1. Critical Investment Point #1 Page 1 In a seminal study looking at 82 large pension plans between 1977-87, researchers concluded that asset allocation explained 91.5% of the variation in quarterly returns. In other words, asset allocation (percent of stocks, bonds, cash, etc.) was more important than the selection of individual securities – the latter accounting for less than 5% of actual plan results.

2. Critical Investment Point #2 Page 2 The Business Cycle / Asset Classes / Who Manages This Calibration?

3. Critical Investment Point #3 Page 3 Most Mutual Funds Do Not Beat Their Benchmark! “Over the last five years, the S&P 500 has outperformed 60.8% of actively managed large-cap U.S. equity funds; the S&P Mid Cap 400 has outperformed 77.2% of mid-cap funds; and the S&P Small Cap 600 has outperformed 66.6% of small-cap funds.” – SPIVA, Standard and Poor's, McGraw Hill “So if indeed you are going to Benchmark, you ought to buy a cheap Index Fund.” – Warren Buffet But here’s the critical question: Why Benchmark? “Benchmarking as it is applied today does far more harm than good… A good investment manager with the flexibility to invest where the opportunities lie, who is dedicated to the preservation of client capital and focused on generating positive absolute returns over time, will often invest in ways that differ significantly from capital market benchmarks.” – Jean-Marie Eveillard, First Eagle Newsletter.

4. Benchmarking vs. Absolute -Value Return Page 4 Benchmarking Managing a single asset class. Absolute-Value Return Managing all the Asset Classes

5. Absolute -Value Return : Example Page 5

6. Scatterplot… What You Want! Page 6 More | Return | Less Less – Risk – More

7. Scatterplot… What You Don’t Want! Page 7

8. Page 8 Return Optimization Securities with Contingent Protection

9. S&P 500 Dynamic VEQTOR Index Page 9

10. Page 10 S&P 500 Dynamic VEQTOR Index

11. Page 11 Open Minded? We’d like to offer you a full, fresh review of your statements. This is a relationship business, we understand. Despite that fact, many folks are opening their current advisory relationship to a little competition. With all the ground-shifting that’s occurred over the last couple of years, investors owe themselves a second opinion and fresh perspective. Such a complimentary review and analysis comes with no obligation. **These investment have prospectuses that should be carefully considered.