2013 01-FormulaicTrendingMonthlyAbstract

PD RTFR M U LAS
FORMULAIC TRENDING MONEY MANAGERS
The Formulaic Trending Monthly Abstract

January 16, 2013:
RAM Score
=
-1-11.64
Mapper Score TM
0 of 6 increasing
0 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 TM against equity investments. 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. 0 Our scoring 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 correlation may be valuable for investing... Combining our trending features of RAM Score & Mapper Score with our Portformulas intricate Formulaic TM tM Investing Strategies results in a uniquely logical approach to investing that is exclusively available through Portformulas.
The overall RAM Score has decreased dramatically from +23.60 to +11.64 this month, while the Mapper Score posted 0 of 6 increasing... TM Thanks exclusively to the threat of our governments Fiscal Cliff. However, RAM Score did in fact remain positive as negotiations averted our heading over the cliff, followed immediately by a market rebound/advancement. Its always interesting to watch RAM Score in action! The second round of negotiations will begin soon as the U.S. government is anticipated to hit the Debt Ceiling (extended from December 31, after some creative governmental accounting) sometime between February 15 and March 1. No doubt, everything will be open to negotiation once again as Republicans call for debt reduction and Democrats call for a second tax increase. Ah yes, and Congress wonders why a recent Public Policy Poll ranked that the majority of people actually prefer traffic jams, colonoscopies, root canals, NFL replacement refs, lice, and
cockroaches over Congress (no, Im not joking)!

Anyway, given that we are now caught between negotiations and the market is currently up handily for the month, Id like to take this
opportunity to address the advantages ofjjjn amongst multple Portformula models. I have been asked often if the new Freedom Series Models are intended to replace the Scholar Series Models, and the definitive answer is No! In fact, they complement each other nicely. That said, for simplicity purposes, I am going to concentrate on sample allocations within the Scholar Series. There is no one silver-bullet to investing, but that does not mean that one should not apply sound logic and study sound principles. Allocating across multiple Scholar Series models may (in certain cases) enhance performance and mitigate risk. Be sure to always refer to your Financial Advisor for input and guidance on such decisions, but for todays purposes I am including two hypothetical examples. Hypothetical #1) 60% Equity / 40% Bond: 60% Equity utilizing the Squadron Growth (w/RAM Score Fusion) @ 20%, plus the Platoon Cross Blend (w/RAM Score Fusion) @20%, plus the Brigade Growth & Value (w/RAM Score Fusion) @ 20%. 40% Bond utilizing the Bond Fund Fusion @40%. 100% Equity: 100% Equity utilizing the Squadron Growth (w/RAM Score Fusion) @ 33.34%, plus the Platoon Cross Blend (w/RAM Score Fusion) @33.33%, plus the Brigade Growth & Value (w/RAM Score Fusion) @ 33.33%.
Hypothetical #2)
For your convenience, I have bubbled-to-the-top the Diversified Historical Performance pages for each hypothetical (2 pages) and then provided the entire hypothetical for both scenarios. At first glance, one will notice that such allocations complement each other over the years and, furthermore, that the bond component helps to smooth the performance. Be sure to review the full hypotheticals for all the details and each individual models performance... But I think you may gain an appreciation for the value of allocating amongst multiple Portformula models as you study the graphics, etc. For more information you can visit www.portformulas.net or speak with your Financial Advisor (be sure to ask your Financial Advisor if you would like to see additional investment allocation possibilities.) Best of Investing, Mike Walters, CEO
p 0 II T FYR NI U L A S
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FORMuLAIC TRNOINt MONEY MANAGER
Page 1 of5
Portformulas Investing Corporation Formulaic Trending Money Manager SEC Registered Investment Advisor 6020 E Fulton St. I Ada, MI 49301 (888) 869-5994 www.portformulas.net
PD RTFR MU 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% -0.26% -0.92% 4.01% 2.84% Freedom NSDQ 3.03% 1.28% -2.45% 3.07% 1.56% 2.53% 1.28% -3.42% 0.29% 0.86% 8.10% 6.32% Freedom R2000 0.54% 1.60% -3.82% 1.76% -1.05% 2.99% 1.89% -1.55% 0.08% 2.67% 5.01% 0.28% DJIA (Dow 30) 2.01% 0.01% -6.21% 3.99% 0.94% 0.63% 2.65% -2.54% -0.54% 0.60% 1.17% Freedom SP400 0.26% 0.79% -4.26% 0.80% -0.53% 3.16% 0.70% -0.94% 0.36% 1.02% 1.20% -3.20% Freedom SP500 3.26% 1.52% -3.82% 3.16% 0.67% 0.34% 2.34% -1.20% 0.70% 0.15% 7.14% 2.72% Freedom R3000 1.98% 1.23% -3.17% 4.90% -1.33% 2.86% 1.77% -1.39% -0.74% 0.25% 6.28% 1.83%
March 2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 Since Inception Model Difference
S&P 400 1.73% -0.30% -6.63% 1.73% -0.12% 3.30% 1.80% -0.87% 2.01% 2.03% 4.40%
NASDAQ 4.20% -1.46% -7.19% 3.81% 0.15% 4.34% 1.61% -4.46% 1.11% 0.31% 1.78%
S&P 500 3.13% -0.75% -6.27% 3.96% 1.26% 1.98% 2.42% -1.98% 0.28% 0.71% 4.42%
March2012 April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 Since Inception Model Difference
Russell 2000 2.39% -1.62% -6.74% 4.81% -1.45% 3.20% 3.12% -2.24% 0.39% 3.34% 4.73%
Russell 3000 2.93% -0.77% -6.41% 3.75% 0.87% 2.25% 2.46% -1.85% 0.51% 1.02% 4.45%
**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 advisory 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 thatyou could experience significant losses in the event ofa market decline. Please consider your risk tolerance carefuily before investing.
p o ii T F5R M U L A S
FORMULAiC TRENEHNC MONEY MANAGER
Page 2 of 5
Portformulas Investing Corporation Form ulaic Trending Money Manager SEC Registered Investment Advisor 6020 E Fulton St. I Ada, Ml 49301 (888) 869-5994 www.portformulas.net
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PD RTFR M U LAS
RAM Score is a proprietary trending tool that takes into account several dynamic components related to the US. 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
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Moving Average (13 mo)
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Portformulas Investing Corporation Form ulaic 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
PD RTFR M U LAS
Mapper Score is a proprietary trending tool that takes into account several dynamic components related to the underlying stocks TM 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.)
Mapper Score for Dow 30 TM Stocks Mapped = 7 Mapper Score = 23.33%
Mapper Score for S&P 500 TM Stocks Mapped = 82 Mapper Score = 16.40%
Mapper Score for Russell 3000 TM Stocks Mapped = 190 Mapper Score 6.33%
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Mapper Score for NASDAQ TM Stocks Mapped = 56 Mapper Score = 2.07%
Mapper Score for S&P 400 TM Stocks Mapped = 45 Mapper Score = 11.25%
Mapper Score for Russell 2000 TM Stocks Mapped = 57 Mapper Score = 2.85%
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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 with our Portformulas intricate Formulaic Investing Strategies results in a uniquely logical approach to investing that is exclusively available TM through Portformulas.
Portformulas Investing Corporation Formulaic Trending Money Manager
PD RT FR M U LAS
FORMIJLAIC TRENo,Nt
MONEY MANAGEn
Page 4 of 5
SEC Registered Investment Advisor 6020 E Fulton St. I Ada, Ml 49301 (888) 869-5994 www.portformulas.net
PD RTFR M U LAS
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 Portformulas 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.
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Portformulas Investing Corporation 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
PORTF5RMULAS
6020 E Fulton St Ada, MI 49301 800-8695994 www.Portformulas.com

SEC Registered InvestmentAdvisor
FDRMULAIC TRENDING MONEY MANAGER
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DIVERSIFIED PORTFORMULA PERFORMANCE

(A SUMMARY COMPILATION OF ALL PORTFORMULAS IN YOUR PORTFOLIO)
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HISTORICAL PERFORMANCE VS. S&P 500

(Available Beginning 2001)
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$1197
S&P 500 $i.087.74
2003
2004
2005
2006
2007
2008
Yearly Returns 2001 Diversified Portfolio S&P500 DJIA NASDAQ Russell 2000 DJCBP 8.51% -13.03% -7.10% -21 05% 1.03% 3.43% 5.00% -17.83% 2002 9.75% -23.37% -16.76% -31.53% -21.57% 4.14% 4.60% -21.06% 2003 45.97% 26.39% 25.33% 50.01% 45.39% 3.46% 4.00% 30.81% 2004 12.38% 9.00% 3.14% 860% 16.98% 0.22% 4.30% 12.84% 2005 9.47% 3.01% -0.63% 1.38% 3.32% -4.15% 4.30% 7.56% 2006 11.90% 13.65% 16.28% 9.51% 17.00% -2.06% 4.80% 17.95% 2007 9.41% 3.55% 6.42% 9.81% -2.76% -0.90% 4.60% 7.09% 2008 1.68% -38.50% -33.84% -40.54% -34.79% -4.47% 3.60% -42.08% 2009 11.32% 23.45% 18.81% 43.89% 25.22% 10.66% 3.30% 26.98% 2010 11.96% 12.78% 11.02% 16.91% 25.31% 3.12% 3.13% 9.55% 2011 4.51% 0.00% 5.53% -1.80% -5.45% 3.18% 2.73% -7.62% 2012 4.58% 13.41% 7.26% 15.91% 14.63% 6.10% TBD 13.18%
10-Yr Treasury Yld

MSClWorldlndex
Annual Yield Comparison
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s&P 500
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Porttormulas was not managing money prior to 2007. Performance calculations for the period 2001 2009 are based on model performance, which is the retroactive application of a Portformulas selection criteria to all available stocks during a given time period. Model results do not reflect actual trading, do not reflect Portformulas monthly, maximum .0045 cent per share buy/sell transaction charge, and assume that no additions or withdrawals have been made since the models inception. Withdrawals and additions in your account, as well as transaction charges, will result in your performance being different that the performance figures referenced.
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
201 1
In 2010, Poriformulas began utilizing time-weighted returns on any model in existence from the beginning of a calendar year. Because Portformulas publishes time-weighted returns, all advertised performance data reflects performance after advisory fees have been deducted. Return data through December 2009 represents price-returns, not total returns. Price returns do not reflect the reinvestment of dividends, interest rate received, or realized capital gains. 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. Also, hypothetical returns are not indicative of Portformulas actual portfolio management skills. The RAM Score feature is simply a tool designed to assist our firms management of your account. The RAM Score tool does not guarantee any specific results or performance, and even with RAM Score, 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.
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.
Portformulasitilthe Firml operates with Limited Discretionary Authority to engage solely in the implementation ofnpecitc step-by-step investment criteria and account rebaiancing as indicated and selected by the client SEC File No. 851-68276. sec Registration does not page 6 of22 imply a certain level of skill or training. This activity is generally referred to by the Firm as a Portformuia investment Strategy. You should only invest in Portformuias upon receiving and reading the Poitformulas ADV. @2006-2011 Portformulas@AllRights Reserved,
PORTF5RMULAS
6020 E Fulton St Ada, MI 49301 800-869-5994 www.Portformulas.com

SEC Registered lnvestmentAdvisor
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Diversified Portfolio
S&P 500
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$1 .705.000 $1.395.600 $1.086200 $776.800 S467.400
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$324,170 FJS 7 D J 6 i 5 OO 2
Yearly Returns
2001 2002 9.75% -23.37% -16.76% -31.53% -21.57% 4.14% 4.60% -21.06% 2003 68.16% 26.39% 25.33% 50.01% 45.39% 3.46% 4.00% 30.81% 2004 16.61% 9.00% 3.14% 8.60% 16.98% 0.22% 4.30% 12.84% 2005 12.25% 3.01% -0.63% 1.38% 3.32% -4 15% 4.30% 7.56% 2006 17.61% 1365% 16.28% 9.51% 17.00% -2.06% 4.80% 17.95% 2007 12.98% 3.55% 6.42% 9.81% -2.76% -0.90% 4.60% 7.09% 2008 1.68% -38.50% -33.84% -40.54% -34.79% -4.47% 3.60% -42.08% 2009 13.62% 23.45% 18.81% 43.89% 25.22% 10.66% 3.30% 2698% 2010 14.75% 12.78% 11.02% 16.91% 25.31% 3.12% 3.13% 9.55% 2011 0.52% 0.00% 5.53% -1.80% -5.45% 3.18% 2.73% -7.62% 2012 5.22% 13.41% 7.26% 15.91% 14.63% 6.10% TBD 13.18%
$158.000
Diversified Portfolio
S&P500
8.51% -13.03% -7.10% -21.05%
DJIA NASDAQ Russell 2000 DJCBP l0.YrTreasuryYld MSClWorldlndex
1.03% 3.43%
5.00%
-17.83%
ri: 8000% 6000% 4000%

6816%
&r PotfoIio
S&P 500
23.45%
2000%
000%
-.
13.41%
.52% .00%
-2ft00%
-23.37%
-
Portformulas was not managing money prior to 2007. Performance calculations for the period 2001 2009 are based on model performance, which is the retroactive application of a Portformulas selection criteria to all available stocks during a given time period. Model results do not reflect actual trading, do not reflect Portformulas monthly, maximum .0045 cent per share buy/sell transaction charge, and assume that no additions or withdrawals have been made since the models inception. Withdrawals and additions in your account, as well as transaction charges, will result in your performance being different that the performance fgures referenced.
2001
2002
In 2010, Portformulas began utilizing time-weighted returns on any model in existence from the beginning of a calendar year. Because Portformulas publishes time-weighted returns, all advertised performance data reflects performance after advisory fees have been deducted. Return data through December 2009 represents price-returns, not total returns. Price returns do not reflect the reinvestment of dividends, interest rate received, or realized capital gains. RAM Scorewas notdeveloped until January 2010. Priorto January 2010, clients were utilizing RAM Scores predecessor, RAM. Clients utilizing RAM may have had differentresultsthanthose reflected above. Also, hypothetical returns are not indicative of Portformulas actuat portfolio management skills The RAM Score feature is simply a tool designed to assist our firms management of your account. The RAM Score tool does not guarantee any specific results or performance, and even with RAM Score, 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.
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.
Portformulaslff.ilthe Firml operates with Limited Oiscretiunary Authority to engage suiety in the impiementation of specific step-by-step investment criteria and account rebatancing as indicated and seiected by the cileot. SEC Fiie No. 851-68276. SEC Registration does not page 6 of 19 imply a certain ievei of skiit or training. This activity is generaiiy referred to by the Firm as a Porttormaiaifii investment Strategy. You shootd oniy invest in Portformutas span receiving and reading the Portformuias ADV. @2006.2011 PortformuIas8iAllRights Reserved,
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PORTFR MULAS
SEC Registered Investment Advisor
6020 E Fulton St. Ada, Michigan 49301 (Office) 800-869-5994 (Fax) 888-869-9411 (Website) www.Portformulascom (Email) admin@portformulas.com
.
HYPOTHETiCAL
January 16, 2013
Prepared for:
Sample Blend
Prepared By: Mike Walters Portformulas 6020 East Fulton Street Ada, MI 49301 800.869.5994
Securities offered through USA Financial Securities. Member FINRA I SIPC. A Registered Investment Advisor. 6020 East Fulton Street, Ada, MI, 49301 Portformulas is an SEC Registered Investment Advisor Wealthnetic Team Corporation is not affiliated with USA Financial Securities or Portformulas
Portformulas@(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation of specific step-by-step investment criteria and account rebalancing as indicated and selected by the client SEC File No. 801-65276. SEC Registration does not page 1 of22 imply a certaie level ot skill ortraining. This activity is generally referred to by the Firm as a Porttormula Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas ADV. @2006.2011 Portformu!aulhAllRights Reserved.
PORTF5RMULAS
www Portformulas.com
SECRegisteredlnvestmentAdvisor
IMPORTANT INVESTOR INFORMATION

Portformulas manages quantitative mechanical methodologies and models for investors, operating pursuant to Limited Discretionary Authority in order to manage portfolios based upon a formula consisting of one or more specific step-by-step investment strategy qualification criteria and account rebalancing as indicated and selected by TM each investor. We generally refer to this activity as Formulaic Investing using a Poriformula Investment Strategy. Each investors account is established with a minimum 2% cash position and the remaining percentage is fully invested in the Portformula. In a Traditional Portformula Strategy all dividends are reinvested and this ratio is updated upon each rebalancing and reapplication of the Portformula Investment Strategy qualification criteria. In a Preferred Stock Strategy, the client is given the option to either have dividends reinvested back into the strategy or to have the dividends distributed in the form of income on a quarterly basis. We provide transparency of the automated, step-by-step, investment strategy qualification criteria. Traditional Portformula Investment Strategies use the selected Portformula Investment Strategy qualification criteria to eliminate human emotion from the investment selection process while Preferred Stock Strategies eliminate a majority of the human emotion from the investment selection process. We execute the Poriformula Investment Strategy qualification criteria as the strict quantitative methodology and model for investing within each investor selected Portformula. In other words, the Portlormula will ultimately identify which holdings to own, how long to own them, and when to sell them. You can always identify holdings you own inside your Portformula Investment Strategy, unlike many traditional money management portfolios. Each Portformula will only accept holdings that specifically meet the step-by-step qualification criteria & investment strategy. Based upon the criteria, it may be possible that no holdings will qualify during a given period of time. This may result in a Portformula maintaining a full money market position, but generally only for limited periods of time. Keep in mind, Portformula Investment Strategies are mechanically managed portfolios, meaning there is strict adherence to an identifiable, step-by-step, quantitative methodology and model for investing that is used in the investment selection process. It is important to note that Portformula Investment Strategies are quantitative in nature. We do not deviate from or manipulate the specific step-by-step investment strategy qualification criteria. While this mechanically removes a majority of the human emotion and bias, it also means that no human intervention will take place, regardless of market conditions, events, or individual occurrences relating to any of the holdings; which may result in greater risk. The individual investor may contact Portformulas to make an investment change, but Portformulas operates solely pursuant to the Limited Authority of Execution as described in the INVESTMENT MANAGEMENT AGREEMENT and signed by each investor. Investing carries an inherent element of risk, including the potential for substantial loss in principal and income. Portformula Investment Strategies, may invest in any qualifying holding. This may mean that the Poriformula, periodically or otherwise, may be concentrated in particular holdings that may increase or create greater risk than other investment alternatives. This may also mean that the Portformula, periodically or otherwise, may be concentrated in specific investment sectors or categories that may represent greater risk than that of other investment sectors or categories. An investment in any Portformula Investment Strategy should be made with an understanding of the risks involved with investing in various forms of securities including economic recession, financial deterioration and/or the general condition of the stock market. As with all historical data, past performance is not an indication, or guarantee, of future results. Portformulas may incur additional risk and/or volatility in comparison to any indices or other investments. Portformulas periodically utilizes the following well-known indexes for comparative purposes: S&P 500, Dow Jones Industrial Average (DJIA), NASDAQ, Russell 2000, Dow Jones Corporate Bond Index (DJCBP) and the Treasury Bond 1 0-Year Yield. Indexes are not publically-available investment vehicles and cannot be purchased. The S&P 500, DJIA, NASDAQ, Russell 2000, DJCBP and the Treasury Bond 10-Year Yield have not endorsed Portformulas in any way. Purchases and sales of stocks, ETFs, mutual funds, bond funds, and money market funds may be made without regard to how long you have owned the securities. Frequent movement between stocks, ETF5, mutual funds, bond funds, and money market funds can result in tax implications, which should be considered before investing. The ongoing trading and turnover of holdings may create significant short term capital gains and/or long term capital gains in addition to interest and dividends creating income tax liability. Money market funds may have limited or no insurance guarantees and it is possible to lose money in a money market fund. ETF shareholders are subject to risks similar to holders of other porifolios, such as mutual funds. ETF fees and standard fund charges may result in the investment return of the ETF or fund being lower than that of the underlying benchmark index. Corporate bond funds are not backed by the United States government and the underlying bonds could default if the issuer encounters financial difficulties. Money market funds may have limited or no insurance guarantees and it is possible to lose money in a money market fund. It is important to note that any strategy may underperform or produce negative results.
IMPORTANT NOTICE: Past performance is no guarantee of future results. Your actual resulta 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.
Portformulasc5(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation ofspecitc step-by-step investment criteria and accountrebalancing as indicated and selected by the client. sec File No. 801-65276. SEC Registration dues not page 2 of22 imply a certain level of skill or training. This activity is generally referred to by the Firm as a Portformula Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas ADV. @2006-2011 PorfformulastFAllRights Reserved,
PORTFRMULAS
www.Porlformulas.com SEC Registered InvestmentAdvisor
FORM U LAIC TRE N DI N G
M ONEY
MANAG ER
Charges and Fees

Monthly Account Management Fees: (may be modified with 30-days advance notice)
Account Value
.
AUM Formula Fee Annualized $500,000.00 $1,000,000.00 $2,000,000.00 $300000000

,
Portfolio Fee Annualized 1.44% 1.32% 1.20%
Combined Total Fee Annualized 2.88% 2.64% 2.40% 216/
$35,000.00
.
but less than but less then but less than butlessthan
-
1.44%
$500,000.00 $1,000,000.00 $200000000
1.32% 1.20% 108/
$3,000,000.00 $4,000,000.00
but less than but less than
$4,000,000.00 $5,000,000.00
0.96% 0.8o 0.84% 0.84%
108/
I................
.........,.............
.....
0.96%
1.92% 1.68%
Largeraccounts may be negotiable based upon size.
0.72% 0.60%
-
1 .56% 1.44% 1.32%
.......
0.84%
0.48%
Lach investors account is established with a minimum 2% cash position and the remaining percentage is fully invested in the Portformula. In a Traditional Portformula Strategy all dividends are reinvested and this ratio is updated upon each rebalancing and reapplication of the Portformula Investment Strategy qualification criteria.
Traditional Account Fees: (may be modified with 30 days prior written notice)
.
Annualized Management Fees Standard monthly buy/sell ticket charges Standard monthly buy/sell maximum transaction charges
calculated and charged monthly no charge .0045 cent per share
Special Service Fees: (may be modified with 30 days prior written notice)
.
Check distribution Account termination for cash Account termination for in-kind Wired funds
$20 per occurrence $125 as cash $250 as equity holdings $25 per wire
Other special service fees may apply and can be verified by calling Portformulas directly.
Other Considerations: (may be modified with 30 days prior written notice)

.
Each client receives 24/7 online access to their account information Each client receives monthly paper statements in addition to 24/7 online access. Account minimum is $35,000 $15,000 minimum per Portformula.
IMPORTANT NOTICE: Past performance is no guarantee of future results. Your actual results may vary. Investing carries an inherent element of nsk. Potential for substantial loss in principal and income exists. This material is not complete unless all pages are included.
Portfannulasiffilthe Firm) operates with Limited Oiscretionary Authority to engage soieiy in the implementation ofspecific step-by-step investment criteria and account rebaiancing as indicated and seiected by the ciient SEC File No. 801-68276. SEC Registration does not page 3 of22 imply a certain ievei of skill or training. This activity is generaiiy referred to by the Firm as a Portformuia Investment Strategy Yoa should oniy invest in Portformaias upon receiving and reading the Portformoias ADV. @2006.2011 Portformulasi&AllRights Reserved.
PD RTFZ5II IVI U LAS
6020 E Fulton St Ada, Mt 49301 800-869-5994 www.Porfformulas.com

SEC Registered lnvestmentAcfvisor
TM Formulaic Investing Strategy Allocation

These Portformulas have been selected for a total investment of $300000
4000 %_\\
-S
2OOO %
20.00 % 2000 %
Bond Fund Fusion Brigade Growth & Va)ue wI RAM Score Fusion Platoon Cross Blend w/ RAM Score Fusion Squadron Growth w/ RAM Score Fusion Total:
40.00% 20.00% 20.00% 20.00% 100.00%
$120,000 $60,000 $60,000 $60,000 $300,000
Portformu!aslE(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation ofspecitc step-by-step investment criteria and accaant rebalancing as indicated and selected bythe client. SEC File No. 801-68276. SEC Registration does not page 4 of22 imply a certain level of skill or training. This activity is generally referred to by the Firm as a Portformula Investment Strategy. Yoo should only invest in Portformulas opon receiving and reading the Portformulas ADV. @2006-2011 Portformu!awtlAllRights Reserved,
PD RTFR M U LAS
6020 E Fulton St Ada, MI 49301 800-869-5994 www.Portformuias.com

FQRMULAIC TRENDING MONEY MANAGER
Portformulas Diversified Allocation

Holdings by Market Cap

, .
Other
4000% 1495% 3311% 11.94%
40.00%-
Large Cap
Mid Cap
Small Cap
14.95 %
11.94%
33.11 %
Holdings by Sector 40.00
S] Basic Materials
Bond Funds Capital Goods Consumer Cyclical
,
3.81% 40.00% 7.89% 4.66% 5.45% 2.37% 2.9 1% 2.73% 22.83% 4.27% 3.08%
Consumer Non-Cyclical Energy
7.89 %
-I
466% 5.45%
L.31
0
_ Financial
3.81 %- - -[
3.08 % 4.27 %
b _
Health Care Services Technology Transportation
10
2.91 % 2.73 %
2283 %
Portformulas@(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation ofspecific step-by-step investment criteria and account rebalancing as indicated and selected by the client SEC File No. 801-68276. SEC Registration does not page 5 of22 imply a certain level of skill ortraining. This activity is generally referred to bythe Firm as a Portformula Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas ADV. @2006-2011 PortformulascftAllRights Reserved,
PORTF5RMULAS
6020 E Fulton St Ada, MI 49301 800-869-5994 www.Portformulas.com SEC Registered investmentAdvisor


ri: DiversifiPortfio
S&P 500
Yearly Returns 2001 Diversified Portfolio s&P 500 DJIA NASDAQ Russell 2000 DJCBP 10.YrTreasuryYld MSCIWorldlndex 8.51% -13.03% -7.10% -21.05% 1.03% 3.43% 5.00% -17.83% 2002 9.75% -23.37% -16.76% -31.53% -21.57% 4.14% 4.60% -21.06% 2003 45.97% 26.39% 25.33% 50.01% 45.39% 3.46% 4.00% 30.81% 2004 12.38% 9.00% 3.14% 8.60% 16.98% 0.22% 4.30% 12.84% 2005 9.47% 3.01% -0.63% 1.38% 3.32% -4.15% 4.30% 7.56% 2006 11.90% 13.65% 16.28% 9.51% 17.00% -2.06% 4.80% 17.95% 2007 9.41% 3.55% 6.42% 9.81% -2.76% -0.90% 4.60% 7.09% 2008 1.68% -38.50% -33.84% -40.54% -34.79% -4.47% 3.60% -42.08% 2009 11.32% 23.45% 18.81% 43.89% 25.22% 10.66% 3.30% 26.98% 2010 11.96% 12.78% 11.02% 16.91% 25.31% 3.12% 3.13% 9.55% 2011 4.51% 0.00% 5.53% -1.80% -5.45% 3.18% 2.73% -7.62% 2012 4.58% 13.41% 7.26% 15 91% 14.63% 6.10% TBD 13.18%
LE DiversiSed PortFolio
45.97%
S&P 500
23.45% 15.41% .00%
-2OXJO/e
-
In
Portformulas was not managing money prior to 2007. Performance calculations for the period 2001 2009 are based on model performance, which is the retroactive application of a Portformulas selection criteria to all available stocks during a given time period. Model results do not reflect actual trading, do not reflect Portformulas monthly, maximum .0045 cent per share buy/sell transaction charge, and assume that no additions or withdrawals have been made since the models inception. Withdrawals and additions in your account, as well as transaction charges, will result in your performance being different that the performance figures referenced.
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
201 1
2012
In 2010, Portformulas began utilizing time-weighted returns on any model in existence from the beginning ofa calendaryear. Because Portformulas publishes time-weighted returns, all advertised performance data reflects performance after advisory fees have been deducted. Return data through December 2009 represents price-returns, not total returns. Price returns do not reflect the reinvestment of dividends, interest rate received, or realized capital gains. RAM Score was notdeveloped 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. Also, hypothetical returns are not indicative of Portformulas actual portfolio management skills. The RAM Score feature is simply a tool designed to assist our firms management of your account The RAM Score tool does not guarantee any specific results or performance, and even with RAM Score, 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.
PortformulasiElthe Firm) operates with Limited Discretosary Authority to engage soiely in the impiementation of specific step-by-step investment criteria and account rebalancing as indicated and seiected by the ciient. 5EC File No. 851-68276. SEC Registration does not page 6 of22 impiy a certain level of skiii or training. This actvity is generaiiy referred to by the Firm as a Porttormaia Investment Strategy. Yoa shouid oniy invest in Poriformuias upon receiving and reading the Portformuias ADV 52006-2011 Portformulas@AllRights Reserved,
PORTFRMULAS
www.Porfformulas.com
SECRegisteredlnvestrnentAdvisor
BOND FUND FUSION PORTFORMULA INVESTMENT STRATEGY

THEME SERIES ORIGINS & BENEFITS OF PORTFORMULA INVESTMENT STRATEGIES Portformulas manages quantitative mechanical methodologies and models for investors, operating pursuant to Limited Discretionary Authority engaging solely in the implementation of one or more step-by step investment strategy qualification criteria and account rebalancing as indicated and selected by each investor. We generally refer to this activity as a Portformula Investment Strategy. We use the selected Portformula Investment Strategy qualification criteria to eliminate human emotion from the stock selection process. We execute the Portformula Investment Strategy qualification criteria as the strict quantitative methodology and model for investing within each investor selected Portformula. Each Portformula will only select holdings when they specifically meet the step-by-step qualification criteria & investment strategy. Each investors account is established with a minimum 2% cash position and the remaining percentage is fully invested in the Portformula. All dividends are reinvested and this ratio is updated upon each rebalancing and reapplication of the Portformula Investment Strategy qualification criteria. Every Portformula provides full liquidity and 24/7 online account information for each investor. Portformulas reserves the right to make adjustments or changes in the criteria, ongoing management, and implementation of each Portformula; however the general investment philosophy of a Portformula will not change. Our goal is to maintain the integrity of the general investment philosophy as described in the specific investment strategy criteria. Such efforts may be open to interpretations, opinions and adaptations in order to create and maintain a real life mechanical investment methodology resulting in the Portformula. These philosophical interpretations, opinions, adaptations, methodologies and implementations may differ and have not been independently verified. On a monthly basis (on or about the first working week of the month) account rebalancing, is reapplied on behalf of each investor. INITIATING THE BOND FUND FUSION INVESTMENT STRATEGY CRITERIA:
.
We begin with a mini universe of three professionally managed preselected institutional bond funds that includes the following... Symbol: PEBAX Exchange Trade Fund: Pimco Emerging Markets Bond Fund As stated by Pimco, this fund takes a relatively conservative approach to the emerging markets debt asset class, investing primarily in U.S. dollar denominated intermediate-term bonds. This fund invests primarily in U.S. dollar denominated intermediate-term bonds.
PGOVX
Pimco Long-Term US Government Bond Fund As stated by Pimco, this fund invests in U.S. government securities, which represent the worldwide standard of credit safety. This fund utilizes a total return approach to capture opportunities across all sectors of the long-term government bond marketplace while managing interest rate risk.
PTTRX
Pimco Total Return Fund As stated by Pimco, this fund is a true core bond holding, focusing on high-quality intermediate-term bonds and aiming to avoid concentrated risk exposure. It also employs a variety of value-added strategies across the global bond markets to increase total return potential and reduce overall risk.
FOR THIS PORTFORMULA, THE HOLDINGS WILL BE SELECTED BASED UPON THE FOLLOWING CRITERIA:
. .
The funds are scored and ranked in order of one through three. The first scoring component relates to criteria applied against exponential moving averages for each fund. The exponential moving averages provide more\nweight to the latest data so that they will react quicker to recent price changes than simple moving averages and will smooth the data series decreasing the amount of noise or extraneous movement. As such, the strategy will then calculate the three period monthly exponential moving average less the six period monthly exponential moving average then divided by the monthly close and multiplied by one hundred to equal the Moving Average Score. The next scoring component relates to criteria applied against the elder ray index for each fund. The elder ray index bull power and bear power measures\nthe amount of buying and selling pressure in the market. As such, the strategy will then calculate the thirteen period monthly elder ray bull power index divided by the monthly close then added to the thirteen period monthly elder ray bear power index divided by the monthly close and multiplied by one hundred to equal the Bull Bear Score. The next scoring component relates to criteria applied against the momentum indicator for each fund. The momentum indicator is used to measure trend\nstrength and/or possible trend reversals. As such, the strategy will then calculate the six period monthly momentum indicator less one hundred to equal the Momentum Score. The overall score for each fund is then calculated as the sum of the Moving Average Score plus Bull Bear Score plus Momentum Score
COMPLETING THE BOND FUND FUSION INVESTMENT STRATEGY CRITERIA:

.
The top fund based upon the overall fund Score is selected for 60% of this Portformula holding. The second and third fund based upon the overall Score are selected for 20% each of this Portformula holding. On a monthly basis (on or about the first working week of the month) this step-by-step Portformula criteria, including account rebalancing, is then reapplied on behalf of each investor. Investors may opt to change by notifying Portformulas prior to the beginning of any new calendar month.
Po,tformulasc&(the Firm) operates with Limited Discretionary Authorityto engage solely in the implementation of specific step.by-step investment criteria and accoant rebalancing as indicated and selected by the client. SEC File No. 801-6g276. SEC Registration does not page 7 af22 imply a certain level of skill ortraining. This activity is generally referred to bythe Firm as a Porttormula Investment Strategy. You should only invest in Portformulas span receiving and reading the Portformulas ADV. @2006-2011 Portformu!aslfilAllRights Reserved.
PORTF5RMULAS

SEC RegistereJlnvestmeetAdvisor
BOND FUND FUSION PORTFORMULA HOLDINGS

Holdings as of January 3, 2013
-
Current # of Holdings: 3
Ticker PEBAX PTTRX PGOVX
Company Name Pimco Emerging Markets Bond Fund Plmco Total Return Fund Pimco Long-Term US Government Bond Fund
Category Emerging Markets Bond Intermediate Term Bond Long Govt.
Holdings By Category 60.00 %

,---..
20.00 %
I.
; .
Emerging Markets Bond 60.00% Long Govt. 20.00%
Intermediate-Term Bond 20.00%
Portformulasc8(the Firm) operates with Limited Discretionary Authority to engage solely in the implementahon otspecific step-by-step investment criteria and account rebalancing as indicated and selected by the client SEC File No. 801-e827e. SEC Registration does not page 8 of22 imply a certain level of skill or training. This activity is generally referred to by the Firm as a Portformula Investment Strategy. You should only invest in Porttormulas upon receiving and reading the Porttormulas ADV. @2006-2011 PortformulaslEAllRights Reserved.
PORTF5RMULAS
6020 E Fulton St Ada, MI 49301 800-8695994 www.Portformulas.com

SEC Registered In vestment Advisor
FORMULAIC TRENDING MDNEY MANAGER
BOND FUND FUSION HISTORiCAL PERFORMANCE
DollarValue ofa $120,000 Investment January 2001 through December 31 2012 El: Bond Fund Fusion
DJCBP $260190
$287000 $249600
$212,200
$174,800 $137,400 $1o00o0
..
3148.793
2001
2002
2003
2004
2005
2006
2007
20081
2007
2010 2009 E
j
2009 753% 10.66% 3.30% 23.45% 18.81% 43.89% 25.22% 26.98%
2012
Yearly Returns 2001 Bond Fund Fusion DJCBP

,
2002 9.75%
4.14%
2003 16.60% 3.46% 4.00% 26.39% 25.33% 50.01% 45.39% 30.81%
2004 5.48% 0.22% 4.30% 9.00% 3.14% 8.60% 16.98% 12.84%
2005 4.85% -4.15% 4.30% 3.01% -0.63% 1.38% 3.32% 7.56%
2006 319% -2.06% 4.80% 13.65% 16.28% 9.51% 17.00% 17.95%
2008 1.68% -4.47% 3.60% -38.50% -33.84% -40.54% -34.79% -42.08%
2010 5.92% 3.12% 3.13% 12.78% 11.02% 16.91% 25.31% 9.55%
2011 10.30% 3.18% 2.73% 0.00% 5.53% -1.80% -5.45% -7.62%
2012 3.41% 6.10% TBD 1341% 7.26% 15 91% 14.63% 13.18%
851% 3.43% 5.00% -1303% -7.10% -21.05% 1.03% -17.83%
355% -0.90% 4.60% 3.55% 6.42% 9.81% -2.76% 7.09%
1O-YrTreasuryYld S&P500 DJIA NASDAQ Russell 2000 MSCI World Index
4.60% -23.37% -16.76% -31.53% -21.57% -21.06%
ci: Bond Fund Fusion
DJCBP
10.30i,
5.48%
4.85%
Portformulas was not managing money prior to 2007. Performance calculations for the period 2001 2009 are based on model performance, which is the retroactive application of a Portformulas selection criteria to all available stocks during a given time period. Model results do not reflect actual trading, do not reflect Portformulas monthly, maximum .0045 cent per share buy/sell transaction charge, and assume that no additions or withdrawals have been made since the models inception. Wthdrawals and additions in your account, as well as transaction charges, will result in your performance being different that the performance figures referenced.
In 2010, Portformulas began utilizing time-weighted returns on any model in existence from the beginning of a calendar year. Time weighted returns show the compound growth rate in a portfolio while eliminating the varying 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 ofthat period. Model performance and time-weighted rates of return may be aggregated to calculate three-, five-, seven-, and ten-year returns if time-weighted returns are not available for the full period. Moreover, because Portformulas publishes time-weighted returns, all advertised performance data reflects performance after advisory fees have been deducted. Return data through December 2009 represents price-returns, not total returns. Price returns do not reflect the reinvestment of dividends, interest rate received, or realized capital gains. The Bond Fund Fusion model invests in bond funds. The term bond fund describes a type of investment company (mutual fund, closed-end fund, or unit investment trust) that primarily invests in bonds. Therefore, Portformulas is providing various fixed-income and stock-based indexes for comparison. Past performance does not guarantee future results and the potential for loss does exist.
Portformulasitilthe Firml operates with Limited Discretionary Aothority to engage solely in the implementation of specitc step-by-step investment criteria and account rebaiancing as indicated and selected by the client. SEC File No. 851-65276. SEC Registration does not page a of22 imply a certain level of skill or training. This activity is generally referred to by the Firm as a Porttormolaiti Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas ADV. @12006-2011 PortformulaedtAllRights Reserved,
PORTF5RMULAS
SEC Registored Investment Advisor
BRIGADE GROWTH & VALUE wIRAM SCORE FUSION PORTFORMULA INVESTMENT STRATEGY
SCHOLAR SERIES ORIGINS & BENEFITS OF PORTFORMULA INVESTMENT STRATEGIES Portformulas manages quantitative mechanical methodologies and models for investors, operating pursuant to Limited Discretionary Authority engaging solely in the implementation of one or more step-by step investment strategy qualification criteria and account rebalancing as indicated and selected by each investor. We generally refer to this activity as a Portformula Investment Strategy. We use the selected Portformula Investment Strategy qualification criteria to eliminate human emotion from the investment selection process. We execute the Portformula Investment Strategy qualification criteria as the strict quantitative methodology and model for investing within each investor selected Portformula. You can always identify holdings you own inside your Portformula Investment Strategy, unlike many traditional money management portfolios. Each Portformula will only select holdings when they specifically meet the step-by-step qualification criteria & investment strategy. Based upon the criteria, it may be possible that no holdings will qualify during a given period of time. This may result in a Portformula maintaining a full money market position, but generally only for limited periods of time. Each investors account is established with a minimum 2% cash position and the remaining percentage is fully invested in the Portlormula. All dividends are reinvested and this ratio is updated upon each rebalancing and reapplication of the Portformula Investment Strategy qualification criteria. Every Portformula provides full liquidity and 24/7 online account information for each investor. Poriformulas reserves the right to make adjustments or changes in the criteria, ongoing management, and implementation of each Poriformula; however the general investment philosophy of a Portformula will not change. Our goal is to maintain the integrity of the general investment philosophy as described in the specific investment strategy criteria. Such efforts may be open to interpretations, opinions and adaptations in order to create and maintain a real life mechanical investment methodology resulting in the Poriformula. These philosophical interpretations, opinions, adaptations, methodologies and implementations may differ and have not been independently verified. On a monthly basis (on or about the first working week of the month) account rebalancing, is reapplied on behalf of each investor. INITIATING THE BRIGADE GROWTH & VALUE INVESTMENT STRATEGY CRITERIA:
. . .
We begin with an overall total stock market universe that includes the NYSE, AMEX and NASDAQ exchanges, excluding all OTC stocks. We then eliminate all companies whose stock price is less than $5 per share or greater than $1 000 per share. We further eliminate all companies whose stock does not maintain an average daily dollar volume over the last three months of $5 million dollars or greater.
FOR THIS PORTFORMULA, STOCKS MAY QUALIFY BY MEETING ONE OR MORE OF THE FOLLOWING GROUPINGS OF CRITERIA:
. . . . . . . . . . .
The The The The The The The The The The The
companys companys companys companys companys companys companys companys companys companys companys
market capitalization must be greater than or equal to $1 billion dollars. operating income must be positive for the trailing twelve months. operating income must also be positive for each of the last seven fiscal years. return on equity must be greater than I 5% for the trailing twelve months. return on equity must also be greater than 1 5% for each of the last three fiscal years. long term debt to equity for the most recent fiscal quarter must be less than the industrys median debt to equity for the same timeframe. operating margin for the trailing twelve months must be greater than the industrys median operating margin for the same timeframe. net profit margin for the trailing twelve months must be greater than the industrys median net profit margin for the same timeframe. change in share price must be greater than the change in retained earnings per share, or book value change, over the last five fiscal years. price to free cash flow ratio divided by the free cash flow growth rate must be positive, but less than or equal to two. price to free cash flow per share ratio for the trailing twelve months must be less than or equal to thirty.
OR
. . . . . . . .
The The The The The The The The
companys companys companys companys companys companys companys companys
price earnings ratio must be less than the industrys median price earnings ratio. price earnings ratio must be less than the five year average price earnings ratio. price earnings ratio to the sum of the five year earnings per share growth rate including the five year dividend yield must be less than one. five year earnings per share growth rate from continuing operations must be less than 50 percent percentage of common stock owned by institutions must be less than the median percentage of institutional ownership for the stock market. total liabilities to total assets for the last fiscal quarter must be less than the industrys median total liabilities to total assets for the same timeframe. insider buy trades for officers and directors during the last six months must be zero or more. insider sell trades for officers and directors during the last six months must be zero.
PortformulaslE(Ihe Firm) operates with Limited Discretionary Authority to engage solely in the implementation ofspecitc step-by.step investment criteria and accoontrebalancing as indicated and selected by the client. SEC File No. 801-68276. SEC Registration does not page 10 sf22 imply a certain level of skill or training. This activity is generally referred to bythe Firm as a Portformula Investment Strategy. You should only invest in Portformolao upon receiving and reading the Portformulas ADV. @2006-2011 PortformulaslflAllRights Reserved.
PORTF5RMULAS
www.Portformulas.com
SECRegisteredlnvestrnentAdvisor
OR
.
. .
. . .
. .
. . . . .
The companys diluted earnings per share from continued operations for the four most recent fiscal quarters must be greater than that of each of the same four fiscal quarters one year earlier. The companys sales growth for the most recent fiscal quarter must be greater than that of the same quarter one year earlier. The companys growth in sales from the most recent fiscal quarter to the same quarter one year earlier must be greater than that of the previous fiscal quarter to the same quarter one year earlier. The companys diluted earnings per share for the trailing twelve months must be greater than or equal to that of the last fiscal year. The companys diluted earnings per share for each of the last two fiscal years must be greater than that of the previous fiscal year. The companys annualized growth rate in diluted earnings per share from continuing operations over the last three years must be greater than or equal to fifteen percent. The companys annualized sales growth over the last three years must be greater than or equal to fifteen percent. The companys diluted earnings per share from continued operations for the four most recent fiscal quarters must be greater than the growth in earnings between the sum total of the prior three fiscal quarters and the same three quarters one year ago OR The companys diluted earnings per share from continued operations for the four most recent fiscal quarters must be greater than or equal to thirty percent. The companys diluted earnings per share from continued operations for the four most recent fiscal quarters must be greater than or equal to the annualized growth rate in diluted earnings per share from continuing operations over the last three years. The companys price earnings ratio must be greater than five and less than one and one-half times the median price earnings ratio for the stock market. The company stocks relative strength over the last twenty-six weeks must be positive. The company must be based in the United States and may not be an American Depository Receipt or ADR. The companys industry must not be identified as miscellaneous financial services or real estate operations. The company stocks trading volume average for the last three months must be within the top seventy-five percent of the stock market.

