Oakwood Product Offerings and Services

Equities

Oakwood’s Portfolios are fully diversified across global equity and fixed income markets. Together, the component funds of the portfolio invest in over 10,000 securities across more than thirty-five countries. These portfolios are represented by separate asset classes and are defined by leading research into the dimensions of stocks and bonds returns.

Structured Global Products

Conservative Global Equity Strategy
This diversified equity strategy will invest in securities of U.S. companies, non-U.S. companies in both developed markets and emerging markets, and real estate securities. The investment vehicles will primarily be structured mutual funds (mostly mutual funds managed by Dimensional Fund Advisors, Inc. "DFA"), indexed funds and exchanged traded funds (ETFs). This strategy tends to have a balance of value and growth as well as large, medium and small capitalization securities, suitable for investors seeking income and long term capital appreciation.

Moderate Global Equity Strategy
This diversified equity strategy will invest in securities of U.S. companies, non-U.S. companies in both developed markets and emerging markets, and real estate securities. The investment vehicles will primarily be structured mutual funds (mostly in DFA Funds), indexed funds and exchange traded funds (ETFs). This strategy has an increased bias towards value using multiple asset classes and more emphasis on smaller capitalization securities than the conservative strategy, and is suitable for investors seeking above average returns through long term capital appreciation.

Aggressive Global Equity Strategy
This diversified equity strategy will invest in securities of U.S. companies, non-U.S. companies in both developed markets and emerging markets, and real estate securities. The investment vehicles will primarily be structured mutual funds (mostly in DFA Funds), indexed funds and exchange traded funds (ETFs). This strategy has a higher non-U.S. company component as well as a greater value tilt and more smaller capitalization securities than the moderate strategy, and is suitable for investors with a higher tolerance for risk seeking higher returns through long term capital appreciation.

Tax Managed Moderate Global Equity Strategy
This diversified equity strategy will invest in securities of U.S. companies, non-U.S. companies in both developed markets and emerging markets, and real estate securities. The investment vehicles will primarily be structured mutual funds (mostly in DFA Funds), indexed funds and exchange traded funds (ETFs). This strategy has an increased bias towards value using multiple asset classes and more emphasis on smaller capitalization securities than the conservative strategy, and is suitable for investors seeking above average returns through long term capital appreciation.

This strategy seeks to minimize the impact of federal taxes on returns by using funds that defer the realization of net capital gains, particularly short-term capital gains, in order to minimize the taxable distributions to investors. The performance of this strategy may deviate from that of non-tax managed Moderate Equity Strategy.

U.S. Equity Products

Capital Appreciation Strategy
This diversified equity strategy may invest in both large and medium capitalization domestic common stocks, generally with market capitalization in excess of $1 billion as its relevant universe. In most market environments the Capital Appreciation strategy maintains a risk level that ranges between market risk and a risk level 30% greater than that of the market*. This strategy is suitable for investors seeking capital appreciation.

Equity Income Strategy
This diversified equity strategy will generally invest in larger capitalization common stocks and has a target current yield greater than that of the Standard and Poor's 500™. The strategy uses the S&P 500™ as its relevant universe but may use dividend-paying stocks from outside the index from time to time. In most market environments the Equity Income Strategy maintains a risk level between 30% less risk than the market and 10% greater than the market*. This strategy is suitable for investors who seek above average income and moderate capital growth.

* Market is defined as the Standard and Poor's 500 (S&P 500™).

Bonds

Oakwood’s Portfolios are fully diversified across global equity and fixed income markets. Together, the component funds of the portfolio invest in over 10,000 securities across more than thirty-five countries. These underlying funds represent separate asset classes and are defined by leading research into the dimensions of stocks and bonds returns.

Fixed Income - Actively Managed

Short-Term Government Fixed Income Portfolios
This diversified fixed income strategy may invest in all types of U.S. Government securities with a maturity limitation not to exceed five years. The strategy is actively managed around a target duration and seeks higher return potential than that obtained from money market securities without the risk of longer maturity issues. This strategy is suitable for investors who seek the moderate income and growth consistent with participation in the highest quality fixed income securities.

Intermediate Fixed Income Portfolios
This diversified fixed income strategy may own all types of U.S. Government securities and investment grade corporate bonds. The portfolio will generally not hold bonds with maturities beyond ten years. The strategy is actively managed around a target duration. Using the Lehman Intermediate Government/Corporate Index as a benchmark this strategy seeks to generate positive returns relative to the benchmark in all interest rate environments. This strategy is suitable for those who seek moderate total return.

Full Maturity Fixed Income Portfolios
This diversified fixed income strategy may make use of all taxable investment grade fixed income securities. There are no maturity or sector restrictions and the portfolio manager has discretion to actively manage around a target duration. Using the Lehman Government/Corporate Index as a benchmark this strategy seeks to exceed the return of the benchmark. This strategy is suitable for those who seek total return in a fixed income portfolio.

Tax-Exempt Fixed Income Portfolios
This fixed income strategy may invest in tax exempt fixed income securities, both state-specific and general market obligations, depending on client residency and/or market opportunities. This strategy is actively managed and may use the full maturity spectrum for both state-specific and general market bonds. This strategy seeks to generate positive after tax returns.

Fixed Income - Structured

Global Core Fixed Income Strategy
This diversified fixed income strategy will invest in a combination of structured fixed income funds (mostly in DFA funds) whose investment objectives are to achieve stable real returns in excess of the rate of inflation with a minimum of risk, to earn current income consistent with preservation of capital, and to seek a market rate of return for global fixed-income portfolio with low relative volatility of returns. The average maturity of this strategy will normally be shorter than the intermediate global fixed income strategy. The non-US dollar portion will also employ forward foreign currency contracts to hedge against fluctuations in currency exchange rates. This strategy is consistent with the philosophy that fixed income instruments should serve the role of limiting an overall portfolio's volatility.

Intermediate Global Fixed Income Strategy
This diversified fixed income strategy will invest in a combination of structured fixed income funds (mostly in DFA funds) whose investment objectives are to earn current income consistent with preservation of capital and to seek a market rate of return for global fixed-income portfolio with low relative volatility of returns. The funds will normally invest in securities having maturities of between five and fifteen years. The non-US dollar portion will also employ forward foreign currency contracts to hedge against fluctuations in currency exchange rates. This strategy is consistent with the philosophy that fixed income instruments should serve the role of limiting an overall portfolio's volatility.

U.S. Only Fixed Income Strategy
This diversified fixed income strategy will invest in a combination of structured fixed income funds (mostly in DFA funds) whose investment objectives are to achieve stable real returns in excess of the rate of inflation with a minimum of risk, to earn current income consistent with preservation of capital, and to maximize total returns from the universe of debt obligations of the US government and agencies. The funds may invest in dollar denominated foreign bonds. This strategy is consistent with the philosophy that fixed income instruments should serve the role of limiting an overall portfolio's volatility.

Tax Exempt Fixed Income Strategy
This diversified fixed income strategy will invest in a combination of structured fixed income funds (mostly in DFA funds) whose investment objectives are to provide current income that is exempt from federal personal income taxes, to maximize total returns from the universe of debt obligations of the US government and agencies, and to earn current income consistent with preservation of capital. This strategy is consistent with the philosophy that fixed income instruments should serve the role of limiting an overall portfolio's volatility.

Balanced Strategies

To meet investment objectives, clients can allocate between our equity and fixed income strategies. Current suggested allocations are as follows: