditions, credit risk and interest rate fluctuations. Bonds and bond funds will decrease in value as interest rates rise. Commodities markets have historically been extremely volatile. Inverse funds should lose money when their benchmark indexes rise-a result that is opposite from traditional mutual funds. Inverse funds also entail certain risks, including inverse correlation, leverage, market price variance and short sale risks.

Investments in foreign investments do incur greater risks than domestic investments. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.

Advisory services offered by First Allied Advisory Services, Inc. or First Allied Securities, Inc. Investment adviser representatives who are also registered representatives offer securities through First Allied Securities, Inc., a registered broker/dealer. Member: FINRA/SIPC. Third-party administrator is affiliated with First Allied Securities, Inc., First Allied Advisory Services, Inc. and First Allied Asset Management, Inc.