Investment Policy Statement

1. Purpose

An important purpose of an Investment Policy Statement (IPS) is to put in writing your investment objectives, preferences and constraints. In addition, this IPS briefly describes Successful Portfolios LLC philosophy of investment management and client communication. This document is not a legal contract but rather a blue print and set of guidelines for you and your investment advisor.

2. Location of Assets Covered by this IPS

This IPS covers the account(s) listed in the table below:

Broker/Custodian / Account Number / Account Title

3. Investor Narrative

Consider what personal information you want your investment advisor to know about you. For example, what isyour family information, date of birth, investment experience, net worth, income, occupation? How best to contact you? Success Portfolios LLC always keeps client information private and confidential.

4. Risk Tolerance

Considering all investments that you now hold and any changes you plan to make, how would you rate your willingness to tolerate risk relative to that of other investors?

○ Below average / ○ Average / ○ Above average

For help on determining your personal risk tolerance, Successful Portfolios LLC strongly encourages you to try the FinaMetrica Risk Profiling System available at no charge at

5. Risk-Return Objectives and Asset Allocation

Academic research indicates that strategic asset allocation is a key determinant of long-term portfolio risk and return. The table below lists Successful Portfolios Asset Allocation Models in descending order of expected return and risk. Please indicate your choice of Asset Allocation Model.

Asset Allocation Model / Tactical AllocationRanges / Model Benchmark
○ / Dynamic Opportunity / 0-100% Stocks; 0-100% Bonds / S&P 500 Stock Index
○ / Capital Growth / 60-100% Stocks; 0-40% Bonds / Blended Index = 80% S&P 500 Stock Index + 20% Barclays Aggregate Bond Index
○ / Balanced Total Return / 30-70% Stocks; 30-70% Bonds / Blended Index = 50% S&P 500 Stock Index + 50% Barclays Aggregate Bond Index
○ / Income &
Capital Preservation / 0-30% Stocks; 70-100% Bonds / Blended Index = 15% S&P 500 Stock Index + 85% Barclays Aggregate Bond Index

Successful Portfolios LLC seeks to outperform model benchmark returns over a three to five year period, net of fees, as a combined result of tactical asset allocation, security selection and trading profits.

6. Successful Portfolios LLC Investment Philosophy

Successful Portfolios LLCis convinced that active investment management can potentially enhance your risk-adjusted investment returns. Successful Portfolios LLC invests based on technical, fundamental and quantitative factors. Successful Portfolios LLCdoes proprietary technical analysis, quantitative modeling and fundamental research using Amibroker software and the Bloomberg Professional Terminal. In addition, Successful Portfolios LLC uses investment research produced by other sources, including Morningstar and Zacks. Successful Portfolios LLCknows that identifying and managing risk is essential to your investment success.

7. Successful Portfolios LLC Risk Management Guidelines

  • The number of assets required for a reasonable level of portfolio diversification will vary. For example, an all ETF portfolio may require as few as four or five funds. In contrast, a small cap stock portfolio would likely require 40 or more stocks.
  • Stop orders may be especially useful to control risk in concentrated and/or leveraged portfolios.
  • Avoid “averaging down” when managing a concentrated portfolio.
  • When assembling a well-diversified portfolio, “scaling in” and “dollar cost averaging” is a valid risk control strategy.
  • Generally, prudent diversification requires holding maximum 40% of portfolio assets from any single GICS Sector.
  • Limit purchases to a maximum 10% of total portfolio assets for the securities of a single issuer (except U.S. Government Securities).
  • Hold no more than 20% of total portfolio assets in the securities of a single issuer (except U.S. Government Securities).
  • Using a core-satellite ETF-based strategy helps control active tracking risk relative to benchmark indices.
  • Consider the diversification benefits of each asset held or purchased (the likely correlation with the portfolio), and not just that assets expected return.
  • When investing in bonds and other debt securities it is important to evaluate yield in the context of credit spread risk, purchasing power risk, interest rate risk, embedded optionality, default risk and liquidity risk.
  • Diversify globally to reduce multiple risk factors and to expand the set of investment opportunities.
  • Consider the stocks of foreign-based companies but remember that investing in U.S. based multi-national companies may also provide global diversification benefits.
  • Beta, historical and implied volatility are excellent quantitative measures of an assets potential risk.
  • Assets demonstrating unusual price momentum and relative strength may be riskier than other assets, due to “crowded trade” dynamics and the tendency for mean reversion in investment returns.
  • Credit ratings are lagging indicators of risk. If the yield or credit spread on a given bond exceeds identically rated bonds of similar structure and liquidity, suspect the rating is wrong first, the market second.
  • Investor sentiment and analyst consensus forecasts can be spectacularly wrong at market peaks and troughs.
  • While potentially more rewarding than “buy and hold” or passiveinvesting, active investment management can be challenging.Seek to maintain discipline, and avoid overconfidence and overtrading.

8. Investment Opportunity Set

Successful Portfolios LLC has the capability to advise you regarding many types of investments. Please indicate any asset category you want to exclude from your portfolio.

  • U.S. Large-Cap Stocks
/
  • U.S. Treasury Bills, Notes & Bonds

  • U.S. Small-Cap Stocks
/
  • U.S. Treasury TIPs

  • Large-Cap Foreign Stocks
/
  • Corporate Bonds

  • Small-Cap Foreign Stocks
/
  • Municipal Bonds

  • Closed End Funds
/
  • “Junk” Bonds

  • Equity & Bond ETFs
/
  • Preferred Stocks

  • REITs – Equity
/
  • REITs - Mortgage

  • Commodity ETFs
/
  • Currency ETFs

  • Listed Put & Call Options
/
  • Foreign Currency

  • Single Stock Futures
/
  • Mutual Funds

9. Description of Investment Strategy

Have you chosen a specialized Successful Portfolios LLC investment strategy? Do you have a custom strategy that you wish to Successful Portfolios LLC to help you implement?

10. Cash-flow Considerations

Please address your need for income and the timing and amount of recurring withdrawals from your portfolio, the potential for lump sum withdrawals, expected account additions.

11. Time Horizon

For how long do you expect to invest?Will you need to liquidate or substantially change the portfolio at a specific time in the future?

12. Tax Considerations

Please address your expected income tax bracket,Individual Retirement Arrangements (IRAs), attitude toward short-term capital gains, and any unused tax-loss carry-forward.

13. Other Investment Constraints

Are there any other specific investment assets you want to avoid?

14. Advisor-Client Communications

Successful Portfolios LLC encourages open communication and client education. You and your Successful Portfolios advisor should review this Investment Policy Statement at least annually; sooner in the event material change in your financial circumstances. Please call or email Successful Portfolios LLC at any time to discuss investment strategy or to set an in-person appointment. Successful Portfolios LLC emails investment news educational information to clients on a regular basis. Online at any time, 24 hours / 7 days a week, you may view your real-time account information including daily and monthly statements. Successful Portfolios LLC can also help you customize the account statement that you receive. Visit the Successful Portfolios LLC website at for news and additional information. Thank you!

Contact:

H. Parker Evans, CFA, CFP, CMT

President and Chief Investment Officer

(727) 744-4818

Successful Portfolios LLC

300 South Duncan Avenue - Suite 166

Clearwater, FL 33755

15. Client Advisor Signatures with Date of Adoption:

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Copyright @ 2010 Successful Portfolios LLC INVESTMENT POLICY STATEMENT Page 1 of 5.