PORTFRMULAS

FORMuLAIC TRENDING MONEY MANAGER

The Formulaic Trending Monthly Abstract

November 13, 2012: RAM Score
=

+23.32

TM Mapper Score

5 of 6 increasing

RAM Score is a proprietary trending tool that takes into account several dynamic components related to the U.S. markets and economy. It features a core baseline which allows for correlation between these multiple components so that they may be added together for an overall Ram Score. As a trending tool, we believe that a positive RAM Score indicates that the odds are stacked in favor of equity investments and a negative RAM Score indicates that odds are stacked Mapper Score is a proprietary trending tool that takes into account several dynamic components related to the underlying TM against equity investments. stocks represented within an index. It identifies certain strengths of individual stocks contained within an index and tracks how many meet minimum Our scoring requirements. As a trending tool, we believe that the higher the percentage of qualifying stocks, the greater the strength of the overall index. mechanisms do not guarantee that the markets will increase when scores are strong or decrease when the scores are weak. But we believe the long term TM correlation may be valuable for investing... Combining our trending features of RAM Score & Mapper Score with our Portformulas intricate Formulaic TM Investing Strategies results in a uniquely logical approach to investing that is exclusively available through Portformulas.

TM The overall RAM Score has decreased from +26.65 last month to 23.32 this month... The Mapper Score has increased from 4 of 6 last monthto5of6thismonth. Ive received numerous questions and participated in countless discussions spring-boarding off an unusual fact that was quoted in the publication, Investment News, on September 23, 2012. Boiled down, the statistic shared that investors yanked $300 billion (more than deposited) from actively managed U.S. equity stock funds over the 3-year period ending July 31, 2012. Of the net $300 billion pulled, $140 billion went to passively managed funds (ETFs, no-loads, and others that simply shadow an index) while $160 billion remained on the sidelines (assumingly in money-markets, bank savings and other cash instruments). The looming question is WHY? My response and interpretation is two-fold:

62

Investors (and/or their Financial Advisors) may error when managing-through-the-rearview-mirror, where they emotionally measure against a single number (i.e., the return on the S&P 500) and then judge their portfolio performance based upon that number... Even in cases where these are the same people who desired to be out of the market when the Eurozone had the U.S. teetering on the nd 2 brink of a Crisis. As it turns out, from a risk standpoint, it may have been very wise to be out of the market then... However, the market also grew during that tumultuous time. Therefore measuring against the S&P 500, while forgetting about the risk one sought to mitigate, is short-memoried and one-dimensional. Dont look back with regrets if this describes you... You should celebrate your wisdom regarding riskvs. return and continueto manageforthe long-term! . This, I believe, may profile much of the $140 billion that moved to oassively managedfunds as referenced above. 4i Investors (and/or their Financial Advisors) are confused, overwhelmed and even panicked about our economic and financial future. Unfortunately many investors do not have a plan regarding the ownership of their equity investments. They do not exhibit any formal strategy as to what to hold, when to hold it, and when to sell it. Without such a strategy, many feel compelled to just sit on the sideline as they are uncomfortable with the prospects of non-managed or passively managed funds. . This, I believe, may profile much ofthe $160 billion that moved to the sideline as referenced above.

At Portformulas, we believe there is a time to plant, and a time to harvest. That is what Formulaic Trending is all about. Obviously, it does not guarantee performance, but it does provide much needed strategy for many investors. Also, Ive been often asked about the much-promoted concept of selling-off certain investments now and reestablishing a new cost basis before anticipated tax increases. While this may make perfect sense to many, it is essentially a moot point for most Portformulas investors as the model criteria has been creating automatic turnover that will generally alleviate this particular tax management issue. However, as always, you should consider reviewing all ofyour portfolio holdings before year end with your Financial Advisor. In summary, RAM Score reflects 6 of 7 subcomponents as positive while Mapper Scores have 5 of 6 increasing. Please check out the following graphic pages for details. For more information you can visit www.portformulas.net or speak with your Financial Advisor. Best of Investing, Mike Walters, CEO Portformulas Investing Corporation TM Formulaic Trending Money Manager SEC Registered Investment Advisor 6020 E Fulton St. I Ada, MI 49301 (888) 869-5994 wwiv.portformu1as.net

PORTF5RMULAS
-

FoRMuiAIc TRNDJN MONFY MANAGER

Page 1 of5

PORTFR M U LAS

FORMULAIC TRENDING MONEY MANAGER

Below you can see how the time weighted returns (TWR) of the FREEDOM SERIES models compare against their corresponding index since inception earlier this year:
Freedom D30 2.54% -0.11% -5.57% 6.79% -0.28% -0.48% 3.87% -1.15% 5.25% (413%) Freedom NSDQ 3.03% 1.28% -2.45% 3.07% 1.56% 2.53% 1.28% -3.42% 6.86% 65!3j, Freedom R2000 0.54% 1.60% -3.82% 1.76% -1.05% 2.99% 1.89% -1.55% 2.20% DJIA (Dow 30) 2.01% 0.01% -6.21% 3.99% 0.94% 0.63% 2.65% -2.54% 1.11% Freedom SP400 0.26% 0.79% -4.26% 0.80% -0.53% 3.16% 0.70% -0.94% -0.18% S&P 400 1.73% -0.30% -6.63% 1.73% -0.12% 3.30% 1.80% -0.87% 0.31%

March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 Since Inception Model Difference

March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 Since Inception Model Difference

March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 Since Inception Model Difference

NASDAQ 4.20% -1.46% -7.19% 3.81% 0.15% 4.34% 1.61% -4.46% 0.35%

March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 Since Inception Model Difference

Freedom SP500 3.26% 1.52% -3.82% 3.16% 0.67% 0.34% 2.34% 1.20% .8.8J% (541/Freedom R3000 1.98% 1.23% -3.17% 4.90% -1.33% 2.86% 1.77% -1.39% 6.80%

S&P 500 3.13% -0.75% -6.27% 3.96% 1.26% 1.98% 2.42% -1.98% 3.40%

March2012 April 2012 May 2012 June 2012 July2012 August 2012 September2012 October 2012 Since Inception Model Difference

Russell 2000 2.39% -1.62% -6.74% 4.81% -1.45% 3.20% 3.12% -2.24% 0.95%

March 2012 April 2012 May 2012 June 2012 July2012 August 2012 September2012 October 2012 Since Inception Model Difference

Russell 3000 2.93% -0.77% -6.41% 3.75% 0.87% 2.25% 2.46% -1.85% 2.87%

**The above returns are time-weighted returns; time-weighted returns show the compound growth rate in a portfolio while eliminating the vaiying effect created by cash inflows and outflows by assuming a single investment at the beginning of the period and measuring market value growth or loss at the end of that period. Time-weighted returns also reflect performance after advisoty fees have been deducted. The Freedom series invests in equities and based on the qualification criteria, may hold equity positions regardless of overall market movement. Pastperformance is no guarantee offuture results. Investing in equities carries an inherent risk and it is possible that you could experience significant losses in the event ofa market decline. Please consideryour risk tolerance carefully before investing.

p 0 R T FYR lvi U L A S

FaRMLiLAc TRENDING MONEY MANAGER

Portformulas Investing Corporation TM Form ulaic Trending Money Manager SEC Registered Investment Advisor 6020 E Fulton St. I Ada, MI 49301 (888) 869-5994 www.portformulas.net

Page 2 of 5

I-

23 -r 32

c$

PORTF5RMULAS

F0RMuLAIc mENDING MONEY MANAGER

RAM Score is a proprietary trending tool that takes into account several dynamic components related to the U.S. markets and economy. It features a core baseline which allows for correlation between these multiple components so that they may be added together for an overall Ram Score. As a trending tool, we believe that a positive RAM Score indicates that the odds are stacked in favor of equity investments and a negative RAM Score indicates that odds are stacked against equity investments.
RAM Score (13 mo) RAM Score (Lifetime) S&P 500

i7Lt

L9-(J6 7
fiS 1

FA-i Cgdsf

,,

cr <,I

,;

,; ,

, ,; ,; ,; ,, o& +0

Moving Average (13 mo)

:
:

Janu2

Jan-04

Jan-05

Jan-06

Jan-07

Jaf

Jan-SO

Jan-11-12

v-v
4

4 ,ir ;s
+
Q

,;s ;s

s
5

.s

.s o +

Bull Bear (13 mo)

Momentum (13 mo)

TRIX (13 mo)

A
+0
-

0c*i

%0

,;p

q o&

,;

,; ,;
+0

qo&+ .Th
.-.

LL-

rc;5/

if

MACD (13 mo)

Recession Risk (13 mo)

Volatility (13 mo)

-.

----

-------- - --

-----

$
0

o&

0..::1;T 2

26(o

PORTF5RMULAS.

FORMLJLAfC

TRN,Nc MONFY

MANAEn

Portformulas Investing Corporation TM Formulciic Trending Money Manager SEC Registered Investment Advisor 6020 E Fulton St. I Ada, MI 49301 (888) 869-5994
www.portformulas.net

Page 3 of 5

PORTFRM U LAS

FORMULAIC TRENDING MONEY MANAGER

TM Mapper Score is a proprietary trending tool that takes into account several dynamic components related to the underlying stocks represented within an index. It identifies certain strengths of individual stocks contained within an index and tracks how many meet minimum requirements. As a trending tool, we believe that the higher the percentage of qualifying stocks, the greater the strength of the overall index.

