California Investment TrustKovack In Touch Conference 2011

Advisory Break Out Session Presentation

This presentation is for financial professional use only. Not for use with the public.

How should you be compensated for that value?

Is the value that you provide transactional, or do you provide value to your clients 24/7?

Does your value philosophy match your pricing methodology?

Are you leaving investable assets on the sideline?

How do you deliver value?

This presentation is for financial professional use only. Not for use with the public

The Asset Based Pricing model reflect the continuous and ongoing value you provide to your clients

Third Party Managers handle the “heavy lifting” on the investment side while you monitor and make portfolio adjustments at the macro level

Access to liquid, alternative income strategies Access to institutional and no load share classes of mutual funds

Increase AUM (I’ll tell you how)

Benefits of Asset Based Pricing

This presentation is for financial professional use only. Not for use with the public

Founded in 1985 in San Francisco, CA by Richard F. Shelton

Independently owned with a singular focus on investment management

The Investment Team at California Investment Trust currently manages approximately $900 million in Mutual Funds and Separately Managed Accounts as of June 30, 2011.

Authentic client service

The firm is built to endure, with depth of management and a commitment to independence.

Who is California Investment Trust?

This presentation is for financial professional use only. Not for use with the public

Separately Managed Account Solutions

Sophisticated Option Strategies for the high-net-worth investor

No Load Mutual Funds

CA Muni Bond Funds US Government Bond Funds Passive (index) Funds Domestic Equity International Equity

Types of Products

This presentation is for financial professional use only. Not for use with the public

“Generally speaking, alternative strategies aim to outperform traditional asset classes in bear markets and tend to underperform in bull markets. But proponents say alternatives can outperform in the long run over several market cycles.” Financial Advisor Magazine, May 2011.

Many advisors prefer liquid investments, including funds and SMAs

Alternative Investment Strategies

This presentation is for financial professional use only. Not for use with the public

The strategy seeks to generate cash flow by writing covered call options on the underlying stock positions in a diversified equity portfolio.

The strategy may also provide a means for income-oriented investors to diversify their distribution streams while reducing direct exposure to interest rate risk.

Styles

Single Stock Overwrite

Stock Portfolio Overwrite

ETF Portfolio Overwrite

Optima Separately Managed Account Solutions

This presentation is for financial professional use only. Not for use with the public

Each portfolio is managed with clearly defined investment goals tailored for the individual

All dividend income and premium income is paid directly to the account holder

Ability to make specific portfolio requests, such as tax-related trading, avoidance of specific stocks, etc.

Highly liquid.

Implementation as a Separately Managed Account

This presentation is for financial professional use only. Not for use with the public

Increase AUM

Gather formerly “unmanaged” assets to the benefit of the client

Increase clients’ perception of you as a “solution provider”

Low Cost Basis Stock

Inherited Stock

NUA solutions

Optima Concentrated Stock Solutions

This presentation is for financial professional use only. Not for use with the public

The manager constructs a diversified portfolio of 30 stocks from the universe of S&P 500 constituents.

The portfolio sector weightings are intended to be similar to the S&P 500 avoiding sector concentration and portfolio drift. The number of stocks is dictated by the desire to own a minimum of 100 shares per position for efficiently matching the option contract and to manage the overall risk with a level of diversification limiting the size of any one position.

Once the stocks are selected, the manager then overlays an actively managed covered option strategy in order to generate option premium and reduce overall volatility.

Optima Portfolio Solutions

This presentation is for financial professional use only. Not for use with the public

Developed internally for the unique needs of Defined Benefit Pension Plans

Reduce volatility through a diversified portfolio of Exchange Traded Funds

Covered Call Options further reduce volatility by generating option premium income

Optima Diversified ETF Solutions

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This presentation is for financial professional use only. Not for use with the public

Important NotesInvestors should consider a fund’s investment objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other information about the fund. To obtain a prospectus, which contains more complete information, visit www.caltrust.com or www.sheltoncap.com or call 1.800.225.8778. A prospectus should be read carefully before investing. Funds distributed by RFS Partners 10/2011.

Optima is a discretionary call writing investment service of California Investment Trust. This brochure is intended to describe generally how the Optima service works, but it is not a complete description of Optima or how California Investment Trust performs its investment management responsibilities.

All analysis and projections depicted herein are for illustration only, and are not to be representations of generalized Optima performance or expected results. Past performance is not a guarantee of future results. Supporting documentation for any claims, comparisons, recommendations, statistics or other technical data will be furnished upon request to California Investment Trust.

This presentation is for financial professional use only. Not for use with the public

Important Notes ContinuedThe upside potential of fully written call option positions is limited to the strike plus the premium received. Unless the position is closed, the client relinquishes any upside potential above the call strike price. The downside protection afforded by call writing is limited to the amount of the premium received. If the stock held by the client declines significantly, the only protection will be the premium received.

Clients subscribing to the Optima Portfolio service should be willing to sell all of the stock under the Investment Advisory Agreement at the Strike Price. The Strike Price is the price at which a specific option contract can be exercised. The sale of stock will produce tax consequences for U.S. taxpayers. Each option transaction also produces a tax consequence. Prior to undertaking the Optima Portfolio service, you should discuss with your tax advisor how the option transactions and any sales of underlying stock will affect your tax situation. California Investment Trust does not provide tax advice.

Option trading is not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document may be obtained from your Investment Advisor, from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500, Chicago, IL 60606 (1-800-678-4667).

This presentation is for financial professional use only. Not for use with the public