Asset Allocation Advantage Compare a private placement portfolio that's diversified and one with only asset classes for the highest tax exemption multiples (TEMs) Asset Location Stategy Dilletence in Futile Values (S) Yen S 10 IdennailAketion n Pnete Pia went 1936.68174 5.4973656 11.344.4822 20292.400 Asset Nueva Wit TEM in ribytePixement 1904.459.*, 1232233501 30)69173J 62%01519 ASSUITTOCITS. • Itttle 171 Caplal gags lax ci tot VC,: cupw gauf tan cl (9%. ace in:or:etas kw 'ate> :enan • AS52I elms (teemand Istnew assucitAcns Into] n Class Assail:66(6as] Tax Cvteral Benda; a. 11 • An nitil Wise al 160 rata% ?A in a viral° olmelnern ble insuwnee (RAI)Ctettic rid /A in a wade mita°. • Assets are 'x telmaied [Hawn theKil and iamb% po4s ever the intal asset Axiom • letal awl allxition: US. live (ac Secar 70.25%. US SratetapEoutly18%. Etoopean runty IC.BA.spanese Wady 2.17). Paoli( X-/ftin Sealy 225%. Eirevsa casy S.86%.74.1w(crekrilstRunopels1/49%, H4e.Yeld 8445 la imager; Nalcel 84451.7%.1rosune tntlation litcteteU Steutoes LE'S. Me4. re oral wee fan.% SA%. Diagonal Hedge limas 3.6%. Rwie (elute 4%. Real (stale %%reamer( arts 6%. (tatne4to. la dila (»lila — Deutsche Asset k Wealth Management carrier's platform. A disadvantage is that the advisor would have to get the IDF added to the carrier's platform. In addition, the administrative costs of the custom 1DF usually make this approach feasible only at levels over $20 million. And, if the investor elects to allow others to invest in his IDF, it could limit his ability to change the mandate. As with any discussion of private placement, we should pause to consider the investor control doctrine. While an investor can design the broad allocation. select specific asset classes or themes for focus and even hire a specific manager, the investor should be certain not to participate (directly or indirectly) in security selection. Bottom Line It's broadly accepted in the wealth manageme