(NOTE: As such, we do not believe that all stocks within an index are automatically worthy ofownership. In the FREEDOM SERIES we seek to TM only own the stocks that meet our qualification criteria. The Mapper Score illustrates how many stocks we view worthy of consideration.)

TM Mapper Score fo Dow 30 Stocks Mapped = Mapper Score = 36.67%

Mapper Score for S&P 500 TM Stocks Mapped = 95 Mapper Score = 19.00%

Mapper Score for Russell 3000 TM Stocks Mapped = 211 Mapper Score = 7.03%

f__:N

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12

Nov-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Mapper Score for NASDAQ TM Stocks Mapped = 69 Mapper Score = 2.56%

TM Mapper Score for S&P 400 Stocks Mapped = 52 Mapper Score = 13.00%

Mapper Score for Russell 2000 TM Stocks Mapped = 61 Mapper Score = 3.05%

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Our scoring mechanisms do not guarantee that the markets will increase when scores are strong or decrease when the scores are weak. TM But we believe the long term correlation may be valuable for investing... Combining our trending features of RAM Score & Mapper Score TM with our Portformulas intricate Formulaic Investing Strategies results in a uniquely logical approach to investing that is exclusively available through Portformulas.

Portformulas Investing Corporation TM Formulaic Trending Money Manager

PORTFRMULAS

SEC Registered Investment Advisor

FoRMuLAc TRcNcvNG MoNFY MANAGER

6020 E Fulton St. I Ada, MI 49301 (888) 869-5994

www.portformulas.net

Page 4 015

PORTFRMULAS

FORMuLAIc TRENDING MONEY MANAGER

Please note that there are a number of important disclosures that must be considered before investing in Portformulas. Please read the information and disclosures contained in Portformulas hypothetical carefully before investing. Any performance figures referenced herein are hypothetical and are not indicative of future results. Purchases and sales of securities within Poriformulas various strategies may be made without regard to how long you have been invested which could result in tax implications. RAM Score and Mapper Score General Disclosures The RAM Score and Mapper Score illustrations do not represent any particular Portformula strategy nor are they intended to recommend any Portformula strategy or the RAM Score feature. The information contained herein simply attempts to illustrate how our firms RAM Score feature and Mapper Score operate. The RAM Score feature can be applied to many Portformula models at no additional cost. The Mapper Score is simply an analytical informational tool. RAM Score was not developed until January 2010. Prior to January 2010, clients were utilizing RAM Scores predecessor, RAM. Clients utilizing RAM may have had different results than those reflected above. RAM Score movement prior to 2010 is hypothetical and based on retroactive application of RAM Scores indicators to market and economic conditions existing at the time. Portformulas was not managing assets prior to 2007. It is important to understand that RAM Score is only a tool designed to assist our firms management of your account. RAM Score does not guarantee any specific results or performance and even with RAM Score on your account, it is possible that your account will lose value. RAM Score moves assets into or out of the market based on various economic and market indicators. It is possible that the market will move positively while you are not invested or negatively while you are invested, resulting in losses. Any Portformula strategy may underperform or produce negative results. Just because Portformulas maps a stock does not mean that the stock will be held in a model. Client accounts may hold less stocks than those referenced in the Mapper Score illustration. Mapper Score has no impact on performance. The RAM Score illustration utilizes the S&P 500 index because it is a well-known index and provides a recognizable frame of reference. The Mapper Score analysis uses the referenced indices because they are relevant comparisons across certain Portformula models. The indices referenced herein are not publicly available investment vehicles and cannot be purchased. Furthermore, none of the indices referenced herein have endorsed Portformulas in any way.

p 0 II T F5R

flu u L A S

FORMLJLAIC TRTNOING MONEY MANAGER

Portformulas Investing Corporation TM Formulaic Trending Money Manager SEC Registered Investment Advisor 6020 E Fulton St. I Ada, MI 49301 [888) 869-5994 www.portformulas.net

Page 5 of 5

PORTF5IIMULAS

6020 E. Fulton St Ada, MI 49301 800-869-5994 www.Portformulas.com

SEC Registered Investment Adviser

FonMuLAc TRENDING MONEY MANAGEn

RAM SCORE RECESSION AND MARKET ALLOCATION MANAGEMENT

November
October September August July June May April March

2012

???
-1.98% 2.42% 1.98% 1.26%
,

Status Quo
Status Quo

23.32
26.65 21.84 13.63 20.86 14.95 40.58 58.15 31.79 0.82 -21,74 -28.81 -27.85 -5.63

Positive
Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative

Positive
Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative Negative Negative

Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative Negative Negative Negative Negative Positive Positive Positive Positive Positive Positive Positive Positive

Positive Positive Positive Positive Positive Positive Positive Negative Negative Negative Negative Negative_ Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive

Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative 1 Negative Negative Negative Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive

Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative Negative Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive

Negative Positive Positive Negative Positive

Status Quo Status Quo Status Quo Status Quo Status Quo Status Quo StatusQuo Status Quo

2012 2012 2012 2012 2012

3.96% -6.27% -0.75% 3.13% 4.06% 4.36% 0.85% -0.51%

Negative Positive Positive Positive Positive Negative Negative Negative Negative Negative Negative Negative Positive Positive Negaflve Positive Negative Positive

February
January December November October September August July June May April March

Negative
Negative Negative Negative Positive Positive Positive Positive Positive Positive Positive Positive

.2:!:!._
2011 2011 2011 2011 201 1

10.77% 718/ 568/ -2.15% -1.83% -1 .35% 2.85% -0.10% .,satusQuo Status Quo
.

Negative Negative
Positive Positive Positive Positive Positive Positive Positive Positive

5454 77.78 104.23

StatusQuo Status Quo Status Quo StatusQuo

I 09.48
99.46 117.40

.9.:!1__
2011

February
January

201 1
2011

3.20%
226/

Status Quo
StatusQuo

98.21
9537

Key

Green
.

Invested in Equities

Out of Equities

5 rt ofChoice)

(Positioned in Money Market Fund or Bond Funds)

IMPORTANT NOTICE: This illustration does not represent any particular Portformula strategy nor is it intended to recommend any Portlormula strategy or the RAM Score feature. The information on this page simply attempts to illustrate how our firms RAM Score Allocation Management feature operates. This feature can be applied to many Portlormula models at no additional cost. RAM Score was not developed until January 2010. Prior to January 2010, clients were utilizing RAM Scores predecessor, RAM. Clients utilizing RAM may have had different results than those reflected above. RAM Score movement prior to 2010 is hypothetical and based on retroactive application of RAM Scores indicators to market and economic conditions existing at the time. Portformulas was not managing assets prior to 2007. It is important to understand that RAM Score is only a tool designed to assist our firms management of your account. RAM Score does not guarantee any specific results or performance and even with RAM Score on your account, it is possible that your account will lose value. RAM Score moves assets into or out of the market based on various economic and market indicators. It is possible that the market will move positively while you are not invested or negatively while you are invested, resulting in losses. Any Portformula strategy may underperform or produce negative results. This illustration utilizes the S&P 500 index because it is a well-known index and provides a recognizable frame of reference. Indices such as the S&P 500 are not publically available investment vehicles and cannot be purchased. The S&P 500 has not endorsed Portformulas in any way. Portformulas Investing Corp is an SEC-registered investment adviser, SEC File No. 801-68276. SEC registration does not imply a certain level of skill or training. IMPORTANT NOTICE: Past performance is no guarantee offuture results. Your actual results may vary. Investing carries an inherent element of risk. Potential for substantial loss in principal and income exists. This material is not complete unless all pages are included.
Portformulas Ithe Firmi operates with Limited Discretionary Authority to engage solely in the implementation ofspecific step-by-step investment criteria and account rebalancisg as indicated and selected by the client. SEC File No. 851-68276. sec Registration does not imply a certain level of skill or training.

page 1 sf6

This activity is generally referred to by the Firm as a Portformola Investment Strategy. Yoa should only invest in Portformulas opon receiving and reading the Portformolas ADV.
52006.2012 PortformulasAII Rights Reserved. Rev. 11.05.12

PORTFR M U LAS

6020 E. Fulton St Ada, MI 49301 800-869-5994 www.Portformulas corn

SEC Registered Investment Advisor

FORMuLAIc TRENDING MONEY MANAcER

RAM SCORE RECESSION AND MARKET ALLOCATION MANAGEMENT

December November October September August July June May April March February January December November 2010 2010 2009 2009 2009 2009 2010 2010 2010
-

70.34 61.09
StatusQuo

Pcitive Positive Positive Negative Negative Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative Negative Negative Negative Negative Negative

Po_.. e Positive Positive Positive Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Negativ Negative Negative Negative Negative Negative Negative Negative

P Negative Negative Negative Positive Negative Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative Negative Negative Negative Negative

Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative

PL_..

Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative Negative Negative Negative Negative Negative Negative Negative

Negative Negative Negative Negative Positive Negative Negative

Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative Negative Negative Negative Negative Negative Negative Negative

3.69% 8.76% -4.74% 6.88% -5.39% -8.20% 1.48%

50.08 47.84 72.74 65.03 73.99 119.69 106.38 86.00 81.93 89.27 61 50 33.10 30.11 3.40 -58.14 -100.99 -12.46 -183.25 -261.28 28426 26226 -238.38

StatusQuo Status Quo Status Quo Status Quo Status Quo Status Quo Status Quo Status Quo StatusQuo

_.9i9_
2010 2010 2010 2010

Negative Positive Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative

5.88% 2.85% -3.70% 1 78/ 5.74% -1.98% 3.57%

StatusQuo
Status Quo Status Quo
StatusQuo

October September August July June May April March

February January

2009
2009 2009

336%
741% 0.02%

Ovarrtile
Overrule

Overrule
Overrule
.

2009
2009

5.31% 9.39% 854/

10 99/ -8.57%

Owrrule Overru
Overrule

2009
2009 2009

Overru1e

Key

Green

Invested in Equities

Out of Equities

(Portformula ofChoice)

(Positioned in Money Market Fund or Bond Funds)

IMPORTANT NOTICE: This illustration does not represent any particular Portlormula strategy nor is it intended to recommend any Portformula strategy or the RAM Score feature. The information on this page simply attempts to illustrate how our firms RAM Score Allocation Management feature operates. This feature can be applied to many Poriformula models at no additional cost. RAM Score was not developed until January 201 0. Prior to January 201 0, clients were utilizing RAM Scores predecessor, RAM. Clients utilizing RAM may have had different results than those reflected above. RAM Score movement prior to 2010 is hypothetical and based on retroactive application of RAM Scores indicators to market and economic conditions existing at the time. Poriformulas was not managing assets prior to 2007. It is important to understand that RAM Score is only a tool designed to assist our firms management of your account. RAM Score does not guarantee any specific results or performance and even with RAM Score on your account, it is possible that your account will lose value. RAM Score moves assets into or out of the market based on various economic and market indicators. It is possible that the market will move positively while you are not invested or negatively while you are invested, resulting in losses. Any Portformula strategy may underperform or produce negative results. This illustration utilizes the S&P 500 index because it is a well-known index and provides a recognizable frame of reference. Indices such as the S&P 500 are not publically available investment vehicles and cannot be purchased. The S&P 500 has not endorsed Portformulas in any way. Portformulas Investing Corp is an SEC-registered investment adviser, SEC File No. 801-68276. SEC registration does not imply a certain level of skill or training. IMPORTANT NOTICE: Past performance is no guarantee of future results. Your actual results may vary. Investing carries an inherent element of risk. Potential for substantial loss in principal and income exists. This material is not complete unless all pages are included.
Portformulas (the Firm) operates with Limited Discretionary Authority to engage soiely in the implementation of specifc step-by.step investment criteria and account rebalancing as indicated and selected bythe client SEC Fun No. 8t1-68276. SEC Registration does not imply a certain ievei ofskill ortraining.

page 2 of 6

This activity is generally referred to by the Firm as a Portformula Investment Strategy. You shooid only invest in Pottformolas upon receiving and reading the Portformulas ADV.
52006.2012 PortformulasltlAll Rights Reserved. Rev. 11.05.12

PORTFR IVIU LAS.

6020 E. Fulton St Ada, MI 49301 800-869-5994 www.Portformulas.com

SEC Registered Investment Adviser

FORMuLAIC TRENDING MONEY MANAGEP

RAM SCORE RECESSION AND MARKET ALLOCATION MANAGEMENT

8 November October September August July June May April March February January December November October September August July June May April March February January 2007 2007 2007 2007 2007 2007 2008 2008
2008

0. -7.48% -16.83% -9.21% 1.22% -0.99% -8.60% 1.07% 4.75% -3.29% -0.79% -6.12% -0.86% -4.40% 1.48% 3.58% 1.29% -3.20% -1.78% 3.25% 433% 1.00% -2.18% 141%
;s S

-268.70 s -241.45 -132.84 -66.80 -86.15 -82.83 -56.76 -73.82 -97.85 -77.10 -63.97 -19.84

Negative
Negative

Negative
Negative

Negative
Negative

Negative Negative Negative Negative Negative

Negative Negative

Negative Negative
Negative

Negative Negative
Negative

Negative Negative
Negative

Negative Negative Negative

Negative

Negative Negative Negative

Negative

Negative Negative Negative

Negative

Negative Negative Negative Negative Negative Negative Negative Negative Negative

Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive

Positive Negative Negative Negative Negative Negative Negative Negative Negative

Negative Positive egative Positive Positive Positive Positive Positive Positive Positive Positive Positive

Negative Negative Negative Positive Positive Negative Negative Negative Negative

Negative Negative

2008 2008 2008 2008 2008 2008 2008 2008

Negative Negative Negative Negative Negative

Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive

Negative Negative Negative Negative Negative

Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive

Negative Negative Negative Negative Negative

Negative Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive

Negative
Negative

Negative Negative Negative

Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive

Quo

-14.15 34.13
1857 28.33 34.45 56.74 61.56 47.49 45.07 52.13 59.76 55.15

Status Quo Status Quo Status Quo Status Quo Status Quo Status Quo Status Quo Status Quo Status Quo Status Quo

Positive

Negative
Negative Negative Positive Positive Positive

Negative Positive Positive

Key
.

