ETF Managed Portfolios Landscape Report

Transcription

1 ETF Managed s Landscape Report Morningstar Research January 2012 Andrew Gogerty, ETF Managed s Strategist

2 2 ETF Managed s Landscape Report January 2012 Executive Summary 3 ETF managed portfolios are investment strategies that typically have more than 50 of portfolio assets invested in ETFs. Primarily available as separate accounts they represent one of the fastest-growing segments of the managed account universe. 3 Morningstar is currently tracking nearly 370 strategies from 95 firms with collective assets under advisement of $27 billion as of September Morningstar estimates that the total ETF managed portfolio space is likely between $40 billion and $100 billion when considering discretionary and non-discretionary assets and model portfolios. 3 Assets have grown 43 over the last 12 months. 3 Nearly two-thirds of the strategies started after of the strategies are less than three years old. 3 Continued acceptance of the fiduciary standard is leading many advisors to outsource the money-management function to ETF managed portfolio firms. 3 Morningstar has developed a proprietary, portfolio attribute classification system for ETF managed portfolios. The new structure consists of four main attributes: Universe, Asset Breadth,, and. 3 Global strategies, collectively, hold 72 of assets in this space. 3 Firms such as Good Harbor Financial, Quantitative Advantage, and Cougar Global Investments have seen large changes in asset growth and moved up the list towards industry leaders Windhaven Investment Management, RiverFront Investment Group, and Innealta Capital. 3 Performance of these strategies has been competitive with applicable open-end mutual fund and separate account category returns, with both high and low points. 3 Morningstar will begin systematically collecting Assets Under Advisement (AUA) for separate account strategies in 2012 to better capture assets following a given strategy. 3 We expect a growth in disclosure of both third-party and proprietary strategies to database providers such as Morningstar. As recognition of ETF managed portfolio strategies continues, we expect the depth-of and demandfor information to increase for proprietary and rep-asportfolio-manager composite strategies. 3 Education on both these strategies and ETFs in general remains a near-term hurdle to deeper penetration into the advisor community. Success in gathering assets going forward, we believe, will be based on the ability of a firm to educate potential decision-makers both on the benefits of its strategy and also be able to clearly, and simply articulate the benefits within the context of the client s investment policy guidelines. 3 Global All-Asset strategies hold $10 billion and have captured more than 50 of the asset growth.

3 3 ETF Managed s Landscape Report January 2012 Table of Contents Landscape Commentary 4 Attribute and Return Information Table A: All ETF Managed s 12 Table B: Attribute Groupings Ranked by 3yr Return 20 Table C: Selected Top- and Bottom-Performing Strategies 1yr Return 30 Selected Asset Information Table D: Largest Strategies 31 Table E: Largest Asset Growth By Strategy 31 Table F: ETF Managed Assets By Firm 32 and Risk Information Table G: Asset Allocation Profile 33 Table H: Selected Risk and Return Stats 42 Selected Morningstar Category Information Table I: Summary Returns of Medians, Open-End Fund Categories, and Separate Account Categories 48 Benchmark Information Table J: Blended Benchmark Composition 49

4 4 ETF Managed s Landscape Report January 2012 ETF Managed s represent one of the fastest-growing segments of the managed account universe. Exchange-traded funds (ETFs) continue to command more incremental investment dollars from advisors and investors. For the one-year ended Dec. 31, 2011, Morningstar estimates that net inflows to ETFs were $121 billion compared with $56 billion for open-end mutual funds, despite the one-to-seven size differential in their respective assets of $1.1 trillion and $7.8 trillion. While the growth of ETF assets is not a new story, the emerging story of ETF managed portfolios has been little discussed. Primarily structured as separate accounts, these strategies typically have more than 50 of portfolio assets invested in ETFs and represent one of the fastestgrowing segments of the managed-account universe. Morningstar is currently tracking nearly 370 strategies from 95 firms with collective assets under advisement or AUA of $27 billion as of September 2011 a 43 growth over the last 12 months. Morningstar estimates that the total ETF managed portfolio space is likely between $40 billion and $100 billion when considering discretionary and non-discretionary assets and model portfolios. Strategy launches have increased dramatically in recent years nearly two thirds of the strategies started in 2005 or later and 30 of the strategies are less than three years old. A Change in Money Management There are several reasons for the growth of ETF managed portfolios. Morningstar and academic research have shown that asset allocation is as important as security selection in determining portfolio total returns. A prudently constructed portfolio of ETFs provides wide assetallocation options and low-cost diversification. ETFs provide transparency, intraday liquidity, and portfolio consistency to strategists allocating among various asset classes and subclasses. We re seeing steadily increasing flows and interest from advisors towards third-party ETF managed strategies. The space has passed the tipping point with the independent advisor market and broader wealth management space. Randy Bullard, Placemark Investments Strategist firms are also benefitting from a shift in the way financial advisors and registered investment advisors, or RIAs, manage money. Whether mandated by law or continued market pressures, the fiduciary standard will continue to grow as the standard for managing a client s portfolio and the shift to a fee-based compensation structure will likely continue. For many advisors, this has led to the outsourcing of the money-management function to ETF managed portfolio firms. Advisors continue to focus on gathering and retaining client assets and managing a client s overall financial profile while ceding more of the actual portfolio management duties to strategist firms. Advisors are shouldering new responsibilities such as compliance and technology in addition to managing and attracting new clients. Many are choosing to outsource the money management function and concentrate on growing the firm and managing client relationships. Break-away advisors requiring a turn-key money management solution similar to what they received as part of a larger wire-house or broker-dealer are also turning to third-party ETF managed portfolio solutions. Mitch Reiner, Managing Partner, Wela Strategies With ETFs trading on exchanges, advisors and RIAs can access these separate account strategies while maintaining daily pricing of client portfolios. Moreover, compensation is pulled out of the investments and done at the account level rather than being buried in the myriad share classes of mutual funds and their distribution and selling

5 5 ETF Managed s Landscape Report January 2012 Assets by Inception Year Assets USD Mil To aid investors, Morningstar has developed a portfolio attribute classification system for ETF managed portfolios. Unlike the well-known Morningstar Category TM classificaagreements. As a result, advisors can focus on wealth management for their clients and still offer institutionaltype diversification in their portfolios. There continues to be increased interest in management of a portfolio of ETFs because it offers a full portfolio solution rather than just an individual asset component. Whether a strategy has a dynamic or tactical component to navigate market volatility, managers of ETFs offer unique and innovative answers to complex portfolio needs. Skip Motsenbocker, Managing Partner, SignalPoint Asset Management, LLC Firm Evolution The growing use of ETF managed portfolios has led to changes in how strategist firms are organized and perceived by advisors and decision-makers. Many of these firms were initially started by financial advisors who broke away from wire-house operations or other regional broker-dealers. As is the case with many start-up ventures, these entrepreneurs were likely lured by the possibility of greater autonomy, a wider potential client base, and the ability to build a distinct brand. While initially directly serving their own clients, many of these firms began seeing a growing interest in their investment and asset-allocation strategies from other finan- cial advisors and investment consultants. As a result, firms evolved and continue evolving from a client advisory practice toward the small, boutique money manager model commonly seen in the traditional separate account space. ETF managed portfolio firms today also include traditional separate account managers, such as Cookson Peirce and Gratry & Company, that have leveraged their research into ETF-only strategies. Top-down research is an integral part of our process. Therefore as the ETF universe (particularly country index ETFs) began to evolve, an ETF-only portfolio was a logical extension of our existing active portfolios, and offers a broader market capitalization exposure and a neutral approach to style. Gregory Tropf, CFA, Director of Research, Gratry & Company LLC A New Industry Standard The global growth in both depth and breadth of ETFs gives investment managers access to almost any asset class and region of the world. The ETF structure combined with its intraday trading ability also gives managers the ability to quickly and cost effectively change, sometimes in dramatic fashion, the profile of a portfolio. For example, swapping from U.S. large-cap stock exposure to dividendpaying, emerging-markets small-cap equities can be accomplished by trading as little as one position in SPDR S&P 500 SPY for another in WisdomTree Emerging Markets SmallCap Dividend DGS, as opposed to the potentially hundreds of individual stock trades it would take to replicate those exposures in a traditional portfolio. 8,000 6,000 4,000 2, Strategies Launched by Year Number of Strategies This tactical ability to quickly change a portfolio profile can be a double-edged sword. On the one hand, the investment managers can nimbly and cheaply reposition a strategy to adjust to an ever more rapidly changing investment landscape. On the other hand, it forces decision makers to look past standard holdings-based analysis in order to choose the most suitable strategies for client portfolios and properly frame potential return expectations. Periodic (typically quarterly) portfolio disclosures may be of little use to decision makers, if the portfolio has since been significantly changed. Muddying the waters even more, strategy providers also have littered the landscape with a myriad of blended benchmarks that makes understanding, let alone comparing, strategies across the space difficult. The evolution of tactically managing a portfolio of ETFs has created a need for additional, standard information on these strategies.

6 6 ETF Managed s Landscape Report January 2012 tions, the new attribute classifications rely on both our analysis of the investment strategy as well as a historical review of disclosed holdings. Some strategies are still siloed among equities or fixed income, allowing decisionmakers to fill-the-box ; others are built around a total portfolio solution concept, emphasizing risk or global diversification with a blending of alternatives. Our new structure consists of four main attributes: Universe, Asset Breadth,, and Primary ETF. With better insight into a strategy s attributes, investors can better understand its broad philosophy. These four attributes are then further broken down into a list of unique classifications. Each strategy is assigned one classification within each attribute. Attribute and Classification Summary assigned to strategies with at least an 80/20 split among U.S. and International exposure. We also took into account, where necessary, the regional exposure of the dominant asset driver designated in the Asset Breadth attribute. Asset Breadth The classifications within this attribute indicate a strategy s primary asset class exposure or returns driver. There are five options here: All-Asset, Alternative, Balanced, Equity, and Fixed Income. These selections don t indicate that the whole portfolio is, for example, invested in equities or bonds, but rather sets the expectation for advisors and investors regarding the primary driver of returns. Classification within this attribute includes an analysis of historical portfolio asset allocations and a review, if available, of a strategy s investment policy benchmark, or starting portfolio, or naïve portfolio. Universe Asset Breadth Global All-Asset Hybrid Broad Market International Alternative Strategic Sector United States Balanced Tactical Country/Region Equity Fixed Income All-Inclusive Universe The first attribute describes the starting scope of a strategy s investment process on a global basis. The distinction is based upon the exposure of the underlying securities within the ETF used, not the domicile of the ETF itself. The classifications for this attribute are United States, International, and Global. 3 United States: U.S. portfolios primarily use ETFs providing exposure to U.S. equity and fixed-income securities. 3 International: International portfolios primarily use ETFs providing exposure to non-u.s. equity and fixedincome securities. 3 Global: These strategies have the opportunity to add exposure to any market across the globe and have historically employed such flexibility. The initial selection of this attribute is based on many factors, included a review of the strategy s current Morningstar Separate Account Category and Institutional Category, as well as an analysis of available portfolios. Where available, we ve also reviewed a firm s deck or description of the investment strategy to note any starting universe or list of available ETFs or asset classes for investment. In benchmark or starting portfolios, the Global attribute was 3 All-Asset: These strategies typically have the widest and most-flexible mandate when investing in ETFs across asset classes. In reviewing the portfolios, we designated this attribute to strategies that consistently held more than 10 in Other assets as well as in underlying equity and fixed-income securities. 3 Alternative: Alternative strategies typically seek returns uncorrelated to traditional equity and fixed-income markets by attempting to remove one or more asset betas or return drivers. Strategies with this attribute designation include long/short or other alternative strategies, including currencies. 3 Balanced: The balanced option indicates strategies in which the return driver is a combination of equity and fixed-income exposure on a dedicated, ongoing basis. These strategies typically have a 30 to 70 allocation to equities. 3 Equity: The primary asset driver of these strategies is long or beta-type exposure to equity securities. The use of leverage by the underlying ETF is ignored. These strategies typically have at least a 70 allocation to equities. 3 Fixed Income: The primary asset driver of these strategies is long or beta-type exposure to fixed-income securities. The use of leverage by the underlying ETF is ignored. These strategies typically have less than a 30 allocation to equities. This attribute gives insight into the investment manager s process for implementing a portfolio s investment strategy. Selection decisions for this attribute are based upon a

7 7 ETF Managed s Landscape Report January 2012 Current Assets by Attribute, 9/30/2011 review of the degree of changes both within and among asset classes in a portfolio. As a result, changes to the cash/equity/fixed income/other allocation, as well as to a portfolio s U.S. /non-u.s. exposure, are considered. The three classifications are Hybrid, Strategic, and Tactical. 3 Hybrid: This option indicates portfolios that utilize a combination of tactical and strategic elements in asset allocation. Hybrid portfolios, for example, start with a stated investment policy benchmark or asset allocation but allow for significant deviations of exposure within and between allocations, similar to core and satellite or hub and spoke operating models. strategies that make significant use of options also receive this classification. 3 Strategic: These are strategies that establish and maintain a long-term allocation plan across either asset classes, sectors, or a combination thereof. These portfolios may deviate from the plan in short-term periods based on identified opportunities but typically to a smaller degree compared with tactical strategies. Strategies for which few historic portfolios have been provided to our database initially default to this classification. 3 Tactical: Tactical strategies engage in short-term and potentially large changes in the asset mix of a portfolio to All-Asset Alternative Balanced Equity Fixed Income Total Global International United States Total Strategies by Attribute, 9/30/2011 All-Asset Alternative Balanced Equity Fixed Income Total Global International United States Total ETF Managed Asset Growth by Attribute, 9/30/2011 All-Asset Alternative Balanced Equity Fixed Income Total Global International United States Total Source: Morningstar, Inc. capitalize on identified investment opportunities. These changes are typically intended to be reversed or removed. The last attribute identifies the type of ETF typically used to gain exposure to the Universe and Asset Breadth attributes. Selection is based upon analysis of past portfolios and information regarding a strategy s starting universe or list of potential investments. 3 Broad Market: Broad-based ETFs tracking diversified indexes such as the Russell 2000 Index, S&P 500, or Barclays Aggregate Bond. 3 Sector: Strategies that primarily use individual equity sector ETFs, such as those focusing on financials, or more narrowly focused fixed-income ETFs to gain exposure within the Asset Breadth attribute. A sector fixed-income strategy is typically one focused on a single sector such as municipals or Treasury ETFs. 3 Country/Region: Similar to the sector option, these strategies utilize single-country, regional, or currency ETFs focused on a geographical region and are typically found in the international or global Universe attribute. 3 All-Inclusive: All ETFs meeting the Universe and Asset Breadth criteria for a strategy are potential investments. We believe our attribute classification system gives decision-makers a significant new tool for conducting research on these strategies and provides better expectations for potential exposures across the ETF universe. For instance, a tactical strategy with a global, balanced mandate that happens to have a large exposure to United States equities at one specific point in time has a greater potential for change going forward compared with a strategy with a U.S. equity mandate. A Global Appetite Our attribute classification system also provides a framework within which it is now possible to discuss developments in the ETF managed portfolios universe. Global strategies dominate the space, holding over $19 billion 72 of assets reported to Morningstar. Inside the Global universe, All-Asset strategies are the hot dot, with $10 billion in current assets. All-Asset strategies also posted the largest asset growth, with nearly $4.6 billion of the total $8.1 billion (57) in inflows to the ETF managed portfolio space over the one-year ended Sept. 30, 2011 going here. Global strategies combined grew by $7.3 billion over the year representing 90 of the entire

