bringing active money management to main street investors

Bringing Active Money Management to Main Street Investors

Primerica AdvisorsDelivering Wealth Management Solutions

PrimericaA Main Street Company for Main Street North AmericaOur mission is to help families earn more income and become properly protected, debt free and financially independent.

We deliver for the consumer:• New public company with 36-year history • The largest independent financial services marketing company in North America• Two million investment clients with nearly $40 billion in assets under management in their PFSI accounts*

We teach people how money works, and now we are changing the landscape again by bringing active money management to Main Street investors.

*As of March 2013

Investing Made EasyAre you on the right track toward reaching your financial independence? Are you looking for an intelligent way to invest? Primerica Advisors can help. By identifying your goals and objectives, we can help you develop an investment strategy that’s right for you by providing:

• Active money management through the Primerica Advisors Freedom Portfolios• Advisory products that historically have been available only to institutional and affluent investors• High quality asset management without the high minimum investment

All investments are subject to risk, including the loss of principal. For additional information, please refer to the Important Disclosures at the end of this brochure.

What is a managed account?A managed account is an investment program that offers an actively managed portfolio comprised of securities selected by investment professionals. Managed accounts may provide you with the peace of mind that comes with a professionally managed investment.

Primerica Advisors Freedom Portfolios• Designed to provide you with a single diversified portfolio of high quality

mutual funds across multiple fund families• Securities are owned by an individual investor and managed by a

professional money manager• Management team is authorized to make transactional decisions based on

your goals and objectives• Actively managed asset allocation strategy• Fee-based product* – no upfront sales charges or transactional charges

It’s an opportunity to own a customized portfolio administered by a professional money manager.

• Primerica has partnered with Lockwood Advisors, Inc., the money manger for the portfolios. Lockwood is a leading provider of managed account solutions to financial institutions and financial advisors.

Wave of the Future in the

Securities Industry

• The managed accounts

business is an explosive

growth industry

• Assets invested in managed

account products reached

nearly $2.8 trillion in 2012

• A 268% increase from the

year 2000

Cerulli Edge, 4Q 2012*See Primerica Advisors Form - ADV Part 2A Wrap Fee Program Brochure for associated fees.

To help you meet your financial goals, you need a sound investment strategy. But with life’s many challenges and day-to-day activities, do you have the time to research and track your investments? Are you making the right investment choices? Primerica Advisors has designed a managed account program with individuals like you in mind. Why Primerica Advisors Freedom Portfolios provide great value for you:• Professionally managed portfolio based on your investment objective• Provides access to leading asset managers through a multi-fund platform• Leverages the investment experience of one of the largest independent

advisory firms, Lockwood Advisors, Inc.• Ongoing monitoring and periodic rebalancing helps keep your portfolio

consistent with your goals and objectives• Offers peace of mind through a disciplined approach to investing

Focus on You

A managed account

helps to establish a

long-term relationship

with your Primerica

Representative

A Disciplined Investment ProcessPrimerica Advisors Freedom Portfolios are built using many of the same tools and techniques historically available only to large institutions. Using proprietary analysis and experienced judgment, the portfolios are designed for the long term, seeking to deliver consistent performance without taking undue risk.

Individual mutual funds are selected using a five-step investment process

Individual investment options are regularly monitored to ensure that they are meeting their objectives.

Screen preliminary factors to identify mutual funds

Perform quantitative performance analysis

Evaluate qualitative factors

Investment committee review

Ongoing monitoring

1

2

3

4

5

Making Your Life Simple• One consolidated mutual fund account• One quarterly statement detailing your investments• One 1099 tax form• E-Delivery

Are you looking to

reduce paper at your

home or office? Go

Green and take

advantage of e-Delivery.

By signing up for

e-Delivery, your

account statements and

prospectuses will be

emailed directly to you.

Balanced Portfolio: A strategy comprised of various types of investments designed to grow and protect capital through a variety of market cycles

30 Day Treasury Bills: Ibbotson Associates U.S. 30 Day TBill TR Index - measures short-term discounted securities issued by the U.S. Government with a maturity of 30 days

International Stocks: MSCI EAFE Index – recognized as the benchmark in the U.S. to measure international equity performance that represent developed markets outside of North America

Large Cap Stocks: S&P 500 TR Index – widely regarded as the best gauge of the large cap U.S. equities market. The index includes 500 of the largest stocks in terms of market value in the U.S.