Gi;i
J

Invested in Equities

Out of Equities

(Po#formula e ofChoice)

(Positioned/n MoneyMarket Fund or Bond Funds)

IMPORTANT NOTICE: This illustration does not represent any particular Portformula strategy nor is it intended to recommend any Portformula strategy or the RAM Score feature. The information on this page simply attempts to illustrate how our firms RAM Score Allocation Management feature operates. This feature can be applied to many Poriformula models at no additional cost. RAM Score was not developed until January 2010. Prior to January 2010, clients were utilizing RAM Scores predecessor, RAM. Clients utilizing RAM may have had different results than those reflected above. RAM Score movement prior to 2010 is hypothetical and based on retroactive application of RAM Scores indicators to market and economic conditions existing at the time. Portformulas was not managing assets prior to 2007. It is important to understand that RAM Score is only a tool designed to assist our firms management of your account. RAM Score does not guarantee any specific results or performance and even with RAM Score on your account, it is possible that your account will lose value. RAM Score moves assets into or out of the market based on various economic and market indicators. It is possible that the market will move positively while you are not invested or negatively while you are invested, resulting in losses. Any Portformula strategy may underperform or produce negative results. This illustration utilizes the S&P 500 index because it is a well-known index and provides a recognizable frame of reference. Indices such as the S&P 500 are not publically available investment vehicles and cannot be purchased. The S&P 500 has not endorsed Portformulas in any way. Portformulas Investing Corp is an SEC-registered investment adviser, SEC File No. 801-68276. SEC registration does not imply a certain level of skill or training. IMPORTANT NOTICE: Past performance is no guarantee offuture results. Your actual results may vary. Investing carries an inherent element of risk. Potential for substantial loss in principal and income exists. This material is not complete unless all pages are included.
Portformulas (the Firm) sperates with Limited Discretionary Authority to engage solely in the implementation of specific step-by-step investment criteria and accoont rebalancing as indicated and selected bythe client. SEC File No. 851-68276. sec Registration does not imply a certain level of skill or training. page 3 of 6 This activity is generally referred to by the Firm as a Portformola5l Investment Strategy. Yoo shoold only invest in Portformolas opon receiving and reading the Portformolas ADV. 2006.2012 PartformulasAII Rights Reserved. Rev. 11.05.12

PORTF5R MU LAS.

6020 E. Fulton St Ada, MI 49301 800-869-5994 www.Portformulas.com

SEC Registered Investment Adviser

FoRMuLAc TRENDING MONEY MANAGEn

RAM SCORE RECESSION AND MARKET ALLOCATION MANAGEMENT

December November October September August July June May April March February January December November October September August July June May April March February January 2005 2005 2006 2006 2005 2006 2006 2006 2006 2006 1.65% 3.15% 2.46% 2.13% 0.51% 0.01% -3.09% 1.22% 1.11% 0.05% 2.55% -0.10% 352/ Status Quo Status Quo Status Quo Status Quo Status Quo Status Quo Status Quo StatusQuo Status Quo Status Quo Status Quo Status Quo StatusQuo Status Quo Status Quo Status Quo StatusQuo Status Quo StatusQuo Status Quo Status Quo
,

56.19 37.93 2869 32.20

18.01

Pc

.itive

Positive Positive Positive Positive Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative Positive Positive Positive Positive Positive Positive

Positive Negative Negative Negative Negative Positive Positive Positive Positive

Positive Positive Positive Negative Negatives Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive

Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive

Positive Positive Positive Positive Positive Positive Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive

Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive

Positive Positive Positive Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive

23.13 29.32 42.93 45.92 45.39 35.22 41.39 36.56 1834 30.56 32.06 28.30 3263 32.73 34.88 56.04 65.88 58.86 6286

Negative Negative Negative Negative Negative Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive

-1.77%
0.69% -112% 360/ -0.01% 3.00% -2.01% -1.91% 1.89% 253/

Status Quo StatusQuo

Key

Green

Invested in Equities (Poilformula e ofChoice)

Out of Equities (Positioned/n MoneyMarket Fund or Bond Funds)