COMPLETING THE BRIGADE GROWTH & VALUE INVESTMENT STRATEGY CRITERIA:

.
The remaining company stocks (from each of the three criteria groupings) are selected for this Portformula. Should more than fifty stocks have met the criteria, we select the fifty ranked highest by relative strength over the last 52 weeks and as tiebreakers, the last 26 weeks, then 1 3 weeks, then 4 weeks as necessary. Should less than 20 stocks have met the criteria, we apply a prorated allocation toward cash (i.e. if only 1 6 stocks qualify, then 20% would be prorated to cash). On a monthly basis (on or about the first working week of the month) this step-by-step Portformula criteria, including account rebalancing, is then reapplied on behalf of each investor. Investors may opt to change by notifying Portformulas prior to the beginning of any new calendar month.
,
RAM FUSION RECESSION AND MARKET ALLOCATION MANAGEMENT USING THREE PROFESSIONALLY MANAGED INSTITUTIONAL BOND FUNDS: PIMCO EMERGING MARKETS BOND FUND (PEBAX), PIMCO LONG-TERM US GOVERNMENT BOND FUND (PGOVX) AND PIMCO TOTAL RETURN FUND (PTTRX)
.
The first scoring component relates to criteria applied against exponential moving averages for the S&P 500. The exponential moving averages provide more weight to the latest data so that they will react quicker to recent price changes than simple moving averages and will smooth the data series decreasing the amount of noise or extraneous movement. As such, the corresponding indices will be utilized to calculate the three period monthly exponential moving average less the six period monthly exponential moving average then divided by the monthly close and multiplied by one hundred to equal the Moving Average Score. The next scoring component relates to criteria applied against the elder ray index for the S&P 500. The elder ray index bull power and bear power measures the amount of buying and selling pressure in the market. As such, the corresponding indices will be utilized to calculate the thirteen period monthly elder ray bull power index divided by the monthly close then added to the thirteen period monthly elder ray bear power index divided by the monthly close and multiplied by one hundred to equal the Bull Bear Score. The next scoring component relates to criteria applied against the momentum indicator for the S&P 500. The momentum indicator is used to measure trend strength and/or possible trend reversals. As such, the corresponding indices will be utilized to calculate the six period monthly momentum indicator less one hundred to equal the Momentum Score. The next scoring component relates to criteria applied against the trix indicator for the S&P 500. The trix indicator is used to identify oversold and overbought markets as it displays the rate of change of a triple exponentially smoothed moving average of closing price. As such, the corresponding indices will be utilized to calculate the twelve period monthly trix indicator less the nine period monthly simple moving average of the monthly Trix indicator and multiplied by one hundred to equal the Trix Score. The next scoring component relates to criteria applied against the moving average convergence divergence indicator for the S&P 500. The moving average convergence divergence indicator is used to show the relationship between two moving averages of prices. As such, the corresponding indices will be utilized to calculate the twelve period monthly exponential moving average less the twenty-six period monthly exponential moving average divided by the monthly close then subtracting the nine period monthly exponential moving average divided by the monthly close then multiplied by three hundred to equal the MACD Score. The next scoring component relates to criteria applied against the Moodys Analytics risk of recession indicator for the United States. The risk of recession indicator reports a current probability for a country to enter into and/or stay within a recession. As such, the corresponding country will be utilized to calculate the current risk of recession multiplied by negative one then added to thirty-six one hundreds and multiplied by 100 to equal the Recession Risk Score. The next scoring component relates to criteria applied against the Chicago Board Options Exchange market volatility index. The volatility index is used as a key measure of market expectations of near term volatility conveyed by the S&P 500 stock index option prices and is considered a barometer of investor sentiment and market volatility. As such, corresponding indices will be utilized to calculate the average of the most recent month index high and low multiplied by negative one then added to nineteen then added to the most recent month index open less the most recent month index close to equal the Volatility Score. The overall RAM Score is then calculated as the sum of the Moving Average Score plus Bull Bear Score plus Momentum Score plus Trix Score plus MACD Score plus Recession Risk Score plus Volatility Score. The RAM Score must result in a positive score in order for the standard Poriformula investment selection criteria to apply. Should the RAM Score result in zero or a negative score, the standard Portformula allocation will be overruled until the monthly RAM Score again results in a positive score. When the RAM Score results in such an overruling the Portformula investment will be an entirely different strategy known as Bond Fund Fusion. Be sure to print all appropriate descriptive materials (including the Bond Fund Fusion version of this descriptive) regarding this separate and distinct strategy that may apply based upon RAM Score as described above. When RAM Score does overrule the standard Portformula allocation, your assets will move into the Bond Fund Fusion strategy. Compared to the standard Portformula allocations, Bond Fund Fusion is a separate and distinct Portformula strategy. As such. It is important that you print and review the Bond Fund Fusion hypothetical prior to investing.
PortformuIas5lthe Firmi operates with Limited Oiscretionary Authority to engage solely in the implementation of specific step-by.step investment criteria and account rebalancing an indicated and selected by the client SEC File No. 801.65276. SEC Registration does not page 1 1 of22 imply a certain level of skill or training. This activity is generally referred to by the Firm as a Portformula Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas AOJ. @2006-2011 PortformulasdiAllRights Reserved.
PORTF5RMULAS
6020 E Fulton St Ada, Mi 49301 800-869-5994 www.Portformulas.com SEC Registered lovestmesfAdvisc,r
BRIGADE GROWTH & VALUE w/RAM SCORE FUSION PORTFORMULA HOLDINGS

Holdings as of January 3, 201 3
-
Ticker ACN ALGT BBBY CMCSA CPA DLTR FFIV GPC HIBB SRG JCQM LANC NEU NTES NUS ORCL PNRA PR,O,A PZZA TGI
Company Name Accenture Plc Allegiant Travel Company Bed Bath & Beyond Inc. Comcast Corporation Copa Holdings, S.A. Dollar Tree, Inc. F5 Networks, Inc. Genuine Parts Company HibbeS Sports, Inc. Intuitive Surgical, bc. J2 Global Inc Lancaster CoLony Corp. NewMarket Corporation NetEaoe, Inc (ADR) No Skin Enterprises, Inc. Oracle Corporation Panera Bread Co Portfolio Recovery Associates, Papa Johns Intl, Inc. Triumph Group Inc
Eochange NYSE NASDAQ NASDAQ NASDAQ NYSE NASDAQ NASDAO NYSE NASDAO NASDAQ NASDAQ NASDAQ NYSE NASDAO NYSE NASDAQ NASDAQ NASDAQ NASDAQ NYSE
Sector Services Transportation Services Sm Transportation 5cr Technology Consumer Cyclical Services Health Care Services C m N Cyl I
Market Cap Large Cap Mid Cap Large Cap L g Cp Mid Cap Larg Cp Large Cap Large Cap Mid Cap Large Cap Mid Cap MdCp Mid Cap Large Cap Mid Cap Large Cap Mid Cap Mid Cap Mid Cap Mid Cap
Basic Materials Services Consumer NonCyclical Technology Services Services Services Capital Goods
Holdings By Sector
10.00 % 500 % 5.00
.,------
Holdings By Market Cap

5,00% 45.00 %
A
5,00 10,00 %7 %_/ %
50.00 %
10.00
E.Z
:.:
Basic Materials 5.00% Consumer Cyclical 5.00% Health Care 5.00% Technology 10.00%
..
SI
Capital Goods 5.00% Consumer Non-Cyclical 10.00% Services 50.00% Transportation 10.00%
Large Cap 45.00%
Mid Cap 55.00%
Portformuiastfflthe Firml operates with Limited Discretionary Authority to engage solely in the implementation ofopecific stepby-step investment criteria and account rebalancing as indicated and selected by the client SEC File No. t016t276. SEC Registration does not page 12 of22 imply a certain level ot skill ortraining. This activity is generally referred to by the Firm as a Portformula investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas ADV. @2006.2011 Portformulas@AllRights Reserved.
PORTF5RMULAS
6020 E Fulton St Ada, MI 49301 800-869-5994 www.Porfformulas.com

SEC Registered InvestmentAdvisor
BRIGADE GROWTH & VALUE w/RAM SCORE FUSION HiSTORICAL PERFORMANCE
Dollar Value of a $60,000 Investment January 2001 through December 31 2012 i:: Brigade Grceth & Value
S&P 500
Yearly Returns 2001 Brigade Growth &Value s&P 500 DJIA NASDAQ Russell 2000 DJCBP 10-Yr Treasury Yld MSClWorldlndex 8.51% -13.03% -7.10% -21.05% 1.03% 3.43% 5.00% -17.83% 2002 9.75% -23 37% -16.76% -31.53% -21.57% 4.14% 4.60% -21.06% 2003 58.91% 26.39% 25.33% 50.01% 45.39% 3.46% 4.00% 3081% 2004 15.29% 9.00% 3.14% 8.60% 16.98% 0.22% 4.30% 12.84% 2006 1347% 3.01% -0.63% 1.38% 3.32% -4.15% 4.30% 7.56% 2006 16.70% 13.65% 16.28% 9.51% 17.00% -2.06% 4.80% 17.95% 2007 1193% 3.55% 6.42% 9.81% -2.76% -0.90% 4.60% 7.09% 2008 1.68% -38.50% -33.84% -40.54% -34.79% -4.47% 3.60% -4208% 2009 1267% 23.45% 18.81% 43.89% 25.22% 10.66% 3.30% 26.98% 2010 1587% 12.78% 11.02% 16.91% 25.31% 3.12% 3.13% 9.55% 2011 1044% 0.00% 5.53% -1.80% -5.45% 3.18% 2.73% -7.62% 2012 -4.46% 13.41% 7.26% 15.91% 14.63% 6.10% TED 13.18%
Briga Gratoith & VIue
S&P 500
&LOO
: .
4LOJ%
.39%.
2th00%
-- 13.47%
16.70%
ii 93%
I2.7
2345% ii87%
t3.4t%
0004
-20004
n
FLF!_
4.46%
43.03% -23.37%
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Pnrfformulas was not managing money prior to 2007. Performance calculations tor the period 2001 2009 are based on model performance, which is the retroactive application of a Portformulas selection criteria to all available stocks during a given time period. Model results do not reflect actual trading, do not reflect Portflormulas monthly, maximum .0045 cent per share buy/sell transaction charge, and assume that no additions or withdrawals have been made since the models inception. Withdrawals and additions in your account, as well as transaction charges, will result in your performance being differentthat the performance figures reflerenced. In 2010, Portflormulas began utilizing time-weighted returns on any model in eoistence from the beginning of a calendar year. Because Portlormulas publishes time-weighted returns, all advertised performance data reflects performance after advisory flees have been deducted. Return data through December 2009 represents pricereturns, nottotal returns. Price returns do not reflectthe reinvestment of dividends, interest rate received, or reatzed capital gains. RAM Score Fusion did not exist priorto 2511; return data prior to 2t09 is hypothetical. RAM Score Fusion performance figures for 2515 utilize time.weighted returns and because RAM Score Fusion was not available in 2tlS, in order to provide hypothetical performance data, we have illustrated RPM Drive returns for each strategy. Since the RAM Score tool was nut triggered in 2510, each strategy was invested in the market and the underlying holdings were identical, regardless at whether an account elected RAM Score Drive, RAM Score Park, or RAM Score Fusion. We selected RAM Score Drives performance numbers because both RAM Score Drive and RAM Score Fusion invest in bond holdings or bond portfolios when the strategies are not invested in the market If RAM Score Fusion or RAM Score Drive had triggered, the holdings and returns for each respective portfolio would differ. RAM Score was not developed until January 2015. Prior to January 2510, clients were utilizing RAM Scores predecessor, RAM. Clients utilizing RAM may have had different results than those reflected above. Also, hypothetical returns are not indicative of Poriformulas actual portfoto management skills. The RAM Score feature is simply a tool designed to assist our firms management oflyour account. The RAM Score tool does not guarantee any specific results or performance, and even with RAM Score, it is possible that your account will lose value. RAM Score moves assets into or out ofthe market based on various economic and market indicators. It is possible thatthe market will move positively while you are not invested or negatively while you are invested, resulting in losses. The Brigade Growth & Value model invests in equities, and when triggered, the RAM Score Fusion tool moves ctents assets out ofthe market and into a bond fund. Therefore, Portfiormulas is providing various stock-based and toed-income based indeoes for comparison. Past performance does not guarantee foture results and the potential for loss dues exist
Portformulas/fii(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation oflspecific step-bystep investment criteria and account rebalanciog as indicated and selected by the client. SEC File No. 851-68276. SEC Registration does not page 13 at 22 imply a certain level of skill ortraining. This activity is generally referred to by the Firm as a Portflormula Investment Strategy You should only invest in Poriformulas upon receiving and reading the Poriformulas ADV. @2006.2011 Portforrnu!awftAllRights Reserved,
PORTFRMULAS
www.Poriformulas.com
SEcRogisteredlnvestmontAcivisor
PLATOON CROSS BLEND wIRAM SCORE FUSION PORTFORMULA INVESTMENT STRATEGY

SCHOLAR SERIES ORIGINS & BENEFITS OF PORTFORMULA INVESTMENT STRATEGIES Portformulas manages quantitative mechanical methodologies and models for investors, operating pursuant to Limited Discretionary Authority engaging solely in the implementation of one or more step-by step investment strategy qualification criteria and account rebalancing as indicated and selected by each investor. We generally refer to this activity as a Portformula Investment Strategy. We use the selected Portformula Investment Strategy qualification criteria to eliminate human emotion from the investment selection process. We execute the Poriformula Investment Strategy qualification criteria as the strict quantitative methodology and model for investing within each investor selected Portformula. You can always identify holdings you own inside your Portformula Investment Strategy, unlike many traditional money management portfolios. Each Portformula will only select holdings when they specifically meet the step-by-step qualification criteria & investment strategy. Based upon the criteria, it may be possible that no holdings will qualify during a given period of time. This may result in a Portformula maintaining a full money market position, but generally only for limited periods of time. Each investors account is established with a minimum 2% cash position and the remaining percentage is fully invested in the Portformula. All dividends are reinvested and this ratio is updated upon each rebalancing and reapplication of the Portformula Investment Strategy qualification criteria. Every Poriformula provides full liquidity and 24/7 online account information for each investor. Portformulas reserves the right to make adjustments or changes in the criteria, ongoing management, and implementation of each Portformula; however the general investment philosophy of a Portformula will not change. Our goal is to maintain the integrity of the general investment philosophy as described in the specific investment strategy criteria. Such efforts may be open to interpretations, opinions and adaptations in order to create and maintain a real life mechanical investment methodology resulting in the Portformula. These philosophical interpretations, opinions, adaptations, methodologies and implementations may differ and have not been independently verified. On a monthly basis (on or about the first working week of the month) account rebalancing, is reapplied on behalf of each investor. INITIATING THE PLATOON CROSS BLEND INVESTMENT STRATEGY CRITERIA:
. . .
FOR TH1S PORTFORMULA, STOCKS MAY QUAL1FY BY MEETiNG ONE OR MORE OF THE FOLLOWING GROUPINGS OF CR1TER1A:
. . . .
. . .
The companys price earnings ratio must be less than or equal to the bottom forty percent of the stock market. If the company is listed on the NYSE it must have market capitalization for the last fiscal quarter that is within the top thirty percent of the stock market. If the company is listed on the AMEX or NASDAQ it must have market capitalization for the last fiscal quarter that is within the top fifteen percent of the stock market. The companys total liabilities to total assets ratio for the last fiscal quarter must be less than or equal to the industrys median total liabilities to total assets ratio for the same timeframe. The company must have four or more analysts providing earnings estimates for the current fiscal year. The companys current earnings estimate for both the current fiscal year and the next fiscal year must be greater than it was one month ago. The company must have at least one analyst that has increased the earnings estimate for the current fiscal year as well as at least one analyst who has increased the earnings estimate for the next fiscal year. The company must have no downward revisions in the earnings estimates for either the current fiscal year or the next fiscal year.
OR
. . .
. .
. .
The companys price earnings ratio must be less than or equal to the bottom forty percent of the stock market. The companys market capitalization for the last fiscal quarter must be within the top thirty percent of the stock market. The companys total liabilities to total assets ratio for the last fiscal quarter must be less than or equal to the sectors median total liabilities to total assets ratio for the same timeframe. The companys current dividend yield must be greater than or equal to one and one-half percent. The companys earnings per share growth rate for both the most recent twelve months and last fiscal year must be greater than or equal to the median stock market earnings per share growth rate for the same timeframes. The companys estimated earnings per share for the current fiscal year must be greater than the reported earnings per share for the last fiscal year. The companys estimated earnings per share for the next fiscal year must be greater than the estimated earnings for the current fiscal year.
OR
. . . . . . .
The The The The The The The
company must have five or more analysts providing earnings estimates for the current fiscal year. company must have one or more upward revisions in the earnings per share estimate for the current fiscal year over the previous month. company must have zero downward revisions in the earnings per share estimate for the current fiscal year over the previous month. company must have one or more upward revisions in the earnings per share estimate for the next fiscal year over the previous month. company must have zero downward revisions in the earnings per share estimate for the next fiscal year over the previous month. companys latest earnings per share estimate for the current fiscal year must be increased greater than or equal to 5% compared to the previous month. companys latest earnings per share estimate for the next fiscal year must be increased greater than or equal to 5% compared to the previous month.
Portfarmuias@(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation ofspecific step-by-step investment criteria and account rebalancing as indicated and selected by the client. SEC File No. 801-68276. sec Registration does not page 14 of22 imply a certain level at skill or training. This activity is generally referred to by the Firm as a Portformula Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas ADV. @2006-2011 PortformulascRAllRights Reserved.
PORTF5RMULAS
www.Portformulas.com SEC Registered lnvestmentAdvisor
OR
. . . . . . . . . . .
market capitalization must be greater than or equal to $1 billion dollars. operating income must be positive for the trailing twelve months. operating income must also be positive for each of the last seven fiscal years. return on equity must be greater than 1 5% for the trailing twelve months. return on equity must also be greater than 1 5% for each of the last three fiscal years. long term debt to equity for the most recent fiscal quarter must be less than the industrys median debt to equity for the same timeframe. operating margin for the trailing twelve months must be greater than the industrys median operating margin for the same timeframe. net profit margin for the trailing twelve months must be greater than the industrys median net profit margin for the same timeframe. change in share price must be greater than the change in retained earnings per share, or book value change, over the last five fiscal years. price to free cash flow ratio divided by the free cash flow growth rate must be positive, but less than or equal to two. price to free cash flow per share ratio for the trailing twelve months must be less than or equal to thirty.
COMPLETING THE PLATOON CROSS BLEND INVESTMENT STRATEGY CRITERIA:

.
The remaining company stocks (from each of the three criteria groupings) are selected for this Portformula. Should more than fifty stocks have met the criteria, we select the fifty ranked highest by relative strength over the last 52 weeks and as tiebreakers, the last 26 weeks, then 1 3 weeks, then 4 weeks as necessary. Should less than 20 stocks have met the criteria, we apply a prorated allocation toward cash (i.e., if only 1 6 stocks qualify, then 20% would be prorated to cash). On a monthly basis (on or about the first working week of the month) this step-by-step Poriformula criteria, including account rebalancing, is then reapplied on behalf of each investor. Investors may opt to change by notifying Portformulas prior to the beginning of any new calendar month.
.
The first scoring component relates to criteria applied against exponential moving averages for the S&P 500. The exponential moving averages provide more weight to the latest data so that they will react quicker to recent price changes than simple moving averages and will smooth the data series decreasing the amount of noise or extraneous movement As such, the corresponding indices will be utilized to calculate the three period monthly exponential moving average less the six period monthly exponential moving average then divided by the monthly close and multiplied by one hundred to equal the Moving Average Score. The next scoring component relates to criteria applied against the elder ray index for the S&P 500. The elder ray index bull power and bear power measures the amount of buying and selling pressure in the market. As such, the corresponding indices will be utilized to calculate the thirteen period monthly elder ray bull power index divided by the monthly close then added to the thirteen period monthly elder ray bear power index divided by the monthly close and multiplied by one hundred to equal the Bull Bear Score. The next scoring component relates to criteria applied against the momentum indicator for the S&P 500. The momentum indicator is used to measure trend strength and/or possible trend reversals. As such, the corresponding indices will be utilized to calculate the six period monthly momentum indicator less one hundred to equal the Momentum Score. The next scoring component relates to criteria applied against the trix indicator for the S&P 500. The trix indicator is used to identify oversold and overbought markets as it displays the rate of change of a triple exponentially smoothed moving average of closing price. As such, the corresponding indices will be utilized to calculate the twelve period monthly trix indicator less the nine period monthly simple moving average of the monthly Trix indicator and multiplied by one hundred to equal the Trix Score. The next scoring component relates to criteria applied against the moving average convergence divergence indicator for the S&P 500. The moving average convergence divergence indicator is used to show the relationship between two moving averages of prices. As such, the corresponding indices will be utilized to calculate the twelve period monthly exponential moving average less the twenty-six period monthly exponential moving average divided by the monthly close then subtracting the nine period monthly exponential moving average divided by the monthly close then multiplied by three hundred to equal the MACD Score. The next scoring component relates to criteria applied against the Moodys Analytics risk of recession indicator for the United States. The risk of recession indicator reports a current probability for a country to enter into and/or stay within a recession. As such, the corresponding country will be utilized to calculate the current risk of recession multiplied by negative one then added to thirty-six one hundreds and multiplied by 100 to equal the Recession Risk Score. The next scoring component relates to criteria applied against the Chicago Board Options Exchange market volatility index. The volatility index is used as a key measure of market expectations of near term volatility conveyed by the S&P 500 stock index option prices and is considered a barometer of investor sentiment and market volatility. As such, corresponding indices will be utilized to calculate the average of the most recent month index high and low multiplied by negative one then added to nineteen then added to the most recent month index open less the most recent month index close to equal the Volatility Score. The overall RAM Score is then calculated as the sum of the Moving Average Score plus Bull Bear Score plus Momentum Score plus Trix Score plus MACD Score plus Recession Risk Score plus Volatility Score. The RAM Score must result in a positive score in order for the standard Portformula investment selection criteria to apply. Should the RAM Score result in zero or a negative score, the standard Portformula allocation will be overruled until the monthly RAM Score again results in a positive score. When the RAM Score results in such an overruling the Portformula investment will be an entirely different strategy known as Bond Fund Fusion. Be sure to print all appropriate descriptive materials (including the Bond Fund Fusion version of this descriptive) regarding this separate and distinct strategy that may apply based upon RAM Score as described above. When RAM Score does overrule the standard Poriformula allocation, your assets will move into the Bond Fund Fusion strategy. Compared to the standard Portformula allocations, Bond Fund Fusion is a separate and distinct Portformula strategy. As such. It is important that you print and review the Bond Fund Fusion hypothetical prior to investing.
Portformulas@(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation ofspecific step-by-step investment criteria and account rebulancing as indicated and selected by the client SEC File No 801-65276. SEC Registration dues not page 15 of22 imply a certain level of skill or training. This activity is generally referred to bythe Firm as a Portformula Investment Strategy. You should only invest in Purtfurmulas upon receiving and reading the Portfurmulas ADV @2006-2011 PorlformulasiSAllRights Reserved,
PORTF5RMULAS
6020 E Fulton St Ada, MI 49301 800-869-5994 www.Poriformulas.com

PLATOON CROSS BLEND w/RAM SCORE FUSION PORTFORMULA HOLDINGS

Holdings as ofJanuary 3, 2013
-
Current# of Holdings: 37
Ticker ACN ALGT BBBY SCO CPA DLTR FFIV FSC FAF FMCN FL GPC HIBB HOV INGR ISRG JCOM LANC LPX MW NTES NEU NUS PNRA PZZA
Company Name Accenfure Plc Allegiant Travel Company Bed Bath & Beyond Inc. Cisco Systems, nc. Copa Holdings, S.A. Dollar Tree, nc. F5 Networks, Inc. Fifth Street Finance Corp. FirstAmerican Financial Corp Focus Media Holding Limited (A Foot Locker, Inc. Genuine Parts Company HibbeS Sports, Inc. Hovsanian Enterprises, Inc. Ingredion Inc Intuitive Surgical, Inc. J2 Global Inc Lancaster Colony Corp. Louisiana-Paciltc Corporation Mens Wearhouse. Inc., The NetEase, Inc (ADR) NewMarket Corporation Nu Skin Enterprises, Inc. Panera Bread Co Papa Johns Intl, Inc.
Exchange NYSE NASDA0 NASDAQ NASDA0 NYSE NASDAQ NASDAQ NASDAQ NYSE NASDAQ NYSE NYSE NASDAQ NYSE NYSE NASDAQ NASDAQ NASDAQ NYSE NYSE NASDAQ NYSE NYSE NASDAQ NASDAQ
5ector Services Transportation Services Technology Transportation Services Technology Financial Financial Services Services Consumer Cyclical Services Capital Goods Consumer Non-Cyclical Health Care Services Consumer Non-Cyclical Capital Goods Services Services Basic Materials Consumer Non-Cyclical Services Services
Market Cap Large Cap Mid Cap Large Cap Large Cap Mid Cap Large Cap Large Cap Small Cap Mid Cap Mid Cap Mid Cap Large Cap Mid Cap Small Cap Mid Cap Large Cap Mid Cap Mid Cap Mid Cap Mid Cap Large Cap Mid Cap Mid Cap Mid Cap Mid Cap
Ticker PMT PDS QCOR RWT RS SSL SWM SWHC SFD SU TER UNH
Company Name PennyMac Mortgage Investment T Precision Drilling Corp (USA) Quesfcor Pharmaceuticals, lsc. Redwood Trust, Inc. Reliance Steel & Aluminum Sasol Limited (ADR) Schweitzer-Mauduit Isternation Smith & Wesson Holding Corpora Smithfeld Foods, Inc. Suncor Energy Inc. (USA) Teradyne, Inc. UsitedHealth Group Inc.
Exchange NYSE NYSE NASDAQ NYSE NYSE NYSE NYSE NASDAQ NYSE NYSE NYSE NYSE
Sectnr Services Energy Health Care Services Basic Materials Basic Materials Basic Materials Consumer Cyctcal Consumer Non-Cyclical Energy Technology Financial
Market Cap Mid Cap Mid Cap Mid Cap
Mid Cap
Mid Cap Large Cap Mid Cap Small Cap Mid Cap Large Cap Mid Cap Large Cap
Holdings By Sector 10,81 % 5.41 540%10.83% 5.40 % _35,11 %
_7
-541 % 811 % i---5.41 %
29,73
L,cv
8.11 %
SI im
BaSiC Materials 10.83% ConuumorCyClical 5.41% Enorgys.41%
II
-
im
Tochnology8.11%
Capital Goods 5.40% Consumer Non-Cyclical 10.81% Financial 8.11% Services 35.11% Transportation 5.40%
Large Cap 29.73%
MidCap62.16%
PortformulasiF.i(the Firm) operates with Limited Discretionary Authority to engage solely is the implementation ofopecitc step-by-step investment criteria and account rehalancing as indicated and selected bythe client. SEC File No. 8S1-6e276. SEC Registration does sot page 6 sf22 imply a certain level of skill or training. This actvity is generally referred to by the Firm as a Portformula Investment Strategy. You should only invest in Portformutas upon receiving and reading the Portformulas ADV. @2006-2011 Portformu!awtlAllRights Reserved.
PORTF5RMULAS

SEC Registered investrnentAdvisor
PLATOON CROSS BLEND wIRAM SCORE FUSION HISTORICAL PERFORMANCE
Dollar Value of a $60,000 Investment January 2001 through December 31 2012
:: Platoon Cross Blend
S&P 500
.-
2006
12007
2008
2009
I
2008
2010 1201112012
Yearly Returns 2001 Platoon Cross Blend S&P500 DJIA NASDAQ Russell 2000 DJCBP 10-Yr Treasury Yld MSClWorldlndex
.
2002 9.75% -23.37% -16.76% -31.53% -21.57% 4.14% 4.60% -21.06%
2003 64.42% 26.39% 25.33% 50.D1% 45.39% 3.46% 4.00% 3081%
2004 16.50% 9DD% 3.14% 860% 16.98% 0.22% 4.30% 12.84%
2005 15.37% 3.01% -D.63% 1.38% 3.32% -4.15% 4.30% 7.56%
2006 21.06% 13.65% 16.28% 9.51% 17.00% -2.06% 4.80% 17.95%
2007 12.77% 3.55% 6.42% 9.81% -2.76% -D.9D% 4.60% 7.09%
2009 14.94% 23.45% 18.81% 43.89% 25.22% ID.66% 3.30% 26.98%
2010 15.23% 12.78% 11.02% 16.91% 25.31% 3.12% 3.13% 9.55%
2011 -2.85% O.OD% 5.53% -1.fiD% -5.45% 3.18% 2.73% -7.62%
2012
8.51% -13.D3% -7.10% -21.05% 1.03% 3.43% 5.00% -17.83%
1.68% -38.5D% -33.84% -40.54% -34.79% -4.47% 3.60% -42.08%
13.41% 7.26% 15.91% 14.63% 6.10% TBD 13.18%
PIatn Cross Blend
S&P 500
8000/
64.42%
6000/D 4000%
2000%
000%
t6 SG%
15 37
21 06% 2:7%
23.45%
-t__t_
-13,85% -23.32%
-
Sri
50
EEW
-2.85%
-2t100%
a
-
2001
2002
2003
2004
2005
2006
2007
2008
200.9
2010
201 1
2012
Pnrfformulas was not managing money priar in 2007 Perfarmance calculations farthe period 2001 2009 are based an model performance, which is the retraactive application of a Portformulas selection criteria to all available stocks during a given time period. Model results do not reflect actual trading, do not reflect Porttormulas monthly, maoimum .0045 cent per share buy/sell transaction charge, and assume that no additions or withdrawals have been made since the models inception. Withdrawals and additions in your account, as well as transaction charges, will resuft in your performance being differentthatthe performance figures referenced. In 2010, Portformulao began utilizing time-weighted returns on any model in eoistence from the beginning of a calendar year. Because Partflormulas publishes time-weighted returns, all advertised performance data reflects performance after advisory fees have been deducted. Return data through December 2005 represents price-returns, nottotal returns. Price returns do not reflect the reinvestment of dividends, interest rate received, or realized capital gains. RAM Score Fusion did not eoist priorto 2511; return data prior to 2555 is hypothetical. RAM Score Fusion performance figures for 2515 utilize time-weighted returns and because RAM Score Fusion was not available in 2515, in orderto provide hypothetical performance data, we have illustrated RAM Drive returns for each strategy. Since the RAM Score tool was nottriggered in 2515, each strategy was invested in the market and the underlying holdings were identical, regardless of whether an account elected RAM Score Drive, RAM Score Park, or RAM Score Fusion. We selected RAM Score Drives performance numbers because both RAM Score Drive and RAM Score Fusion invest in bond holdings or bond portfolios when the strategies are not invested in the market If RAM Score Fusion or RAM Score Drive had triggered, the holdings and returns for each respective portfolio would differ. RAM Score was not developed until January 2515. Priorto January 2510, clients were utilizing RAM Scores predecessor, RAM. Clients utilizing RAM may have had different results than those reflected above. Also, hypothetical returns are not indicative of Portformulas actual portfolio management skills. The RAM Score feature is simply a tool designed to assist nor firms management ofyour account. The RAM Score tool does not guarantee any specific results or performance, and even with RAM Score, it is possible that your account will lose value. RAM Score moves assets into or out ofithe market based on various economic and market indicators. It is possible thatthe market will move positively while you are not invested or negatively while you are invested, resulting in losses. The Platoon Cross Blend model invests in equities, and when triggered, the RAM Score Fusion tool moves clients assets out ofithe market and into a bond fund. Therefore, Portformulas is providing various stock-based and fined-income based indexes for comparison. Past performance does not guarantee fature results and the potential for loss does esist.
Portformulasifii(the Firm) operates with Limited Discreftonary Authority to engage solely in the implementation ofspecifc step-by-step investment criteria and account rebalancing as indicated and selected bythe client SEC File No. tSl-6t276. SEC Registration does not page fl7 ofl22 imply a certain level of skill or training. This acfivity is generally referred to by the Firm as a Portformulafti Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas ADV. P2006-2011 Portformulasd/AllRights Reserved.
PORTFRMULAS
SEC Registered lnvestrnentAdvisor
FDRMULAIC TRENDING M DNEY MANAG ER
SQUADRON GROWTH wIRAM SCORE FUSION PORTFORMULA INVESTMENT STRATEGY

SCHOLAR SERIES ORIGINS & BENEFITS OF PORTFORMULA INVESTMENT STRATEGIES Portformulas manages quantitative mechanical methodologies and models for investors, operating pursuant to Limited Discretionary Authority engaging solely in the implementation of one or more step-by step investment strategy qualification criteria and account rebalancing as indicated and selected by each investor. We generally refer to this activity as a Portformula Investment Strategy. We use the selected Portformula Investment Strategy qualification criteria to eliminate human emotion from the investment selection process. We execute the Portformula Investment Strategy qualification criteria as the strict quantitative methodology and model for investing within each investor selected Portformula. You can always identify holdings you own inside your Portformula Investment Strategy, unlike many traditional money management portfolios. Each Portformula will only select holdings when they specifically meet the step-by-step qualification criteria & investment strategy. Based upon the criteria, it may be possible that no holdings will qualify during a given period of time. This may result in a Poriformula maintaining a full money market position, but generally only for limited periods of time. Each investors account is established with a minimum 2% cash position and the remaining percentage is fully invested in the Portformula. All dividends are reinvested and this ratio is updated upon each rebalancing and reapplication of the Portformula Investment Strategy qualification criteria. Every Portformula provides full liquidity and 24/7 online account information for each investor. Portformulas reserves the right to make adjustments or changes in the criteria, ongoing management, and implementation of each Portformula; however the general investment philosophy of a Portformula will not change. Our goal is to maintain the integrity of the general investment philosophy as described in the specific investment strategy criteria. Such efforts may be open to interpretations, opinions and adaptations in order to create and maintain a real life mechanical investment methodology resulting in the Portformula. These philosophical interpretations, opinions, adaptations, methodologies and implementations may differ and have not been independently verified. On a monthly basis (on or about the first working week of the month) account rebalancing, is reapplied on behalf of each investor. INITIATING THE SQUADRON GROWTH INVESTMENT STRATEGY CRITERIA:
. . .
. . . . . . . .
companys earnings per share growth from continuing operations for the last fiscal quarter must be 20% or greater than that of the same quarter one year prior. companys earnings per share from continued operations for the last two fiscal quarters must be positive. companys earnings per share from continued operations must have increased over the last twelve months and each of the last five fiscal years. companys growth in earnings per share from continuing operations over the last five years must be greater than or equal to 25%. companys current stock price must be within 20% of its 52 week high. companys stock float must be less than or equal to 30 million shares. companys 52 week relative strength must be within the top 30% of the stock market. company must have five or more institutional shareholders.
OR
. . . .
The The The The
company must be based in the United States and may not be an American Depository Receipt or ADR. companys market capitalization for the last fiscal quarter must be greater than or equal to $50 million and less than $500 million. companys price to sales ratio must be less than one. companys stock must have a relative strength over the last 52 weeks within the top twenty percent of the stock market
OR
. . . . .
The company must be based in the United States and may not be an American Depository Receipt or ADR. The companys market capitalization for the last fiscal quarter must be greater than or equal to $500 million and less than or equal to $2 billion. The companys price to sales ratio must be less than one and one-half. The companys earnings per share growth for the last twelve months must be positive. The company stocks relative strength over the last twenty-six weeks and thirteen weeks must be greater than the median relative strengths for the stock market over the same time frame. The companys stock must have a relative strength over the last 52 weeks within the top ten percent of the stock market.
OR
. . . . . . .
PoflformulasElthe Firm) operates with Limited Oiscretionary Authority to engage solely in the implementation ot specitc stepby-step investment criteria and accoont rebalancing as indicated and selected by the client SEC File No. 801.68276. SEC Registration does not page 18 ot22 imply a certain level ot skill or training. This activity is generally reterred to by the Firm as a Portformola Investment Strategy. You should only invest in Porttormulas upon receiving and reading the Portformulas ADV. @2006-2011 Portformu!asSAIlRights Reserved.
PORTF5RMULAS
COMPLETING THE SQUADRON GROWTH INVESTMENT STRATEGY CRITERIA:

.
The remaining company stocks (from each of the three criteria groupings) are selected for this Portformula. Should more than fifty stocks have met the criteria, we select the fifty ranked highest by relative strength over the last 52 weeks and as tiebreakers, the last 26 weeks, then 1 3 weeks, then 4 weeks as necessary. Should less than 20 stocks have met the criteria, we apply a prorated allocation toward cash (i.e., if only 1 6 stocks qualify, then 20% would be prorated to cash). On a monthly basis (on or about the first working week of the month) this step-by-step Portformula criteria, including account rebalancing, is then reapplied on behalf of each investor. Investors may opt to change by notifying Portformulas prior to the beginning of any new calendar month.
.
The first scoring component relates to criteria applied against exponential moving averages for the S&P 500. The exponential moving averages provide more weight to the latest data so that they will react quicker to recent price changes than simple moving averages and will smooth the data series decreasing the amount of noise or extraneous movement As such, the corresponding indices will be utilized to calculate the three period monthly exponential moving average less the six period monthly exponential moving average then divided by the monthly close and multiplied by one hundred to equal the Moving Average Score. The next scoring component relates to criteria applied against the elder ray index for the S&P 500. The elder ray index bull power and bear power measures the amount of buying and selling pressure in the market. As such, the corresponding indices will be utilized to calculate the thirteen period monthly elder ray bull power index divided by the monthly close then added to the thirteen period monthly elder ray bear power index divided by the monthly close and multiplied by one hundred to equal the Bull Bear Score. The next scoring component relates to criteria applied against the momentum indicator for the S&P 500. The momentum indicator is used to measure trend strength and/or possible trend reversals. As such, the corresponding indices will be utilized to calculate the six period monthly momentum indicator less one hundred to equal the Momentum Score. The next scoring component relates to criteria applied against the trix indicator for the S&P 500. The trix indicator is used to identify oversold and overbought markets as it displays the rate of change of a triple exponentially smoothed moving average of closing price. As such, the corresponding indices will be utilized to calculate the twelve period monthly trix indicator less the nine period monthly simple moving average of the monthly Trix indicator and multiplied by one hundred to equal the Trix Score. The next scoring component relates to criteria applied against the moving average convergence divergence indicator for the S&P 500. The moving average convergence divergence indicator is used to show the relationship between two moving averages of prices. As such, the corresponding indices will be utilized to calculate the twelve period monthly exponential moving average less the twenty-six period monthly exponential moving average divided by the monthly close then subtracting thenine period monthly exponential moving average divided by the monthly close then multiplied by three hundred to equal the MACD Score. The next scoring component relates to criteria applied against the Moodys Analytics risk of recession indicator for the United States. The risk of recession indicator reports a current probability for a country to enter into and/or stay within a recession. As such, the corresponding country will be utilized to calculate the current risk of recession multiplied by negative one then added to thirty-six one hundreds and multiplied by 100 to equal the Recession Risk Score. The next scoring component relates to criteria applied against the Chicago Board Options Exchange market volatility index. The volatility index is used as a key measure of market expectations of near term volatility conveyed by the S&P 500 stock index option prices and is considered a barometer of investor sentiment and market volatility. As such, corresponding indices will be utilized to calculate the average of the most recent month index high and low multiplied by negative one then added to nineteen then added to the most recent month index open less the most recent month index close to equal the Volatility Score. The overall RAM Score is then calculated as the sum of the Moving Average Score plus Bull Bear Score plus Momentum Score plus Trix Score plus MACD Score plus Recession Risk Score plus Volatility Score. The RAM Score must result in a positive score in order for the standard Portformula investment selection criteria to apply. Should the RAM Score result in zero or a negative score, the standard Portformula allocation will be overruled until the monthly RAM Score again results in a positive score. When the RAM Score results in such an overruling the Portformula investment will be an entirely different strategy known as Bond Fund Fusion. Be sure to print all appropriate descriptive materials (including the Bond Fund Fusion version of this descriptive) regarding this separate and distinct strategy that may apply based upon RAM Score as described above. When RAM Score does overrule the standard Portformula allocation, your assets will move into the Bond Fund Fusion strategy. Compared to the standard Portformula allocations, Bond Fund Fusion is a separate and distinct Portformula strategy. As such, It is important that you print and review the Bond Fund Fusion hypothetical prior to investing.
Portformu!aslSlthe Firmi operates with Limited Oiscretionary Authnrity to engage solely in the implementation ofspecifc step-by-step investment criteria and account rebalancing as indicated and selected by the client sec File No. 801.68276. SEC Registration does not page it of 22 imply a certain level of skill ortraining. This activity is generally referred to bythe Firm as a Portformula Investment Strategy. You should only invest in Portformulao upon receiving and reading the Portformolas AOJ. @2006-2011 PortformulascflAllRights Reserved.
PD RTFR M U LAS
6020 E Fulton St Ada, Mt 49301 800-869-5994 www.Porlformulas.com