8 8 ETF Managed s Landscape Report January 2012 growth. As we mentioned earlier, the ability and ease to construct multi-asset portfolios with ETFs enables portfolio strategists to provide a complete solution to advisors and other asset allocators within one strategy. In addition to traditional equity and fixed-income allocations, many strategies in this space allocate assets to gold, sliver, and broad-based commodity indexes. Assets in the Global All-Asset space are currently highly concentrated. Three strategies from Boston-based Windhaven Investment Management, recently acquired by Charles Schwab, hold a combined $7 billion, making both the firm and its strategies the largest in the entire ETF managed portfolio space. Quantitative Advantage s Tactical All-Market strategy and Cougar Global Investment s MAR 8 strategy have also seen significant growth, increasing $423 million and $314 million, respectively. The Building Block of Equity The total-portfolio solution concept of All-Asset strategies may be here to stay, but that hasn t diminished the appeal of equity-focused strategies among advisors and consultants. In total, this group accounts for 35 of total ETF managed portfolio assets, just slightly behind All-Asset s 39 share. Assets within equity strategies are more evenly distributed compared with All-Asset, with Global, International, and United States strategies holding $4.8, $1.5, and $3.1 billion, respectively. Largest Managed ETF Firms, 9/30/2011 Firm Largest One-Year Growth in Assets, 9/30/2011 Firm Growth USD Mil * Assets USD Mil Windhaven Investment Management 2,909 7,081 Stadion Money Management, LLC 1,000 1,219 Cougar Global Investments LP Astor Asset Management LLC 533 1,159 Quantitative Advantage RiverFront Investment Group, LLC 446 2,549 Sage Advisory Services Ltd Co Good Harbor Financial, LLC * Assets of ETF-managed portfolio strategies reported to Morningstar * Assets USD Mil Windhaven Investment Management 7,081 RiverFront Investment Group, LLC 2,549 Innealta Capital 1,499 Stadion Money Management, LLC 1,219 Astor Asset Management LLC 1,159 Quantitative Advantage 895 * Assets of ETF-managed portfolio strategies reported to Morningstar While equity strategies accounted for nearly 30 of total growth in the ETF managed portfolio space, the Global strategies again dominated the increase, accounting for $1.6 billion of the $2.4 total growth, compared with just $48 million for International offerings and $740 million for the U.S. offerings. Stadion Money Management s Managed Strategy has been the primary driver of the Global Equity space, growing to $1.1 billion in assets from $211 million. Windham Global Equities, a relatively new strategy launched in August 2010, added more than $200 million over the past year, while Sage Tactical ETF Growth assets stand at $150 million, up from just $9 million the year before. Both Sage and Stadion employ a Tactical approach in managing the portfolios, and that flexibility was put to good use in 2008 as the two strategies posted significantly smaller losses (29 and 5, respectively) compared with the Morningstar Global Equity Index s 42 decline. Among United States Equity strategies, the Chicagobased Good Harbor US Tactical Core strategy commanded more than half the total U.S. equity growth with a $400 million rise in assets. The strategy s small absolute gain of 1.1 in 2008 combined with a 19 three-year annualized return through 2010 caught the attention of many advisors and platforms last year. Other material growth in the space was driven by sectorrotation strategies from Innealta Capital. Its offerings, as well as a handful from competitors, look to outpace the S&P 500 Index by rotating assets among major sectors of the U.S. equity market. Innealta s strategies don t have the lengthy track record seen at Good Harbor but did post gains of 3 and 5 the one-year ended Sept. 30, 2011, compared with the index s 1.1 gain. We expect Equity strategies to maintain a material share of the overall ETF managed portfolio space, as many advisors and asset-allocators still look to equities as a primary building block for client portfolios. Alternatives and Bonds Alternative strategies remain a favorite among new launches, with six of the 13 available strategies only launched within the past two years. The space is dominated by the Astor Long/Short Balanced strategy, which at $1.1 billion accounts for nearly all the assets among Alternative strategies. Astor s growth may be an anomaly (up from just $622 million the year before) or a sign of an increased appetite for alternatives among advisors. It should be noted that Astor s growth has come primarily from separate accounts, not its mutual fund vehicle, amid

9 9 ETF Managed s Landscape Report January 2012 New Strategy Launches, 2010 and 2011 continued industry demand for liquid alternative strategies. These strategies cover a wide-array of styles and investments, including long-short, market-neutral, currencies, commodities, and precious-metals. Fixed Income was the lone Asset-Breadth attribute to post a decline in assets for the year, falling to $1.4 billion from $1.9 billion. Nearly all the decline can be attributed to an exodus from Innealta s Fixed Income strategy, which fell nearly $760 million in assets from $874 to $106 million. Performance Analysis and Take-Aways Longer-term performance of these strategies has been competitive with broader, applicable open-end mutual fund and separate account category returns, with both high and low points. Three- and five-year net annualized returns (see accompanying tables on pages 20 and 48) for Global All- Asset, International Equity, and U.S. Equity often outpaced comparable peers, and in some cases the smaller subset of Tactical strategies within these groups fared even better. That s not to be confused with ALL Tactical managers. In looking at the performance in 2008 and also the downside capture ratios starting on page 42, there has been a wide variance in performance and the ability to avoid losses. But overall, based on the median returns thus far, some strategists have successfully used their tactical ability both to go to defensive assets in times of market volatility and to rotate to stronger-performing sectors in times of market rallies. Within the Tactical Global All-Asset space, for example, Cougar Global Investment s MAR 6 and MAR 8 strategies posted returns of 1.7 and negative 1.7, respectively, during 2008 s global free-fall, while strategies from Confluence and Kingfisher fell more than 30. This dispersion, along with upside capture of global returns, has led to a wide variance of three-year annualized returns from 9.9 for Boyd Watterson Titanium Global Macro SMA to negative 10.4 for Confluence Global Macro. Windhaven s three strategies have more of a strategic portfolio implementation and, compared with peers, rank among the best on three- and five-year bases. All-Asset Alternative Balanced Equity Fixed Income Total Global International United States Total Source: Morningstar, Inc. In the end, though, these strategies remain far from homogenous, requiring additional research to understand how asset-allocation changes are made and how performance can be attributed. U.S. Equity sector-rotation strategies have had inconsistent success overall against the S&P 500 Index. These strategies commonly look to allocate assets across one or more primary equity sectors (financials, industrials, and so on) and often have the ability to go to cash when individual sectors don t appear attractive. There is approximately $1 billion in these separate account strategies, though just a handful of them have five-year records. Strategies including isectors Post-MPT Growth Allocation-SMA, BCM AlphaSector Premium IDX, Braver Tactical Equity Sector Rotation, and Innealta s two Tac ETF Sector Rotation offerings have done well in the short-term, while Green Investment Management s Guardian Sector has fallen woefully behind the index across one-, three-, and five-year periods. The education around tactical allocation remains a focal point for strategists. They view individual ETFs both from a stock basis, focusing on relative valuation, momentum, and trading ranges as well as a fund of securities providing consistent market and geographic exposure. But unlike long-only managers trying to move in and out of hundreds of individual securities to materially change a portfolio s profile, the ETF structure allows strategists to quickly and completely change portfolio allocation in a relatively short period of time. Clients have their own idea of what tactical means. The investor experience across different tactical managers can vary dramatically based on manager style, so setting expectations early is even more important in the tactical space. Neil Peplinski, CFA, Manager, Good Harbor Financial, LLC Current Trends and Industry Outlook Along with grabbing the lion s-share of assets and asset growth over the past year, Global strategies were also the go-to choice for new launches in 2010 and Global strategies accounted for 42 of the 64 new offerings. Within the Global space, Equity and Balanced strategies accounted for 70 of that total, as firms have begun expanding their series of asset-allocation products or leveraging their domestic research process within a global asset mandate. Collectively, new Fixed Income launches included the most conservative option in an asset-allocation series and those from firms with long track records on the equity side looking to round out their line up for advisors in a siloed fashion.

10 10 ETF Managed s Landscape Report January 2012 Advisors are demanding solutions to reduce risk and capture alpha through volatility. With many ETFs being passive and so many providers offering similar products in competing spaces, advisors are looking to outside asset managers to vet out the correct components that can be assembled into a comprehensive strategy. Skip Motsenbocker, Managing Partner, SignalPoint Asset Management, LLC Asset growth and distribution access remain a key focus for firms providing ETF managed portfolio strategies. The increased interest in unified managed accounts, UMAs, has given some renewed life to traditional separate accounts, and because ETF strategies contain relatively few holdings in a portfolio they are very attractive in this space. Advisors also have the flexibility to allocate capital to multiple strategies inside one overall account, and this demand is expected to continue. With the proliferation of ETFs, we re seeing a lot of product innovation. UMAs are growing at a rate greater than all other fee-based programs. What UMAs have done is usher in an industry transition to model-based delivery of SMA portfolios. The result is massive product growth and innovation in the model delivered strategy space. Randy Bullard, Placemark Investments Overlay management platforms offering outsourced execution (such as Placemark, LPL Financial, TD Ameritrade, and others) are a relatively new option for firms looking to expand access to their strategies but represent a major potential driver for asset growth. In this arrangement, the ETF managed portfolio firm (or any separate account firm more broadly) provides a starting portfolio to the platform. The platform, not the manager, then executes subsequent portfolio changes in all underlying separate accounts and/ or UMAs that have signed-on to track a particular strategy. Again, given the low relative number of holdings in an allor primarily-etf portfolio, this model holds considerable appeal. Strategies gaining access or approval for listing on these platforms have a captive audience of advisors and consultants. As a result, the overlay management platforms will likely continue to be an important distribution channel. For example, firms such as Quantitative Advantage and Cougar Global Investments have seen material growth in assets in their strategies through this format on LPL Financial s Model Wealth Platform. As a result of this evolution in distribution, Morningstar will begin systematically collecting assets under advisement (AUA) for separate account strategies in AUA differs from the more-common assets under management or AUM, in that AUA includes both AUM and assets from these third-party execution platforms (typically referred to as non discretionary assets). AUM typically only includes assets of accounts where the investment manager is directly executing portfolio changes (discretionary assets). As such, AUA is greater than or equal to AUM. We expect growth in non- AUM assets to continue, as firms asset growth comes from a combination of distribution models. Where reported, AUA figures were used in this commentary. Legal structure has also enabled the distribution of ETF managed portfolios. Over the past year, there has been an uptick in the launch of mutual funds and ETFs that primarily invest in underlying ETFs. New launches have been dominated by open-end funds, with just a handful of ETF of ETFs coming to market. Many firms, including Boston Advisors, LLC (Boston Advisors Broad Allocation Strategy BABIX), are leveraging their long-standing separate account strategies into a unitized or regulated vehicle format to increase their distribution opportunities including the retirement and 401(k) space. Some firms, such as Brinton Eaton Associates (Giralda GDAIX), have gone so far as to convert virtually all of their separate account clients into the new mutual fund. Mutual funds and other regulated, pooled investment vehicles offer greater flexibility to access multiple retirement platforms, but this industry norm is undergoing change, as custody and trust platforms servicing the retirement space are developing new ways to provide daily valuation of separate account strategies. Over the coming year, we expect to expand our analysis and commentary of the ETF managed portfolio space across mutual funds and ETFs. We also expect to see more disclosure of both third-party and proprietary strategies to databases such as Morningstar s. The continued traction of the fiduciary standard for financial advisors warrants a higher level of due diligence and research when selecting strategies for a client portfolio. Within the retirement market, we anticipate a growing need for retirement-plan advisors to have access to consistent, standardized information for performing fiduciary due diligence for plan sponsor clients. In addition, many of the wirehouses, national broker-dealers, and regional RIAs offer proprietary, internal separateaccount strategies to their affiliated members, but thus far have not widely reported asset and total-return information to the broader investment community via third-party databases such as Morningstar. The lack of ability to objectively and systematically analyze a strategy along multiple dimensions and against both in-house and third-party alternatives presents a material litigation risk to financial advisors allocating client capital across strategies. As rec-

11 11 ETF Managed s Landscape Report January 2012 ognition of ETF managed portfolio strategies continues to increase, we expect demand for information related to proprietary and rep-as-portfolio-manager composite strategies to increase. In response, we anticipate the depth of information provided by the strategies to also increase. We find there is still a need to understand ETFs themselves how are they structured, traded, and different from an index mutual fund. Then, it s a matter of explaining our process for selecting which ETFs to include in our portfolios, our tactical investment management style and how it improves upon traditional investing. John Wing, CEO, Quantitative Advantage, LLC Education about these strategies and ETFs in general remains a near-term hurdle to deeper penetration into the advisor community. Many platform decision-makers and investment committees face challenges slotting these strategies in an overall asset allocation plan. The tactical nature of many of these strategies is a primary discussion point for many ETF-managed portfolio firms, despite a potential client s attraction to a particular strategy. Some managers even report setbacks in first having to explain what an ETF is and the general benefits of an ETF-only portfolio before getting to their specific strategy. This stumbling block often starts with the investment policy benchmark of a potential client, which often is built around a stock/bond/cash/maybe-some-alternatives construct. From there the client (with the help of a consultant perhaps) historically has picked manager A for stocks manager B for bonds, and so on. Certain ETF-managed portfolio strategies, however, give access to one or more combinations of these asset classes along with new options (including volatility and other market styles or factors) forcing the need for additional education. Success in gathering assets going forward, we believe, will be based on the ability of a firm to educate potential decision-makers both on the benefits of its strategy and also be able to clearly, and simply articulate the benefits within the context of the client s investment policy guidelines.

12 12 ETF Managed s Landscape Report January 2012 Table A: ETF Managed Strategies Sept. 30, 2011 Inception Universe Asset Breadth 1-Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil YOY Asset Growth 361 Long/Short Equity ETF 12/31/10 Global Alternative Tactical All-Inclusive Multi-Strategy ETF 01/01/10 Global Alternative Tactical All-Inclusive D Fixed Income ETF 02/02/09 United States Fixed Income Tactical All-Inclusive D Fixed Income ETF - Tax Mgd. 12/01/08 United States Fixed Income Tactical All-Inclusive D Global 100 ETF 07/03/06 Global Equity Hybrid Broad Market D Global 20 ETF 02/02/09 Global Fixed Income Hybrid Broad Market D Global 20 ETF - Tax Managed 12/01/08 Global Fixed Income Hybrid Broad Market D Global 40 ETF 02/01/07 Global Balanced Hybrid Broad Market D Global 40 ETF - Tax Managed 01/03/07 Global Balanced Hybrid Broad Market D Global 60 ETF 09/01/06 Global Balanced Hybrid Broad Market D Global 60 ETF - Tax Managed 10/02/06 Global Balanced Hybrid Broad Market D Global 80 ETF 08/01/06 Global Equity Hybrid Broad Market D Global 80 ETF - Tax Managed 10/02/06 Global Equity Hybrid Broad Market D Global Growth ETF 02/01/10 Global Equity Hybrid Broad Market Accuvest Asian Advantage 08/31/10 International Equity Tactical Country/Region Accuvest Core Equity 08/01/05 Global Equity Tactical Country/Region Accuvest Global Opportunities 11/01/05 Global Equity Tactical Country/Region Accuvest Non US Equity 08/29/08 International Equity Tactical Country/Region Appleton Group PLUS 12/31/99 Global Equity Hybrid Broad Market Appleton Group PLUS-Conservative 01/03/00 United States Balanced Hybrid Broad Market Appleton Group PLUS-Moderate 01/03/00 United States Equity Hybrid Broad Market Appleton Group 12/31/99 Global Equity Hybrid Broad Market Appleton Group Tax Managed 12/31/99 Global Equity Hybrid Broad Market Appleton Group-Conservative 01/03/00 United States Balanced Hybrid Broad Market Appleton Group-Moderate 01/03/00 United States Equity Hybrid Broad Market Astor Active Income Program 03/01/11 United States Fixed Income Strategic All-Inclusive 1.6 Astor Long/Short Balanced Program 12/31/99 United States Alternative Tactical All-Inclusive , Astor Style Preferred Growth Program 12/31/99 United States Equity Tactical All-Inclusive Avatar Aggressive 04/01/04 United States Equity Tactical Sector Avatar Capital Preservation 04/01/04 United States Fixed Income Tactical Sector Avatar Conservative Growth 04/01/04 United States Balanced Tactical Sector Avatar Conservative 04/01/04 United States Balanced Tactical Sector Avatar Fixed Income Plus 05/01/09 United States Fixed Income Tactical All-Inclusive Avatar Growth 04/01/04 United States Equity Tactical Sector Avatar Moderate Growth 04/01/04 United States Equity Tactical Sector Avatar Moderate 04/01/04 United States Balanced Tactical Sector BCM AlphaSector Allocator Premium IDX 01/04/10 Global Equity Tactical All-Inclusive BCM AlphaSector Global Premium IDX 04/02/01 Global Equity Tactical All-Inclusive BCM AlphaSector Int'l Premium IDX 04/02/01 International Equity Tactical Broad Market BCM AlphaSector Premium IDX 04/02/01 United States Equity Tactical Sector ,068 BCM AlphaSector Rotation IDX 04/02/01 United States Equity Tactical Sector BCM Diversified Equity 04/02/01 United States All-Asset Tactical All-Inclusive BCM Diversified International Premium 11/01/10 International All-Asset Tactical All-Inclusive 2.7 BCM Premium Diversified Equity 04/02/01 United States All-Asset Tactical All-Inclusive Boston Advisors Broad Allocation Str SA 10/31/08 Global All-Asset Hybrid All-Inclusive Boyd Watterson Titanium Global Macro SMA 03/31/05 Global All-Asset Tactical All-Inclusive Braver Tactical Balanced 12/31/03 United States Equity Tactical Broad Market NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc.