IMPORTANT NOTICE: This illustration does not represent any particular Poriformula strategy nor is it intended to recommend any Portformula strategy or the RAM Score feature. The information on this page simply attempts to illustrate how our firms RAM Score Allocation Management feature operates. This feature can be applied to many Portformula models at no additional cost. RAM Score was not developed until January 2010. Prior to January 2010, clients were utilizing RAM Scores predecessor, RAM. Clients utilizing RAM may have had different results than those reflected above. RAM Score movement prior to 2010 is hypothetical and based on retroactive application of RAM Scores indicators to market and economic conditions existing at the time. Poriformulas was not managing assets prior to 2007. It is important to understand that RAM Score is only a tool designed to assist our firms management of your account. RAM Score does not guarantee any specific results or performance and even with RAM Score on your account, it is possible that your account will lose value. RAM Score moves assets into or out of the market based on various economic and market indicators. It is possible that the market will move positively while you are not invested or negatively while you are invested, resulting in losses. Any Portformula strategy may underperform or produce negative results. This illustration utilizes the S&P 500 index because it is a well-known index and provides a recognizable frame of reference. Indices such as the S&P 500 are not publically available investment vehicles and cannot be purchased. The S&P 500 has not endorsed Portformulas in any way. Portformulas Investing Corp is an SEC-registered investment adviser, SEC File No. 801-68276. SEC registration does not imply a certain level of skill or training. IMPORTANT NOTICE: Past performance is no guarantee of future results. Your actual results may vary. Investing carries an inherent element of risk. Potential for substantial loss in principal and income exists. This material is not complete unless all pages are included.
Portformulas (the Firm( operates with Limited Discretionary Aothority to engage solely in the implementation ofspecitc step.by-step investment criteria and account rebaiancing as indicated and selected bythe client SEC File No. 801-68276. SEC Registration does not imply a certain level of skill or training.

page 4 of 6

This activity is generally referred to hythe Firm as a Portformoia Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas ADV.
2006.2012 Portformulas0iAll Rights Reserved. Rev. 11,05.12

o ii T F5R NI ii L A S

6020 E. Fulton St Ada, MI 49301 800-869-5994 www.Portformulas.com

SEC Registered Investment Advisor

FORMuLAtC TnENoNG MONEY MANAcER

RAM SCORE RECESSION AND MARKET ALLOCATION MANAGEMENT

2004 NC October September August July June May April March February January December November
.-.

3.25% 3.86% 1.40% 0.94% 0.23% -343%

Status Quo StatusQuo StatusQuo Status Quo Status Quo StatusQuc StatusQuo
So

59.17 45.05
1!

Positive Positive Positive Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative Negative Negative Negative Negative

Positive Positive Positive Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative Negative Negative Negative Negative Negative

PcJtive Positive Negative Negative Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative Negative Negative

Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative Negative Negative Negative Negative Negative

P.. e
.

Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive

Po_itive Positive Positive Positive Positive Positive Positive Positive Negative Positive Positive Positive Positive Positive Negative Negative Negative Negative Negative Positive Negative Negative Negative Negative

2004

Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative Negative Negative Negative Negative

52.95 54.40 83,46 108.18 109.87 123.50 130.93 144.28 144.18 130.58 I 1 5 20 115.28 95.80 88,20 71,14 54.38 26.38 0.21 -47.43 -77.40 -68.75 -74.23

2004 2004

1.80% 1.21% -1.68% -1.64%

StatusQuo
StatusQuo
5 StaiusQuo

2004 2004 2003

1.22% 1.73% 5 08 I 0.71% 5.50% -1.19% 1.79% 1.62%

Status Quo

Status Quo
Status Quo StatusQuo
tss.4jysi

October September August July June May April March February January 2003 2003 2003 2003 2003 2003

Status Quo Status Quo Status Quo Quo Status Quo Status Ouo

1.13%
5.09%

8.10% 0.84% 1 70/ 274/

Key
;

Green

Invested in Equities

Out of Equities

rtf ofChoice)

(Positionedfri MoneyMarket Fund or Bond Funds)

IMPORTANT NOTICE: This illustration does not represent any particular Poriformula strategy nor is it intended to recommend any Portlormula strategy or the RAM Score feature. The information on this page simply attempts to illustrate how our firms RAM Score Allocation Management feature operates. This feature can be applied to many Portformula models at no additional cost. RAM Score was not developed until January 2010. Prior to January 201 0, clients were utilizing RAM Scores predecessor, RAM. Clients utilizing RAM may have had different results than those reflected above. RAM Score movement prior to 2010 is hypothetical and based on retroactive application of RAM Scores indicators to market and economic conditions existing at the time. Poriformulas was not managing assets prior to 2007. It is important to understand that RAM Score is only a tool designed to assist our firms management of your account. RAM Score does not guarantee any specific results or performance and even with RAM Score on your account, it is possible that your account will lose value. RAM Score moves assets into or out of the market based on various economic and market indicators. It is possible that the market will move positively while you are not invested or negatively while you are invested, resulting in losses. Any Portformula strategy may underperform or produce negative results. This illustration utilizes the S&P 500 index because it is a well-known index and provides a recognizable frame of reference. Indices such as the S&P 500 are not publically available investment vehicles and cannot be purchased. The S&P 500 has not endorsed-Portformulas in any way. Portformulas Investing Corp is an SEC-registered investment adviser, SEC File No. 801-68276. SEC registration does not imply a certain level of skill or training. IMPORTANT NOTICE: Past performance is no guarantee of future results. Your actual results may vary. Investing carries an inherent element of risk. Potential for substantial loss in principal and income exists. This material is not complete unless all pages are included.
Pertformulas (the Firm) operates with Limited Discretionary Authority to engage soieiy in the implementation of specifo step-by-step investment criteria and accoont rebaiancing as indicated and seiecied bythe client sec Fun No. 801-68276. SEC Registration does net imply a certain ievei of skiii or training. page 5 sf6 This activity is generaiiy referred to by the Firm as a Portformuiai0i Investment Strategy. Yoa should only invest in Poriformulas upon receiving and reading the Portformulas ADv. 2006.2e12 Pertformulasi6All Rights Reserved. Rev. 11,05,12

