Based on the outlook of the Gradient Investment Committee, we have made the following adjustments to our Tilt Series models on November 14, 2019:

Conservative Model:

• Reduced exposure to G50 by 5%
• Added a 5% position in SPDR 1-3 Month T-Bill ETF (BIL)

Balanced Model:

• Reduced exposure to Core Select by 5%
• Added a 5% position in SPDR 1-3 Month T-Bill ETF (BIL)

Moderate Growth Model:

• Reduced exposure to Core Select by 5%
• Added a 5% position in SPDR 1-3 Month T-Bill ETF (BIL)

Growth Model:

• Reduced exposure to Core Select by 5%
• Added a 5% position in SPDR 1-3 Month T-Bill ETF (BIL)

As a component of our active investment strategy, the Gradient Investment Committee will make investment decisions to reduce (or increase) the risk exposure of the Tilt Series portfolios. In this regard, our team determined a profit taking transaction and reduction of stock exposure was warranted in the near term. As a result, the Committee elected to sell a portion of our stock allocation and add that allocation to short-term US Treasuries.

This transaction is not based on a negative long term forecast for the market. The Committee considers this action to be a profit taking transaction and a short-term risk-reduction strategy. This action is aligned with our recent commentary that profit taking and rebalancing may be warranted but any sustained weakness in the stock market should be considered a buying opportunity.

To take this action, the Committee conducted a sale of 5% in our G50 portfolio for the Conservative Model and the Core Select portfolio in all other models. The proceeds were then used to purchase BIL, an ETF that invests in 1 month to 3 month US Treasurys. Our expectation is that BIL will protect capital and generate a small amount of income (1.53% annual yield*) while we wait for a re-entry point.

*source: SPDR Average Yield to Worst as of 11/14/19

Thank you,

The Gradient Investment Committee

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