Small Cap Stocks: Russell 2000 TR Index – generally considered to be representative of the small cap stock segment of the market – small cap stocks generally consists of companies with a market capitalization of less than $1 billion

U.S. Bonds: BarCap U.S. Aggregate Bond TR Index - measures the performance of the total U.S. investment-grade bond market

Int’lStocks17.90%

SmallStocks21.26%

U.S. Bonds11.63%

SmallStocks2.49%

U.S. Bonds10.26%

SmallStocks47.25%

Int’lStocks20.70%

Int’lStocks14.02%

Int’lStocks26.86%

SmallStocks16.35%

Int’lStocks20.33%

Int’lStocks27.30%

30-DayT-Bills5.89%

30-DayT-Bills3.83%

30-DayT-Bills1.65%

Int’lStocks39.17%

LargeStocks28.58%

SmallStocks18.33%

U.S. Bonds2.43%

SmallStocks18.37%

Balanced Portfolio10.84%

U.S. Bonds8.69%

LargeStocks21.04%

U.S. Bonds8.44%

SmallStocks

-20.48%

LargeStocks28.68%

LargeStocks10.88%

SmallStocks4.55%

LargeStocks15.79%

U.S. Bonds4.21%

30-DayT-Bills4.86%

30-DayT-Bills4.68%

LargeStocks-9.10%

LargeStocks-11.89%

Int’lStocks-15.66%

U.S. Bonds4.10%

U.S. Bonds4.34%

LargeStocks4.91%

30-DayT-Bills4.80%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Int’lStocks11.63%

SmallStocks

-33.79%

U.S. Bonds5.24%

LargeStocks5.49%

30-DayT-Bills1.69%

U.S. Bonds6.97%

30-DayT-Bills4.66%

LargeStocks

-37.00%

Int’lStocks32.46%

SmallStocks27.17%

LargeStocks26.46%

30-DayT-Bills0.10%

2010

SmallStocks26.85%

LargeStocks15.06%

U.S. Bonds6.54%

Int’lStocks8.21%

2011

SmallStocks-4.18%

LargeStocks2.11%

U.S. Bonds7.84%


30-Day T-bills0.06%

SmallStocks-2.55%

U.S. Bonds-0.82%



LargeStocks-22.10%

30-DayT-Bills1.02%

30-DayT-Bills1.20%

30-DayT-Bills2.98%

U.S. Bonds4.33%

SmallStocks-1.57%

Int’lStocks

-43.06%

U.S. Bonds5.93%

30-DayT-Bills0.12%

30-DayT-Bills0.04%

Large Stocks16.00%



SmallStocks-3.02%

Balanced Portfolio-1.75%












2012

Are You Able to Predict the Future?

Source for index information: Morningstar Inc. as of 12/31/2012. Past performance is no guarantee of future results. This chart is for illustrative purposes only and does not represent an actual investment or the performance of any specific investment. All investments involve risk including loss of principal. This information is based on indices, is presented for illustrative purposes only and is not intended to imply the potential performance of any model, fund or investment. Index performance assumes the reinvestment of all distributions but does not assume any transaction costs, taxes, management/advisory fees or other expense, which would lower results. Indices are not available for direct investment. Balanced Portfolio represented by a blend of the indices: 30% Large Cap Stocks, 30% U.S. Long Term Bonds, 20% International Stocks, 10% Small Cap Stocks and 10% 30-day Treasury Bills. Bond prices will decline as interest rates rise. These securities do not carry guarantees like the bonds themselves. Treasury bills are guaranteed by the full faith and credit of the United States government as to the timely payment of principal and interest, while stocks are not guaranteed and have been more volatile than the other asset classes. Furthermore, small company stocks are more volatile than large company stocks and are subject to significant price fluctuations, business risks and are thinly traded. International investments involve special risks such as fluctuations in currency, foreign taxation, economic and political risks, liquidity risks and differences in accounting and financial standards.

Do you see the value of a diversified portfolio?

Asset Allocation

Due to market fluctuations, your portfolio allocations will change over time, and portfolio rebalancing can help you stay on track. Periodic rebalancing helps ensure that your portfolio will remain consistent with your investment profile.

