The Diastole Wealth Management Investment Process Diastole Wealth Management is a consulting firm that provides clients a comprehensive investment program that begins with a complete review of the client’s current financial situation. This will be performed by a Diastole Wealth Management consultant or by an unaffiliated financial advisor that uses Diastole Wealth Management as a managed accounts program sponsor. Step One: Our consultants gather information and past performance history in an attempt to construct a clear picture of the client’s current financial situation. This process typically includes a face-to-face meeting in which the consultant will take the client through an investment objective questionnaire or a comprehensive financial plan that addresses issues such as taxes, estate planning, insurance and business planning. Step Two: Using the information gathered, Diastole Wealth Management will outline the investment objectives for the client in the client’s financial plan. Step Three: Diastole Wealth Management maintains a recommended list of independent investment managers that have agreed to manage client assets at predetermined minimum account sizes and advisory fees. These investment managers have been selected only after extensive due diligence that has been performed by the Diastole Wealth Management investment committee. The investment managers are selected based upon their strength in three important areas: personnel, philosophy and performance. They are then categorized into different style groupings, and each grouping is separated into tax-effective or tax-exempt. The style groupings are as follows: 1. Fixed Income (Taxable and Tax-exempt) 2. Large Cap (Growth and Value) 3. Small Cap (Growth and Value) 4. International (Growth and Value) Diastole Wealth Management will evaluate the client’s objectives and make a determination as to which advisors it deems are most suitable for the client. Diastole Wealth Management consultants or, in some cases, unaffiliated financial advisors will present the recommendation to the client. This recommendation will be discussed with the client and the client will make the final selection. In some instances style categories may be combined. The consultant or unaffiliated financial advisor presents our recommendation and supporting documentation to the client; however, the client will make the final selections. The minimum account size for each investment advisor managing a discreet account is generally either $100,000 or $250,000. The number of advisors selected for each client will be a factor of the client’s objectives and the total amount of assets available for investment. Step Four: Once investment managers are selected, the client may choose to establish accounts directly with investment advisors or the client may instruct Diastole Wealth Management to establish the account on the client’s behalf. If the client chooses the latter, Diastole Wealth Management will open a brokerage/custody account on the client’s behalf and assets will be transferred into this account. In these cases, the investment advisor will be given authority to execute brokerage trades on the client’s behalf. In certain cases, the client will have the ability to place restrictions on the advisor’s trading authority- generally for tax reasons. In some cases, Diastole Wealth Management will recommend the use of mutual funds or investment limited partnerships in place of individual accounts with investment advisors. In those cases, the same criteria for selection will be exercised and the client will still make the final determination. Diastole Wealth Management will purchase these commingled funds directly for the client’s account. Step Five: Each investment manager selected will receive information concerning the client’s investment objectives and in some cases, restrictions that the client has requested. The manager will have full investment authority to make day-to-day portfolio management decisions. Diastole Wealth Management will review this activity, but will have no discretionary authority. In some cases, the consultants, at the client’s direction, will have authority to effectuate securities transactions- typically for tax or liquidity reasons. The client will be instructed to notify the consultant of any changes to the client’s financial condition that could necessitate a revision of the Investment Policy Statement (“client profile and contract”). The consultant will discuss the Investment Policy Statement with the client on an annual basis to determine if there are any significant changes that should be communicated to the investment advisor. There are no restrictions on the client’s ability to contact the investment advisors directly; however, in most cases it is recommended that the client coordinate this type of activity with their consultant. Step Six: Diastole Wealth Management will actively monitor the investment advisors on the recommended list. Changes in the investment advisor’s personnel, philosophy or performance or changes in the client’s investment objectives will occasionally lead to a determination by Diastole Wealth Management that the investment advisor is no longer suitable for (certain) clients. In those cases, the clients will be notified and the clients’ consultants will prepare recommendations of suitable replacements. Step Seven: The client will receive periodic reports from Diastole Wealth Management monitoring the client’s progress versus performance benchmarks. Clients with $500,000 or more in assets under management with Diastole Wealth Management will receive quarterly performance reports from Diastole Wealth Management while all others receive annual reports. The client will also receive monthly statements and confirmation of brokerage transactions from their broker custodian, either via e-mail or regular mail, at the client's request. Diastole Wealth Management utilizes a proprietary investment advisory screening process to cultivate the recommended list of investment advisors from a larger universe of candidates. The process is predicated on three important elements- personnel, philosophy and performance. Diastole Wealth Management collects information directly from the investment advisors, which relates specifically to these three key areas. This information is verified against information provided by investment advisor databases providing information to Diastole Wealth Management Finally, the investment performance is subjected to attribution analysis and risk analysis to determine if the advisor strictly adheres to it’s stated discipline. Investment managers submitting information to Diastole Wealth Management are required to comply with AIMR standards for reporting and every effort is made to ensure that advisors are being compared on a uniform basis. In some cases, advisors are unable to strictly comply with AIMR standards. In those cases, Diastole Wealth Management will only consider performance information that is consistent with the AIMR compliant results that are being provided by similar managers on our recommended list. Furthermore, these results will be clearly noted for clients as an exception to AIMR. In certain cases, clients will bring existing investment advisors to their account at Diastole Wealth Management or will request that a specific investment advisor be made available to the client. In these cases, Diastole Wealth Management will attempt to gather information on the advisors, but will not be able to ensure the same level of due diligence that is provided for investment advisors on our recommended list.