13 13 ETF Managed s Landscape Report January 2012 Table A: ETF Managed Strategies Sept. 30, 2011 (Continued) Inception Universe Asset Breadth 1-Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil YOY Asset Growth Braver Tactical Equity Opportunity 12/31/85 United States Equity Tactical All-Inclusive Braver Tactical Equity Sector Rotation 01/03/95 United States Equity Tactical Sector Braver Tactical High Yield Bond 12/30/94 United States Fixed Income Tactical Sector Capital Wealth ETF Covered Call Strategy 01/02/08 Global All-Asset Hybrid All-Inclusive Caprin Managed Muni ETF 09/13/10 United States Fixed Income Strategic Sector Caprin Managed Tactical Blend ETF 09/13/10 United States Fixed Income Strategic All-Inclusive Caprin Managed Taxable Bond ETF 09/13/10 United States Fixed Income Strategic All-Inclusive Champion CR Fixed Income Qualified 10/03/05 United States Fixed Income Strategic All-Inclusive NR Champion CR Glb Mac Intl Diver-Panoptic 05/01/03 International Equity Strategic All-Inclusive NR Champion CR Global Macro Emerg Mkt Core 05/01/03 International Equity Tactical Country/Region NR Champion CR Income Plus Equity 10/03/05 Global Balanced Tactical Broad Market NR Champion CR Strategic ETF Enhanced Gth 05/02/05 Global Equity Tactical All-Inclusive NR Champion CR Strategic ETF Growth 05/02/05 Global Equity Tactical All-Inclusive NR Champion CR Strategic ETF Low Risk 05/02/05 Global Balanced Tactical All-Inclusive NR Champion CR Strategic ETF Moderate 05/02/05 Global Balanced Tactical All-Inclusive NR Champion CR Tactical ETF Consvtv SA 05/02/05 Global Balanced Tactical All-Inclusive NR Champion CR Tactical ETF Enhcd Growth SA 05/02/05 Global Equity Tactical All-Inclusive NR Champion CR Tactical ETF Growth SA 05/02/05 Global Equity Tactical All-Inclusive NR Champion CR Tactical ETF Low Risk SA 05/02/05 Global Balanced Tactical All-Inclusive NR Champion CR Tactical ETF Moderate SA 05/02/05 Global Balanced Tactical All-Inclusive NR Clark Navigator Alternative 01/03/07 Global All-Asset Tactical All-Inclusive Clark Navigator Fixed Income TR 12/31/04 United States Fixed Income Tactical All-Inclusive Clark Navigator Global Eq ETF Hedged 07/01/04 Global Equity Tactical All-Inclusive Clark Navigator Global Equity ETF 04/01/04 Global Equity Tactical All-Inclusive Clark Navigator Global Opportunity 02/01/06 Global Balanced Tactical All-Inclusive Clark Navigator Intl Opportunity 01/04/07 International Equity Tactical Country/Region Clark Navigator Sector Opportunity 01/03/07 United States Equity Tactical Sector Clark Navigator U.S. Style Opportunity 01/03/07 United States Equity Tactical Broad Market CLS ETF Risk Budget Aggressive 03/30/01 Global Equity Strategic All-Inclusive CLS ETF Risk Budget 60-Moderately Cnsrv 04/01/02 Global Balanced Strategic All-Inclusive CLS ETF Risk Budget 75 - Moderate 12/31/01 Global Equity Strategic All-Inclusive CLS ETF Risk Budget 80 - Moderate 12/31/01 Global Equity Strategic All-Inclusive CLS ETF Risk Budget 90-Moderately Agrsv 07/01/02 Global Equity Strategic All-Inclusive CMG AIFS Active U.S. Treasury Management 07/01/09 United States Fixed Income Tactical Sector ,900 Confluence Aggressive Growth 08/01/08 United States Equity Tactical All-Inclusive Confluence Global Macro 05/01/07 Global All-Asset Tactical All-Inclusive Confluence Growth 08/01/08 United States All-Asset Tactical All-Inclusive Confluence Growth and Income 09/02/08 United States All-Asset Tactical All-Inclusive Confluence Income and Growth 12/01/08 United States All-Asset Tactical All-Inclusive Cookson Peirce All-Cap World Equity 09/30/03 Global Equity Tactical All-Inclusive CoreStates 20/20 Global Vision Tactical 01/03/06 Global Balanced Hybrid All-Inclusive Cornerstone Model 10/31/02 Global All-Asset Strategic All-Inclusive Cougar Global MAR 10 12/30/99 Global All-Asset Tactical All-Inclusive Cougar Global MAR 6 12/30/99 Global All-Asset Tactical All-Inclusive ,942 Cougar Global MAR 8 10/31/01 Global All-Asset Tactical All-Inclusive ,158 Cumberland - Glbl Multi-Asset Eq ETF 01/03/06 Global All-Asset Tactical All-Inclusive Cumberland - Intl Equity ETF 03/31/03 International Equity Tactical All-Inclusive NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc.

14 14 ETF Managed s Landscape Report January 2012 Table A: ETF Managed Strategies Sept. 30, 2011 (Continued) Inception Universe Asset Breadth 1-Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil YOY Asset Growth Cumberland - US Equity ETF 12/31/99 United States Equity Tactical All-Inclusive Dorsey Wright Sys Reltv Strth Glb Macro 03/31/09 Global All-Asset Tactical All-Inclusive Dunn Warren Aggressive ETF 01/02/03 Global Equity Tactical All-Inclusive Dunn Warren Conservative ETF 01/02/03 Global Balanced Tactical All-Inclusive Dunn Warren Growth ETF 01/02/04 Global Equity Tactical All-Inclusive Dunn Warren Moderate ETF 01/02/03 Global Balanced Tactical All-Inclusive Efficient Market Years Aggressive 01/04/05 United States Balanced Hybrid All-Inclusive Efficient Market Years Consvt 05/01/06 United States Balanced Hybrid All-Inclusive Incl. Efficient Market Years Moderate 04/01/05 United States Balanced Hybrid All-Inclusive Incl. Efficient Market 20 Plus Years Consvt 03/01/06 United States Equity Hybrid All-Inclusive Efficient Market 20 Plus Years Moderate 11/01/04 United States Equity Hybrid All-Inclusive Incl. Efficient Market 20 Plus Yrs Aggressive 09/01/04 United States Equity Hybrid All-Inclusive Incl. Efficient Market 2-5 Years Aggressive 02/01/05 United States Balanced Hybrid All-Inclusive Efficient Market 2-5 Years Conservative 05/01/06 United States Balanced Hybrid All-Inclusive Incl. Efficient Market 2-5 Years Moderate 11/01/05 United States Balanced Hybrid All-Inclusive Incl. Efficient Market 6-10 Years Aggressive 07/01/05 United States Balanced Hybrid All-Inclusive Efficient Market 6-10 Years Conservative 05/02/05 United States Balanced Hybrid All-Inclusive Incl. Efficient Market 6-10 Years Moderate 10/01/04 United States Balanced Hybrid All-Inclusive Incl. Efficient Market Taking Income-Aggr 05/01/06 United States Fixed Income Hybrid All-Inclusive Efficient Market Taking Income-Consvt 03/01/06 United States Fixed Income Hybrid All-Inclusive Incl. Efficient Market Taking Income-Moderate 04/01/05 United States Fixed Income Hybrid All-Inclusive Incl. ELF ETF Strategy 02/28/03 Global Equity Tactical All-Inclusive Eqis Fixed Income 04/12/04 Under Review Under Review Under Review Under Review NR FA Dynamic ETF 12/31/07 Global All-Asset Tactical All-Inclusive FEG Equity 08/01/05 Global Equity Strategic Broad Market Financial Trust Flexible Income 11/30/01 Global Fixed Income Tactical All-Inclusive First Trust First Trust/Harry Dent Opp 04/01/04 Global Balanced Tactical All-Inclusive First Trust FTA Ibbotson Mul Disc 20/80* 05/01/09 United States Fixed Income Strategic Broad Market First Trust FTA Ibbotson Mul Disc 40/60* 05/01/09 United States Balanced Strategic Broad Market Forward Tactical Growth 08/03/09 United States Equity Hybrid Broad Market Foxhall Capital ETF Strat 50/50 Strat 10/01/07 Global Balanced Strategic Broad Market Foxhall Capital Management ETF Bal Strat 05/05/04 Global Balanced Strategic Broad Market Foxhall ETF Conservative Strategy 02/12/04 Global Fixed Income Strategic Broad Market Foxhall ETF Growth and Income Strategy 03/22/04 Global Equity Strategic Broad Market Foxhall ETF Growth Strategy 12/31/99 Global Equity Strategic Broad Market Foxhall ETF Hard Assets Strategy 08/17/06 Global All-Asset Strategic Broad Market Foxhall ETF Pac Rim and Emerg Mkts Strat 11/11/05 International Equity Strategic Broad Market FTA ETF Asset Allc - Mod Gr 01/03/07 Global Equity Strategic All-Inclusive FTA ETF Asset Allocation - Gr 10/01/07 Global Equity Strategic All-Inclusive GLOBALT innovat ETF Stratg Balnc Wrap 12/31/03 Global Balanced Hybrid All-Inclusive GLOBALT innovat ETF Stratg Consrvt Wrap 03/31/04 Global Balanced Hybrid All-Inclusive GLOBALT innovat ETF Stratg Gro Wrap 09/30/03 Global Equity Hybrid All-Inclusive GLOBALT innovat ETF Stratg Hig Gro Wrap 06/30/03 Global Equity Hybrid All-Inclusive Glovista Global Emging Market Equities 01/04/99 International Equity Tactical Country/Region Good Harbor U.S. Tactical Core 04/30/03 United States Equity Tactical Broad Market Gratry International ETF Allocation 06/30/05 International Equity Strategic Country/Region Green Inv Mgt Guardian Alternatives 09/01/09 United States Alternative Tactical All-Inclusive NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc. * An investment advisory subsidiary of Morningstar receives fees for providing investment consulting services to this portfolio s advisor. These fees are mainly based on portfolio assets under management. This portfolio is not sponsored, issued, marketed, or sold by Morningstar or its subsidiaries. Morningstar does not make any representation regarding the advisability of investing in this portfolio.

15 15 ETF Managed s Landscape Report January 2012 Table A: ETF Managed Strategies Sept. 30, 2011 (Continued) Inception Universe Asset Breadth 1-Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil YOY Asset Growth Green Inv Mgt Guardian Bal 07/02/90 Global Balanced Hybrid Broad Market Green Inv Mgt Guardian Bal Gr 07/01/94 Global Equity Tactical Broad Market Green Inv Mgt Guardian Bal Inc 07/01/96 Global Fixed Income Tactical Broad Market Green Inv Mgt Guardian Bal Mosaic 07/03/00 Global Equity Tactical All-Inclusive Green Inv Mgt Guardian Cnsv Bal 06/01/94 Global Balanced Hybrid Broad Market Green Inv Mgt Guardian Country 07/01/04 International Equity Tactical Country/Region Green Inv Mgt Guardian Fix-Inc 07/01/91 United States Fixed Income Tactical All-Inclusive Green Inv Mgt Guardian Mosaic 07/03/00 United States Equity Tactical All-Inclusive Green Inv Mgt Guardian Sector 07/01/93 United States Equity Tactical Sector Green Inv Mgt Guardian Stk 07/02/90 Global Equity Tactical Broad Market Green Inv Mgt Opp Bal Gr 07/03/00 Global Equity Hybrid Broad Market Green Inv Mgt Strat Glbl Bal Tax Aware 08/02/10 Global Balanced Hybrid Broad Market Green Inv Mgt Strategic Global Balanced 06/01/09 Global Balanced Hybrid Broad Market Hays Advisory Global ETF 01/31/06 Global Equity Tactical All-Inclusive Hays Advisory International ETF 01/31/06 International Equity Tactical All-Inclusive Hays Advisory TMAC Equity Focused 06/01/10 Global Equity Tactical All-Inclusive Hays TMAC 06/01/10 Global All-Asset Tactical All-Inclusive Horizon Focused ETF 01/03/07 United States Equity Strategic All-Inclusive Horizon Growth ETF 01/03/07 United States Equity Strategic All-Inclusive Horizon Moderate ETF 01/03/07 United States Balanced Strategic All-Inclusive Innealta Fixed Income 12/31/09 United States Fixed Income Tactical All-Inclusive Innealta Tac ETF Country Rotation 12/31/09 International Equity Tactical Country/Region Innealta Tac ETF Risk-Based Core Consvt 12/31/09 Global Balanced Hybrid Broad Market Innealta Tac ETF Risk-Based Core Growth 12/31/09 Global Equity Hybrid Broad Market Innealta Tac ETF Risk-Based Core Mod 12/31/09 Global Balanced Hybrid Broad Market Innealta Tac ETF Risk-Based Opp Consvt 12/31/09 Global Balanced Hybrid Broad Market Innealta Tac ETF Risk-Based Opp Growth 12/31/09 Global Equity Hybrid Broad Market Innealta Tac ETF Risk-Based Opp Mod 12/31/09 Global Balanced Hybrid Broad Market Innealta Tac ETF Sector Rotation Core 12/31/09 United States Equity Tactical Sector Innealta Tac ETF Sector Rotation Opp 12/31/09 United States Equity Tactical Sector Integrated Managed ETF - Cons Cap App 01/03/05 Global Balanced Strategic Broad Market Integrated Mgd ETF - Risk Controlled Gr 01/03/05 Global Balanced Strategic Broad Market Integrated Mgd ETF-Inc & Inflation Hdg 01/03/05 Global Fixed Income Strategic Broad Market IPS Endowment Fund 01/31/07 Global Balanced Tactical All-Inclusive IPS Global Balanced Fund 01/02/03 Global All-Asset Tactical All-Inclusive IQ Hedge Multi-Strategy SMA 03/31/09 Global Alternative Strategic Broad Market IRON Active Options Overlay Global Eq 02/01/11 Global Equity Hybrid Broad Market 2.3 isectors Capital Preservation Alloc SMA 01/01/10 United States Fixed Income Strategic All-Inclusive isectors Domestic Allocation 05/03/10 United States Balanced Strategic Broad Market isectors Domestic Equity Allocation 07/01/10 United States Equity Strategic Broad Market isectors Domestic FI Allocation SMA 01/01/10 United States Fixed Income Strategic All-Inclusive isectors Endowment Allocation SMA 01/01/09 Global All-Asset Strategic All-Inclusive isectors Endowment Allocation SMA 03/02/09 Global All-Asset Strategic All-Inclusive isectors Endowment Allocation SMA 01/01/09 Global All-Asset Strategic All-Inclusive isectors Endowment Allocation SMA 01/01/09 Global All-Asset Strategic All-Inclusive isectors Endowment Allocation SMA 01/01/09 Global All-Asset Strategic All-Inclusive isectors Inflation Protect Alloc SMA 10/01/09 Global All-Asset Strategic All-Inclusive NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc.