Asset allocation is taking a portfolio approach to investing. It’s a strategy of selecting investment asset classes based on goals and objectives. Because your investments are spread across various asset classes, asset allocation may reduce your portfolio’s volatility. Asset allocation seeks to maximize portfolio performance while minimizing risk. Your Primerica Advisors Representative will assist you in selecting an asset allocation strategy that’s right for you.*

Current Asset Allocation Market Fluctuation Rebalancing

Portfolio Rebalancing

Do you see the benefits of portfolio rebalancing?

37% bonds

3% cash

60% stocks

28% bonds

2% cash

70% stocks

37% bonds

3% cash

60% stocks

*Asset allocation and diversification do not assure a profit or protect against loss.

One of the most important strategies for achieving your long-term investing goals is through diversification. A diversified investment strategy may help reduce risk and can work to increase returns by offsetting losses in one asset class with an increased opportunity for gain in another. Through the Primerica Advisors Freedom Portfolios, you will have access to a broad spectrum of asset classes through a single mutual fund portfolio.*

Diversification

Primerica Advisors and Lockwood Advisors, Inc.*, a subsidiary of BNY Mellon, will serve as the co-sponsors for the Freedom Portfolio accounts, with each company bringing their unique strengths and track records to provide tremendous support for you.

Lockwood Advisors, Inc.• A pioneer in managed investments – founded in 1995• Providing advisory solutions exclusively though financial institutions and

professionals• An industry-leading provider of portfolio management and research

solutions with over $17.6 billion in advisory assets under management*

• Thirty-seven investment professionals averaging 14 years of investment experience

* Lockwood Advisors, Inc. as of March 31, 2013. Included in the assets under management are approximately $6.9 billion in assets where Lockwood acts as adviser to the adviser. In these programs, Lockwood does not have direct management responsibilities or discretionary authority. Lockwood is an SEC Registered Investment Adviser and an affiliate of Pershing LLC, each subsidiaries of The Bank of New York Mellon Corporation. Pershing LLC, member FINRA, NYSE, SIPC

Lockwood Advisors, Inc. (Lockwood) is an investment adviser registered in the United States under the Investment Advisers Act of 1940, an affiliate of Pershing LLC, and both are wholly owned subsidiaries of The Bank of New York Mellon Corporation (BNY Mellon). Pershing LLC, member FINRA, NYSE, SIPC. SEC registration neither implies nor asserts the SEC or any state securities authority has approved or endorsed Lockwood or the contents of this document. In addition, SEC registration does not carry any official imprimatur or indication Lockwood has attained a particular level of skill or ability.

BNY Mellon• $1.4 trillion under management*

• $26.3 trillion under custody or administration*

• Oldest private bank in the U.S.*

• With industry-leading teams in 36 countries and more than 100 markets worldwide, we are dedicated to creating innovative financial services*

* The Bank of New York Mellon Corporation, Corporate Fact Sheet (Q1 2013)

The Lockwood Team’s collective

and diverse investing experience

provides the insight, judgment

and perspective to effectively

analyze and act upon economic

and market dynamics.

Experienced

• Long-term investment

approach from a team with

a wealth of experience

Disciplined

• Well-defined, methodical

process drives investment

research

Insightful

• Willingness to use a

contrarian view in

interpreting data and

market trends

Balanced Judgment

• Independent research

Structured & Flexible

• Diversified product,

designed to offer the

customization you desire

Risk Management

• Assess risks in a portfolio

and then seek ways to

mitigate those risks

consistent with the

portfolio’s objectives

A Strong Record ...

Legg Mason• Founded in 1899, diversified global asset management firm with $665

billion in assets under management1

• Worldwide scope with 3,100 employees in 31 offices around the world

Invesco• Commitment to investment excellence, depth of investment capabilities

and organizational strength to benefit our clients• Global reach - $687 billion in asset under management spanning 6,000

employees, 750 investment professionals in 20 countries2

Pioneer Investments• Founded in 1928, Pioneer Investments helped lay the foundation for the

mutual fund industry and “value investing” with the Pioneer Fund• A global leader with over $207 billion in assets under management and

offices in 26 countries, Pioneer remains true to its original core values3

American Century Investments• A leading privately controlled and independent asset management

firm, American Century is committed to delivering superior investment performance and building long-term client relationships

• Assets under management of $130 billion with offices around the world4

BlackRock• Investors who want answers that unlock opportunity and uncover risk

entrust their assets to BlackRock. As an independent, global investment manager, BlackRock has no greater responsibility than to its clients

• The largest asset manager with $3.79 trillion in assets under management with investment professionals across 30 countries5.

