CWP Enhanced Dividend Income Portfolio

CWP Enhanced Dividend

Income Portfolio

Firm Profile

Capital Wealth Planning is an independent, fee-only Investment Advisory firm registered with the Securities and Exchange Commission. CWP provides sub-advisory investment services to high net worth individuals, pensions, profit sharing plans, trusts, estates, charitable organizations, and corporations. CWP's strategic focus is concentrated on providing proprietary investment products and services for institutional investment platforms.

CWP realizes that as markets and environments change, the ability to adapt is crucial. CWP specializes in covered call strategies, which allows our firm to focus solely on what we do best; increase the yield of the portfolio. Capital Wealth Planning exists at the forefront of implementing covered call strategies on our proprietary ETF Income and Enhanced Dividend Income Portfolios, as well as concentrated equity holdings.

Above all else, CWP's strategic partners and clients are our number one priority and our firm takes that very seriously. CWP's success is dependent on your satisfaction. A teammate like relationship allows our firm to establish highly personalized sub-advisory relationships coupled with customized portfolios composed of innovative investment opportunities, which generate monthly cash flow and reduce risk in the client's portfolio. (See Disclaimer).

A teammate like relationship allows our firm to establish highly personalized sub-advisory relationships.

Trade Team Bios

Kevin G. Simpson ? Chief Investment Officer Kevin Simpson has been the President and Chief Investment Officer of Capital Wealth Planning, LLC since establishing the firm in 2005. Originally from Philadelphia, Pennsylvania, Kevin has been investing in options since he began his career at W.H. Newbold's Son & Co. in 1992. After his time at W.H. Newbold's Son & Co Kevin spent 7 years with Wheat First Butcher Singer (Subsequently Wells Fargo) where he helped institutions and high-net worth individuals plan and achieve their financial goals through option centered strategies. Following his time at Wheat First Butcher Singer Kevin spent several years at Sterling Financial before establishing Capital Wealth Planning. Over the years, Kevin has shifted Capital Wealth Planning away from a financial planning orientation to an established investment management firm, offering separately managed ETF and Equity portfolios that are complemented with a yield enhancing covered call strategy. A graduate of The George Washington University majoring in Finance, Kevin applies institutional investment management strategies to diversified equity and option portfolios.

Josh Smith, CFA ? Head Trader Josh is responsible for the oversight and management of the trading of the firm's investment strategy. Prior to joining CWP Josh spent 6 years with First Financial Capital Advisors, the internal asset management arm of First Financial Bank. While at First Financial Capital Advisors Josh oversaw roughly $500M in assets as the lead portfolio manager for the International Global Focused SMA and the Pure Equity SMA, both strategies employed covered call programs to enhance yield and cover fees. Josh also served as co-portfolio manager of the Large Cap Core Mutual Fund. During a portion of his college experience and career in finance Josh served in the U.S. Army National Guard for 8 years with deployment to the Middle East and received an honorable discharge. Josh received his B.S. in Finance from Miami University of Ohio. He is a CFA charter holder, as well as, a member of the CFA Institute and CFA Society of Cincinnati.

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Portfolio Process

CWP's Enhanced Dividend Income Portfolio is strategically designed to offer a higher total return on a risk-adjusted basis for income oriented investors. This is achieved by constructing a portfolio that is diversified among the ten S&P 500 sectors and selling call options to generate additional income.

CWP actively manages sector allocation and opportunities to participate in defensive and cyclical trends given the relevant economic cycle. CWP screens for growth and value stocks that have a history of increasing dividends and possess strong fundamentals. The portfolio consists of dividend paying stocks and is designed to deliver an estimated annual cash flow of 5-7% between dividend and option income, plus the potential for capital appreciation.

Unlike a systematic covered call program, CWP is not obligated to continuously cover each individual equity position. When one of the underlying stocks demonstrates strength or an increase in implied volatility, CWP managers identify that opportunity and sell call options tactically, rather than keeping all positions covered and limiting all potential upside.

Dividend income has contributed 60% of total equity returns, since 1980*

*Source: Bloomberg. Returns measured by the S&P 500 from 1980 through June 2013

Broad Diversification

The portfolio typically consists of high quality, dividend paying stocks across ten S&P 500 sectors.

Downside Protection

In the event of a market selloff, the options market can be utilized to hedge the portfolio. By selling calls, CWP is initiating a position by collecting premium (cash) against long stock position. As the stock trades down for a loss, the call CWP sold will lose value, creating a profit in the call position that helps offset the decline in the stock.

Monthly Cash Flow Production

By entering into contracts to sell our investments at a higher price, we earn consistent income and increase the total return of the portfolio.

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