16 16 ETF Managed s Landscape Report January 2012 Table A: ETF Managed Strategies Sept. 30, 2011 (Continued) Inception Universe Asset Breadth 1-Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil YOY Asset Growth isectors Inst Allocation SMA 05/01/09 Global Balanced Strategic Broad Market isectors Inst Allocation SMA 04/01/09 Global Balanced Strategic Broad Market isectors Inst Allocation SMA 01/01/10 Global Equity Strategic Broad Market isectors Inst Equity Allocation SMA 12/01/09 Global Equity Strategic Broad Market isectors Inst FI Allocation SMA 04/01/09 Global Fixed Income Strategic All-Inclusive isectors Liquid Alternatives Alloc SMA 04/01/09 Global All-Asset Strategic All-Inclusive isectors Post-MPT Growth Allocation-SMA 02/01/05 United States Equity Tactical Sector isectors Post-MPT Mod Allocation SMA 03/03/08 United States Balanced Hybrid Sector isectors Precious Metals Allocation SMA 11/01/10 Global Alternative Strategic Sector 7.0 isectors Tactical Glbl Bal Alloc SMA 12/01/10 Global All-Asset Tactical Broad Market 8.8 isectors Tactical Intl Alloc SMA 10/01/09 International Equity Tactical All-Inclusive K.M. STAR-SPY 02/01/11 United States Alternative Strategic All-Inclusive 1.1 KCM Global Opportunity 12/30/05 United States Equity Tactical All-Inclusive Kingfisher Global Tactical 06/30/04 Global All-Asset Tactical All-Inclusive Klaren Capital GTS Balanced 11/23/07 Global Balanced Hybrid Broad Market Laffer Investments Fixed Income ETF 10/02/06 United States Fixed Income Tactical All-Inclusive Laffer Investments Glbl Equity Composite 09/01/00 International Equity Tactical Country/Region LCAS-Global Diversified 25/75 (TE) 07/01/09 Global Fixed Income Strategic All-Inclusive LCAS-Global Diversified 25/75 (TX) 03/02/09 Global Fixed Income Strategic All-Inclusive 0.29 Incl. LCAS-Global Diversified 40/60 (TX) 02/01/07 Global Balanced Strategic All-Inclusive Incl. LCAS-Global Diversified 60/40 (TE) 03/01/06 Global Balanced Strategic All-Inclusive Incl. LCAS-Global Diversified 60/40 (TE) SMA 08/01/08 Global Balanced Strategic All-Inclusive Incl. LCAS-Global Diversified 60/40 (TX) 04/01/05 Global Balanced Strategic All-Inclusive Incl. LCAS-Global Diversified 60/40 (TX) SMA 10/01/09 Global Balanced Strategic All-Inclusive 4.94 Incl. LCAS-Global Diversified 75/25 (TE) 11/01/05 Global Equity Strategic All-Inclusive Incl. LCAS-Global Diversified 75/25 (TX) 04/01/05 Global Equity Strategic All-Inclusive Incl. LCAS-Global Equity 04/01/05 Global Equity Strategic All-Inclusive LCAS-Global Equity SMA 08/01/08 Global Equity Strategic All-Inclusive Incl. LCAS-Global Fixed Income (TE) 04/01/09 Global Fixed Income Strategic All-Inclusive 1.3 LCAS-Global Fixed Income (TX) 06/01/11 Global Fixed Income Strategic All-Inclusive Incl. LCAS-Global Non-Traditional 09/01/05 Global All-Asset Hybrid All-Inclusive Main Active - SMA 09/30/02 United States Equity Tactical Broad Market Main All Asset - SMA 11/08/06 Global Balanced Hybrid All-Inclusive Main Currency - SMA 11/04/10 Global Alternative Tactical Country/Region 9.7 Main Global Macro Long Short - SMA 05/13/08 Global Alternative Tactical All-Inclusive Main International - SMA 12/28/07 International Equity Tactical Country/Region Marquette University AIM Fixed Income 01/31/06 United States Fixed Income Strategic All-Inclusive MCM Apto 09/29/06 Global All-Asset Tactical All-Inclusive Mench Aggressive Equity 10/02/95 United States Equity Tactical All-Inclusive Mesirow Emerging Markets Tactical Allc 09/01/09 International Equity Tactical Country/Region Mesirow Financial Inv Mgt EAFE Plus 02/01/06 International Equity Tactical Country/Region Mesirow Financial Inv Mgt Emg mkt 10/03/05 International Equity Tactical Country/Region Metropolitan Tactical Growth 09/30/05 Global Equity Tactical All-Inclusive Metropolitan Tactical Moderate 09/30/05 Global Equity Tactical All-Inclusive MRM Dynamic International Strategy 07/01/05 International Equity Tactical Country/Region MRM Dynamic Overlay Strategy 04/03/06 United States Equity Tactical All-Inclusive Natixis / AIA Mgd ETF - Aggressive 11/02/05 Global All-Asset Strategic Broad Market NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc.

17 17 ETF Managed s Landscape Report January 2012 Table A: ETF Managed Strategies Sept. 30, 2011 (Continued) Inception Universe Asset Breadth 1-Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil YOY Asset Growth Natixis / AIA Mgd ETF - China 04/28/06 International Equity Strategic Country/Region Natixis / AIA Mgd ETF - Conservative 06/30/06 Global Balanced Strategic Broad Market Natixis / AIA Mgd ETF - Glob Equity 03/31/06 Global Equity Strategic Broad Market Natixis / AIA Mgd ETF - Inc. Aggrsv 05/31/06 Global Balanced Strategic Broad Market Natixis / AIA Mgd ETF - Inc. Cons 06/30/06 Global Balanced Strategic Broad Market Natixis / AIA Mgd ETF - Moderate Strat 01/03/06 Global Balanced Strategic Broad Market Navellier Vireo AlphaSec.Allocator Pm. 03/01/10 Global All-Asset Hybrid Broad Market Navellier Vireo AlphaSector Global Prem. 01/01/10 Global Equity Tactical All-Inclusive Navellier Vireo AlphaSector Intl. Prem. 01/01/10 International Equity Tactical Broad Market ,116 Navellier Vireo AlphaSector Premium 03/01/10 United States Equity Tactical Sector New Path Actively Mgd Allc Strat (AMAS) 04/02/07 Global Equity Tactical Broad Market Niemann Dynamic International 01/22/08 International Equity Tactical All-Inclusive Niemann Dynamic Sector 02/20/08 United States Equity Tactical Sector Niemann Risk Managed Sector 01/24/96 United States Equity Tactical Sector NorthCoast Tactical ETF 12/29/00 Global All-Asset Tactical All-Inclusive Nottingham Diversified Index Cons 03/01/05 Global Balanced Strategic All-Inclusive Nottingham Diversified Index Dynamic 03/01/05 Global Equity Strategic All-Inclusive Incl. Nottingham Index Port Moderate 03/01/05 Global Equity Strategic All-Inclusive Incl. Nuveen Intelligent Risk Aggressive 06/01/09 Global All-Asset Tactical Broad Market Nuveen Intelligent Risk Conservative 06/01/09 United States Fixed Income Strategic Broad Market Nuveen Intelligent Risk Moderate 06/01/09 Global All-Asset Tactical Broad Market Optimus Global Allocation Bull/Bear 07/01/11 Global Alternative Tactical Broad Market 0.4 PTI Russell 2000 Protected Index 08/01/05 United States Equity Hybrid Broad Market PTI Securities & Futures Prot Idx Prog 03/02/98 United States Equity Hybrid Broad Market QA Fixed Income 01/01/10 United States Fixed Income Tactical All-Inclusive QA Global Aggressive 03/01/04 Global Equity Tactical All-Inclusive QA Global Balanced 40/60 11/03/03 Global Balanced Hybrid All-Inclusive QA Global Balanced 40/60 w/ Equity Flex 01/01/10 Global Balanced Hybrid All-Inclusive QA Global Balanced 60/40 11/01/00 Global Balanced Hybrid All-Inclusive QA Global Balanced 60/40 w/ Equity Flex 01/01/10 Global Balanced Hybrid All-Inclusive QA Global Balanced 80/20 10/01/03 Global Equity Hybrid All-Inclusive QA Global Balanced 80/20 w/ Equity Flex 01/01/10 Global Equity Hybrid All-Inclusive QA Global Equity 08/01/00 Global Equity Tactical All-Inclusive QA Global Equity w/ Equity Flex 01/01/10 Global Equity Tactical All-Inclusive QA Global Sector 02/01/08 Global Equity Tactical Sector QA Global Style 09/04/07 Global Equity Tactical Broad Market QA Global Style w/ Equity Flex 01/01/10 Global Equity Tactical Broad Market QA International Equity 01/02/02 International Equity Tactical All-Inclusive QA International Equity w/ Equity Flex 01/01/10 International Equity Tactical All-Inclusive QA Tactical All Market 01/01/09 Global All-Asset Tactical All-Inclusive QA US Equity 10/02/00 United States Equity Tactical All-Inclusive QA US Equity with Equity Flex 01/01/10 United States Equity Tactical All-Inclusive Raylor Strategic US Equity SMA 01/03/06 United States Equity Strategic All-Inclusive Raylor Strategic World Equity SMA 01/03/06 Global Equity Strategic All-Inclusive Raylor Strategic World Income SMA 04/03/06 Global Balanced Strategic All-Inclusive Raylor Strategic World Opportunity SMA 01/03/07 Global Equity Strategic Country/Region Retirement Bodyguard Balanced 01/01/09 Global Balanced Tactical All-Inclusive NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc.

18 18 ETF Managed s Landscape Report January 2012 Table A: ETF Managed Strategies Sept. 30, 2011 (Continued) Inception Universe Asset Breadth 1-Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil YOY Asset Growth Retirement Bodyguard Core Growth 01/01/09 Global Equity Tactical All-Inclusive Retirement Bodyguard Hedged Appreciation 07/01/10 Global Balanced Tactical All-Inclusive Riverfront AA Conservative Gr and Inc 05/01/09 Global Balanced Hybrid All-Inclusive Riverfront AA Long Term Growth 10/01/03 Global Equity Hybrid All-Inclusive Riverfront AA Long-Term Growth and Inc 05/01/09 Global Equity Hybrid All-Inclusive Riverfront AA Moderate Growth 10/01/03 Global Equity Hybrid All-Inclusive Riverfront AA Moderate Growth and Income 10/01/03 Global Balanced Hybrid All-Inclusive , Riverfront Asset Allocation Consrv Grth 10/01/03 Global Balanced Hybrid All-Inclusive Riverfront ETF Conservative Growth 10/01/03 Global Balanced Hybrid All-Inclusive Riverfront ETF Long Term Growth 04/03/06 Global Equity Hybrid All-Inclusive Riverfront ETF Moderate Growth 10/01/03 Global Equity Hybrid All-Inclusive Robinson Market Opportunity Comp. 12/03/03 United States Equity Tactical Broad Market Sage Tactical ETF All Cap Equity Plus 12/31/01 Global Equity Tactical Broad Market Sage Tactical ETF Conservative 12/31/01 Global Fixed Income Tactical Broad Market Sage Tactical ETF Core Plus Fixed Income 12/29/00 Global Fixed Income Tactical Broad Market Sage Tactical ETF Growth 12/31/01 Global Equity Tactical Broad Market ,567 Sage Tactical ETF Moderate 12/31/01 Global Balanced Tactical Broad Market Sage Tactical ETF Moderate Growth 12/31/01 Global Balanced Tactical Broad Market SCA Fixed Alternative 12/29/06 Global Fixed Income Tactical All-Inclusive SFS Tax Efficient Growth 11/26/04 Global Equity Strategic Broad Market SFS Tax Efficient Growth & Income 11/24/04 Global Balanced Strategic Broad Market SGA International Country Allocation 06/30/06 International Equity Strategic Country/Region SignalPoint Balanced Point 03/31/09 United States Balanced Hybrid All-Inclusive SignalPoint CU Income Plus 06/30/09 United States Fixed Income Hybrid All-Inclusive SignalPoint Currency Point 12/31/08 Global Alternative Hybrid Country/Region SignalPoint Domestic Signal 09/29/00 United States Equity Hybrid All-Inclusive SignalPoint Global Signal 03/28/02 Global Equity Hybrid All-Inclusive SignalPoint International Signal 03/30/07 International Equity Hybrid Sector SignalPoint Moderate Income Point 09/28/07 United States Fixed Income Hybrid All-Inclusive SignalPoint Signal 10 03/31/09 United States Equity Hybrid Sector SignalPoint Stable Income Point 09/28/07 United States Fixed Income Hybrid All-Inclusive SignalPoint Universal Signal 09/30/09 Global Balanced Hybrid All-Inclusive Sitka Absolute Return 09/01/05 Global Alternative Tactical All-Inclusive SRCM Aggressive Growth 01/02/04 Global Equity Hybrid Broad Market SRCM Growth & Income Blend 01/02/04 Global Balanced Hybrid Broad Market SRCM Growth & Income 01/02/04 Global Balanced Hybrid Broad Market SRCM Growth 01/02/04 Global Equity Hybrid Broad Market SRCM Income & Preservation 01/02/04 Global Balanced Hybrid Broad Market SSWM Strategic Allocation Model 75/25 08/29/03 United States Equity Strategic Broad Market Stadion Core Advantage Strategy 03/31/05 Global Equity Tactical All-Inclusive Stadion Managed Strategy 01/02/96 Global Equity Tactical All-Inclusive , Steinberg Global ETF Multi Cap 12/31/02 Global Equity Tactical All-Inclusive Sterling Tactical Rotation Strategy 12/30/09 Global All-Asset Tactical Broad Market Swan Defined Risk Strategy 07/01/97 United States Equity Hybrid Broad Market TAG Aggressive ETF 01/03/06 Global Equity Hybrid Broad Market TAG Conservative ETF 01/03/06 Global All-Asset Hybrid Broad Market TAG Moderate ETF 01/03/06 Global All-Asset Hybrid Broad Market NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc.

19 19 ETF Managed s Landscape Report January 2012 Table A: ETF Managed Strategies Sept. 30, 2011 (Continued) Inception Universe Asset Breadth 1-Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil YOY Asset Growth The Windham 03/01/10 Global Balanced Tactical Broad Market ,866 TIS Splitrock Moderate 03/31/04 Global Alternative Tactical Country/Region NR Transamerica I-Series-Aggressive 06/15/07 Global Equity Strategic Broad Market NR Transamerica I-Series-Conservative 06/15/07 Global Fixed Income Strategic Broad Market NR Transamerica I-Series-Moderate 06/15/07 Global Balanced Strategic Broad Market NR Transamerica I-Series-Moderate Consvtv 06/15/07 Global Balanced Strategic Broad Market NR Transamerica I-Series-ModerateAggressive 06/15/07 Global Equity Strategic Broad Market NR W.E. Donoghue Aggressive Tactical Growth 09/24/01 Under Review Under Review Under Review Under Review NR W.E. Donoghue Global Tactical Growth 12/30/05 Under Review Under Review Under Review Under Review NR W.E. Donoghue Long-Short Index 10/08/01 Under Review Under Review Under Review Under Review NR W.E. Donoghue Moderate Tactical Growth 09/25/01 Under Review Under Review Under Review Under Review NR Wela Agg Yield 03/31/10 Global All-Asset Tactical All-Inclusive Wela All Growth 10/29/10 Global Equity Tactical All-Inclusive Wela Own Your Age (OYA) /01/08 Global Equity Hybrid All-Inclusive Wela Own Your Age (OYA) /31/11 Global Equity Hybrid All-Inclusive 0.8 Wela Own Your Age (OYA) /31/11 Global Balanced Hybrid Broad Market 0.3 Wela Own Your Age (OYA) /31/08 Global Balanced Hybrid Broad Market Wela Own Your Age (OYA) /29/10 Global Balanced Hybrid Broad Market Wela Own Your Age (OYA) /01/10 United States Fixed Income Hybrid All-Inclusive Wela Own Your Age (OYA) /31/09 United States Fixed Income Hybrid All-Inclusive Westport Res Mgt ETF 12/30/05 Global Equity Tactical All-Inclusive Windham Aggressive Portf (Tax Mg) 09/30/09 Global Equity Strategic Broad Market Windham Aggressive 12/31/09 Global Equity Strategic Broad Market Windham Conservative Plus Portf (Tax Mg) 05/31/10 Global Balanced Strategic Broad Market ,018 Windham Conservative Plus 05/31/10 Global Balanced Strategic Broad Market Windham Conservative Portf (Tax Mg) 11/30/09 Global Fixed Income Strategic Broad Market Windham Conservative 09/30/09 Global Fixed Income Strategic Broad Market Windham Foreign Equities Strategy 12/31/10 International Equity Strategic Broad Market 0.2 Windham Global Equities Strategy 08/02/10 Global Equity Strategic Broad Market ,305 Windham Moderate Plus Portf (Tax Mg) 05/31/10 Global Balanced Strategic Broad Market Windham Moderate Plus 12/31/09 Global Balanced Strategic Broad Market Windham Moderate 09/30/09 Global Balanced Strategic Broad Market Windham Moderate (Tax Managed) 01/30/09 Global Balanced Strategic Broad Market Windham Multi-Sector Bonds Strategy 08/31/10 Global Fixed Income Strategic All-Inclusive Windhaven Diversified Aggressive 01/02/02 Global All-Asset Strategic All-Inclusive , Windhaven Diversified Conservative 01/02/02 Global All-Asset Strategic All-Inclusive , Windhaven Diversified Growth 01/02/02 Global All-Asset Strategic All-Inclusive , Zacks International 04/01/04 International Equity Strategic Country/Region NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc.