SECRegisleredlovestmenfAdvisor
SQUADRON GROWTH wIRAM SCORE FUSION PORTFORMULA HOLDINGS

-
Ticker ACAT AU AM ASGN BECN BZH CONN CTB EXH HOff HOV HW KBH LAO LPX MHO NTE OMX RON RWT RYL .SCS SEH SF0 SPF
Company Name Arctic Cat Inc Aton USA Energy, Inc. American Greetings Corporation On Assignment, Inc. Beacon Roofing Supply, Inc. B H m USA I
Exchange NASDAQ NYSE NYSE NYSE NASDAQ NYSE NASDAQ NYSE NYSE NASDAQ
NYSE
Sector Consumer Cyclical Energy Services Services Capital Goods C pit I G Services Consumer Cyclical Energy Services Capital Goods Capital Goods Capital Goods Services Capital Goods Capital Goods Technology Consumer Non-Cyclical Financial Services Capital Goods Consumer Cyclical Basic Materials ConsumerNoo-Cyclical Capital Goods d
Market Cap Small Cap Mid Cap Small Cap Mid Cap Mid Cap Sm II C p Mid Cap Mid Cap Mid Cap Small Cap Small Cap Smat Cap Mid Cap Small Cap Mid Cap Small Cap Small Cap Small Cap Small Cap Mid Cap Mid Cap Mid Cap Small Cap Mid Cap Mid Cap
Ticker SRZ
Company Name Sunrise Senior Living, Inc. Stage Stores Inc Stewart Information Services c Smith & Wesson Holding Corpora MarrioSVacations Worldwide C Vt m Sb pp 1
Exchange NYSE NYSE NYSE NASDAQ NYSE NYSE
Sector Health care Services Financial Conosmer Cyctcol Services S rv
Market Cap Small cap Small cap Small cap Small Cap Mid Cap MdC p
551 STC swl-lc VAC vSI
CONNS, hic. Cooper Tire & Rubber Company Eoterrun Holdings, Inc. Hot Topic, Inc. Hovnanian Enterprises, Inc. Headwaters Inc KB Home Lithia Motors Inc Louisiana-Pacific Corporation M/l Homes Inc Nam Tai Electronics, Inc. OfficeMax Incorporated Radian Group Inc. Redwood Trust, Inc. Ryland Group, Inc., The Steetcase nc. Spartech Corporation Sm thfi Id F d I
NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE
Standard Pacific Corp.
Holdings By Sector
29.02 %
12.90 %

48.38 %
-
3.23 %3.23
6.46 %
6.44% 646 %
29.03 %__/
51 .62 %
Basic Materials 3.23% Consumer Cyclical 12.90% Energy 6.44% Health Care 3.23% Technology 3.23% Capital Goods 29.02% Consumer Non-Cyclical 6.46% Financial 6.46% Services 29.03%
im
Mid Cap 48.38%
Small Cap 51 .62%
UI II
Portformulaslt(the Firm) operates with Limited Oiscretionary Asthority to engage solely in the implementaton of specific step-by-step iovestmeot criteria aod accosnt rebalaociog as indicated and selected by the client SEC File No. t51-6t276. sec Registration does not page 25 of22 imply a certain level of skill or training. This actvity is generally referred to by the Firm as a Portformula Investment strategy. You shosid only invest in Portformolas opon receiving and reading the Portformslas ADV. @2006.2011 Portformulas@AIIRights Reserved.
PORTF5RMULAS

SEC RegisterecilnvestmentAdvisor
SQUADRON GROWTH w/RAM SCORE FUSION HISTORICAL PERFORMANCE
Dollar Value of a $60,000 Investment January 2001 through December 31 2012 EE: sron Growth
S&P 500
..
2002
12003
12004 12005 12006 12007
2008 12009
2010 1201112012
Yearly Returns 2001 Squadron_Growth S&P500 DJIA NASDAQ Russell 2000 DJCBP 10-YrTreasuryYld MSCI World Index 8.51% -1303% -7.10% -21.05% 1.03% 3.43% 5.00% -17.83% 2002 9.75% -2337% -16.76% -31.53% -21.57% 4.14% 4.60% -21.06% 2003 81.11% 26.39% 25.33% 50.01% 45.39% 3.46% 4.00% 30.81% 2004 17.15% 9.00% 3.14% 8.60% 16.98% 0.22% 4.30% 12.84% 2005 768% 3.01% -063% 1.38% 3.32% -4.15% 4.30% 7.56% 2006 14.87% 13.65% 16.28% 951% 17.00% -2.06% 4.80% 17.95% 2007 13.81% 3.55% 6.42% 9.81% -2.76% -0.90% 4.60% 7.09% 2008 168% -38.50% -33.84% -40.54% -34.79% -4.47% 3.60% -42.08% 2009 13.17% 23.45% 18.81% 43.89% 25.22% 10.66% 3.30% 26.98% 2010 1238% 12.78% 11.02% 16.91% 25.31% 3.12% 3.13% 9.55% 2011 -555% 0.00% 5.53% -1.80% -S45% 3.18% 2.73% -7.62% 2012 13.04% 13.41% 7.26% 15.91% 14.63% 6.10% TBD 13.18%
j odroo
Grovth
S&P 500
100.00%
81.11%
80,00% 6000% 4000%

20.00%
8.51% 9.75% .39% .15% 14.87% 1321% 23.45% 3397%
3.04%
.
000%
-20,00%
_Ara nti,
-.-
-23.37%
-c
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
201 1
2012
Portformulas was not managing money prior to 2007. Performance calculations forthe period 2001 2009 are based on model performance, which is the retroactive application of a Portformulas selection criteria to all available stocks dodng a given time pedod. Model resolts do not reflect actual trading, do not reflect Porttormulas monthly, maoimom .0045 cent per share boy/sell transaction charge, and assume that no additions or withdrawals have been made since the models inception. Vllithdrawals and additions in your account, as well as transaction charges, will result in your performance being differentthatthe performance figures referenced. In 2010, Portflormulas began utilizing time-weighted returns on any model in eoistence from the beginning of a calendar year. Because Porttormulas publishes time-weighted returns, all advertised performance data reflects performance after advisory fees have been deducted. Return data through December 200fi represents price-retoms, nottotal returns. Price returns do not reflectthe reinvestment of dividends, interest rate received, or reafized capital gains. RAM Score Fusion did not exist prior to 2011; return data prior to 200fi is hypothetical. RAM Score Fusion performance figures for 2010 ufthize time-weighted returns and because RAM Score Fusion was not available in 2515, in order to provide hypothetical performance data, we have illustrated RAM Drive returns for each strategy. Since the RAM Score tool was nottriggered in 2515, each strategy was invested in the market and the underlying holdings were identical, regardless of whether an account elected RAM Score Drive, RAM Score Park, or RAM Score Fusion. We selected RAM Score Drives performance numbers because both RAM Score Drive and RAM Score Fusion invest in bond holdings or bond portfolios when the strategies are not invested in the market If RAM Score Fusion or RAM Score Drive had triggered, the holdings and returns for each respecftve portfloto would differ. RAM Score was not developed unftl January 2515. Pdor to January 2510, clients were utilizing RAM Scores predecessor, RAM. Clients utilizing RAM may have had different results than those reflected above. Also, hypotheftcal returns are not indicative of Portformulas actual portfolio management skills. The RAM Score feature is simply a tool designed to assist our firms management ofyour account. The RAM Score tool does not guarantee any specific results or performance, and even with RAM Score, itis possible that your account will lose value. RAM Score moves assets into or out ofithe market based on various economic and market indicators. It is possible thatthe market will move positively while you are not invested or negaftvely while you are invested, resulting in losses. The Squadron Growth model invests in equities, and when triggered, the RAM Score Fusion tool moves clients assets out ofithe market and into a bond fund. Therefore, Poriformulas is providing various stock-based and toed-income based indeoes for comparison. Pastperformance does nut guarantee future results and the potential for loss does eoist.
Portformu!as/fii(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation ofispecific step-by-step investment criteria and account rebalancing as indicated and selected bythe client SEC File No. BS1-6B276. SEC Registration does not
page 21 of 22
imply a certain level of skill or training. This activity is generally referred to by the Firm as a Porttormula Investment Strategy. You should only invest in Portformulas upon receiving and reading the Poriformulas
ADV. @2006-2011 PortFormulasftiAllRights Reserved,
PORTF5RMULAS
Additional Disclosures
In addition to the information provided on the previous pages, there are additional disclosures that warrant your attention. Additional Bond Fund Disclosure: Model returns are calculated using the most recent month-end closing price for each holding chosen for the new period. Money market rates are calculated using the distribution amount stated at the most recent month-end record date. Model returns further assume trading was executed on the first business day of the month and therefore, as stated, do not reflect actual trading. Actual trading occurs on or near the beginning of the month. Due to market performance, fluctuations may occur after the first of the month but prior to the actual trade date. Accordingly, actual results for investors who were invested in a Portformula strategy during the same time period may have been higher or lower than the published results. Please note that Portformulas holdings have a high degree of turnover. Therefore, it is possible that none of the securities contained in the model portfolios or current client accounts will be selected for your portfolio. Due to market volatility, current performance may be higher or lower than the performance shown. Investments may be purchased or sold without regard to how long you have owned them. Frequent movement can result in tax implications. Additional RAM Score FUSION Disclosure: Model returns are calculated using the most recent month-end closing price for each holding chosen for the new period. Money market rates are calculated using the distribution amount stated at the most recent month-end record date. Model returns further assume trading was executed on the first business day of the month and therefore, as stated, do not reflect actual trading. Actual trading occurs on or near the beginning of the month. Due to market performance, fluctuations may occur after the first of the month but prior to the actual trade date. Accordingly, actual results for investors who were invested in a Portformula strategy during the same time period may have been higher or lower than the results for the period listed in the advertisement. Beginning in January 2010, Portformulas began utilizing time-weighted returns on any model in existence from the beginning of a calendar year. Time weighted returns show the compound growth rate in a portfolio while eliminating the varying effect created by cash inflows and oufflows by assuming a single investment at the beginning of the period and measuring market value growth or loss at the end of that period. Model performance and time-weighted rates of return may be aggregated to calculate three-, five, seven-, and ten-year returns if time-weighted returns are not available for the full period. Return data through December 2009 represents price-returns, not total returns. Price returns do not reflect the reinvestment of dividends, interest rate received, or realized capital gains. Due to market volatility, current performance may be higher or lower than the performance shown. Investments may be purchased or sold without regard to how long you have owned them. Frequent movement can result in tax implications.
Portformu!aslS(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation of specifc step-by-step investment criteria and account rebalancing as indicated and selected by the client sec File No. 801-65276 SEC Registration does not page 22 of 22 imply a certain level of skill ortraining. This activity is generally referred to bythe Firm as a Portformula Investment Strategy. You should only invest in Portmormulas upon receiving and reading the Portfnrmulas ADV. @2006-2011 PortformulaslflAl!Rights Reserved,
PDRTFR M U LAS
6020 E Fulton St. Ada, Michigan 49301 (Office) 800-869-5994 (Fax) 888-869-9411 (Website) www.Portformulas.com (Email) admin@portformulas.com
-
HYPOTHETICAL
January 16, 2013
Prepared for:
Sample Blend
Prepared By: Mike Walters Portformulas 6020 East Fulton Street Ada, Ml 49301 800.869.5994
Securities offered through USA Financial Securities. Member FINRA I SIPC. A Registered Investment Advisor. 6020 East Fulton Street, Ada, MI, 49301 Portformulas is an SEC Registered Investment Advisor Wealthnetic Team Corporation is not affiliated with USA Financial Securities or Portformulas
Portformulas@(the Fi,m) operates with Limited Discretionary Authority to engage solely in the implementation ofnpecitc step-by-step investment criteria and account rebatancing as indicated and selected by the client SEC File No gof-6g276. SEC Registration does not
page 1 of 15
imply a certain level ot skill ortraining. This activity is generally referred to bythe Firm as a Poriformula Investment Strategy. You should only invent in Poriformulas upon receiving and reading the Porfformolas ADV @2006.2011 Portformulaslff.iAllRights Reserved.
PDRTF5RMULAS
SECRegistered InvestmentAdvisor
FDRM ULAI C TRENDING
M ONEY
MANAGERS
IMPORTANT INVESTOR INFORMATION

Portformulas manages quantitative mechanical methodologies and models for investors, operating pursuant to Limited Discretionary Authority in order to manage portfolios based upon a formula consisting of one or more specific step-by-step investment strategy qualification criteria and account rebalancing as indicated and selected by TM each investor. We generally refer to this activity as Formulaic Investing using a Portformula Investment Strategy. Each investors account is established with a minimum 2% cash position and the remaining percentage is fully invested in the Poriformula. In a Traditional Poriformula Strategy all dividends are reinvested and this ratio is updated upon each rebalancing and reapplication of the Portformula Investment Strategy qualification criteria. In a Preferred Stock Strategy, the client is given the option to either have dividends reinvested back into the strategy or to have the dividends distributed in the form of income on a quarterly basis. We provide transparency of the automated, step-by-step, investment strategy qualification criteria. Traditional Portformula Investment Strategies use the selected Portformula Investment Strategy qualification criteria to eliminate human emotion from the investment selection process while Preferred Stock Strategies eliminate a majority of the human emotion from the investment selection process. We execute the Portformula Investment Strategy qualification criteria as the strict quantitative methodology and model for investing within each investor selected Portformula. In other words, the Poriformula will ultimately identify which holdings to own, how long to own them, and when to sell them. You can always identify holdings you own inside your Portformula Investment Strategy, unlike many traditional money management portfolios. Each Portformula will only accept holdings that specifically meet the step-by-step qualification criteria & investment strategy. Based upon the criteria, it may be possible that no holdings will qualify during a given period of time. This may result in a Portformula maintaining a full money market position, but generally only for limited periods of time. Keep in mind, Portformula Investment Strategies are mechanically managed portfolios, meaning there is strict adherence to an identifiable, step-by-step, quantitative methodology and model for investing that is used in the investment selection process. It is important to note that Portformula Investment Strategies are quantitative in nature. We do not deviate from or manipulate the specific step-by-step investment strategy qualification criteria. While this mechanically removes a majority of the human emotion and bias, it also means that no human intervention will take place, regardless of market conditions, events, or individual occurrences relating to any of the holdings; which may result in greater risk. The individual investor may contact Portformulas to make an investment change, but Portformulas operates solely pursuant to the Limited Authority of Execution as described in the INVESTMENT MANAGEMENT AGREEMENT and signed by each investor. Investing carries an inherent element of risk, including the potential for substantial loss in principal and income. Poriformula Investment Strategies, may invest in any qualifying holding. This may mean that the Portformula, periodically or otherwise, may be concentrated in particular holdings that may increase or create greater risk than other investment alternatives. This may also mean that the Poriformula, periodically or otherwise, may be concentrated in specific investment sectors or categories that may represent greater risk than that of other investment sectors or categories. An investment in any Portformula Investment Strategy should be made with an understanding of the risks involved with investing in various forms of securities including economic recession, financial deterioration and/or the general condition of the stock market As with all historical data, past performance is not an indication, or guarantee, of future results. Portformulas may incur additional risk and/or volatility in comparison to any indices or other investments. Portformulas periodically utilizes the following well-known indexes for comparative purposes: S&P 500, Dow Jones Industrial Average (DJIA), NASDAQ, Russell 2000, Dow Jones Corporate Bond Index (DJCBP) and the Treasury Bond 1 0-Year Yield. Indexes are not publically-available investment vehicles and cannot be purchased. The S&P 500, DJIA, NASDAQ, Russell 2000, DJCBP and the Treasury Bond 1 0-Year Yield have not endorsed Portformulas in any way. Purchases and sales of stocks, ETFs, mutual funds, bond funds, and money market funds may be made without regard to how long you have owned the securities. Frequent movement between stocks, ETFs, mutual funds, bond funds, and money market funds can result in tax implications, which should be considered before investing. The ongoing trading and turnover of holdings may create significant short term capital gains and/or long term capital gains in addition to interest and dividends creating income tax liability. Money market funds may have limited or no insurance guarantees and it is possible to lose money in a money market fund. ETF shareholders are subject to risks similar to holders of other portfolios, such as mutual funds. ETF fees and standard fund charges may result in the investment return of the ETF or fund being lower than that of the underlying benchmark index. Corporate bond funds are not backed by the United States government and the underlying bonds could default if the issuer encounters financial difficulties. Money market funds may have limited or no insurance guarantees and it is possible to lose money in a money market fund. It is important to note that any strategy may underperform or produce negative results.
Portformu!asc5(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation ofspecific step-by-step investment criteria and account rebalancing as indicated and selected by the client SEC File No. 801-6g276. SEC Registration does not page 2 of 19 imply a certain level of skill artraining. This activity is generally referred to by the Firm as a Poriformula Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas ADv. @2006-2011 Portformu!astFAIlRights Reserved.
6020 E Fulton St
PORTFRMULAS
800-869-5994 www.Portformulas.com
SEC Registered ThvestmentAdeisor
Charges and Fees

Monthly Account Management Fees: (may be modified with 30-days advance notice)
Account Value
.
AUM Formula Fee Annualized $500,000.00 $1,000,000.00 $2,000,000.00 $3,000,000.00 $4,000,000.00

.
Portfolio Fee Annualized 1.44% 1.32% 1.20% 1.08% 0.96%
Combined Total Fee Annualized 2.88% 2.64% 2.40%
$35,000.00 $500,000.00 $1,000,000.00 $2,000,000.00 $3,000,000.00 $4,000,000.00
but less than but less than but less than bless than but less than
1.44%
1.32% 1.20% 1.08% 0.96% 0.84% 0.84% 0.84%
.
.
2.16% 1.92% 1.68%
but less isn$5,000,000.00
Larger accounts may be negotiable based upon size.

