03/24/2020

While each of us are working diligently to overcome our own burdens and disruptions related to the COVID-19 crisis, I want to pause and share with you how proud I am of the Clearwater Capital team and how they have responded to the COVID-19 pandemic. As the crisis broke, the team quickly and seamlessly transitioned our operations to the remote technology platforms we put into place over a year ago.

Clearwater Capital has the most modern digital and communication infrastructure available. We also have a business model that leverages the strengths of the largest and best capitalized financial services firms in the industry. This is no accident, but rather the product of an innovative and forward-thinking team. While we never anticipated a disruption quite like this, we knew it was wise to "live ready" and we are glad we did.

With our associates now operating securely from home (with all the functionality and tools we use in our office setting), we can devote our full attention to helping our clients make sense of volatile markets and the continued implementation of sound wealth management strategies. We believe that this is a critical time to review client financial plans and models. The team has wasted no time and this work is well underway.

The core of our value proposition is in helping people achieve their most important goals over long spans of time through good and bad cycles. Our team members are collaborating daily in virtual meetings and have "raised the bar" in so many ways. In my 38 years on Wall Street I do not recall ever having worked alongside a more creative and energized group of professionals; especially at a time like this when it matters most.

Lastly, our team is committed to the health and wellbeing of our franchise. We have worked very hard over the past 14 years and we have built something very special. Like all advisory firms, recent market declines have impacted our business, but Clearwater Capital Partners remains differentiated, confident and well positioned. We are also good stewards of our business and are responsibly managing costs. History has shown that market dislocations have been followed by large market share gains for well-run advisory firms, and we are prepared for this scenario as we navigate the eventual rebound.

Legendary investor, Jonathan Steinberg recently observed that a crisis does not build character, it reveals it. During this difficult time, your team at Clearwater Capital is revealing tremendous character. For our friends and clients, please know that we are optimistic about the future, and here to support you in any way we can.

Please let us know if there is more we can do.

Best,

John

PS. Given the high level of stress that currently exists, many investors out there are confused and in genuine need of quality guidance and support. This is a time when many people are particularly vulnerable to inadequate information and hasty decisions. Unfortunately, such decisions often lead to consequential mistakes. If you have a family member, colleague or friend who needs help, please connect us with them. We will do all we can to foster clear thinking and wise choices.

John E. Chapman