20 20 ETF Managed s Landscape Report January 2012 Table B: Attribute Groupings, Ranked by 3-Year Return Sept. 30, 2011 Global All Asset Inception TAG Moderate ETF Hybrid Broad Market 01/03/ Capital Wealth ETF Covered Call Strategy Hybrid All-Inclusive 01/02/ TAG Conservative ETF Hybrid Broad Market 01/03/ LCAS-Global Non-Traditional Hybrid All-Inclusive 09/01/ Navellier Vireo AlphaSec.Allocator Pm. Hybrid Broad Market 03/01/ Boston Advisors Broad Allocation Str SA Hybrid All-Inclusive 10/31/ Windhaven Diversified Conservative Strategic All-Inclusive 01/02/ ,297.0 Windhaven Diversified Growth Strategic All-Inclusive 01/02/ ,501.0 Windhaven Diversified Aggressive Strategic All-Inclusive 01/02/ ,283.0 Cornerstone Model Strategic All-Inclusive 10/31/ Natixis / AIA Mgd ETF - Aggressive Strategic Broad Market 11/02/ Foxhall ETF Hard Assets Strategy Strategic Broad Market 08/17/ isectors Inflation Protect Alloc SMA Strategic All-Inclusive 10/01/ isectors Endowment Allocation SMA Strategic All-Inclusive 03/02/ isectors Endowment Allocation SMA Strategic All-Inclusive 01/01/ isectors Liquid Alternatives Alloc SMA Strategic All-Inclusive 04/01/ isectors Endowment Allocation SMA Strategic All-Inclusive 01/01/ isectors Endowment Allocation SMA Strategic All-Inclusive 01/01/ isectors Endowment Allocation SMA Strategic All-Inclusive 01/01/ Boyd Watterson Titanium Global Macro SMA Tactical All-Inclusive 03/31/ Cougar Global MAR 6 Tactical All-Inclusive 12/30/ Cougar Global MAR 8 Tactical All-Inclusive 10/31/ MCM Apto Tactical All-Inclusive 09/29/ FA Dynamic ETF Tactical All-Inclusive 12/31/ NorthCoast Tactical ETF Tactical All-Inclusive 12/29/ Clark Navigator Alternative Tactical All-Inclusive 01/03/ Kingfisher Global Tactical Tactical All-Inclusive 06/30/ IPS Global Balanced Fund Tactical All-Inclusive 01/02/ Cumberland - Glbl Multi-Asset Eq ETF Tactical All-Inclusive 01/03/ Confluence Global Macro Tactical All-Inclusive 05/01/ Sterling Tactical Rotation Strategy Tactical Broad Market 12/30/ QA Tactical All Market Tactical All-Inclusive 01/01/ Nuveen Intelligent Risk Moderate Tactical Broad Market 06/01/ Nuveen Intelligent Risk Aggressive Tactical Broad Market 06/01/ Hays TMAC Tactical All-Inclusive 06/01/ Wela Agg Yield Tactical All-Inclusive 03/31/ Dorsey Wright Sys Reltv Strth Glb Macro Tactical All-Inclusive 03/31/ All Asset Median Hybrid Median Strategic Median Tactical Median Global All Asset Blended Benchmark (See Table J) NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc. 1-Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil

21 21 ETF Managed s Landscape Report January 2012 Table B: Attribute Groupings, Ranked by 3-Year Return Sept. 30, 2011 (Continued) Alternative Inception Sitka Absolute Return Tactical All-Inclusive 09/01/ Main Global Macro Long Short SMA Tactical All-Inclusive 05/13/ SignalPoint Currency Point Hybrid Country/Region 12/31/ IQ Hedge Multi Strategy SMA Strategic Broad Market 03/31/ Multi Strategy ETF Tactical All-Inclusive 01/01/ Global Alternative Median Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil Balanced CoreStates 20/20 Global Vision Tactical Hybrid All-Inclusive 01/03/ GLOBALT innovat ETF Stratg Consrvt Wrap Hybrid All-Inclusive 03/31/ GLOBALT innovat ETF Stratg Balnc Wrap Hybrid All-Inclusive 12/31/ D Global 40 ETF Tax Managed Hybrid Broad Market 01/03/ Klaren Capital GTS Balanced Hybrid Broad Market 11/23/ Riverfront AA Moderate Growth and Income Hybrid All-Inclusive 10/01/ ,027.1 Main All Asset SMA Hybrid All-Inclusive 11/08/ SRCM Growth & Income Blend Hybrid Broad Market 01/02/ D Global 40 ETF Hybrid Broad Market 02/01/ QA Global Balanced 40/60 Hybrid All-Inclusive 11/03/ SRCM Income & Preservation Hybrid Broad Market 01/02/ Green Inv Mgt Guardian Cnsv Bal Hybrid Broad Market 06/01/ D Global 60 ETF Hybrid Broad Market 09/01/ QA Global Balanced 60/40 Hybrid All-Inclusive 11/01/ Green Inv Mgt Guardian Bal Hybrid Broad Market 07/02/ D Global 60 ETF Tax Managed Hybrid Broad Market 10/02/ SRCM Growth & Income Hybrid Broad Market 01/02/ Riverfront ETF Conservative Growth Hybrid All-Inclusive 10/01/ Riverfront Asset Allocation Consrv Grth Hybrid All-Inclusive 10/01/ Innealta Tac ETF Risk Based Opp Consvt Hybrid Broad Market 12/31/ QA Global Balanced 40/60 w/ Equity Flex Hybrid All-Inclusive 01/01/ Green Inv Mgt Strat Glbl Bal Tax Aware Hybrid Broad Market 08/02/ Wela Own Your Age (OYA) 50 Hybrid Broad Market 10/31/ QA Global Balanced 60/40 w/ Equity Flex Hybrid All-Inclusive 01/01/ Green Inv Mgt Strategic Global Balanced Hybrid Broad Market 06/01/ Innealta Tac ETF Risk Based Core Consvt Hybrid Broad Market 12/31/ Innealta Tac ETF Risk Based Opp Mod Hybrid Broad Market 12/31/ Riverfront AA Conservative Gr and Inc Hybrid All-Inclusive 05/01/ Innealta Tac ETF Risk Based Core Mod Hybrid Broad Market 12/31/ SignalPoint Universal Signal Hybrid All-Inclusive 09/30/ Integrated Mgd ETF Risk Controlled Gr Strategic Broad Market 01/03/ Integrated Managed ETF Cons Cap App Strategic Broad Market 01/03/ Transamerica I Series Moderate Consvtv Strategic Broad Market 06/15/ NR Natixis / AIA Mgd ETF Inc. Cons Strategic Broad Market 06/30/ Transamerica I Series Moderate Strategic Broad Market 06/15/ NR CLS ETF Risk Budget 60 Moderately Cnsrv Strategic All-Inclusive 04/01/ Natixis / AIA Mgd ETF Inc. Aggrsv Strategic Broad Market 05/31/ LCAS Global Diversified 40/60 (TX) Strategic All-Inclusive 02/01/ NR NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc.

22 22 ETF Managed s Landscape Report January 2012 Table B: Attribute Groupings, Ranked by 3-Year Return Sept. 30, 2011 (Continued) Inception Raylor Strategic World Income SMA Strategic All-Inclusive 04/03/ Natixis / AIA Mgd ETF Conservative Strategic Broad Market 06/30/ Natixis / AIA Mgd ETF Moderate Strat Strategic Broad Market 01/03/ LCAS Global Diversified 60/40 (TX) Strategic All-Inclusive 04/01/ Incl. Nottingham Diversified Index Cons Strategic All-Inclusive 03/01/ LCAS Global Diversified 60/40 (TE) Strategic All-Inclusive 03/01/ Incl. SFS Tax Efficient Growth & Income Strategic Broad Market 11/24/ LCAS Global Diversified 60/40 (TE) SMA Strategic All-Inclusive 08/01/ Incl. Foxhall Capital ETF Strat 50/50 Strat Strategic Broad Market 10/01/ Foxhall Capital Management ETF Bal Strat Strategic Broad Market 05/05/ isectors Inst Allocation SMA Strategic Broad Market 05/01/ Windham Conservative Plus Portf (Tax Mg) Strategic Broad Market 05/31/ Windham Conservative Plus Strategic Broad Market 05/31/ isectors Inst Allocation SMA Strategic Broad Market 04/01/ Windham Moderate Strategic Broad Market 09/30/ Windham Moderate (Tax Managed) Strategic Broad Market 01/30/ Windham Moderate Plus Strategic Broad Market 12/31/ Windham Moderate Plus Portf (Tax Mg) Strategic Broad Market 05/31/ LCAS Global Diversified 60/40 (TX) SMA Strategic All Inclusive 10/01/ Incl. Sage Tactical ETF Moderate Tactical Broad Market 12/31/ Champion CR Strategic ETF Low Risk Tactical All-Inclusive 05/02/ NR Champion CR Tactical ETF Low Risk SA Tactical All-Inclusive 05/02/ NR Sage Tactical ETF Moderate Growth Tactical Broad Market 12/31/ Champion CR Tactical ETF Consvtv SA Tactical All-Inclusive 05/02/ NR Champion CR Strategic ETF Moderate Tactical All-Inclusive 05/02/ NR Champion CR Tactical ETF Moderate SA Tactical All-Inclusive 05/02/ NR Clark Navigator Global Opportunity Tactical All-Inclusive 02/01/ Dunn Warren Moderate ETF Tactical All-Inclusive 01/02/ IPS Endowment Fund Tactical All-Inclusive 01/31/ Dunn Warren Conservative ETF Tactical All-Inclusive 01/02/ Champion CR Income Plus Equity Tactical Broad Market 10/03/ NR First Trust First Trust/Harry Dent Opp Tactical All-Inclusive 04/01/ Retirement Bodyguard Hedged Appreciation Tactical All-Inclusive 07/01/ The Windham Tactical Broad Market 03/01/ Retirement Bodyguard Balanced Tactical All-Inclusive 01/01/ Balanced Median Hybrid Median Strategic Median Tactical Median Global Balanced Blended Benchmark (See Table J) NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc. 1-Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil

23 23 ETF Managed s Landscape Report January 2012 Table B: Attribute Groupings, Ranked by 3-Year Return Sept. 30, 2011 (Continued) Equity Inception Appleton Group Hybrid Broad Market 12/31/ GLOBALT innovat ETF Stratg Gro Wrap Hybrid All-Inclusive 09/30/ TAG Aggressive ETF Hybrid Broad Market 01/03/ GLOBALT innovat ETF Stratg Hig Gro Wrap Hybrid All-Inclusive 06/30/ SRCM Growth Hybrid Broad Market 01/02/ D Global 80 ETF Hybrid Broad Market 08/01/ D Global 100 ETF Hybrid Broad Market 07/03/ SignalPoint Global Signal Hybrid All-Inclusive 03/28/ D Global 80 ETF Tax Managed Hybrid Broad Market 10/02/ QA Global Balanced 80/20 Hybrid All-Inclusive 10/01/ Green Inv Mgt Opp Bal Gr Hybrid Broad Market 07/03/ SRCM Aggressive Growth Hybrid Broad Market 01/02/ Riverfront ETF Moderate Growth Hybrid All-Inclusive 10/01/ Riverfront AA Moderate Growth Hybrid All-Inclusive 10/01/ Appleton Group PLUS Hybrid Broad Market 12/31/ Appleton Group Tax Managed Hybrid Broad Market 12/31/ Riverfront AA Long Term Growth Hybrid All-Inclusive 10/01/ Riverfront ETF Long Term Growth Hybrid All-Inclusive 04/03/ QA Global Balanced 80/20 w/ Equity Flex Hybrid All-Inclusive 01/01/ D Global Growth ETF Hybrid Broad Market 02/01/ Innealta Tac ETF Risk Based Opp Growth Hybrid Broad Market 12/31/ Wela Own Your Age (OYA) 20 Hybrid All-Inclusive 12/01/ Riverfront AA Long Term Growth and Inc Hybrid All-Inclusive 05/01/ Innealta Tac ETF Risk Based Core Growth Hybrid Broad Market 12/31/ CLS ETF Risk Budget 100 Aggressive Strategic All Inclusive 03/30/ Transamerica I Series ModerateAggressive Strategic Broad Market 06/15/ NR CLS ETF Risk Budget 80 Moderate Strategic All-Inclusive 12/31/ FTA ETF Asset Allc Mod Gr Strategic All-Inclusive 01/03/ LCAS Global Diversified 75/25 (TX) Strategic All-Inclusive 04/01/ Incl. CLS ETF Risk Budget 90 Moderately Agrsv Strategic All-Inclusive 07/01/ LCAS Global Diversified 75/25 (TE) Strategic All-Inclusive 11/01/ Incl. Nottingham Index Port Moderate Strategic All-Inclusive 03/01/ Incl. Transamerica I Series Aggressive Strategic Broad Market 06/15/ NR FEG Equity Strategic Broad Market 08/01/ FTA ETF Asset Allocation Gr Strategic All-Inclusive 10/01/ LCAS Global Equity Strategic All-Inclusive 04/01/ SFS Tax Efficient Growth Strategic Broad Market 11/26/ Raylor Strategic World Opportunity SMA Strategic Country/Region 01/03/ Natixis / AIA Mgd ETF Glob Equity Strategic Broad Market 03/31/ Raylor Strategic World Equity SMA Strategic All-Inclusive 01/03/ Foxhall ETF Growth Strategy Strategic Broad Market 12/31/ Nottingham Diversified Index Dynamic Strategic All-Inclusive 03/01/ Incl. LCAS Global Equity SMA Strategic All-Inclusive 08/01/ Incl. Foxhall ETF Growth and Income Strategy Strategic Broad Market 03/22/ isectors Inst Allocation SMA Strategic Broad Market 01/01/ Windham Aggressive Strategic Broad Market 12/31/ NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc. 1-Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil

24 24 ETF Managed s Landscape Report January 2012 Table B: Attribute Groupings, Ranked by 3-Year Return Sept. 30, 2011 (Continued) Inception isectors Inst Equity Allocation SMA Strategic Broad Market 12/01/ Windham Aggressive Portf (Tax Mg) Strategic Broad Market 09/30/ Windham Global Equities Strategy Strategic Broad Market 08/02/ New Path Actively Mgd Allc Strat (AMAS) Tactical Broad Market 04/02/ BCM AlphaSector Global Premium IDX Tactical All-Inclusive 04/02/ Metropolitan Tactical Moderate Tactical All-Inclusive 09/30/ Metropolitan Tactical Growth Tactical All-Inclusive 09/30/ Stadion Core Advantage Strategy Tactical All-Inclusive 03/31/ Cookson Peirce All Cap World Equity Tactical All-Inclusive 09/30/ Sage Tactical ETF Growth Tactical Broad Market 12/31/ Accuvest Global Opportunities Tactical Country/Region 11/01/ Westport Res Mgt ETF Tactical All-Inclusive 12/30/ Stadion Managed Strategy Tactical All-Inclusive 01/02/ ,164.0 Champion CR Tactical ETF Enhcd Growth SA Tactical All-Inclusive 05/02/ NR Dunn Warren Aggressive ETF Tactical All-Inclusive 01/02/ Hays Advisory Global ETF Tactical All-Inclusive 01/31/ QA Global Equity Tactical All-Inclusive 08/01/ Sage Tactical ETF All Cap Equity Plus Tactical Broad Market 12/31/ QA Global Sector Tactical Sector 02/01/ Dunn Warren Growth ETF Tactical All-Inclusive 01/02/ Champion CR Tactical ETF Growth SA Tactical All-Inclusive 05/02/ NR Clark Navigator Global Eq ETF Hedged Tactical All-Inclusive 07/01/ Green Inv Mgt Guardian Bal Mosaic Tactical All-Inclusive 07/03/ Green Inv Mgt Guardian Bal Gr Tactical Broad Market 07/01/ Champion CR Strategic ETF Growth Tactical All-Inclusive 05/02/ NR Steinberg Global ETF Multi Cap Tactical All-Inclusive 12/31/ QA Global Style Tactical Broad Market 09/04/ Accuvest Core Equity Tactical Country/Region 08/01/ QA Global Aggressive Tactical All-Inclusive 03/01/ ELF ETF Strategy Tactical All-Inclusive 02/28/ Champion CR Strategic ETF Enhanced Gth Tactical All-Inclusive 05/02/ NR Green Inv Mgt Guardian Stk Tactical Broad Market 07/02/ Clark Navigator Global Equity ETF Tactical All-Inclusive 04/01/ QA Global Style w/ Equity Flex Tactical Broad Market 01/01/ Navellier Vireo AlphaSector Global Prem. Tactical All-Inclusive 01/01/ BCM AlphaSector Allocator Premium IDX Tactical All-Inclusive 01/04/ QA Global Equity w/ Equity Flex Tactical All-Inclusive 01/01/ Hays Advisory TMAC Equity Focused Tactical All-Inclusive 06/01/ Retirement Bodyguard Core Growth Tactical All-Inclusive 01/01/ Equity Median Hybrid Median Strategic Median Tactical Median Morningstar Global GR NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc. 1-Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil

25 25 ETF Managed s Landscape Report January 2012 Table B: Attribute Groupings, Ranked by 3-Year Return Sept. 30, 2011 (Continued) Fixed Income Inception 3D Global 20 ETF Hybrid Broad Market 02/02/ D Global 20 ETF Tax Managed Hybrid Broad Market 12/01/ Integrated Mgd ETF Inc & Inflation Hdg Strategic Broad Market 01/03/ Transamerica I Series Conservative Strategic Broad Market 06/15/ NR Foxhall ETF Conservative Strategy Strategic Broad Market 02/12/ Windham Multi Sector Bonds Strategy Strategic All-Inclusive 08/31/ isectors Inst FI Allocation SMA Strategic All-Inclusive 04/01/ Windham Conservative Portf (Tax Mg) Strategic Broad Market 11/30/ Windham Conservative Strategic Broad Market 09/30/ LCAS Global Diversified 25/75 (TE) Strategic All-Inclusive 07/01/ LCAS Global Diversified 25/75 (TX) Strategic All-Inclusive 03/02/ Incl SCA Fixed Alternative Tactical All-Inclusive 12/29/ Sage Tactical ETF Core Plus Fixed Income Tactical Broad Market 12/29/ Sage Tactical ETF Conservative Tactical Broad Market 12/31/ Financial Trust Flexible Income Tactical All-Inclusive 11/30/ Green Inv Mgt Guardian Bal Inc Tactical Broad Market 07/01/ Fixed Income Median Global Fixed Income Blended Benchmark (See Table J) NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc. 1-Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil

26 26 ETF Managed s Landscape Report January 2012 Table B: Attribute Groupings, Ranked by 3-Year Return Sept. 30, 2011 (Continued) International Equity Inception SignalPoint International Signal Hybrid Sector 03/30/ Natixis / AIA Mgd ETF China Strategic Country/Region 04/28/ Champion CR Glb Mac Intl Diver Panoptic Strategic All-Inclusive 05/01/ NR Zacks International Strategic Country/Region 04/01/ SGA International Country Allocation Strategic Country/Region 06/30/ Gratry International ETF Allocation Strategic Country/Region 06/30/ Foxhall ETF Pac Rim and Emerg Mkts Strat Strategic Broad Market 11/11/ Glovista Global Emging Market Equities Tactical Country/Region 01/04/ BCM AlphaSector Int'l Premium IDX Tactical Broad Market 04/02/ Main International SMA Tactical Country/Region 12/28/ Mesirow Financial Inv Mgt Emg mkt Tactical Country/Region 10/03/ Niemann Dynamic International Tactical All-Inclusive 01/22/ Hays Advisory International ETF Tactical All-Inclusive 01/31/ Laffer Investments Glbl Equity Composite Tactical Country/Region 09/01/ Champion CR Global Macro Emerg Mkt Core Tactical Country/Region 05/01/ Incl MRM Dynamic International Strategy Tactical Country/Region 07/01/ QA International Equity Tactical All-Inclusive 01/02/ Green Inv Mgt Guardian Country Tactical Country/Region 07/01/ Mesirow Financial Inv Mgt EAFE Plus Tactical Country/Region 02/01/ Cumberland Intl Equity ETF Tactical All-Inclusive 03/31/ Accuvest Non US Equity Tactical Country/Region 08/29/ Clark Navigator Intl Opportunity Tactical Country/Region 01/04/ Mesirow Emerging Markets Tactical Allc Tactical Country/Region 09/01/ Innealta Tac ETF Country Rotation Tactical Country/Region 12/31/ Navellier Vireo AlphaSector Intl. Prem. Tactical Broad Market 01/01/ isectors Tactical Intl Alloc SMA Tactical All-Inclusive 10/01/ QA International Equity w/ Equity Flex Tactical All-Inclusive 01/01/ Accuvest Asian Advantage Tactical Country/Region 08/31/ Equity Median Strategic Median Tactical Median Morningstar Gbl Ex US GR NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc. 1-Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil

27 27 ETF Managed s Landscape Report January 2012 Table B: Attribute Groupings, Ranked by 3-Year Return Sept. 30, 2011 (Continued) United States All Asset Inception BCM Premium Diversified Equity Tactical All-Inclusive 04/02/ BCM Diversified Equity Tactical All-Inclusive 04/02/ Confluence Growth and Income Tactical All-Inclusive 09/02/ Confluence Growth Tactical All-Inclusive 08/01/ Confluence Income and Growth Tactical All-Inclusive 12/01/ United States All Asset Median United States All Asset Blended Benchmark (See Table J) Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil Alternative Astor Long/Short Balanced Program Tactical All-Inclusive 12/31/ ,153.9 Green Inv Mgt Guardian Alternatives Tactical All-Inclusive 09/01/ Balanced Appleton Group PLUS Conservative Hybrid Broad Market 01/03/ Appleton Group Conservative Hybrid Broad Market 01/03/ Efficient Market Years Aggressive Hybrid All-Inclusive 01/04/ Efficient Market Years Consvt Hybrid All-Inclusive 05/01/ Incl. Efficient Market Years Moderate Hybrid All-Inclusive 04/01/ Incl. Efficient Market 2 5 Years Aggressive Hybrid All-Inclusive 02/01/ Efficient Market 2 5 Years Conservative Hybrid All-Inclusive 05/01/ Incl. Efficient Market 2 5 Years Moderate Hybrid All-Inclusive 11/01/ Incl. Efficient Market 6 10 Years Aggressive Hybrid All-Inclusive 07/01/ Efficient Market 6 10 Years Conservative Hybrid All-Inclusive 05/02/ Incl. Efficient Market 6 10 Years Moderate Hybrid All-Inclusive 10/01/ Incl. isectors Post MPT Mod Allocation SMA Hybrid Sector 03/03/ SignalPoint Balanced Point Hybrid All-Inclusive 03/31/ First Trust FTA Ibbotson Mul Disc 40/60* Strategic Broad Market 05/01/ Horizon Moderate ETF Strategic All-Inclusive 01/03/ isectors Domestic Allocation Strategic Broad Market 05/03/ Avatar Conservative Growth Tactical Sector 04/01/ Avatar Conservative Tactical Sector 04/01/ Avatar Moderate Tactical Sector 04/01/ Balanced Median United States Balanced Blended Benchmark (See Table J) Equity Swan Defined Risk Strategy Hybrid Broad Market 07/01/ Efficient Market 20 Plus Yrs Aggressive Hybrid All-Inclusive 09/01/ Incl. Appleton Group Moderate Hybrid Broad Market 01/03/ Efficient Market 20 Plus Years Consvt Hybrid All-Inclusive 03/01/ Efficient Market 20 Plus Years Moderate Hybrid All-Inclusive 11/01/ Incl. SignalPoint Domestic Signal Hybrid All-Inclusive 09/29/ Appleton Group PLUS Moderate Hybrid Broad Market 01/03/ PTI Securities & Futures Prot Idx Prog Hybrid Broad Market 03/02/ PTI Russell 2000 Protected Index Hybrid Broad Market 08/01/ NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc. * An investment advisory subsidiary of Morningstar receives fees for providing investment consulting services to this portfolio s advisor. These fees are mainly based on portfolio assets under management. This portfolio is not sponsored, issued, marketed, or sold by Morningstar or its subsidiaries. Morningstar does not make any representation regarding the advisability of investing in this portfolio.

28 28 ETF Managed s Landscape Report January 2012 Table B: Attribute Groupings, Ranked by 3-Year Return Sept. 30, 2011 (Continued) Inception Forward Tactical Growth Hybrid Broad Market 08/03/ SignalPoint Signal 10 Hybrid Sector 03/31/ Horizon Focused ETF Strategic All-Inclusive 01/03/ Horizon Growth ETF Strategic All-Inclusive 01/03/ SSWM Strategic Allocation Model 75/25 Strategic Broad Market 08/29/ Raylor Strategic US Equity SMA Strategic All-Inclusive 01/03/ isectors Domestic Equity Allocation Strategic Broad Market 07/01/ Good Harbor U.S. Tactical Core Tactical Broad Market 04/30/ BCM AlphaSector Premium IDX Tactical Sector 04/02/ Robinson Market Opportunity Comp. Tactical Broad Market 12/03/ BCM AlphaSector Rotation IDX Tactical Sector 04/02/ isectors Post MPT Growth Allocation SMA Tactical Sector 02/01/ Braver Tactical Equity Opportunity Tactical All-Inclusive 12/31/ Main Active SMA Tactical Broad Market 09/30/ KCM Global Opportunity Tactical All-Inclusive 12/30/ Astor Style Preferred Growth Program Tactical All-Inclusive 12/31/ Braver Tactical Balanced Tactical Broad Market 12/31/ Avatar Moderate Growth Tactical Sector 04/01/ QA US Equity Tactical All-Inclusive 10/02/ Cumberland US Equity ETF Tactical All-Inclusive 12/31/ Clark Navigator U.S. Style Opportunity Tactical Broad Market 01/03/ Avatar Growth Tactical Sector 04/01/ Avatar Aggressive Tactical Sector 04/01/ Braver Tactical Equity Sector Rotation Tactical Sector 01/03/ Clark Navigator Sector Opportunity Tactical Sector 01/03/ MRM Dynamic Overlay Strategy Tactical All-Inclusive 04/03/ Mench Aggressive Equity Tactical All-Inclusive 10/02/ Niemann Risk Managed Sector Tactical Sector 01/24/ Green Inv Mgt Guardian Mosaic Tactical All-Inclusive 07/03/ Niemann Dynamic Sector Tactical Sector 02/20/ Green Inv Mgt Guardian Sector Tactical Sector 07/01/ QA US Equity with Equity Flex Tactical All-Inclusive 01/01/ Navellier Vireo AlphaSector Premium Tactical Sector 03/01/ Innealta Tac ETF Sector Rotation Opp Tactical Sector 12/31/ Innealta Tac ETF Sector Rotation Core Tactical Sector 12/31/ Confluence Aggressive Growth Tactical All-Inclusive 08/01/ Equity Median Hybrid Median Strategic Median Tactical Median Morningstar US Market TR NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc. 1-Yr Ret 3-Yr Ret 5-Yr Ret Assets USD Mil

29 29 ETF Managed s Landscape Report January 2012 Table B: Attribute Groupings, Ranked by 3-Year Return Sept. 30, 2011 (Continued) Fixed Income Inception SignalPoint Moderate Income Point Hybrid All-Inclusive 09/28/ Efficient Market Taking Income Consvt Hybrid All-Inclusive 03/01/ Incl. Efficient Market Taking Income Aggr Hybrid All-Inclusive 05/01/ Efficient Market Taking Income Moderate Hybrid All-Inclusive 04/01/ Incl. SignalPoint Stable Income Point Hybrid All-Inclusive 09/28/ SignalPoint CU Income Plus Hybrid All-Inclusive 06/30/ Wela Own Your Age (OYA) 80 Hybrid All-Inclusive 03/31/ Marquette University AIM Fixed Income Strategic All-Inclusive 01/31/ Champion CR Fixed Income Qualified Strategic All-Inclusive 10/03/ NR Nuveen Intelligent Risk Conservative Strategic Broad Market 06/01/ Caprin Managed Muni ETF Strategic Sector 09/13/ isectors Domestic FI Allocation SMA Strategic All-Inclusive 01/01/ Caprin Managed Taxable Bond ETF Strategic All-Inclusive 09/13/ isectors Capital Preservation Alloc SMA Strategic All-Inclusive 01/01/ First Trust FTA Ibbotson Mul Disc 20/80* Strategic Broad Market 05/01/ Clark Navigator Fixed Income TR Tactical All-Inclusive 12/31/ Braver Tactical High Yield Bond Tactical Sector 12/30/ Laffer Investments Fixed Income ETF Tactical All-Inclusive 10/02/ Green Inv Mgt Guardian Fix Inc Tactical All-Inclusive 07/01/ Avatar Capital Preservation Tactical Sector 04/01/ Avatar Fixed Income Plus Tactical All-Inclusive 05/01/ Innealta Fixed Income Tactical All-Inclusive 12/31/ D Fixed Income ETF Tax Mgd. Tactical All-Inclusive 12/01/ QA Fixed Income Tactical All-Inclusive 01/01/ CMG AIFS Active U.S. Treasury Management Tactical Sector 07/01/ D Fixed Income ETF Tactical All-Inclusive 02/02/ Fixed Income Median Hybrid Median Strategic Median Tactical Median Morningstar Core Bond MCBI TR NR = Not reported to Morningstar Incl. = Assets counted in related strategy Source: Morningstar, Inc. 1-Yr Ret 3-Yr Ret 5-Yr Ret * An investment advisory subsidiary of Morningstar receives fees for providing investment consulting services to this portfolio s advisor. These fees are mainly based on portfolio assets under management. This portfolio is not sponsored, issued, marketed, or sold by Morningstar or its subsidiaries. Morningstar does not make any representation regarding the advisability of investing in this portfolio. Assets USD Mil

30 30 ETF Managed s Landscape Report January 2012 Table C: Selected Top and Bottom Performing Strategies, 1-Year Return Sept. 30, 2011 Top Performing Inception Universe Asset Breadth 1-Yr Ret 3-Yr Ret Assets USD Mil YOY Asset Growth Mesirow Financial Inv Mgt EAFE Plus 02/01/06 International Equity Tactical Country/Region Mesirow Financial Inv Mgt Emg mkt 10/03/05 International Equity Tactical Country/Region Mesirow Emerging Markets Tactical Allc 09/01/09 International Equity Tactical Country/Region Good Harbor U.S. Tactical Core 04/30/03 United States Equity Tactical Broad Market isectors Post-MPT Growth Allocation-SMA 02/01/05 United States Equity Tactical Sector Kingfisher Global Tactical 06/30/04 Global All Asset Tactical All-Inclusive Sterling Tactical Rotation Strategy 12/30/09 Global All Asset Tactical Broad Market isectors Post - MPT Mod Allocation SMA 03/03/08 United States Balanced Hybrid Sector QA Tactical All Market 01/01/09 Global All Asset Tactical All-Inclusive isectors Inflation Protect Alloc SMA 10/01/09 Global All Asset Strategic All-Inclusive Bottom Performing Accuvest Non US Equity 08/29/08 International Equity Tactical Country/Region Hays Advisory International ETF 01/31/06 International Equity Tactical All-Inclusive QA International Equity 01/02/02 International Equity Tactical All-Inclusive Niemann Dynamic International 01/22/08 International Equity Tactical All-Inclusive Cumberland - Intl Equity ETF 03/31/03 International Equity Tactical All-Inclusive Natixis / AIA Mgd ETF - China 04/28/06 International Equity Strategic Country/Region Glovista Global Emging Market Equities 01/04/99 International Equity Tactical Country/Region Champion CR Global Macro Emerg Mkt Core 05/01/03 International Equity Tactical Country/Region NR Clark Navigator Intl Opportunity 01/04/07 International Equity Tactical Country/Region Green Inv Mgt Guardian Country 07/01/04 International Equity Tactical Country/Region Source: Morningstar, Inc

