Trust Services

The Passport Investment Account

First Commonwealth Passport Portfolios

Starting now, you can take a journey to financial freedom. All you need is your "Passport."

The First Commonwealth Passport Portfolios may be your ticket to a financially secure future. Whether you’re in your early years of investing, enjoying your retirement, or anywhere in between, the Passport Portfolios consist of seven diversified portfolios covering a spectrum of investment objectives to help accomplish your investment goals.

Passport Portfolio Investment Objectives

	Equity Exposure	Fixed Income Exposure
	The Growth Passport Portfolio provides diversification within the various sectors of the equity markets. The investment goal of the portfolio is to seek long-term capital appreciation.
	The Primary Growth Passport Portfolio provides diversification within the equity and taxable fixed income markets. The investment goal of the portfolio is to seek capital appreciation while providing nominal current income.
	The Growth With Income Passport Portfolio provides broad diversification within the equity and taxable fixed income markets. The investment goal of the portfolio is to seek capital appreciation while providing the opportunity for modest current income.
	The Balanced Passport Portfolio provides broad diversification within the equity and taxable fixed income markets. The investment goal of the portfolio is to seek a balanced mix of capital appreciation and current income.
	The Income With Growth Passport Portfolio provides broad diversification within the taxable fixed income and equity markets. The investment goal of the portfolio is to seek current income, while providing the opportunity for capital appreciation.
	The Primary Income Passport Portfolio provides diversification within the taxable fixed income and equity markets. The investment goal of the portfolio is to seek current income, while providing nominal capital appreciation.
	The Income Passport Portfolio provides diversification within the various sectors of the taxable fixed income markets. The investment goal of the portfolio is to seek current income, while providing relative stability to principal.

Investment Strategy

The Passport Portfolios incorporate an asset allocation strategy, which harvests the long-term benefits of diversification by providing broad exposure to domestic equities, domestic bonds, international investments and cash. By diversifying across these differing asset classes the Passport Portfolios help reduce risk and improve your potential return. Our professional investment managers will adjust your portfolios broad and underlying asset allocation, within the specified ranges of your Passport Portfolio, dependent upon our economic outlook.

Passport Portfolio Broad Asset Allocation Range

	Broad Asset Class	Range		Midpoint
	Equity: Fixed Income: Cash:	80% 0% 0%	100% 0% 20%	90% 0% 10%	Higher Potential Volatility		Higher Potential Return
	Equity: Fixed Income: Cash:	80% 5% 0%	95% 20% 20%	88% 12% 10%
	Equity: Fixed Income: Cash:	60% 20% 0%	80% 40% 20%	70% 30% 10%
	Equity: Fixed Income: Cash:	40% 40% 0%	60% 60% 20%	50% 50% 10%
	Equity: Fixed Income: Cash:	20% 60% 0%	40% 80% 20%	30% 70% 10%
	Equity: Fixed Income: Cash:	5% 80% 0%	20% 95% 20%	12% 88% 10%
	Equity: Fixed Income: Cash:	0% 80% 0%	0% 100% 20%	0% 90% 10%	Lower Potential Volatility		Lower Potential Return

Mutual Fund Investing

To accomplish our broad asset allocation strategy, First Commonwealth utilizes a mix of no load mutual funds. The mutual funds used in the Passport Portfolios are continuously monitored and reviewed. Our monitoring process ensures that the mutual funds compare favorably to peers and appropriate benchmarks across a variety of statistical categories including:

• Risk/Return Characteristics
• Fund Management
• Investment Style
• Expenses

Benefits of Mutual Fund Investing

• Diversification for Risk Reduction- By using mutual funds the Passport Portfolios offer risk reduction through diversification. Because each mutual fund invests in many different securities, the impact of the performance of any single security is lessened. Since the Passport Portfolios include several different mutual funds each emphasizing a particular investment style, your investment is diversified even further.
• Professional Money Management- The mutual funds used in the Passport Portfolios are managed by experienced fund managers, which are appointed by the fund company. These experienced managers are highly trained and use a plethora of investment resources and strategies to perform the day-to-day management of the underlying mutual fund. First Commonwealth provides an additional layer of professional management by continually monitoring the underlying mutual funds and the practices of the mutual funds management. Given First Commonwealth’s position within the industry, we have direct access to the mutual fund managers as well as to a number of independent third party research tools which are used to monitor the underlying mutual funds progress.
• Affordable Access to the Security Markets and Professional Money Managers- Our Passport Portfolios provide you considerable buying power. Mutual fund investments present a cost effective way to invest in a number of different types of securities and gain affordable access to professional money managers. This is possible because money from numerous investors is pooled together through a mutual fund, and invested as one.
• Easy Access to Your Money- Mutual fund investments are highly liquid. In other words, you can easily convert mutual fund shares into cash. However share prices do fluctuate, and at the time of redemption, share prices may be higher or lower than their original cost.
• Reinvestment or Withdrawal of Dividend Income- Dividend income generated from the underlying mutual funds in the Passport Portfolios may be reinvested in the portfolio or taken as cash. Through automatic reinvestment, you increase the amount of your principal investment by buying more shares of the fund. This means that the next time dividends are paid; you receive income on a larger share balance, which helps compound your earnings.

Determining which Passport is right for you

To help determine which Passport Portfolio is right for you requires an understanding of your investment objectives and constraints. By discussing such items as your financial goals, liquidity needs, time horizon, tax situation, and other financial circumstances with one of our Wealth Management Consultants, First Commonwealth will be able to determine which Passport properly addresses your risk tolerance and return objectives.

If you are interested in learning more about the First Commonwealth Passport Portfolios and would like to schedule a free consultative meeting with one of our Wealth Management Consultants please contact us or call 1-800-459-3282.