--.--.--
0.72% 0.60% 0.48%
1.56% 1.44% 1 32%
0.84%
Each investors account is established with a minimum 2% cash position and the remaining percentage is fully invested in the Portformula. In a Traditional Portformula Strategy all dividends are reinvested and this ratio is updated upon each rebalancing and reapplication ofthe Portformula Investment Strategy qualification criteria.
Traditional Account Fees: (may be modified with 30 days prior written notice)
.
Annualized Management Fees Standard monthly buy/sell ticket charges Standard monthly buy/sell maximum transaction charges
calculated and charged monthly no charge .0045 cent per share
Special Service Fees: (may be modified with 30 days prior written notice)
.
Check distribution Account termination for cash Accounttermination for in-kind Wired funds
$20 per occurrence $125 as cash $250 as equity holdings $25 per wire
Other special service fees may apply and can be verified by calling Portformulas directly.
Other Considerations: (may be modified with 30 days prior written notice)

.
Each client receives 24/7 online access to their account information. Each client receives monthly paper statements in addition to 24/7 online access. Account minimum is $35,000 $15,000 minimum per Portformula
Portformulasiti(the Firm) operates with Limited Oiscretionary Autherity ts engage soieiy in the implementation of specitc step-by-step investment criteria and account rebaiaocing as indicated and selected bythe client sec File No 851-68276. SEC Registration does not page 3 of 19 impiy a certain level efskill srtraining. This activity is generally referred to by the Firm as a Portformula5i investment Strategy. You should ooiy invest in Portformuias upon receiving and reading the Portformulas ADV. @2006-2ollPortformulasct.iAIIRights Reserved.
PD RTFR M U LAS.
6020 E Futton St Ada, MI 49301 800-869-5994 www.Portformulas.com

SEC Registered InvestmentAclvisor
TM Formulaic Investing Strategy Allocation

These Portformulas have been selected for a total investment of $300,000
33_34 %
___3333 %
33.33 %
_j
Squadron Growth w/ RAM Score Fusion Brigade Growth & Value w/ RAM Score Fusion Platoon Cross Blend w/ RAM Score Fusion Total.
33.34% 33.33% 33.33% 100.00%
$100,020 $99,990 $99,990 $300,000
Portformulas8tlthe Firml operates with Limited Discretionary Authority to engage solely in the implementation of specifc step-by-step investment criteria and account rebalancing as indicated and selected by the client. SEC File No. 801-68276. SEC Registration does not page 4 of 19 imply a certain tevel of skitt or training. This activity in generally referred to by the Firm as a Portformula Investment Strategy. You should only invest in Portformulas upon receiving and reading the Poriformulas ADV. @2006-2011 Portformulas8lAl!Rights Reserved.
PD RTFRMULAS
6020 E Fulton St Ada, MI 49301 800-869-5994 wwwPortforrnulas.com

SEC Registered investment Advisor
Portformulas Diversified Allocation

Holdings by Market Cap

ill, Large Cap I. Mid Cap
Small Cap 24.9 1%
55.18%
24.91
I 9.91%
19.91 %
Holdings by Sector 9.09 % 7.77 %

-\\\
i Basic Materials III Capital Goods

Consumer Cyclical Consumer Non-Cyclical
10 OIZ 01
6.35% 13.15% 7.77% 9.09% 3.95% 4.85% 4.54% 38.05% 7.11% 5.13%
j).c??
2 flIZ Of
A
_ Energy
Financial
13.15
.-
vi
Health Care
_ Services
Technology Transportation
5.13 %
7.11 %
._38.O5 %
PontformuIas8t(the Firml operates with Limited Discretionary Authority to engage solely in the implementation ot specific step-by-step investment criteria and account rebaiancing as indicated and selected by the client SEC File No. 801-68276. SEC Registration does not page 5 of 19 imply a certain level of skill or training. This activity is generally referred to by the Firm as a Porttormulaifl Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas
ADV. @2006-2011 Portformulas@AllRights Reserved.
PORTFRMU LAS
6020 E Fulton St
Ada, MI 49301
800-869-5994 www.Porfformulas.com


ii:: Diversified Portfolio $1 .705000
S&P 500
,,/%NS1465320 $1 .395,600 1 .086.200
$776.800
467.400
z;::/rwr1 I
-- ---
$324170
$158.000
2001
2002
2003
2004
2005
2006
2007
2008
-1
--
2009
2010
201 1
2012
Yearly Returns 2001 Diversified Portfolio S&P500 DJIA NASDAQ Russell 2000 DJCBP 10-YrTreasuryYld MSClWorldlndex 8.51% -13.03% -7.10% -21.05% 1.03% 3.43% 5.00% -17.83% 2002 9.75% -23.37% -16.76% -31.53% -21.57% 4.14% 4.60% -21.06% 2003 68.16% 26.39% 25.33% 50.01% 45.39% 3.46% 4.00% 3081% 2004 16.61% 9.00% 3.14% 860% 16.98% 0.22% 4.30% 12.84% 2005 12.25% 3.01% -0.63% 1.38% 3.32% -4.15% 4.30% 7.56% 2006 17.61% 13.65% 16.28% 9.51% 17.00% -2.06% 4.80% 17.95% 2007 12.98% 3.55% 6.42% 9.81% -2.76% -0.90% 4.60% 7.09% 2008 1.68% -38.50% -33.84% -40.54% -34.79% -4.47% 3.60% -42.08% 2009 13.62% 23.45% 18.81% 43.89% 25.22% 10.66% 3.30% 26.98% 2010 14.75% 12.78% 11.02% 16.91% 25.31% 3.12% 3.13% 9.55% 2011 0.52% 0.00% 5.53% -1.80% -5.45% 3.18% 2.73% -7.62% 2012 5.22% 13.41% 7.26% 15.91% 14.63% 6.10% TBD 13.18%
LEJ DiversifiedPortfolio
80.00% 6000% 4000%
23.45%
S&P 500
20i10%
.52% .OCi%
.
13.41% 522%
tIOO%
-2000/s
-23.37%
--
Portformulas was not managing money prior to 2007. Performance calculations for the period 2001 2009 are based on model performance, which is the retroactive application of a Portformulas selection criteria to all available stocks during a given time period. Model results do not reflect actual trading, do not reflect Portformulas monthly, maximum .0045 cent per share buy/sell transaction charge, and assume that no additions or withdrawals have been made since the models inception. Wthdrawals and additions in your account, as well as transaction charges, will result in your performance being different that the performance figures referenced.
2001
2002
In 2010, Portformulas began utilizing time-weighted returns on any model in existence from the beginning of a calendar year. Because Portformulas publishes time-weighted returns, all advertised performance data reflects performance after advisory fees have been deducted. Return data through December 2009 represents price-returns, not total returns. Price returns do not reflect the reinvestment of dividends, interest rate received, or realized capital gains. 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. Also, hypothetical returns are not indicative of Portformulas actual portfolio management skills. The RAM Score feature is simply a tool designed to assist our firms management of your account The RAM Score tool does not guarantee any specific results or performance, and even with RAM Score, 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.
Portformulascff.ilthe Firml operates with Limited Oiscretionary Authority to engage solely in the implementation ofspecific step-by-step investment criteria and account rebalancing as indicated and selected by the client. SEC Fiie No. 851-68276. sec Registration does not page 6 of 19 imply a certain level of skill or training. This activity is generally referred to by the Firm as a Portformuia Investment Strategy You should only invest in Portformuias upon receiving and reading the Portformuias ADV. @2006-2011 Portformu!as@All Rights Reserved.
PORTF5RMULAS
wwwPortformulas.com
SQUADRON GROWTH w/RAM SCORE FUSION PORTFORMULA INVESTMENT STRATEGY

SCHOLAR SERIES ORIGINS & BENEFITS OF PORTFORMULA INVESTMENT STRATEGIES Portformulas manages quantitative mechanical methodologies and models for investors, operating pursuant to Limited Discretionary Authority engaging solely in the implementation of one or more step-by step investment strategy qualification criteria and account rebalancing as indicated and selected by each investor. We generally refer to this activity as a Portformula Investment Strategy. We use the selected Portformula Investment Strategy qualification criteria to eliminate human emotion from the investment selection process. We execute the Portformula Investment Strategy qualification criteria as the strict quantitative methodology and model for investing within each investor selected Portformula. You can always identify holdings you own inside your Portformula Investment Strategy, unlike many traditional money management portfolios. Each Portformula will only select holdings when they specifically meet the step-by-step qualification criteria & investment strategy. Based upon the criteria, it may be possible that no holdings will qualify during a given period of time. This may result in a Poriformula maintaining a full money market position, but generally only for limited periods of time. Each investors account is established with a minimum 2% cash position and the remaining percentage is fully invested in the Poriformula. All dividends are reinvested and this ratio is updated upon each rebalancing and reapplication of the Poriformula Investment Strategy qualification criteria. Every Portformula provides full liquidity and 24/7 online account information for each investor. Portformulas reserves the right to make adjustments or changes in the criteria, ongoing management, and implementation of each Portformula; however the general investment philosophy of a Portformula will not change. Our goal is to maintain the integrity of the general investment philosophy as described in the specific investment strategy criteria. Such efforts may be open to interpretations, opinions and adaptations in order to create and maintain a real life mechanical investment methodology resulting in the Portformula. These philosophical interpretations, opinions, adaptations, methodologies and implementations may differ and have not been independently verified. On a monthly basis (on or about the first working week of the month) account rebalancing, is reapplied on behalf of each investor. INITIATING THE SQUADRON GROWTH INVESTMENT STRATEGY CRITERIA:
. . .
. . . . . . . .
companys earnings per share growth from continuing operations for the last fiscal quarter must be 20% or greater than that of the same quarter one year prior. companys earnings per share from continued operations for the last two fiscal quarters must be positive. companys earnings per share from continued operations must have increased over the last twelve months and each of the last five fiscal years. companys growth in earnings per share from continuing operations over the last five years must be greater than or equal to 25%. companys current stock price must be within 20% of its 52 week high. companys stock float must be less than or equal to 30 million shares. companys 52 week relative strength must be within the top 30% of the stock market. company must have five or more institutional shareholders.
OR
. . . .
The The The The
company must be based in the United States and may not be an American Depository Receipt or ADR. companys market capitalization for the last fiscal quarter must be greater than or equal to $50 million and less than $500 million. companys price to sales ratio must be less than one. companys stock must have a relative strength over the last 52 weeks within the top twenty percent of the stock market
OR
. . . . .
The company must be based in the United States and may not be an American Depository Receipt or ADR. The companys market capitalization for the last fiscal quarter must be greater than or equal to $500 million and less than or equal to $2 billion. The companys price to sales ratio must be less than one and one-half. The companys earnings per share growth for the last twelve months must be positive. The company stocks relative strength over the last twenty-six weeks and thirteen weeks must be greater than the median relative strengths for the stock market over the same time frame. The companys stock must have a relative strength over the last 52 weeks within the top ten percent of the stock market.
OR
. . . . . . .
Portformulasl5(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation of specific step-by-step investment criteria and account rebalancing as indicated and selected by the client. SEC File No. 851-68276. sec Registration does not page 7 of 19 imply a certain level ofskill or training. This activity is generally referred to by the Firm as a Portformula Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas ADv. @2006-2011 PortformulaslfitAllRights Reserved.
PDRTFRMULAS
www.Portformuias.com
SECRegistoredlnvestmentAdvisor
COMPLETING THE SQUADRON GROWTH INVESTMENT STRATEGY CRITERIA:

.
The remaining company stocks (from each of the three criteria groupings) are selected for this Portformula. Should more than fifty stocks have met the criteria, we select the fifty ranked highest by relative strength over the last 52 weeks and as tiebreakers, the last 26 weeks, then 1 3 weeks, then 4 weeks as necessary. Should less than 20 stocks have metthe criteria, we apply a prorated allocation toward cash (i.e., ifonly 16 stocks qualify, then 20% would be prorated to cash). On a monthly basis (on or about the first working week of the month) this step-by-step Portformula criteria, including account rebalancing, is then reapplied on behalf of each investor. Investors may opt to change by notifying Portformulas prior to the beginning of any new calendar month.
The first scoring component relates to criteria applied against exponential moving averages for the S&P 500. The exponential moving averages provide more weight to the latest data so that they will react quicker to recent price changes than simple moving averages and will smooth the data series decreasing the amount of noise or extraneous movement As such, the corresponding indices will be utilized to calculate the three period monthly exponential moving average less the six period monthly exponential moving average then divided by the monthly close and multiplied by one hundred to equal the Moving Average Score. The next scoring component relates to criteria applied against the elder ray index for the S&P 500. The elder ray index bull power and bear power measures the amount of buying and selling pressure in the market. As such, the corresponding indices will be utilized to calculate the thirteen period monthly elder ray bull power index divided by the monthly close then added to the thirteen period monthly elder ray bear power index divided by the monthly close and multiplied by one hundred to equal the Bull Bear Score. The next scoring component relates to criteria applied against the momentum indicator for the S&P 500. The momentum indicator is used to measure trend strength and/or possible trend reversals. As such, the corresponding indices will be utilized to calculate the six period monthly momentum indicator less one hundred to equal the Momentum Score. The next scoring component relates to criteria applied against the trix indicator for the S&P 500. The trix indicator is used to identify oversold and overbought markets as it displays the rate of change of a triple exponentially smoothed moving average of closing price. As such, the corresponding indices will be utilized to calculate the twelve period monthly trix indicator less the nine period monthly simple moving average of the monthly Trix indicator and multiplied by one hundred to equal the
Trix Score.
The next scoring component relates to criteria applied against the moving average convergence divergence indicator for the S&P 500. The moving average convergence divergence indicator is used to show the relationship between two moving averages of prices. As such, the corresponding indices will be utilized to calculate the twelve period monthly exponential moving average less the twenty-six period monthly exponential moving average divided by the monthly close then subtracting the nine period monthly exponential moving average divided by the monthly close then multiplied by three hundred to equal the MACD Score. The next scoring component relates to criteria applied against the Moodys Analytics risk of recession indicator for the United States. The risk of recession indicator reports a current probability for a country to enter into and/or stay within a recession. As such, the corresponding country will be utilized to calculate the current risk of recession multiplied by negative one then added to thirty-six one hundreds and multiplied by 100 to equal the Recession Risk Score. The next scoring component relates to criteria applied against the Chicago Board Options Exchange market volatility index. The volatility index is used as a key measure of market expectations of near term volatility conveyed by the S&P 500 stock index option prices and is considered a barometer of investor sentiment and market volatility. As such, corresponding indices will be utilized to calculate the average of the most recent month index high and low multiplied by negative one then added to nineteen then added to the most recent month index open less the most recent month index close to equal the Volatility Score. The overall RAM Score is then calculated as the sum of the Moving Average Score plus Bull Bear Score plus Momentum Score plus Trix Score plus MACD Score plus Recession Risk Score plus Volatility Score. The RAM Score must result in a positive score in order for the standard Portformula investment selection criteria to apply. Should the RAM Score result in zero or a negative score, the standard Portformula allocation will be overruled until the monthly RAM Score again results in a positive score. When the RAM Score results in such an overruling the Poriformula investment will be an entirely different strategy known as Bond Fund Fusion. Be sure to print all appropriate descriptive materials (including the Bond Fund Fusion version of this descriptive) regarding this separate and distinct strategy that may apply based upon RAM Score as described above. When RAM Score does overrule the standard Portformula allocation, your assets will move into the Bond Fund Fusion strategy. Compared to the standard Portformula allocations, Bond Fund Fusion is a separate and distinct Portformula strategy. As such, It is important that you print and review the Bond Fund Fusion hypothetical prior to investing.
Po,tformulasc5(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation of specific step-by-step investment criteria and account rebalancing as indicated and selected by the client. SEC File No. 801-68276. SEC Registration does not
page of 19 imply a certain level of skill ortraining. This activity is generally referred to bythe Firm as a Portfarmula Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas ADv. @2006-2011 Portformu!asIFAllRights Reserved.
PD RTFR M U LAS

SECRegislered loveslmentAdviuvr
SQUADRON GROWTH w/RAM SCORE FUSiON PORTFORMULA HOLDINGS

Holdings as of January 3, 2013
-
Ticker ACAT AU
Company Name Arctic Cattnc Aton USA Energy, Inc. American Greetings Corporation
Euchange NASDAQ NYSE NYSE NYSE NASDAQ NYSE NASDAQ NYSE NYSE NASDAQ NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE ,.NYSE NYSE
Sector Consumer Cyclical Energy Services Services Capital Goods Capital Goods Services Consumer Cyclical Energy Services Capital Goods Capital Goods Capital Goods Services Capital Goods Capital Goods Technology Consumer Non-Cyclical Financial Services Capital Goods Consumer Cyclical Basic Materials Consumer Non Cyclical Capital Goods
Market Cap
Sniall Cap
Ticker SRZ
Company Name Scinrise Senior Living. Inc
Eochange NYSE
Sector Health Care
Market Cap Small Cap Small Cap
Mid Cap Small Cap Mid Cap Mid Cap Small Cap Mid Cap Mid Cap Mid Cap Small Cap Srriall Cap Small Cap Mid Cap Small Cap Mid Cap Srriall Cap Small Cap Small Cap Srrrall Cap Mid Cap Mid Cap Mid Cap SnraII Cap Mid Cap Mid Cap
551 STC SWHC VAC VSI
Stage Stores Inc Stewart Information Services C Smith & Wesson Holding Corpora Marriofi Vacations Worldwide C
. -.
NYSE NYSE NASDAO NYSE NYSE
Services Financial Consumer Cyclical Services Services
Small Cap Small Cap Mid Cap Mid Cap
ASGN BECN BZH CONN F CTB EXH HOTT HOV HW KBH LAD LPX MHO NTE OMX RDN RINT RYL SCS SEH SFD Spy
On Assignment Inc. Beacon Roofing Supply, Inc. Beazer Homes USA. Inc. CONNS. Inc. Cooper Tire & Rubber Company Eoterran Holdings, Inc. Hot Topic. Inc. Hovnanian Enterprises. Inc. Hoadwaters Inc KB Home Lilhia Motors Inc LociisianaPaciflc Corporation M/l Homes Inc Nary Tai Electronics, Inc. OfficeMax Incorporated Radian Group Inc. Redwood Trust, Inc. Ryland Grocip. Inc.. The Steelcase Inc Spartech Corporation Smithfield Foods. Inc. Standard Pacific Corp.
Vitamin Shoppe Inc
Holdings By Sector 29,02 12,90 %
48.38 %
3.23% 3,23
, -,.
6,46 %
- ..j
1
62 %
29,03 %.__y
3.23 %
m III
BasiC Materials 3.23% Consumer Cyclical 12.90% Energy 6.44% Health Care 3.23% Technology 3.23%
Capital Goods 29.02% Consumer Non-Cyclical 6.46% Financial 6.46% Services 29.03%
Mid Cap 48.38%
Small Cap 51.62%
Portformulaslfli(the Firm) operates with Limited Discretonary Authority to engage solely in the implementation ofispecific step-by-step investment criteria and account rebalanciog as indicated and selected by the client. SEC File No. BO1-6g276. SEC Registration does not
page 9 of 19 imply a certain level of skill ortraining. This activity is generally referred to by the Firm as a Portformula Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas
ADV. @2006.2011 PortformuIasSAIIRights Reserved,
PORTF5RMULAS
6020 E Fulton St Ada, MI 49301 800-869-5994 www.Porfformuias.com