31 31 ETF Managed s Landscape Report January 2012 Table D: Largest Strategies Sept. 30, 2011 Inception Universe Asset Breadth Assets USD Mil YOY Asset Growth Windhaven Diversified Growth 01/02/02 Global All-Asset Strategic All-Inclusive 3, Windhaven Diversified Aggressive 01/02/02 Global All-Asset Strategic All-Inclusive 2, Windhaven Diversified Conservative 01/02/02 Global All-Asset Strategic All-Inclusive 1, Stadion Managed Strategy 01/02/96 Global Equity Tactical All-Inclusive 1, Astor Long/Short Balanced Program 12/31/99 United States Alternative Tactical All-Inclusive 1, Riverfront AA Moderate Growth and Income 10/01/03 Global Balanced Hybrid All-Inclusive 1, Forward Tactical Growth 08/03/09 United States Equity Hybrid Broad Market Innealta Tac ETF Sector Rotation Core 12/31/09 United States Equity Tactical Sector Nottingham Diversified Index Cons 03/01/05 Global Balanced Strategic All-Inclusive Innealta Tac ETF Country Rotation 12/31/09 International Equity Tactical Country/Region QA Tactical All Market 01/01/09 Global All-Asset Tactical All-Inclusive Good Harbor U.S. Tactical Core 04/30/03 United States Equity Tactical Broad Market Riverfront AA Moderate Growth 10/01/03 Global Equity Hybrid All-Inclusive Riverfront AA Long Term Growth 10/01/03 Global Equity Hybrid All-Inclusive LCAS-Global Diversified 25/75 (TE) 07/01/09 Global Fixed Income Strategic All-Inclusive Laffer Investments Glbl Equity Composite 09/01/00 International Equity Tactical Country/Region Cougar Global MAR 8 10/31/01 Global All-Asset Tactical All-Inclusive ,158.0 Navellier Vireo AlphaSec.Allocator Pm. 03/01/10 Global All-Asset Hybrid Broad Market Capital Wealth ETF Covered Call Strategy 01/02/08 Global All-Asset Hybrid All-Inclusive The Windham 03/01/10 Global Balanced Tactical Broad Market ,866.5 LCAS-Global Non-Traditional 09/01/05 Global All-Asset Hybrid All-Inclusive TAG Moderate ETF 01/03/06 Global All-Asset Hybrid Broad Market Cougar Global MAR 6 12/30/99 Global All-Asset Tactical All-Inclusive GLOBALT innovat ETF Stratg Balnc Wrap 12/31/03 Global Balanced Hybrid All-Inclusive Riverfront Asset Allocation Consrv Grth 10/01/03 Global Balanced Hybrid All-Inclusive Source: Morningstar, Inc Table E: Largest Asset Growth Sept. 30, 2011 Inception Universe Asset Breadth Assets USD Mil Asset Change USD Mil Windhaven Diversified Growth 01/02/02 Global All-Asset Strategic All-Inclusive 3, ,560.0 Stadion Managed Strategy 01/02/96 Global Equity Tactical All-Inclusive 1, Windhaven Diversified Aggressive 01/02/02 Global All-Asset Strategic All-Inclusive 2, Windhaven Diversified Conservative 01/02/02 Global All-Asset Strategic All-Inclusive 1, Astor Long/Short Balanced Program 12/31/99 United States Alternative Tactical All-Inclusive 1, QA Tactical All Market 01/01/09 Global All-Asset Tactical All-Inclusive Good Harbor U.S. Tactical Core 04/30/03 United States Equity Tactical Broad Market Cougar Global MAR 8 10/31/01 Global All-Asset Tactical All-Inclusive Navellier Vireo AlphaSec.Allocator Pm. 03/01/10 Global All-Asset Hybrid Broad Market The Windham 03/01/10 Global Balanced Tactical Broad Market Riverfront AA Moderate Growth and Income 10/01/03 Global Balanced Hybrid All-Inclusive 1, Cougar Global MAR 6 12/30/99 Global All-Asset Tactical All-Inclusive Windham Global Equities Strategy 08/02/10 Global Equity Strategic Broad Market Innealta Tac ETF Sector Rotation Core 12/31/09 United States Equity Tactical Sector Sage Tactical ETF Growth 12/31/01 Global Equity Tactical Broad Market Source: Morningstar, Inc

32 32 ETF Managed s Landscape Report January 2012 Table F: ETF Managed Assets by Firm Sept. 30, 2011 Assets USD Mil YOY Asset Growth Windhaven Investment Management 7, RiverFront Investment Group, LLC 2, Innealta Capital Stadion Money Management, LLC Astor Asset Management LLC Quantitative Advantage Forward Management, LLC Clark Capital Management Group, Inc. Lazard Asset Management LLC Sage Advisory Services Ltd CO Cougar Global Investments LP Avatar Associates, LLC Nottingham Advisors Inc. Good Harbor Financial, LLC Globalt Inc , , ,491 Source: Morningstar, Inc

33 33 ETF Managed s Landscape Report January 2012 Table G: Asset Allocation Profile Global All Asset Cash Equity US Equity Boston Advisors Broad Allocation Str SA Hybrid All-Inclusive /30/11 Boyd Watterson Titanium Global Macro SMA Tactical All-Inclusive /30/11 Capital Wealth ETF Covered Call Strategy Hybrid All-Inclusive /31/11 Clark Navigator Alternative Tactical All-Inclusive /31/11 Confluence Global Macro Tactical All-Inclusive /30/11 Cornerstone Model Strategic All-Inclusive /30/11 Cougar Global MAR 10 Tactical All-Inclusive /30/11 Cougar Global MAR 6 Tactical All-Inclusive /30/11 Cougar Global MAR 8 Tactical All-Inclusive /30/11 Cumberland - Glbl Multi-Asset Eq ETF Tactical All-Inclusive /30/11 Dorsey Wright Sys Reltv Strth Glb Macro Tactical All-Inclusive /30/11 FA Dynamic ETF Tactical All-Inclusive /31/11 Foxhall ETF Hard Assets Strategy Strategic Broad Market /30/11 Hays TMAC Tactical All-Inclusive /30/11 IPS Global Balanced Fund Tactical All-Inclusive /30/11 isectors Endowment Allocation SMA Strategic All-Inclusive /31/11 isectors Endowment Allocation SMA Strategic All-Inclusive /31/11 isectors Endowment Allocation SMA Strategic All-Inclusive /31/11 isectors Endowment Allocation SMA Strategic All-Inclusive /31/11 isectors Endowment Allocation SMA Strategic All-Inclusive /31/11 isectors Inflation Protect Alloc SMA Strategic All-Inclusive /31/11 isectors Liquid Alternatives Alloc SMA Strategic All-Inclusive /31/11 isectors Tactical Glbl Bal Alloc SMA Tactical Broad Market /31/11 Kingfisher Global Tactical Tactical All-Inclusive /30/10 LCAS-Global Non-Traditional Hybrid All-Inclusive /30/11 MCM Apto Tactical All-Inclusive /30/11 Natixis / AIA Mgd ETF - Aggressive Strategic Broad Market /30/11 Navellier Vireo AlphaSec.Allocator Pm. Hybrid Broad Market /30/11 NorthCoast Tactical ETF Tactical All-Inclusive /30/11 Nuveen Intelligent Risk Aggressive Tactical Broad Market /30/11 Nuveen Intelligent Risk Moderate Tactical Broad Market /30/11 QA Tactical All Market Tactical All-Inclusive /30/11 Sterling Tactical Rotation Strategy Tactical Broad Market /30/11 TAG Conservative ETF Hybrid Broad Market /30/11 TAG Moderate ETF Hybrid Broad Market /30/11 Wela Agg Yield Tactical All-Inclusive /30/11 Windhaven Diversified Aggressive Strategic All-Inclusive /31/10 Windhaven Diversified Conservative Strategic All-Inclusive /31/10 Windhaven Diversified Growth Strategic All-Inclusive /31/10 Bond US Bond Other Holdings (Long) Alternative 361 Long/Short Equity ETF Tactical All-Inclusive /30/ Multi-Strategy ETF Tactical All-Inclusive /30/11 IQ Hedge Multi-Strategy SMA Strategic Broad Market /30/11 isectors Precious Metals Allocation SMA Strategic Sector /31/11 Source: Morningstar, Inc

34 34 ETF Managed s Landscape Report January 2012 Table G: Asset Allocation Profile (Continued) Cash Equity US Equity Main Currency - SMA Tactical Country/Region /30/11 Main Global Macro Long Short - SMA Tactical All-Inclusive /30/11 Optimus Global Allocation Bull/Bear Tactical Broad Market /31/11 SignalPoint Currency Point Hybrid Country/Region /30/11 Sitka Absolute Return Tactical All-Inclusive /30/11 TIS Splitrock Moderate Tactical Country/Region /31/10 Bond US Bond Other Holdings (Long) Balanced 3D Global 40 ETF Hybrid Broad Market /30/11 3D Global 40 ETF - Tax Managed Hybrid Broad Market /30/11 3D Global 60 ETF Hybrid Broad Market /30/11 3D Global 60 ETF - Tax Managed Hybrid Broad Market /30/11 Champion CR Income Plus Equity Tactical Broad Market /30/10 Champion CR Strategic ETF Low Risk Tactical All-Inclusive /30/10 Champion CR Strategic ETF Moderate Tactical All-Inclusive /30/10 Champion CR Tactical ETF Consvtv SA Tactical All-Inclusive /30/10 Champion CR Tactical ETF Low Risk SA Tactical All-Inclusive /30/10 Champion CR Tactical ETF Moderate SA Tactical All-Inclusive /30/10 Clark Navigator Global Opportunity Tactical All-Inclusive /30/11 CLS ETF Risk Budget 60-Moderately Cnsrv Strategic All-Inclusive /30/11 CoreStates 20/20 Global Vision Tactical Hybrid All-Inclusive /30/11 Dunn Warren Conservative ETF Tactical All-Inclusive /30/11 Dunn Warren Moderate ETF Tactical All-Inclusive /30/11 First Trust First Trust/Harry Dent Opp Tactical All-Inclusive /30/11 Foxhall Capital ETF Strat 50/50 Strat Strategic Broad Market /30/11 Foxhall Capital Management ETF Bal Strat Strategic Broad Market /30/11 GLOBALT innovat ETF Stratg Balnc Wrap Hybrid All-Inclusive /30/11 GLOBALT innovat ETF Stratg Consrvt Wrap Hybrid All-Inclusive /30/11 Green Inv Mgt Guardian Bal Hybrid Broad Market /30/11 Green Inv Mgt Guardian Cnsv Bal Hybrid Broad Market /30/11 Green Inv Mgt Strat Glbl Bal Tax Aware Hybrid Broad Market /30/11 Green Inv Mgt Strategic Global Balanced Hybrid Broad Market /30/11 Innealta Tac ETF Risk-Based Core Consvt Hybrid Broad Market /30/11 Innealta Tac ETF Risk-Based Core Mod Hybrid Broad Market /30/11 Innealta Tac ETF Risk-Based Opp Consvt Hybrid Broad Market /30/11 Innealta Tac ETF Risk-Based Opp Mod Hybrid Broad Market /30/11 Integrated Managed ETF - Cons Cap App Strategic Broad Market /30/11 Integrated Mgd ETF - Risk Controlled Gr Strategic Broad Market /30/11 IPS Endowment Fund Tactical All-Inclusive /30/11 isectors Inst Allocation SMA Strategic Broad Market /31/11 isectors Inst Allocation SMA Strategic Broad Market /31/11 Klaren Capital GTS Balanced Hybrid Broad Market /31/11 LCAS-Global Diversified 40/60 (TX) Strategic All-Inclusive /30/11 LCAS-Global Diversified 60/40 (TE) Strategic All-Inclusive /30/11 LCAS-Global Diversified 60/40 (TE) SMA Strategic All-Inclusive /30/11 LCAS-Global Diversified 60/40 (TX) Strategic All-Inclusive /30/11 LCAS-Global Diversified 60/40 (TX) SMA Strategic All-Inclusive /30/11 Source: Morningstar, Inc

35 35 ETF Managed s Landscape Report January 2012 Table G: Asset Allocation Profile (Continued) Cash Equity US Equity Main All Asset - SMA Hybrid All-Inclusive /30/11 Natixis / AIA Mgd ETF - Conservative Strategic Broad Market /30/11 Natixis / AIA Mgd ETF - Inc. Aggrsv Strategic Broad Market /30/11 Natixis / AIA Mgd ETF - Inc. Cons Strategic Broad Market /30/11 Natixis / AIA Mgd ETF - Moderate Strat Strategic Broad Market /30/11 Nottingham Diversified Index Cons Strategic All-Inclusive /30/10 QA Global Balanced 40/60 Hybrid All-Inclusive /30/11 QA Global Balanced 40/60 w/ Equity Flex Hybrid All-Inclusive /30/11 QA Global Balanced 60/40 Hybrid All-Inclusive /30/11 QA Global Balanced 60/40 w/ Equity Flex Hybrid All-Inclusive /30/11 Raylor Strategic World Income SMA Strategic All-Inclusive /31/11 Retirement Bodyguard Balanced Tactical All-Inclusive /31/11 Retirement Bodyguard Hedged Appreciation Tactical All-Inclusive /31/11 Riverfront AA Conservative Gr and Inc Hybrid All-Inclusive /30/11 Riverfront AA Moderate Growth and Income Hybrid All-Inclusive /30/11 Riverfront Asset Allocation Consrv Grth Hybrid All-Inclusive /30/11 Riverfront ETF Conservative Growth Hybrid All-Inclusive /30/11 Sage Tactical ETF Moderate Tactical Broad Market /30/11 Sage Tactical ETF Moderate Growth Tactical Broad Market /30/11 SFS Tax Efficient Growth & Income Strategic Broad Market /30/11 SignalPoint Universal Signal Hybrid All-Inclusive /30/11 SRCM Growth & Income Blend Hybrid Broad Market /30/11 SRCM Growth & Income Hybrid Broad Market /30/11 SRCM Income & Preservation Hybrid Broad Market /30/11 The Windham Tactical Broad Market /31/11 Transamerica I-Series-Moderate Strategic Broad Market /31/10 Transamerica I-Series-Moderate Consvtv Strategic Broad Market /31/10 Wela Own Your Age (OYA)- 40 Hybrid Broad Market /30/11 Wela Own Your Age (OYA)- 50 Hybrid Broad Market /30/11 Wela Own Your Age (OYA)- 60 Hybrid Broad Market /30/11 Windham Conservative Plus Portf (Tax Mg) Strategic Broad Market /31/10 Windham Conservative Plus Strategic Broad Market /31/11 Windham Moderate Plus Portf (Tax Mg) Strategic Broad Market /31/11 Windham Moderate Plus Strategic Broad Market /31/11 Windham Moderate Strategic Broad Market /31/11 Windham Moderate (Tax Managed) Strategic Broad Market /31/11 Bond US Bond Other Holdings (Long) Equity 3D Global 100 ETF Hybrid Broad Market /30/11 3D Global 80 ETF Hybrid Broad Market /30/11 3D Global 80 ETF - Tax Managed Hybrid Broad Market /30/11 3D Global Growth ETF Hybrid Broad Market /30/11 Accuvest Core Equity Tactical Country/Region /30/11 Accuvest Global Opportunities Tactical Country/Region /30/11 Appleton Group PLUS Hybrid Broad Market /31/11 Appleton Group Hybrid Broad Market /31/11 Appleton Group Tax Managed Hybrid Broad Market /31/11 Source: Morningstar, Inc

36 36 ETF Managed s Landscape Report January 2012 Table G: Asset Allocation Profile (Continued) Cash Equity US Equity BCM AlphaSector Allocator Premium IDX Tactical All-Inclusive /30/11 BCM AlphaSector Global Premium IDX Tactical All-Inclusive /30/11 Champion CR Strategic ETF Enhanced Gth Tactical All-Inclusive /30/10 Champion CR Strategic ETF Growth Tactical All-Inclusive /30/10 Champion CR Tactical ETF Enhcd Growth SA Tactical All-Inclusive /30/10 Champion CR Tactical ETF Growth SA Tactical All-Inclusive /30/10 Clark Navigator Global Eq ETF Hedged Tactical All-Inclusive /30/11 Clark Navigator Global Equity ETF Tactical All-Inclusive /30/11 CLS ETF Risk Budget Aggressive Strategic All-Inclusive /30/11 CLS ETF Risk Budget 75 - Moderate Strategic All-Inclusive /30/11 CLS ETF Risk Budget 80 - Moderate Strategic All-Inclusive /30/11 CLS ETF Risk Budget 90-Moderately Agrsv Strategic All-Inclusive /30/11 Cookson Peirce All-Cap World Equity Tactical All-Inclusive /30/11 Dunn Warren Aggressive ETF Tactical All-Inclusive /30/11 Dunn Warren Growth ETF Tactical All-Inclusive /30/11 ELF ETF Strategy Tactical All-Inclusive /30/11 FEG Equity Strategic Broad Market /30/11 Foxhall ETF Growth and Income Strategy Strategic Broad Market /30/11 Foxhall ETF Growth Strategy Strategic Broad Market /30/11 FTA ETF Asset Allc - Mod Gr Strategic All-Inclusive /30/11 FTA ETF Asset Allocation - Gr Strategic All-Inclusive /30/11 GLOBALT innovat ETF Stratg Gro Wrap Hybrid All-Inclusive /30/11 GLOBALT innovat ETF Stratg Hig Gro Wrap Hybrid All-Inclusive /30/11 Green Inv Mgt Guardian Bal Gr Tactical Broad Market /30/11 Green Inv Mgt Guardian Bal Mosaic Tactical All-Inclusive /30/11 Green Inv Mgt Guardian Stk Tactical Broad Market /30/11 Green Inv Mgt Opp Bal Gr Hybrid Broad Market /30/11 Hays Advisory Global ETF Tactical All-Inclusive /30/11 Hays Advisory TMAC Equity Focused Tactical All-Inclusive /30/11 Innealta Tac ETF Risk-Based Core Growth Hybrid Broad Market /30/11 Innealta Tac ETF Risk-Based Opp Growth Hybrid Broad Market /30/11 IRON Active Options Overlay Global Eq Hybrid Broad Market /30/11 isectors Inst Allocation SMA Strategic Broad Market /31/11 isectors Inst Equity Allocation SMA Strategic Broad Market /31/11 LCAS-Global Diversified 75/25 (TE) Strategic All-Inclusive /30/11 LCAS-Global Diversified 75/25 (TX) Strategic All-Inclusive /30/11 LCAS-Global Equity Strategic All-Inclusive /30/11 LCAS-Global Equity SMA Strategic All-Inclusive /30/11 Metropolitan Tactical Growth Tactical All-Inclusive /30/11 Metropolitan Tactical Moderate Tactical All-Inclusive /30/11 Natixis / AIA Mgd ETF - Glob Equity Strategic Broad Market /30/11 Navellier Vireo AlphaSector Global Prem. Tactical All-Inclusive /30/11 New Path Actively Mgd Allc Strat (AMAS) Tactical Broad Market /31/10 Nottingham Diversified Index Dynamic Strategic All-Inclusive /30/10 Nottingham Index Port Moderate Strategic All-Inclusive /30/10 QA Global Aggressive Tactical All-Inclusive /30/11 QA Global Balanced 80/20 Hybrid All-Inclusive /30/11 Source: Morningstar, Inc Bond US Bond Other Holdings (Long)