J.P. Morgan Asset Management• For over a century, J.P. Morgan has provided investment management

services to dedicated investment professionals• One of the largest asset managers in the world with global assets under

management of $1.4 trillion6. Worldwide network of 745 investment professionals representing 23 countries

Natixis• Natixis has a multi-boutique structure, giving you a single point of access

to specialized, affiliated money managers• Worldwide scope with $780 billion in assets7

• Provides access to a wide range of equity, fixed-income and alternative investment strategies

... and the Right PartnersBringing Together the Best in the Business

1 As of March 31 2012, 2 As of December 2012, 3 As of December 2012, 4 As of March 2013, 5 As of December 2012, 6 As of December 2012, 7 As of December 2012

Primerica AdvisorsBenefit from our Knowledge and Know-how The investment process has been designed with teamwork and expertise in mind.

Ongoing investment reviewYour Primerica Representative

and Lockwood Advisors provide ongoing investment oversight.

Your investment team makes the transactional decisions to ensure

that your portfolio lines up with your investment profile.

We’re About the FundamentalsAsset allocation, ongoing account monitoring and periodic rebalancing are all strategic pieces in the investment process designed to keep your account lined up with your goals and objectives.

Determine your investment profile

Use our proprietary questionnaire to determine

your investment profile.

Select the appropriate asset allocationBased on your investment profile, a diversified asset allocation strategy will be personalized for you.

Portfolio constructionLockwood Advisors and your Primerica Representative will select a portfolio of investments that match your asset allocation strategy.

Primerica AdvisorsFreedom Portfolios - Asset Allocation Lineup

Investment Objective

Current source of Income

Current source of income with lowpotential capital appreciation

Modest capital appreciation withsome currentincome needs

Long-term capital appreciation with minimal fixed income needs

Long-term capital appreciation

TargetInvestor

Fixed income objective - highly risk averse

Seeks a balanced mix with an emphasis on fixed income securities - moderately risk averse

Seeks a balanced portfolio mix with a slight emphasis on equities - moderately risk tolerant

Seeks a long-term capital appreciation and modest fixed income - willingness to accept increased levels of risk

