Conservative Strategy

Focusing on preservation of capital with relatively low volatility, this portfolio model is intended as a low-risk investment offering a slight hedge against inflation. Due to the low volatility and high liquidity sought in this portfolio, investors with a time horizon of two to three years may be strong candidates.

* Mutual funds are sold by prospectus only. Investors should consider the investment objectives, risks, charges and expenses of an investment company carefully before investing. The prospectus contains this and other information about an investment company and is available from your financial advisor. The prospectus should be read carefully before investing.

Asset allocations current as of December 31, 2012, and are subject to change without notice and may include the addition, removal or substitution of one or more asset classes. High-yield (below investment grade) bonds are not suitable for all investors. When appropriate, these bonds should only comprise a modest portion of your portfolio. International investing also involves special risks, including fluctuations, different financial accounting standards, and possible political and economic volatility.

Specific sector investing such as real estate can be subject to different and greater risks than more diversified investments. Declines in the value of real estate, economic conditions, property taxes, tax laws and interest rates all present potential risks to real estate investments. Investing in small-cap and mid-cap stocks generally involves greater risks, and therefore, may not be appropriate for every investor.

U.S. Treasury Inflation Protected Securities (TIPS) are direct obligations of the U.S. government, and are backed by the full faith and credit of the government. There is an inverse relationship between interest rate movements and fixed income prices. Generally, when interest rates rise, fixed income prices fall and when interest rates fall, fixed income prices generally rise. Investing involves risk and investors may incur a profit or a loss.