Products

• Strategic Growth Strategy
• Strategic Allocation Strategy
• Earnings Momentum
• Total Value
• Variable Annuities and Variable Universal Life Insurance

STRATEGIC GROWTH STRATEGY

Objective

The goal of the Strategic Growth strategy is to capture capital appreciation. Dunn Warren strives to reach its goal by investing in those mutual funds, exchange traded funds (ETFs) and sub-accounts that have the appropriate risk classification, risk/reward payoff and relative strength.

Model Strategy

Each month, Dunn Warren selects five to eight investments meeting three criteria: risk classification, risk/reward payoff and relative strength. The investments are held for as long as they meet the three criteria. Each month the criteria are assed for each investment. Once an investment no longer meets the criteria, it is dropped from the portfolio and a new investment that meets all three criteria is added to the portfolio.

Selection Process

Investments are selected if they meet the three following criteria:

Risk Analysis : Comprised of Value at Risk (VAR) score that ranks the probability of standard deviation (volatility) for the investment.

Risk/Reward Matrix : Computes the potential return versus the underlying risk of a specified investment based on potential earnings growth and valuation.

Relative Strength : Compare the investment’s 6-month return and monthly returns over the last 12 months. This indicates that others agree with our valuation analysis and is our way of avoiding value traps – investments that look compelling on valuation, but lack investment appeal and are more likely to decline in value.

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STRATEGIC ALLOCATION STRATEGY

Objective

The goal of the Strategic Allocation strategy is to capture capital appreciation with reduced volatility. Dunn Warren invests in those investments with the greatest risk-adjusted return potential and uses inverse and short funds, funds that increase (decrease) in value when the market declines (increases).

Model Strategy

Dunn Warren updates the market (S&P 500) risk/reward potential every two weeks to evaluate the potential reward based on earnings and economic growth of the market versus the potential risk, or loss as measured by the S&P 500. At the beginning of every month, Dunn Warren selects five to eight investments meeting three criteria: risk classification, risk/reward payoff and relative strength. The investments are held for as long as they meet the three criteria. Each month investments are reassessed. Once an investment no longer meets the criteria, it is dropped from the portfolio and a new investment that meets all three criteria is added to the portfolio.

Selection Process

Investments are selected if they meet the three following criteria:

Risk Analysis : Comprised of Value at Risk (VAR) score that ranks the probability of standard deviation (volatility) for the investment.

Risk/Reward Matrix : Computes the potential return versus the underlying risk of a specified investment based on potential earnings growth and valuation.

Relative Strength : Compare the investment’s 6-month return and monthly returns over the last 12 months. This indicates that others agree with our valuation analysis and is our way of avoiding value traps – investments that look compelling on valuation, but lack investment appeal and are more likely to decline in value.

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EARNINGS MOMENTUM

Objective

The goal of the Earnings Momentum strategy is for long-term growth. Dunn Warren strives to reach its goal by investing in those stocks that exhibit earnings growth above the industry average.

Investor Profile

The Earnings Momentum strategy is appropriate for those investors that have a long-term time horizon and are willing to accept a high degree of volatility. The strategy is always fully invested. By accepting a higher degree of volatility we expect to achieve returns greater than the Market (S&P 500).

Fund Strategy

The portfolio is rebalanced once a year by choosing 25 stocks that meet four criteria. The criterion is expected to reflect current and future earnings growth that is not reflected in the current stock price.

Stock Selection Process

Investments are selected if they meet the four following criteria:

Historic Earnings Growth : Earnings growth over the previous three to five years that is above the industry average

Positive Earnings Surprise : Companies recent earnings results exceed analyst earnings expectations.

Earnings Estimate Revisions : Analysts raise future earnings estimate above current consensus estimates.

Relative Strength : Compare the investment’s 6-month return and monthly returns over the last 12 months. This indicates that others agree with our valuation analysis and is our way of avoiding value traps – investments that look compelling on valuation, but lack investment appeal and are more likely to decline in value.

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TOTAL VALUE

Objective

The goal of the Total Value Strategy is for long-term growth. Dunn Warren strives to reach its goal by investing in those stocks that exhibit a high degree of management efficiency and are selling at a discount.

Investor Profile

The Total Value Strategy is appropriate for those investors that have a long-term time horizon. The strategy is always fully invested. The strategy is expected to exhibit volatility that is equivalent with the overall market (S&P 500).

Fund Strategy

The portfolio is rebalanced once a year by choosing 25 stocks that meet three criteria. The criteria is expected to reflect investments that are currently trading below their potential market value.

Stock Selection Process

The fund follows a precise selection process. The process begins with screening for companies with dividend yield greater than the S&P 500. Dunn Warren then selects 25 stocks that have a return-on-assets (ROA) greater than the S&P 500, a demonstration of management effectiveness, and a price-to-book value (a valuation metric) less than the S&P 500.

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VARIABLE ANNUITIES AND VARIABLE UNIVERSAL LIFE INSURANCE

Since its inception, Dunn Warren applies its strategic growth and strategic allocation strategy to the management of variable universal life and variable annuities. By applying the same focus to risk management as it has applied to its other investment strategies, Dunn Warren creates reliable portfolio solutions within variable annuities for financial advisers and their clients

Dunn Warren provides solutions for a multiple of variable annuities including: