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This portfolio seeks to minimize overall portfolio draw-down while offering an element of growth.  The portfolio is constructed through an allocation to Provident Capital Management's (PCM) Absolute Indexes.  PCMs Absolute Indexes utilize Exchange Traded Funds (ETFs) chosen by a quantitative method believed to offer the greatest potential for capital appreciation. The graph below represents hypothetical  returns using the allocation to PCMs Absolute Indexes listed at the bottom of this page. 

One cannot directly invest in an index. Third party advisors and Provident Capital Management may attempt to duplicate the indexes results however actual performance will differ from the indexes themselves. Results shown are not actual performance. Results are hypothetical.

One cannot directly invest in an index. Third party advisors and Provident Capital Management may attempt to duplicate the indexes results however actual performance will differ from the indexes themselves. Results shown are not actual performance. Results are hypothetical. Results shown are not indicative of actual performance for any client account and are for illustrative purposes only. Provident Capital is not making any suitability assumptions or investment recommendations. Although data shown is gathered from sources believed to be reliable, Provident Capital Management, Inc. cannot guarantee completeness and/or accuracy.

Disclosure:  Provident Capital Management, Inc. Absolute Index ^sm

Provident Capital Management, Inc., owns and manages actively managed quantitative indexes that have an absolute return approach. The indexes are rotated by weekly, monthly or quarterly depending on the index. Periodic adjustments to structure or strategy may be made from time to time at the discretion of Provident Capital's Investment Committee.

Third party investment professionals including but not limited to Registered Investment Advisors and broker dealers may make available separately managed accounts (SMAs) that attempt to track our indexes.  Provident Capital may attempt to track the index, but will operate in full discretion as the implementation of index in client accounts.  Difference in holdings and percentage of holdings between actual accounts and the index may occur.

There are three primary types of actively managed indexes developed and managed by Provident Capital Management, Inc.

1. Macro: Broad based equities, fixed income, currencies and commodities.

2. Tactical: Equities and fixed income specific to countries, sectors and certain commodity ETFs

3. Asset Class Specific:  Such as Absolute Metals Index, Absolute Energy Index or Absolute Currency Index.

PCMs Absolute Index Approach

Absolute Indexes typically include one or more ETFs that are inverse to the long positions. The inverse ETFs must meet the same criteria as the long ETFs to be included in the active index. Should the ETFs, not meet the inclusion criteria then the Index will rotate into a cash equivalent ETF.   As the index selects a number of ETFs based upon the quantitative criteria for the index, and if the respective Index includes an inverse ETF, it is possible that the index may be simultaneously in a long position and an inverse position in the same asset class or even similar ETF.

One cannot invest directly in an index. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. One of the limitations of hypothetical performance results is that they are prepared with the benefit of hindsight. There are numerous other factors related to the markets in general or to the implementation of any specific trading or investment strategy which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. Not all ETFs that are current candidates for the Absolute Index were available during the timeframe reported. Provident Capital’s Investment Committee makes every attempt to stay current with the availability of ETFs or other investments that may meet the standards of liquidity and transparency to be included as a candidate in any of the indexes. Results shown are hypothetical results for PCM Absolute Indexes.  Returns are not indicative of actual performance for any client account. Although data shown is gathered from sources believed to be reliable, Provident Capital Management, Inc. cannot guarantee completeness and/or accuracy.

The hypothetical performance is adjusted to reflect the reinvestment of dividends. Investment products that may be based on Provident Capital Management’s Absolute Indexes are not necessarily sponsored by Provident Capital Management, Inc. and Provident Capital Management or any affiliate, advisor or representative does not make any representation regarding the advisability of investing in them. Indexes have an inception date of January 1, 2003 unless otherwise noted, although the performance data prior to April, 2011 reflects back-tested data.

Investing in seperate managed accounts (SMAs) that attempt to track PCMs Indexes, including SMAs managed by PCM, may deliver many critical benefits to investors not traditionally available by investing directly into individual mutual funds. These benefits may include, but are not limited to, diversification across management firms and investment process, active monitoring of fund performance, and active modification of the portfolio based upon weakening fundamentals of any mutual fund or ETF.

Indexes are rebalanced monthly unless specifically stated.  The closing price on the last trading day of the month is the buy and sell price.   Inclusion of a mutual fund or exchange traded fund in an index does not in any way reflect an opinion of Provident Capital Management regarding the investment merits of such a fund. None of the funds included in the index have given any real or implied endorsement or support to Provident Capital Management or to any index owned or operated by Provident Capital Management.    As this is an actively managed index Provident Capital Management may add or remove ETF candidates for reasons including but not limited to  volume, liquidy and ETF issuier related events.

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