CMA Investment Policy and Disclaimer on Investment Returns

In an effort to clarify an understanding between Capital Management Associates (CMA) and clients for which CMA manages various investment portfolios as an Investment Manager, CMA makes the following representations as to its Investment Policy and the "Investment Return" potential from a client's investment portfolios.

CMA offers various types of investment portfolios to clients that are specific to a single asset class, such as a portfolio of corporate bonds and corporate debt obligations that includes a range of securities from one asset class; and CMA also offers "blended portfolios" of securities that contain a mix of securities of various asset classes such as: common stocks, MLPs, REITs, preferred stocks and corporate bonds and corporate debt obligations within one co-mingled account. Clients typically choose a "single asset class portfolio", or a "mixed asset class portfolio" in one account. Mixing asset classes within one account, or a client having several accounts with a discrete portfolio of one asset class in each, is an allocation choice made by each client.

In money management, it is generally advisable to have clients utilize multiple asset classes to create "risk diversification" against any one asset class experiencing higher or unusual risk verses other asset classes. Further, CMA portfolios employ global country diversification of individual securities selected, and diversification of companies across a spectrum of different major economic sectors. It is intended that this investment policy of multi-asset classes, global geographic dispersion, use of multi economic sectors, and a broad range of company security issuers creates satisfactory portfolio(s) risk diversification. CMA cannot predict or represent that the value of any securities utilized "will not" fluctuate in value from the impacts of ongoing global economic and financial market conditions.

CMA makes representations as to the "Estimated Annual Income" that each of its offered portfolios may achieve over a 12 month period. These estimates of annual income are exclusively based upon the past 12 months of dividends, distributions and/or interest that have been paid on the subject securities. It is anticipated by CMA that under normal economic conditions that future portfolio income distributions should remain similar in amount as compared to payments made over the preceding 12 months.

In the case of dividends and distributions paid by issuers of equity securities, there has been a long term trend of rising dividends across most equity securities. Yet, for some companies or industries that may experience adverse business hardship, companies have either suspended or reduced dividend payments based upon each company's business situation and dividend policy.