Willingness to accept short-term market fluctuations - highly risk tolerant

20% equity

80% fixed income and cash

40% equity


60% equity


80% equity


97% equity


Freedom 20

Freedom 40

Freedom 60

Freedom 80

Freedom 100

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Important Disclosures

The statements contained herein are based upon the opinions of Primerica Advisors and the data available at the time of publication and are subject to change at any time without notice. This communication does not constitute investment advice and is for informational purposes only, is not intended to meet the objectives or suitability requirements of any specific individual or account, and does not provide a guarantee that the investment objective of any model will be met. An investor should assess his/her own investment needs based on his/her own financial circumstances and investment objectives. Neither the information nor any opinions expressed herein should be construed as a solicitation or a recommendation by Primerica Advisors, Lockwood Advisors, Inc. (Lockwood) or their affiliates to buy or sell any securities or investments. It is important to remember that there are risks inherent in any investment and that there is no assurance that any money manager, mutual fund, asset class, style or index will provide positive performance over time. The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. The investment return and principal value of an investment will fluctuate, so that an investor’s assets, when sold, may be worth more or less than their original cost. Primerica Advisors Freedom Portfolios contain open-end mutual funds. Investors should carefully consider the investment objectives, risks, charges, fees and expenses of any mutual fund before investing. This and other important information can be found in the fund prospectus and or summary prospectus, which may be obtained through your financial advisor or by calling the fund or by visiting the fund’s website. Please read each fund’s prospectus carefully before investing. Mutual funds included in Primerica Advisors Freedom Portfolios may charge additional fees and expenses in addition to the program fee charged for the product. Mutual funds may also charge a redemption fee if shares are redeemed within a period of time as specified in the fund’s prospectus. The amount of the redemption fee, as well as the minimum holding period, is disclosed in the respective fund prospectus. For complete details, please refer to the prospectus. Mutual funds included in Primerica Advisors Freedom Portfolios may use derivatives that are often more volatile than other investments and may magnify the fund’s gains or losses. An investment that uses derivatives could be negatively affected if the change in the market value of its securities fails to correlate adequately with the values of the derivatives it purchased or sold. Investors considering these types of investments should have a long-term investment horizon. Portfolios may include mutual funds that invest in fixed income securities, which are subject to several general risks, including interest rate risk, credit risk and market risk, which could reduce the yield that an investor receives from his/her portfolio. These risks may occur from fluctuations in interest rates, a change to an issuer’s individual situation or industry, or events in the financial markets. If sold prior to maturity, fixed income securities are subject to gains/losses based on the level of interest rates, market conditions and the credit quality of the issuer. Portfolios may include mutual funds that invest in equity securities, which are subject to several general risks, including the risk that the financial condition of the issuer may become impaired or the general condition of the stock market may deteriorate, either of which may cause a decrease in the value of the issuer’s securities. Equity securities are susceptible to general stock market fluctuations and to sudden, significant and prolonged increases and decreases in value as market confidence in and perceptions of the security’s issuer change. These perceptions are based on various and unpredictable factors, including expectations regarding government, economic, monetary and fiscal policies, inflation and interest rates, economic expansion or contraction, and global or regional political, economic, and banking crises. There can be no assurance that an issuer will pay dividends on outstanding shares of its common stock, as the payment of dividends will generally depend upon various factors, including the financial condition of the issuer and general economic conditions. Holders of common stocks of any given issuer will generally incur more risk than holders of preferred stocks and debt obligations of the same issuer because common stockholders, as owners of the issuer, generally have subordinated rights to receive payments from such issuer in comparison with the rights of creditors or holders of the issuer’s debt obligations or preferred stocks. The existence of a liquid trading market for certain equity securities may depend on whether dealers will make a market in such securities. There can be no assurance that a market will be made for any securities, that any market for the securities will be maintained, or that any such market will be or remain liquid. The price at which an equity security may be sold will be adversely affected if trading markets for the security are limited or absent. Lockwood serves as the money manager with respect to Primerica Advisors Freedom Portfolios and is responsible for developing and providing asset allocation strategies and investment selections for each asset class from a selection of mutual fund families chosen by Primerica. Lockwood periodically reviews the asset allocation strategies and investment selections for adherence to the investment objective. Lockwood exercises limited discretion in order to implement certain model updates, which may include changes to the asset and style allocation and/or the replacement of investment vehicles. Lockwood, in its sole discretion, may rebalance a client account in such instances as are believed to be or determined by Lockwood to be in the client’s best interests. Lockwood reviews each account’s drift from the selected model on a regular basis and rebalances a client account as circumstances warrant. Lockwood has adopted a Code of Ethics, which is designed to address perceived or real conflicts between the trading activity on behalf of investors and the trading activity of Lockwood employees. Lockwood Advisors, Inc. (Lockwood) is an investment adviser registered in the United States under the Investment Advisers Act of 1940, an affiliate of Pershing LLC, and both are wholly owned subsidiaries of The Bank of New York Mellon Corporation (BNY Mellon). Pershing LLC, member FINRA. NYSE, SIPC. SEC registration neither implies nor asserts the SEC or any state securities authority has approved or endorsed Lockwood or the contents of this document. In addition, SEC registration does not carry any official imprimatur or indication Lockwood has attained a particular level of skill or ability. For more information about Lockwood, as well as its products, fees and services, please refer to Lockwood’s Form ADV Part 2, Wrap Fee Brochure for Freedom Portfolios, which may be obtained through your financial advisor or by writing to Lockwood at: 760 Moore Road, King of Prussia, PA, 19406 or by calling (800) 200-3033. Neither Lockwood or BNY Mellon is affiliated with Primerica.

For more information about Primerica Advisors, as well as its products, fees and services, please refer to Primerica Advisors Form ADV Part 2, Wrap Fee Brochure for Freedom Portfolios, which may be obtained through your financial representative or by writing to Primerica Advisors at: 1 Primerica Parkway, Duluth, GA, 30099-0001, or by calling (800) 544-5445.

© 2011, 2013 Primerica A9167 / 46234 / 11PIA01-7 / 7.13

bringing active money management to main street investors

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