PORTFR M U LAS

6020 E. Fulton St Ada, MI 49301 800-869-5994 www.Portformulas.com

SEC Registered Investment Advisor

FORMuLAIC TRENDING MONEY MANAGER

RAM SCORE RECESSION AND MARKET ALLOCATION MANAGEMENT

Negative Negative October September August July June May April March February January December November October September August July June May April March February January 2002 2002 2001 2001 2002 8.64% 11 00/ 049/ 790/ 725/ 091! a

Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative

Negative Negative Negative Negative Negative Negative Negative Positive Positive Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative

Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative

Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative

Negave Negative Positive Positive Positive Positive Positive Positive Positive Positive Positive Negative Negative Negative Positive Positive Positive Negative NegatNe Negative Negative Negative Positive Positive
.

Negative Negative Negative Negative Negative Negative Negative Negative Positive Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative

Overrule Overrulel

-135.41 9827 9976 4528 1104 1657

Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative Negative

6141
367% -2.08% -1.56% 0.76% 7.52% 1.81% -8.17% 6 41 1 107/ 250/ 051!
,

e e Overrule

067 -34.92 -54.61 -76.70 -112.38 -127.24 -143.03 -96.91 95 27 9948 9540 11483 -134.63

Oierrute
Overrule Overrule rule

._.29i_

_:99:!_
2001 2001 2001

7.68% -6.42% -9.23% 3.46%

Overrule

-102.92

Overruie
Overrule

-52.50 -58.11

Key

j Gr en
..

Invested in Equities

Out of Equities

1 .:;i

(Portformula ofChoice)

(Positioned/ri MoneyMarket Fund or Bond Funds)

iMPORTANT NOTICE: This illustration does not represent any particular Portlormula strategy nor is it intended to recommend any Portformula strategy or the RAM Score feature. The information on this page simply attempts to illustrate how our firms RAM Score Allocation Management feature operates. This feature can be applied to many Portformula models at no additional cost. RAM Score was not developed until January 2010. Priorto January 2010, clients were utilizing RAM Scores predecessor, RAM. Clients utilizing RAM may have had different results than those reflected above. RAM Score movement prior to 2010 is hypothetical and based on retroactive application of RAM Scores indicators to market and economic conditions existing at the time. Portformulas was not managing assets prior to 2007. It is important to understand that RAM Score is only a tool designed to assist our firms management of your account. RAM Score does not guarantee any specific results or performance and even with RAM Score on your account, it is possible that your account will lose value. RAM Score moves assets into or out of the market based on various economic and market indicators. It is possible that the market will move positively while you are not invested or negatively while you are invested, resulting in losses. Any Portformula strategy may underperform or produce negative results. This illustration utilizes the S&P 500 index because it is a well-known index and provides a recognizable frame of reference. Indices such as the S&P 500 are not publically available investment vehicles and cannot be purchased. The S&P 500 has not endorsed Portformulas in any way. Portformulas Investing Corp is an SEC-registered investment adviser, SEC File No. 801-68276. SEC registration does not imply a certain level ofskill or training. IMPORTANT NOTICE: Past performance is no guarantee of future results. Your actual results may vary. Investing carries an inherent element of risk. Potential for substantial loss in principal and income exists. This material is not complete unless all pages are included.
Portformulas (the Firm) operates with Limited Discretionary Authority to engage solely in the implementation of specific step-by-step inoestment criteria and accoost rebalancing as indicated and selected bythe chent. sec File No. 801-68276. sec Registration does sot imply a certain level of skill or training. page 6 of 6 This activity is generally referred to by the Firm as a Portformola Investment Strategy. Yoo should only invest in Portformulas upon receiving and reading the Portformulas ADV. 2006.2012 PortformulasAll Rights Reseived. Rev. 11.05.12