SEC Registered IrivestmentAdvisor
SQUADRON GROWTH w/RAM SCORE FUSION HISTORICAL PERFORMANCE
DollarValue ofa $100,020 Investment
January 2001 through December 31 2012
:: Squadron Grovih
$548,000 $448,800
:.
S&P 500
.A.
8349.600
4:
$151 .200
$52,000
200112002
2003
12004
2003
2005
2006
2007
2008 12009 12010
1201112012
2009 13.17% 23.45% 18.81% 43.89% 25.22% 10 66% 3.30% 26.98% 2010 12,38% 12.78% 11.02% 16.91% 25.31% 3.12% 3.13% 9.55% 2011 -5.55% 0.00% 5.53% -1.80% -5.45% 3.18% 2.73% -7.62% 2012 13.04% 13.41% 7.26% 15.91% 14.63% 6.10% TBD 13.18%
Yearly Returns 2001 Squadron Growth S&P500 DJIA NASDAQ Russell 2000 DJCBP 10.YrTreasuryYld MSCI World Index 8.51% -13.03% -7.10% -21.05% 1.03% 3.43% 5.00% -17.83% 2002 9.75% -23.37% -16.76% -31.53% -21.57% 4.14% 4.60% -21.06% 2004 17.15% 9.00% 3.14% 8.60% 16.98% 0.22% 4.30% 12 84% 2005 7.68% 3.01% -0.63% 1.38% 3.32% -4.15% 4.30% 7.56% 2006 14,87% 13.65% 16.28% 9.51% 17,00% -2.06% 4.80% 17.95% 2007 13.81% 3.55% 6.42% 9.81% -2.76% -0.90% 4.60% 7.09% 2008 1.68% -38.50% -33.84% -40.54% -34.79% -4.47% 3.60% -42.08%
81.11% 26.39% 25.33% 50.01% 45.39% 3.46% 4.00% 30.81%
Squadron Growth
S&P 500
100.00%
81.11%
80,00%
6000% 40.00% 20.00%
000%
-5.55% 3.59% 2345%
iS4j 4 00%rc
-20,00%
__Ar
flfO,
-
-2337% 2001
2002
.--
2003
2004
2005
2006
2007
208
2009
2010
201 1
2012
Portlormulas was not managing money prior to 20t7. Performance calculations forthe period 2001 2009 are based on model performance, which is the retroactive application of a Portformulas selection criteria to all available stocks during a given time period. Model results do not refect actual trading, do not reflect Portlormulas monthly, maoimum .O45 cent per share boylsell transaction charge, and assume that no additions or withdrawals have been made since the models inception. Withdrawals and additions in your account, as well as transaction charges, will result in your performance being differentthatthe performance figures referenced. In 2010, Portfiormulas began utilizing time-weighted returns on any model in existence from the beginning of a calendar year. Because Portfiormolas publishes time-weighted returns, all advertised performance data reflects performance after advisory flees have been deducted. Return data through December 2t09 represents price-returns, nottotal returns. Price returns do not reflect the reinvestment of dividends, interest rate received, or realized capital gains. RAM Score Fusion did not eoist prior to 2511 ; return data pdor to 2Sflfl is hypothetical. RAM Score Fusion performance figures for 2515 utilize time-weighted returns and because RAM Score Fusion was not available in 251t, is orderto provide hypothetical performance data, we have illustrated RAM Drive returns for each strategy. Since the RAM Score tool was nottriggered in 2515, each strategy was invested in the market and the underlying holdings were identical, regardless of whether an account elected RAM Score Drive, RAM Score Park, or RAM Score Fusion. We selected RAM Score Drives performance numbers because both RAM Score Drive and RAM Score Fusion invest in bond holdings or bond portfolios when the strategies are not invested in the market If RAM Score Fusion or RAM Score Drive had triggered, the holdings and returns for each respective portfoto would differ. RAM Score was not developed until January 2510. Priorto January 2510, clients were utilizing RAM Scores predecessor, RAM. Clients utilizing RAM may have had different results than those reflected above. Also, hypothetical returns are not indicative of Portflormutas actual portfoto management skills. The RAM Score feature is simply a tool designed to assist our firms management of your account. The RAM Score tool does not guarantee any specific results or performance, and even with RAM Score, it is possible thatyour account will lose value. RAM Score moves assets into or out ofthe 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. The Squadron Growth model invests in equities, and when triggered, the RAM Score Fusion tool moves clients assets out ofithe market and into a bond fund. Therefore, Portflormulas is providing various stock-based and fond-income based indeoes for comparison Past performance does not guarantee future results and the potential for loss does eoist.
Portformulasifii(the Firm) operates with Limited Discretionary Authority to engage solely in the implementafton ofispecific step-by-step investment criteria and account rebalancing as indicated and selected by the client SEC File No. BS1-68276. SEC Registration does not
page iS of 19
imply a certain level of skill or training. This activity is generally referred to by the Firm as a Poriformulaifti Investment Strategy. You should only invest in Poriformulas upon receiving and reading the Portflormutas ADV. @2006-2011 PortformulasdlAllRighfs Reserved.
PORTFRMULAS
SEC Registered lnvestmentAdeisor
BRiGADE GROWTH & VALUE w/RAM SCORE FUSION PORTFORMULA INVESTMENT STRATEGY
SCHOLAR SERIES ORIGINS & BENEFITS OF PORTFORMULA INVESTMENT STRATEGIES Portformulas manages quantitative mechanical methodologies and models for investors, operating pursuant to Limited Discretionary Authority engaging solely in the implementation of one or more step-by step investment strategy qualification criteria and account rebalancing as indicated and selected by each investor. We generally refer to this activity as a Portformula Investment Strategy. We use the selected Portformula Investment Strategy qualification criteria to eliminate human emotion from the investment selection process. We execute the Portformula Investment Strategy qualification criteria as the strict quantitative methodology and model for investing within each investor selected Portformula. You can always identify holdings you own inside your Portformula Investment Strategy, unlike many traditional money management portfolios. Each Portformula will only select holdings when they specifically meet the step-by-step qualification criteria & investment strategy. Based upon the criteria, it may be possible that no holdings will qualify during a given period of time. This may result in a Portformula maintaining a full money market position, but generally only for limited periods of time. Each investors account is established with a minimum 2% cash position and the remaining percentage is fully invested in the Portformula. All dividends are reinvested and this ratio is updated upon each rebalancing and reapplication of the Portformula Investment Strategy qualification criteria. Every Portformula provides full liquidity and 24/7 online account information for each investor. Portformulas reserves the right to make adjustments or changes in the criteria, ongoing management, and implementation of each Portformula; however the general investment philosophy of a Poriformula will not change. Our goal is to maintain the integrity of the general investment philosophy as described in the specific investment strategy criteria. Such efforts may be open to interpretations, opinions and adaptations in order to create and maintain a real life mechanical investment methodology resulting in the Portformula. These philosophical interpretations, opinions, adaptations, methodologies and implementations may differ and have not been independently verified. On a monthly basis (on or about the first working week of the month) account rebalancing, is reapplied on behalf of each investor. INITIATING THE BRIGADE GROWTH & VALUE INVESTMENT STRATEGY CRITERIA:
. . .
. . . . . . . . . . .
companys market capitalization must be greater than or equal to $1 billion dollars. companys operating income must be positive for the trailing twelve months. companys operating income must also be positive for each of the last seven fiscal years. companys return on equity must be greater than I 5% for the trailing twelve months. companys return on equity must also be greater than 1 5% for each of the last three fiscal years. companys long term debt to equity for the most recent fiscal quarter must be less than the industrys median debt to equity for the same timeframe. companys operating margin for the trailing twelve months must be greater than the industrys median operating margin for the same timeframe. companys net profit margin for the trailing twelve months must be greater than the industrys median net profit margin for the same timeframe. companys change in share price must be greater than the change in retained earnings per share, or book value change, over the last five fiscal years. companys price to free cash flow ratio divided by the free cash flow growth rate must be positive, but less than or equal to two. companys price to free cash flow per share ratio for the trailing twelve months must be less than or equal to thirty.
OR
. . . . . . . .
companys companys companys companys companys companys companys companys
price earnings ratio must be less than the industrys median price earnings ratio. price earnings ratio must be less than the five year average price earnings ratio. price earnings ratio to the sum of the five year earnings per share growth rate including the five year dividend yield must be less than one. five year earnings per share growth rate from continuing operations must be less than 50 percent percentage of common stock owned by institutions must be less than the median percentage of institutional ownership for the stock market total liabilities to total assets for the last fiscal quarter must be less than the industrys median total liabilities to total assets for the same timeframe. insider buy trades for officers and directors during the last six months must be zero or more. insider sell trades for officers and directors during the last six months must be zero.
Po,tformulascE(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation ofspecific step-by-step investment criteda and account rebalancing as indicated and selected by the client. SEC File No. tOl-6t276. SEC Registration does not
page 11 of 15
imply a certain level ofskill or training. This activity is generally referred to bythe Firm as a Poriformula Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas ADv. 1512006-2011 PortformulasAllRighfs Reserved.
PORTFRMULA$
OR
.
. .
. . .
. .
. . . . .
The companys diluted earnings per share from continued operations for the four most recent fiscal quarters must be greater than that of each of the same four fiscal quarters one year earlier. The companys sales growth for the most recent fiscal quarter must be greater than that of the same quarter one year earlier. The companys growth in sales from the most recent fiscal quarter to the same quarter one year earlier must be greater than that of the previous fiscal quarter to the same quarter one year earlier. The companys diluted earnings per share for the trailing twelve months must be greater than or equal to that of the last fiscal year. The companys diluted earnings per share for each of the last two fiscal years must be greater than that of the previous fiscal year. The companys annualized growth rate in diluted earnings per share from continuing operations over the last three years must be greater than or equal to fifteen percent. The companys annualized sales growth over the last three years must be greater than or equal to fifteen percent. The companys diluted earnings per share from continued operations for the four most recent fiscal quarters must be greater than the growth in earnings between the sum total of the prior three fiscal quarters and the same three quarters one year ago OR The companys diluted earnings per share from continued operations for the four most recent fiscal quarters must be greater than or equal to thirty percent. The companys diluted earnings per share from continued operations for the four most recent fiscal quarters must be greater than or equal to the annualized growth rate in diluted earnings per share from continuing operations over the last three years. The companys price earnings ratio must be greater than five and less than one and one-half times the median price earnings ratio for the stock market. The company stocks relative strength over the last twenty-six weeks must be positive. The company must be based in the United States and may not be an American Depository Receipt or ADR. The companys industry must not be identified as miscellaneous financial services or real estate operations. The company stocks trading volume average for the last three months must be within the top seventy-five percent of the stock market.

COMPLETING THE BRIGADE GROWTH & VALUE INVESTMENT STRATEGY CRITERIA:

.
The remaining company stocks (from each of the three criteria groupings) are selected for this Porttormula. Should more than fifty stocks have met the criteria, we select the fifty ranked highest by relative strength over the last 52 weeks and as tiebreakers, the last 26 weeks, then 1 3 weeks, then 4 weeks as necessary. Should less than 20 stocks have metthe criteria, we apply a prorated allocation toward cash (i.e., if only 16 stocks qualify, then 20% would be prorated to cash). On a monthly basis (on or about the first working week of the month) this step-by-step Portformula criteria, including account rebalancing, is then reapplied on behalf of each investor. Investors may opt to change by notifying Portformulas prior to the beginning of any new calendar month.
.
The first scoring component relates to criteria applied against exponential moving averages for the S&P 500. The exponential moving averages provide more weight to the latest data so that they will react quicker to recent price changes than simple moving averages and will smooth the data series decreasing the amount of noise or extraneous movement As such, the corresponding indices will be utilized to calculate the three period monthly exponential moving average less the six period monthly exponential moving average then divided by the monthly close and multiplied by one hundred to equal the Moving Average Score. The next scoring component relates to criteria applied against the elder ray index for the S&P 500. The elder ray index bull power and bear power measures the amount of buying and selling pressure in the market. As such, the corresponding indices will be utilized to calculate the thirteen period monthly elder ray bull power index divided by the monthly close then added to the thirteen period monthly elder ray bear power index divided by the monthly close and multiplied by one hundred to equal the Bull Bear Score. The next scoring component relates to criteria applied against the momentum indicator for the S&P 500. The momentum indicator is used to measure trend strength and/or possible trend reversals. As such, the corresponding indices will be utilized to calculate the six period monthly momentum indicator less one hundred to equal the Momentum Score. The next scoring component relates to criteria applied against the trix indicator for the S&P 500. The trix indicator is used to identify oversold and overbought markets as it displays the rate of change of a triple exponentially smoothed moving average of closing price. As such, the corresponding indices will be utilized to calculate the twelve period monthly trix indicator less the nine period monthly simple moving average of the monthly Trix indicator and multiplied by one hundred to equal the Trix Score. The next scoring component relates to criteria applied against the moving average convergence divergence indicator for the S&P 500. The moving average convergence divergence indicator is used to show the relationship between two moving averages of prices. As such, the corresponding indices will be utilized to calculate the twelve period monthly exponential moving average less the twenty-six period monthly exponential moving average divided by the monthly close then subtracting the nine period monthly exponential moving average divided by the monthly close then multiplied by three hundred to equal the MACD Score. The next scoring component relates to criteria applied against the Moodys Analytics risk of recession indicator for the United States. The risk of recession indicator reports a current probability for a country to enter into and/or stay within a recession. As such, the corresponding country will be utilized to calculate the current risk of recession multiplied by negative one then added to thirty-six one hundreds and multiplied by 100 to equal the Recession Risk Score. The next scoring component relates to criteria applied against the Chicago Board Options Exchange market volatility index. The volatility index is used as a key measure of market expectations of near term volatility conveyed by the S&P 500 stock index option prices and is considered a barometer of investor sentiment and market volatility. As such, corresponding indices will be utilized to calculate the average of the most recent month index high and low multiplied by negative one then added to nineteen then added to the most recent month index open less the most recent month index close to equal the Volatility Score. The overall RAM Score is then calculated as the sum of the Moving Average Score plus Bull Bear Score plus Momentum Score plus Trix Score plus MACD Score plus Recession Risk Score plus Volatility Score. The RAM Score must result in a positive score in order for the standard Portformula investment selection criteria to apply. Should the RAM Score result in zero or a negative score, the standard Portformula allocation will be overruled until the monthly RAM Score again results in a positive score. When the RAM Score results in such an overruling the Poriformula investment will be an entirely different strategy known as Bond Fund Fusion. Be sure to print all appropriate descriptive materials (including the Bond Fund Fusion version of this descriptive) regarding this separate and distinct strategy that may apply based upon RAM Score as described above. When RAM Score does overrule the standard Portformula allocation, your assets will move into the Bond Fund Fusion strategy. Compared to the standard Portformula allocations, Bond Fund Fusion is a separate and distinct Portformula strategy. As such, It is important that you print and review the Bond Fund Fusion hypothetical prior to investing.
Portformulas@(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation of specific step-by-step investment criteria and account rebalancing as indicated and selected by the client SEC File No. 501-68276. SEC Registration does not
page 12 of 19
imply a certain level of skill or training. This activity is generally referred to by the Firm as a Portformulaitl Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas ADV. @2006-2011 Portformulas@AllRights Reserved.
PORTF5RMULAS
6020 E Fulton St Ada, Mt 49301 800-869-5994 www.Portformulas.com

SEC Registered In vestmeetAdvisor
BRIGADE GROWTH & VALUE w/RAM SCORE FUSION PORTFORMULA HOLDINGS

-
Ticker ACN ALGT BBBY CMCSA CPA DLTR FFIV GPC HIBB ISRG JCOM LANC NEU NTES NUS ORCL PNRA PRAA
Company Name Accenture Plc Allegiant Travel Company Bed Bath & Beyond Inc. Corncast Corporation Copa Holdings, S.A. Doltar Tree. Inc. F5 Networks. Inc. Genuine Parts Company Hibben Sports, Inc. tntuitioe Surgical, Inc. J2 Global Inc Lancaster Colony Corp. NewMarket Corporation NetEase, Inc (ADR) Nu Skin Enterprises. Inc. Oracle Corporation Panera Bread Co Portfolio Recovery Associates, Papa Johns Intl. Inc. Triumph Group Inc
Exchange NYSE NASDAO NASDAQ NASDAQ NYSE NASDAQ NASDAQ NYSE NASDAQ NASDAO NASDAQ NASDAO NYSE NASDAQ NYSE NASDAQ NASDAQ NASDAQ NASDAQ NYSE
Sector Services Transportation Services Services Transportation Services Technology Consumer Cyclic Services Health Care Services Consumer Non-Cyclical Basic Materials Services Consumer Non.Cyclical Technology Services Services Services Capital Goods
Market Cap Large Cap Mid Cap Large Cap Large Cap Mid Cap Large Cap Large Cap Large Cap Mid Cap Large Cap Mid Cap Mid Cap Mid Cap Large Cap Mid Cap Large Cap Mid Cap Mid Cap Mid Cap Mid Cap
PZZA
TGI
Holdings By Sector 10,00 %

5.00%

45.00%
500
500 %
1OOO%
_III__,,
5000 %
10,00
-55,O0 %
II,
Basic Materials 5.00% Consumer Cyclical 5.00% Health Care 5.00% Technology 10.00%
Capital Goods 5.00% Consumer Non-Cyclical 10.00% Services 50.00% Transportation 10.00%
Large Cap 45.00%
Mid Cap 55.00%
Portformulasitiulthe Firml operates with Limited Discretionary Authority to engage solely in the implementation ot specific step-by-step investment criteria and account rebalancing as indicated and selected by the client SEC File No. 8Ol-6t276. SEC Registration does not page 13 of 19 imply a certain level ot skill or training. This activity is generally referred to by the Firm as a Portformula Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas ADV. @2006-2011 PortformulastiiAllRights Reserved.
PORTF5RMULAS
6020 E Fulton St Ada, Mi 49301 800-869-5994 www.Portformulas.com

BRIGADE GROWTH & VALUE wIRAM SCORE FUSION HISTORICAL PERFORMANCE
Dollar Value of a $99,990 Investment January 2001 through December 31 2012

ii::
Brigsde
Grh 8 Value
S&P 500
2005 12006 12007 12008

Yearly Returns 2001 Brigade Growth &Value S&P500 DJIA NASDAQ Russell 2000 DJCBP 10.Yr Treasury Yld MSCI World Index 3.43% 5.00% -17.83% 8.51% -13.03% -7.10% -21.05% 2002 9.75% -23.37% -16.76% -31.53% -21.57% 4.14% 4.60% -21 06% 2003 58.91% 26.39% 25.33% 50.01% 45.39% 3.46% 4.00% 3D.81% 2004 15,29% 9.00% 3,14% 8.60% 16.98% 0.22% 4.30% 12.84% 2005 13,47% 3.01% -0.63% 1.38% 3.32% -4.15% 4.30% 7.56% 2006 16.70% 13.65% 16.28% 9.51% 17,00% -2.06% 4.80%
17.95%
12009
2008
2010
I
2009
2011! 2012
2007 11,93% 3.55% 6.42% 9.81% -2.76% -0.90% 460% 7.09%
2010 1&87% 12.78% 11.02% 16.91% 2531% 3.12% 3.13% 9 55%
2011 10,44% 0.00% 5.53% -1.80% -5.45% 3.18% 2.73% -7.62%
2012 -4.46% 13.41% 726% 15.91% 14.63% 6.1D% TBD 13.18%
1.68% -38.5D% -33.84% -40.54% -34,79% -4.47% 360% -42.08%
12.67% 23.45% 18.81% 43.89% 25.22% 10.66% 3.30% 26.98%
Grcwth & Valut
S&P 500
60,00% 4000%
.% 2345% 126r581o44
2th00% 0.00% -20.00%

-23 37%
0
-
i 5 -LF 1 F
-
2001
2002
2003
2004
20D5
2006
2007
2OO
2009
2010
201 1
2012
Poriformutas was not managing money prior to 2007. Performance calculations for the period 2001 2OO are based on model performance, which is the retroactive applicatioo of a Portformulas selection criteria to all avaitable stocks daring a given time period. Model resolts do not retect actual trading, do not reflect Portflormulas monthly, maximum .0045 cent per share buy/sell transaction charge, and assume that no additions or withdrawals have been made since the models inception. Withdrawals and additions in your account, as welt as transaction charges, will result in your performance being differentthatthe performance figures reterenced. to 2010, Portflormulas began utilizing time-weighted returns on any model in existence from the beginning of a calendar year. Because Portlormulas publishes time-weighted returns, all advertsed performance data reflects performance after advisory fees have been deducted. Return data through December 2009 represents price-retums, nottotal returns. Price returns do not reflect the reinvestment of dividends, interest rate received, or reatzed capital gains. RAM Score Fusion did not eoist prior to 2fitl; return data prior to 2059 is hypothetical. RAM Score Fusion performance figures for 2515 utilize time-weighted returns and because RAM Score Fusion was not available in 251 5, in orderto provide hypothetical performance data, we have illustrated RAM Drive returns for each strategy. Since the RAM Score tool was nottriggered in 2510, each strategy was invested in the market and the underlying holdings were identical, regardless at whether an account elected RAM Score Drive, RAM Score Park, or RAM Score Fusion. We selected RAM Score Drives performance numbers because both RAM Score Drive and RAM Score Fusion invest in bond holdings or bond portfolios when the strategies are not invested in the market It RAM Score Fusion or RAM Score Drive had triggered, the holdings and returns for each respecftve portfofio would differ. RAM Score was not developed unftl January 2OtS. Priorto January 2515, clients were utilizing RAM Scores predecessor, RAM. Clients utilizing RAM may have had different results than those reflected above. Also, hypothetical returns are not indicative ofl Portformulas actual portfofio management skills. The RAM Score feature is simply a tool designed to assist our firms management ofyour account. The RAM Score tool does not guarantee any specific results or performance, and even with RAM Score, it is possible that your account will lose value. RAM Score moves assets into or out oflthe market based on various economic and market indicators. It is possible thafithe market will move positively while you are not invested or negaftvely while you are invested, resulftog in losses. The Brigade Growth & Value model invests in equities, and when triggered, the RAM Score Fusion toot moves clients assets out ofthe market and into a bond fund. Therefore, Porttormulas is providing various stock-based and toed-income based indexes for comparison. Past performance does sot guarantee future results and the potential tar toss does eoist.
Portformulasfti(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation ofspecific step-by-step investment criteria and account rebalancing as indicated and selected by the client SEC File No. fiSl-6fi276. SEC Registration does not page fl4 of ifi imply a certain level of skill ortraining. This activity is generally referred to by the Firm as a Portflormulaifii Investment Strategy. You should only invest in Par/formulas upon receiving and reading the Portfiormulas ADV. @2006-2011 PortformulasftiAllRights Reserved.
PORTFRMULAS
FURMULAIC TRENDING MONEY MANAGER
PLATOON CROSS BLEND wIRAM SCORE FUSION PORTFORMULA INVESTMENT STRATEGY

SCHOLAR SERIES ORIGINS & BENEFITS OF PORTFORMULA INVESTMENT STRATEGIES Portformulas manages quantitative mechanical methodologies and models for investors, operating pursuant to Limited Discretionary Authority engaging solely in the implementation of one or more step-by step investment strategy qualification criteria and account rebalancing as indicated and selected by each investor. We generally refer to this activity as a Portformula Investment Strategy. We use the selected Portformula Investment Strategy qualification criteria to eliminate human emotion from the investment selection process. We execute the Portformula Investment Strategy qualification criteria as the strict quantitative methodology and model for investing within each investor selected Portformula. You can always identify holdings you own inside your Poriformula Investment Strategy, unlike many traditional money management porifolios. Each Portlormula will only select holdings when they specifically meet the step-by-step qualification criteria & investment strategy. Based upon the criteria, it may be possible that no holdings will qualify during a given period of time. This may result in a Portformula maintaining a full money market position, but generally only for limited periods of time. Each investors account is established with a minimum 2% cash position and the remaining percentage is fully invested in the Portformula. All dividends are reinvested and this ratio is updated upon each rebalancing and reapplication of the Portformula Investment Strategy qualification criteria. Every Portformula provides full liquidity and 24/7 online account information for each investor. Poriformulas reserves the right to make adjustments or changes in the criteria, ongoing management, and implementation of each Portformula; however the general investment philosophy of a Poriformula will not change. Our goal is to maintain the integrity of the general investment philosophy as described in the specific investment strategy criteria. Such efforts may be open to interpretations, opinions and adaptations in order to create and maintain a real life mechanical investment methodology resulting in the Portformula. These philosophical interpretations, opinions, adaptations, methodologies and implementations may differ and have not been independently verified. On a monthly basis (on or about the first working week of the month) account rebalancing, is reapplied on behalf of each investor. INITIATING THE PLATOON CROSS BLEND INVESTMENT STRATEGY CRITERIA:
. . .
. . . .
. . .
The companys price earnings ratio must be less than or equal to the bottom forty percent of the stock market If the company is listed on the NYSE it must have market capitalization for the last fiscal quarter that is within the top thirty percent of the stock market. If the company is listed on the AMEX or NASDAQ it must have market capitalization for the last fiscal quarter that is within the top fifteen percent of the stock market. The companys total liabilities to total assets ratio for the last fiscal quarter must be less than or equal to the industrys median total liabilities to total assets ratio for the same timeframe. The company must have four or more analysts providing earnings estimates for the current fiscal year. The companys current earnings estimate for both the current fiscal year and the next fiscal year must be greater than it was one month ago. The company must have at least one analyst that has increased the earnings estimate for the current fiscal year as well as at least one analyst who has increased the earnings estimate for the next fiscal year. The company must have no downward revisions in the earnings estimates for either the current fiscal year or the next fiscal year.
OR
. . .
. .
. .
The companys price earnings ratio must be less than or equal to the bottom forty percent of the stock market. The companys market capitalization for the last fiscal quarter must be within the top thirty percent of the stock market. The companys total liabilities to total assets ratio for the last fiscal quarter must be less than or equal to the sectors median total liabilities to total assets ratio for the same timeframe. The companys current dividend yield must be greater than or equal to one and one-half percent. The companys earnings per share growth rate for both the most recent twelve months and last fiscal year must be greater than or equal to the median stock market earnings per share growth rate for the same timeframes. The companys estimated earnings per share for the current fiscal year must be greater than the reported earnings per share for the last fiscal year. The companys estimated earnings per share for the next fiscal year must be greater than the estimated earnings for the current fiscal year.
OR
. . . . . . .
page 15 of 19 Portformu!ascE(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation of specitc step-by-step investment criteria and account rebalancing as indicated and selected by the client SEC File No. 8t1-6e276. SEC Registration does not imply a certain level of skill ortrainieg. This activity is generally referred to by the Firm as a Portformola Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas ADV. @2006-2011 PortformulasltlAllRights Reserved.
PORTF5RMULAS
OR
. . . . . . . . . . .
market capitalization must be greater than or equal to $1 billion dollars. operating income must be positive for the trailing twelve months. operating income must also be positive for each of the last seven fiscal years. return on equity must be greater than 1 5% for the trailing twelve months. return on equity must also be greater than 1 5% for each of the last three fiscal years. long term debt to equity for the most recent fiscal quarter must be less than the industrys median debt to equity for the same timeframe. operating margin for the trailing twelve months must be greater than the industrys median operating margin for the same timeframe. net profit margin for the trailing twelve months must be greater than the industrys median net profit margin for the same timeframe. change in share price must be greater than the change in retained earnings per share, or book value change, over the last five fiscal years. price to free cash flow ratio divided by the free cash flow growth rate must be positive, but less than or equal to two. price to free cash flow per share ratio for the trailing twelve months must be less than or equal to thirty.
COMPLETING THE PLATOON CROSS BLEND INVESTMENT STRATEGY CRITERIA:

.
The remaining company stocks (from each of the three criteria groupings) are selected for this Portformula. Should more than fifty stocks have met the criteria, we selectthe fifty ranked highest by relative strength overthe last 52 weeks and as tiebreakers, the last 26 weeks, then 13 weeks, then 4 weeks as necessary. Should less than 20 stocks have metthe criteria, we apply a prorated allocation toward cash (i.e., if only 16 stocks qualify, then 20% would be prorated to cash). On a monthly basis (on or about the first working week of the month) this step-by-step Poriformula criteria, including account rebalancing, is then reapplied on behalf of each investor. Investors may opt to change by notifying Portformulas prior to the beginning of any new calendar month.
.
The first scoring component relates to criteria applied against exponential moving averages for the S&P 500. The exponential moving averages provide more weight to the latest data so that they will react quicker to recent price changes than simple moving averages and will smooth the data series decreasing the amount of noise or extraneous movement. As such, the corresponding indices will be utilized to calculate the three period monthly exponential moving average less the six period monthly exponential moving average then divided by the monthly close and multiplied by one hundred to equal the Moving Average Score. The next scoring component relates to criteria applied against the elder ray index for the S&P 500. The elder ray index bull power and bear power measures the amount of buying and selling pressure in the market. As such, the corresponding indices will be utilized to calculate the thirteen period monthly elder ray bull power index divided by the monthly close then added to the thirteen period monthly elder ray bear power index divided by the monthly close and multiplied by one hundred to equal the Bull Bear Score. The next scoring component relates to criteria applied against the momentum indicator for the S&P 500. The momentum indicator is used to measure trend strength and/or possible trend reversals. As such, the corresponding indices will be utilized to calculate the six period monthly momentum indicator less one hundred to equal the Momentum Score. The next scoring component relates to criteria applied against the trix indicator for the S&P 500. The trix indicator is used to identify oversold and overbought markets as it displays the rate of change of a triple exponentially smoothed moving average of closing price. As such, the corresponding indices will be utilized to calculate the twelve period monthly trix indicator less the nine period monthly simple moving average of the monthly Trix indicator and multiplied by one hundred to equal the Trix Score. The next scoring component relates to criteria applied against the moving average convergence divergence indicator for the S&P 500. The moving average convergence divergence indicator is used to show the relationship between two moving averages of prices. As such, the corresponding indices will be utilized to calculate the twelve period monthly exponential moving average less the twenty-six period monthly exponential moving average divided by the monthly close then subtracting the nine period monthly exponential moving average divided by the monthly close then multiplied by three hundred to equal the MACD Score. The next scoring component relates to criteria applied against the Moodys Analytics risk of recession indicator for the United States. The risk of recession indicator reports a current probability for a country to enter into and/or stay within a recession. As such, the corresponding country will be utilized to calculate the current risk of recession multiplied by negative one then added to thirty-six one hundreds and multiplied by 100 to equal the Recession Risk Score. The next scoring component relates to criteria applied against the Chicago Board Options Exchange market volatility index. The volatility index is used as a key measure of market expectations of near term volatility conveyed by the S&P 500 stock index option prices and is considered a barometer of investor sentiment and market volatility. As such, corresponding indices will be utilized to calculate the average of the most recent month index high and low multiplied by negative one then added to nineteen then added to the most recent month index open less the most recent month index close to equal the Volatility Score. The overall RAM Score is then calculated as the sum of the Moving Average Score plus Bull Bear Score plus Momentum Score plus Trix Score plus MACD Score plus Recession Risk Score plus Volatility Score. The RAM Score must result in a positive score in order for the standard Portformula investment selection criteria to apply. Should the RAM Score result in zero or a negative score, the standard Portformula allocation will be overruled until the monthly RAM Score again results in a positive score. When the RAM Score results in such an overruling the Portformula investment will be an entirely different strategy known as Bond Fund Fusion. Be sure to print all appropriate descriptive materials (including the Bond Fund Fusion version of this descriptive) regarding this separate and distinct strategy that may apply based upon RAM Score as described above. When RAM Score does overrule the standard Poriformula allocation, your assets will move into the Bond Fund Fusion strategy. Compared to the standard Portformula allocations, Bond Fund Fusion is a separate and distinct Portformula strategy. As such. It is important that you print and review the Bond Fund Fusion hypothetical prior to investing.
Portformulasl5(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation of specific step-by-step investment criteria and account rebalancing as indicated and selected by the client SEC File No. 801-68276. SEC Registration does not page 16 of 19 imply a certain level afskill artraining. This activity is generally referred to bythe Firm as a Portformsla Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portfiormulas ADV. @2006-2011 PortformulaslEAllRights Reserved.
PORTF5RMULAS
6020 E Fu(ton St Ada, MI 49301 800-869-5994 www.Portformolas.com

SEC Regislered lovestmea(Aclviaor
PLATOON CROSS BLEND wIRAM SCORE FUSION PORTFORMULA HOLDINGS

-
Current
# of Holdings: 37
Ticker
ACN
Company Name Accenture Plc Allegiant Travel Company Bed Bath & Beyand Inc. Cisco Systems, Inc. Copa Holdings. S.A. Dollar Tree, Inc. F5 Networks, Inc. Fifth Street Finance Corp. First American Financial Corp Focus Media Holding Limited (A Foot Locker. Inc Genuine Parts Company Hibbeo Sports, Inc. Havnaoiao Enterprises, Inc. lngredion Inc Intuitive Surgical, Inc. J2 Global Inc Lancaster Colony Corp. Louisiana-Pacific Corporation Mens Weurhouse, Inc.. Tire NetEase, Inc (ADR) NewMarketCorporotion No Skin Enterprises. Inc. Panera Bread Co Papa Johns Intl. Inc.
Exchange NYSE NASDAQ NASDAQ NASDAQ NYSE NASDAQ NASDAQ NASDAQ NYSE NASDAQ NYSE NYSE NASDAQ NYSE NYSE NASDAQ NASDAQ NASDAQ NYSE NYSE NASDAQ NYSE NYSE NASDAQ NASDAQ
Sector Services Transportalivrr Services Technology Transportation Services Technology Financial Financial
-
Market Cap Large Cap Mid Cap Large Cap Large Cap Mid Cap Large Cap Large Cop Small Cap Mid Cap Mid Cap Mid Cap Large Cap Mid Cap Small Cap Mid Cap Large Cap Mid Cap Mid Cap Mid Cap Mid Cap Large Cap Mid Cap tvtid Cap Mid Cap Mid Cap
Ticker PMT PDS
Company Name PennyMac Mortgage Investment T P Drill ng C p (USA)
Eochange NYSE NYSE NASDAO NYSE NYSE NYSE NYSE

--
Sector Services E gy
Market Cap Mid cap Mdc p Mid cap Mid Cap Mid cap Large Cap Mid cap Small Cap Mid Cap Large Cap Mid Cap Large Cap
ALGT EBBY CSCO CPA DLTR FFIV FSC FAF FMCN FL GPC HIBB HOV INGR ISRG JCOM LANC LPX MW NTES NEU NUS PNRA PZZA
ocoR
RWI RS SSL SWM SWHC SFD SU TER UNH
Ouestcor Pharmaceuticals, Inc Redwood Trust, Inc. Reliance Steel & Aluminum Sasol Limited (AOR) Schweitzer-Mauduit Internation Smith & Wesson Holding Corpora Smithfield Foods, Inc. Suncor Energy Inc. (USA) Teradyne, Inc. UnitedHealth Group Inc.
Health care Services Basic Materials Basic Materials Basic Materials Consumer Cyctcal consumer Non-cyclical Energy Technology Financial
.....
NASDAQ NYSE NYSE NYSE NYSE
Services Services Consumer Cyclical Services Capital Goods Consumer Non-Cyclical Health Care Services Consumer Non-Cyclical Capital Goods Services Services Basic Materials Consumer Nun-Cyclical Services Services
Holdings By Sector
10,81 %
5410
:
Arrn::.
5,41% 8,11%
29,73%N,
540/
1083
%7I
-
A
----5,41 % 8,11 %
.
5,40 %
r.,.,,,
6216%
I1 %
,.,
Baoic Materials 10.83% Consumer Cyclical 5.41% Energy 5.41% Health Care 5.41% Technology 8.11%
Capital Goods 5.40% Consumer Non-Cyclical 10 81% Financial 8.11% Services 35.11% Transportation 5.40%
_
.
Large Cap 29.73% SmallCap8.11%
MidCap62.16%
Portformulaslfli(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation ofspecitc step-by-step investment criteria and account rebalancing as indicated and selected bythe client SEC File No. tSl-6t27t. SEC Registration does not page 17 of 19 imply a certain level of skill or training. This activity is generally referred to by the Firm as a Porfiformuloifli Investment Strategy. You should only invest in Portformulas upon receiving and reading the Porfiformulas ADV. @2006-2011 PortformulasiftAll Rights Reserved,
PORTF5RMULAS
6020 E Fulton St Ada, MI 49301 800-869-5994 wwwPortformulascom

SEC Registered !nvestmentAcMsor
PLATOON CROSS BLEND w/RAM SCORE FUSION HISTORICAL PERFORMANCE
Dollar Value of a $99990 Investment January 2001 through December 31 2012
E:E1 PlatoomCross BIrtd

$593.000
S&P 500
$376.600
$2684OO $160200 $52.000

-,-
2001
2002
2003
2004
2005
2006
2007
2008
2009
Yearly Returns 2001 Platoon Cross Blend s&P 500 DJIA NASDAQ Russell 2000 DJCBP 10-YrTreasuryYld MSClWorldlndex 8.51% -13.03% -7.10% -21.05% 103% 3.43% 5.00% -17.83% 2002 9.75% -23.37% -16.76% -31.53% -21.57% 4.14% 4.60% -21.06% 2003 64.42% 26 39% 25.33% 50.01% 45.39% 3.46% 4.00% 30.81% 2004 16.50% 9.00% 3.14% 8.60% 16.98% 0.22% 4.30% 12.84% 2005 15.37% 3.01% -0.63% 1.38% 3.32% -4.15% 2006 21.06% 13.65% 16.28% 9.51% 1700% -2.06% 4.80% 17.95% 2007 1277% 3.55% 6.42% 9.81% -2.76% -0.90% 4.60% 7.09% 2008 1.68% -38.50% -33.84% -40.54% 2009 14.94% 23.45% 18.81% 4389% 25.22% 10.66% 3.30% 26.98% 2010 1523% 12.78% 11.02%
16.91%
2011 -2.85% 0.00% 5.53% -1.80% -5.45% 3.18% 2.73% -762%
2012 7.67% 13.41% 7.26% 15 91% 14.63% 6.10% TBD 13.18%
-34.79%
-4.47% 3.60% -42.08%
25.31% 3.12% 3.13% 9.55%
4.30%
7.56%
Platn Cross Blend
S&P 500
8000%
--------
P4.42%
60.00/a 4000%
20 00 0.00% -20 00/a
Art lithe,
-.-.-.-
-_..--.-.--.----- --..--..-.-- 21 08% 277%
---..
.m
g454.
523 341%
.-..
-.
6S%1
00%
9 ;
-3M3%
---_- -
-23.37% .-.
.bs oA
2003 2004 2005
I I
2001
2002
2006
2007
20C3
2009
2010
201 1
2012
Portlormulas was not managing money prior to 2gg7. Performance calculations for the period 2f01 2ff9 are based on model performance, which is the retroactive application of a Portformulas selection criteria to all available stocks during a given time period. Model results do not refect actual trading, do not reflect Portforwulas monthly, maoimum ff45 cent per share buy/sell transaction charge, and assume that no additinns or withdrawals have been made since the models inception. Withdrawals and additions in your account, as well as transaction charges, will result in your performance being differentthatthe performance figures referenced. In 2015, Portfurmulas began utilizing time-weighted returns on any model in existence from the beginning of a calendar year. Because Portformulas publishes time-weighted returns, all advertised performance data reflects performance after advisory fees have been deducted. Return data through December 2009 represents price-returns, not total returns. Price returns do not refectthe reinvestment of dividends, interest rate received, or reatzed capital gains. RAM Score Fusion did not exist prior to 21 1; return data prior to 2fif9 is hypothetical. RPM Score Fusion performance figures for 251fl uftlize time-weighted returns and because RAM Score Fusion was not available in 2fi1, in order to provide hypothetical performance data, we have illustrated RAM Drive returns for each strategy. Since the RAM Score tool was nottriggered in 2glg, each strategy was invested in the market andthe underlying holdings were identical, regardless of whether an account elected RAM Score Drive, RAM Score Park, or RAM Score Fusion. We selected RAM Score Drives performance numbers because both RAM Score Drive and RAM Score Fusion invest in bond holdings or bond portfolios when the strategies are not invested in the market If RAM Score Fusion or RAM Score Drive had triggered, the holdings and returns for each respective portfolio would differ. RPM Score was not developed unftl January 2fi10. Prior to January 2010, clients were utilizing RAM Scores predecessor, RAM. Clients utilizing RAM may have had different results than those reflected above. Also, hypothetical returns are not indicative of Portformulas actual portfoto managementskills. The RAM Score feature is simply a tool designed to assist our firms management ofyoxr account. The RAM Score tool does not guarantee any specific results or performance, and even with RAM Score, it is possible thatyour account will lose value. RAM Score moves assets into or out ofthe market based on various economic and market indicators. It is possible thatthe market will move positively while you are not invested or negatively while you are invested, resulting in losses. The Platoon Cross Blend model invests io equities, and when triggered, the RAM Score Fusion tool moves clients assets out ofthe market and into a bond fund. Therefore, Porfiormulas is providing various stock-based and toed-income based indexes for comparison. Past performance does not guarantee future results and the potential for loss does exist
Portformu!asc8(the Firm) operates with Limited Discretionary Authority to engage solely in the implementation of specifc step-by-step investment criteria and account rebalancing as indicated and selected by the client SEC File No 8g1-68276. SEC Registration does not
page 18 of 19
imply a certain level of skill or training. This activity is generally referred to by the Firm as a Portformula Investment Strategy. You should only invest in Portformulas upon receiving and reading the Portformulas
ADV. @2006-2011 Portforrnulas5lAllRights Reserved,
PORTF5RMULAS
Additional Disclosures
In addition to the information provided on the previous pages, there are additional disclosures that warrant your attention.
Additional RAM Score FUSION Disclosure:
Model returns are calculated using the most recent month-end closing price for each holding chosen for the new period. Money market rates are calculated using the distribution amount stated at the most recent month-end record date. Model returns further assume trading was executed on the first business day of the month and therefore, as stated, do not reflect actual trading. Actual trading occurs on or near the beginning of the month. Due to market performance, fluctuations may occur after the first of the month but prior to the actual trade date. Accordingly, actual results for investors who were invested in a Portformula strategy during the same time period may have been higher or lower than the results for the period listed in the advertisement. Beginning in January 201 0, Portformulas began utilizing time-weighted returns on any model in existence from the beginning of a calendar year. Time weighted returns show the compound growth rate in a portfolio while eliminating the varying effect created by cash inflows and oufflows by assuming a single investment at the beginning of the period and measuring market value growth or loss at the end of that period. Model performance and time-weighted rates of return may be aggregated to calculate three-, five, seven-, and ten-year returns if time-weighted returns are not available for the full period. Return data through December 2009 represents price-returns, not total returns. Price returns do not reflect the reinvestment of dividends, interest rate received, or realized capital gains. Due to market volatility, current performance may be higher or lower than the performance shown. Investments may be purchased or sold without regard to how long you have owned them. Frequent movement can result in tax implications.
PortformulascS(the Firm) operates with Limited Oiscretionary Authoity to engage solely in the implementation of specific step-by-step investment criteria and account rebalancing as indicated and selected by the client SEC File No. 801-68276. SEC Regislrafion does not page 19 of 19 imply a certain level ot skill or training. This activity is generally reterred to by the Firm as a Porttormuta Investment Strategy. You should only invest in Portformulas upon receiving and reading the Porttormulas ADV. @2006-2011 Portformu!asfilAllRights Reserved.

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PD RTFR M U LAS

FORMULAIC TRENDING MONEY MANAGERS

The Formulaic Trending Monthly Abstract

cockroaches over Congress (no, Im not joking)!

FORMuLAIC TRNOINt MONEY MANAGER

FORMULAIC TRENDING MONEY MANAGER

FORMULAiC TRENEHNC MONEY MANAGER

FORMULAIC TRENDING MONEY MANAGERS

/3 F-Bull Bear (13 mo)

Momentum (13 mo)

TRIX (13 mo)

MACD (13 mo)

Recession Risk (13 mo)

Volatility (13 mo)

FORMULAIC TRENDING MONEY MANAGER

Mapper Score for Dow 30 TM Stocks Mapped = 7 Mapper Score = 23.33%

Mapper Score for NASDAQ TM Stocks Mapped = 56 Mapper Score = 2.07%

Portformulas Investing Corporation Formulaic Trending Money Manager

FORMULAIC TRENDING MONEY MANAGER

FORMLJLAC TRNoNc MONEY MANAGEFI

6020 E Fulton St Ada, MI 49301 800-8695994 www.Portformulas.com

FDRMULAIC TRENDING MONEY MANAGER

cc2Z 7/L/t) jc*vj_;

DIVERSIFIED PORTFORMULA PERFORMANCE

HISTORICAL PERFORMANCE VS. S&P 500

S&P 500 $i.087.74

10-Yr Treasury Yld

Annual Yield Comparison

ii: DveIfi-ffo1io 6OOO%

4000% 20,00/n 0,00/a -20.00%

FORMULAIC TRENDING MONEY MANAGER

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

DIVERSIFIED PORTFORMULA PERFORMANCE

HISTORICAL PERFORMANCE VS. S&P 500

8.51% -13.03% -7.10% -21.05%

DJIA NASDAQ Russell 2000 DJCBP l0.YrTreasuryYld MSClWorldlndex

Annual Yield Comparison

ri: 8000% 6000% 4000%

FORMULAIC TRENDING MONEY MANAGER

SEC Registered Investment Advisor

FORMULAIC TRENDING MONEY MANAGERS

IMPORTANT INVESTOR INFORMATION

www.Porlformulas.com SEC Registered InvestmentAdvisor

FORM U LAIC TRE N DI N G

Charges and Fees

AUM Formula Fee Annualized $500,000.00 $1,000,000.00 $2,000,000.00 $300000000

Portfolio Fee Annualized 1.44% 1.32% 1.20%

Combined Total Fee Annualized 2.88% 2.64% 2.40% 216/

$500,000.00 $1,000,000.00 $200000000

1.32% 1.20% 108/

but less than but less than

0.96% 0.8o 0.84% 0.84%

Largeraccounts may be negotiable based upon size.

1 .56% 1.44% 1.32%

calculated and charged monthly no charge .0045 cent per share

Other Considerations: (may be modified with 30 days prior written notice)

PD RTFZ5II IVI U LAS

6020 E Fulton St Ada, Mt 49301 800-869-5994 www.Porfformulas.com

FORMULAIC TRENDING MONEY MANAGER

TM Formulaic Investing Strategy Allocation

40.00% 20.00% 20.00% 20.00% 100.00%

$120,000 $60,000 $60,000 $60,000 $300,000