37 37 ETF Managed s Landscape Report January 2012 Table G: Asset Allocation Profile (Continued) Cash Equity US Equity QA Global Balanced 80/20 w/ Equity Flex Hybrid All-Inclusive /30/11 QA Global Equity Tactical All-Inclusive /30/11 QA Global Equity w/ Equity Flex Tactical All-Inclusive /30/11 QA Global Sector Tactical Sector /30/11 QA Global Style Tactical Broad Market /30/11 QA Global Style w/ Equity Flex Tactical Broad Market /30/11 Raylor Strategic World Equity SMA Strategic All-Inclusive /31/11 Raylor Strategic World Opportunity SMA Strategic Country/Region /31/11 Retirement Bodyguard Core Growth Tactical All-Inclusive /31/11 Riverfront AA Long Term Growth Hybrid All-Inclusive /30/11 Riverfront AA Long-Term Growth and Inc Hybrid All-Inclusive /30/11 Riverfront AA Moderate Growth Hybrid All-Inclusive /30/11 Riverfront ETF Long Term Growth Hybrid All-Inclusive /30/11 Riverfront ETF Moderate Growth Hybrid All-Inclusive /30/11 Sage Tactical ETF All Cap Equity Plus Tactical Broad Market /30/11 Sage Tactical ETF Growth Tactical Broad Market /30/11 SFS Tax Efficient Growth Strategic Broad Market /30/11 SignalPoint Global Signal Hybrid All-Inclusive /30/11 SRCM Aggressive Growth Hybrid Broad Market /30/11 SRCM Growth Hybrid Broad Market /30/11 Stadion Core Advantage Strategy Tactical All-Inclusive /30/10 Stadion Managed Strategy Tactical All-Inclusive /30/10 Steinberg Global ETF Multi Cap Tactical All-Inclusive /30/11 TAG Aggressive ETF Hybrid Broad Market /30/11 Transamerica I-Series-Aggressive Strategic Broad Market /31/10 Transamerica I-Series-ModerateAggressive Strategic Broad Market /31/10 Wela All Growth Tactical All-Inclusive /30/11 Wela Own Your Age (OYA)- 20 Hybrid All-Inclusive /30/11 Wela Own Your Age (OYA)- 30 Hybrid All-Inclusive /30/11 Westport Res Mgt ETF Tactical All-Inclusive /30/11 Windham Aggressive Portf (Tax Mg) Strategic Broad Market /31/11 Windham Aggressive Strategic Broad Market /31/11 Windham Global Equities Strategy Strategic Broad Market /31/11 Bond US Bond Other Holdings (Long) Fixed Income 3D Global 20 ETF Hybrid Broad Market /30/11 3D Global 20 ETF - Tax Managed Hybrid Broad Market /30/11 Financial Trust Flexible Income Tactical All-Inclusive /31/11 Foxhall ETF Conservative Strategy Strategic Broad Market /30/11 Green Inv Mgt Guardian Bal Inc Tactical Broad Market /30/11 Integrated Mgd ETF-Inc & Inflation Hdg Strategic Broad Market /30/11 isectors Inst FI Allocation SMA Strategic All-Inclusive /31/11 LCAS-Global Diversified 25/75 (TE) Strategic All-Inclusive /30/11 LCAS-Global Diversified 25/75 (TX) Strategic All-Inclusive /30/11 Source: Morningstar, Inc

38 38 ETF Managed s Landscape Report January 2012 Table G: Asset Allocation Profile (Continued) Cash Equity US Equity LCAS-Global Fixed Income (TE) Strategic All-Inclusive /30/11 LCAS-Global Fixed Income (TX) Strategic All-Inclusive /30/11 Sage Tactical ETF Conservative Tactical Broad Market /30/11 Sage Tactical ETF Core Plus Fixed Income Tactical Broad Market /30/11 SCA Fixed Alternative Tactical All-Inclusive /31/11 Transamerica I-Series-Conservative Strategic Broad Market /31/10 Windham Conservative Portf (Tax Mg) Strategic Broad Market /31/11 Windham Conservative Strategic Broad Market /31/11 Windham Multi-Sector Bonds Strategy Strategic All-Inclusive /31/11 Bond US Bond Other Holdings (Long) International All Asset BCM Diversified International Premium Tactical All-Inclusive /30/11 Equity Accuvest Asian Advantage Tactical Country/Region /30/11 Accuvest Non US Equity Tactical Country/Region /30/11 BCM AlphaSector Int'l Premium IDX Tactical Broad Market /30/11 Champion CR Glb Mac Intl Diver-Panoptic Strategic All-Inclusive /30/10 Champion CR Global Macro Emerg Mkt Core Tactical Country/Region /31/11 Clark Navigator Intl Opportunity Tactical Country/Region /30/11 Cumberland - Intl Equity ETF Tactical All-Inclusive /30/11 Foxhall ETF Pac Rim and Emerg Mkts Strat Strategic Broad Market /30/11 Glovista Global Emging Market Equities Tactical Country/Region /30/11 Gratry International ETF Allocation Strategic Country/Region /30/11 Green Inv Mgt Guardian Country Tactical Country/Region /30/11 Hays Advisory International ETF Tactical All-Inclusive /30/11 Innealta Tac ETF Country Rotation Tactical Country/Region /30/11 isectors Tactical Intl Alloc SMA Tactical All-Inclusive /31/11 Laffer Investments Glbl Equity Composite Tactical Country/Region /30/11 Main International - SMA Tactical Country/Region /30/11 Mesirow Emerging Markets Tactical Allc Tactical Country/Region /31/11 Mesirow Financial Inv Mgt EAFE Plus Tactical Country/Region /30/10 Mesirow Financial Inv Mgt Emg mkt Tactical Country/Region /30/10 MRM Dynamic International Strategy Tactical Country/Region /30/11 Natixis / AIA Mgd ETF - China Strategic Country/Region /30/11 Navellier Vireo AlphaSector Intl. Prem. Tactical Broad Market /30/11 Niemann Dynamic International Tactical All-Inclusive /30/11 QA International Equity Tactical All-Inclusive /30/11 QA International Equity w/ Equity Flex Tactical All-Inclusive /30/11 SGA International Country Allocation Strategic Country/Region /30/11 SignalPoint International Signal Hybrid Sector /30/11 Windham Foreign Equities Strategy Strategic Broad Market /31/11 Zacks International Strategic Country/Region /30/10 Source: Morningstar, Inc

39 39 ETF Managed s Landscape Report January 2012 Table G: Asset Allocation Profile (Continued) United States All Asset Cash Equity US Equity BCM Diversified Equity Tactical All-Inclusive /30/11 BCM Premium Diversified Equity Tactical All-Inclusive /30/11 Confluence Growth Tactical All-Inclusive /30/11 Confluence Growth and Income Tactical All-Inclusive /30/11 Confluence Income and Growth Tactical All-Inclusive /30/11 Bond US Bond Other Holdings (Long) Alternative K.M. STAR-SPY Strategic All-Inclusive /30/11 Astor Long/Short Balanced Program Tactical All-Inclusive /30/11 Green Inv Mgt Guardian Alternatives Tactical All-Inclusive /30/11 Balanced Appleton Group PLUS-Conservative Hybrid Broad Market /31/11 Appleton Group-Conservative Hybrid Broad Market /31/11 Avatar Conservative Growth Tactical Sector /30/11 Avatar Conservative Tactical Sector /30/11 Avatar Moderate Tactical Sector /30/11 Efficient Market Years Aggressive Hybrid All-Inclusive /30/11 Efficient Market Years Consvt Hybrid All-Inclusive /30/11 Efficient Market Years Moderate Hybrid All-Inclusive /30/11 Efficient Market 2-5 Years Aggressive Hybrid All-Inclusive /30/11 Efficient Market 2-5 Years Conservative Hybrid All-Inclusive /30/11 Efficient Market 2-5 Years Moderate Hybrid All-Inclusive /30/11 Efficient Market 6-10 Years Aggressive Hybrid All-Inclusive /30/11 Efficient Market 6-10 Years Conservative Hybrid All-Inclusive /30/11 Efficient Market 6-10 Years Moderate Hybrid All-Inclusive /30/11 First Trust FTA Ibbotson Mul Disc 40/60* Strategic Broad Market /30/11 Horizon Moderate ETF Strategic All-Inclusive /31/11 isectors Domestic Allocation Strategic Broad Market /31/11 isectors Post-MPT Mod Allocation SMA Hybrid Sector /31/11 SignalPoint Balanced Point Hybrid All-Inclusive /30/11 Equity Appleton Group PLUS-Moderate Hybrid Broad Market /31/11 Appleton Group-Moderate Hybrid Broad Market /30/11 Astor Style Preferred Growth Program Tactical All-Inclusive /30/11 Avatar Aggressive Tactical Sector /30/11 Avatar Growth Tactical Sector /30/11 Avatar Moderate Growth Tactical Sector /30/11 BCM AlphaSector Premium IDX Tactical Sector /30/11 BCM AlphaSector Rotation IDX Tactical Sector /30/11 Braver Tactical Balanced Tactical Broad Market /30/11 Braver Tactical Equity Opportunity Tactical All-Inclusive /30/11 Braver Tactical Equity Sector Rotation Tactical Sector /30/11 Clark Navigator Sector Opportunity Tactical Sector /31/11 Source: Morningstar, Inc * An investment advisory subsidiary of Morningstar receives fees for providing investment consulting services to this portfolio s advisor. These fees are mainly based on portfolio assets under management. This portfolio is not sponsored, issued, marketed, or sold by Morningstar or its subsidiaries. Morningstar does not make any representation regarding the advisability of investing in this portfolio.

40 40 ETF Managed s Landscape Report January 2012 Table G: Asset Allocation Profile (Continued) Cash Equity US Equity Clark Navigator U.S. Style Opportunity Tactical Broad Market /31/11 Confluence Aggressive Growth Tactical All-Inclusive /30/11 Cumberland - US Equity ETF Tactical All-Inclusive /30/11 Efficient Market 20 Plus Years Consvt Hybrid All-Inclusive /30/11 Efficient Market 20 Plus Years Moderate Hybrid All-Inclusive /30/11 Efficient Market 20 Plus Yrs Aggressive Hybrid All-Inclusive /30/11 Forward Tactical Growth Hybrid Broad Market /30/11 Good Harbor U.S. Tactical Core Tactical Broad Market /31/11 Green Inv Mgt Guardian Mosaic Tactical All-Inclusive /30/11 Green Inv Mgt Guardian Sector Tactical Sector /30/11 Horizon Focused ETF Strategic All-Inclusive /31/11 Horizon Growth ETF Strategic All-Inclusive /31/11 Innealta Tac ETF Sector Rotation Core Tactical Sector /30/11 Innealta Tac ETF Sector Rotation Opp Tactical Sector /30/11 isectors Domestic Equity Allocation Strategic Broad Market /31/11 isectors Post-MPT Growth Allocation-SMA Tactical Sector /31/11 KCM Global Opportunity Tactical All-Inclusive /31/11 Main Active - SMA Tactical Broad Market /30/11 Mench Aggressive Equity Tactical All-Inclusive /30/11 MRM Dynamic Overlay Strategy Tactical All-Inclusive /30/11 Navellier Vireo AlphaSector Premium Tactical Sector /30/11 Niemann Dynamic Sector Tactical Sector /30/11 Niemann Risk Managed Sector Tactical Sector /30/11 PTI Russell 2000 Protected Index Hybrid Broad Market /31/10 PTI Securities & Futures Prot Idx Prog Hybrid Broad Market /31/09 QA US Equity Tactical All-Inclusive /30/11 QA US Equity with Equity Flex Tactical All-Inclusive /30/11 Raylor Strategic US Equity SMA Strategic All-Inclusive /31/11 Robinson Market Opportunity Comp. Tactical Broad Market /30/11 SignalPoint Domestic Signal Hybrid All-Inclusive /30/11 SignalPoint Signal 10 Hybrid Sector /30/11 SSWM Strategic Allocation Model 75/25 Strategic Broad Market /30/11 Swan Defined Risk Strategy Hybrid Broad Market /31/10 Bond US Bond Other Holdings (Long) Fixed Income 3D Fixed Income ETF Tactical All-Inclusive /30/11 3D Fixed Income ETF - Tax Mgd. Tactical All-Inclusive /30/11 Astor Active Income Program Strategic All-Inclusive /30/11 Avatar Capital Preservation Tactical Sector /30/11 Avatar Fixed Income Plus Tactical All-Inclusive /30/11 Braver Tactical High Yield Bond Tactical Sector /30/11 Caprin Managed Muni ETF Strategic Sector /30/11 Caprin Managed Tactical Blend ETF Strategic All-Inclusive /30/11 Caprin Managed Taxable Bond ETF Strategic All-Inclusive /30/11 Champion CR Fixed Income Qualified Strategic All-Inclusive /30/10 Clark Navigator Fixed Income TR Tactical All-Inclusive /30/11 CMG AIFS Active U.S. Treasury Management Tactical Sector /30/11 Source: Morningstar, Inc

41 41 ETF Managed s Landscape Report January 2012 Table G: Asset Allocation Profile (Continued) Cash Equity US Equity Efficient Market Taking Income-Aggr Hybrid All-Inclusive /30/11 Efficient Market Taking Income-Consvt Hybrid All-Inclusive /30/11 Efficient Market Taking Income-Moderate Hybrid All-Inclusive /30/11 First Trust FTA Ibbotson Mul Disc 20/80* Strategic Broad Market /30/11 Green Inv Mgt Guardian Fix-Inc Tactical All-Inclusive /30/11 Innealta Fixed Income Tactical All-Inclusive /30/11 isectors Capital Preservation Alloc SMA Strategic All-Inclusive /31/11 isectors Domestic FI Allocation SMA Strategic All-Inclusive /31/11 Laffer Investments Fixed Income ETF Tactical All-Inclusive /30/11 Marquette University AIM Fixed Income Strategic All-Inclusive /30/11 Nuveen Intelligent Risk Conservative Strategic Broad Market /30/11 QA Fixed Income Tactical All-Inclusive /30/11 SignalPoint CU Income Plus Hybrid All-Inclusive /30/11 SignalPoint Moderate Income Point Hybrid All-Inclusive /30/11 SignalPoint Stable Income Point Hybrid All-Inclusive /30/11 Wela Own Your Age (OYA)- 70 Hybrid All-Inclusive /30/11 Wela Own Your Age (OYA)- 80 Hybrid All-Inclusive /30/11 Source: Morningstar, Inc Bond US Bond Other Holdings (Long) * An investment advisory subsidiary of Morningstar receives fees for providing investment consulting services to this portfolio s advisor. These fees are mainly based on portfolio assets under management. This portfolio is not sponsored, issued, marketed, or sold by Morningstar or its subsidiaries. Morningstar does not make any representation regarding the advisability of investing in this portfolio.

42 42 ETF Managed s Landscape Report January 2012 Table H: Selected Risk and Return Statistics Sept. 30, 2011 Global All Asset 1-Yr Ret 3-Yr Ret 2008 Ret Best Fit Index vs. Best Fit Index (3-Yr) vs. Selected Benchmark (3-Yr) Alpha Beta R-Sqd Alpha Beta R-Sqd Down Capture Boyd Watterson Titanium Global Macro SMA MSCI World/Metals&Mining USD Capital Wealth ETF Covered Call Strategy Morningstar Mid Cap TR USD Clark Navigator Alternative MSCI ACWI NR USD Confluence Global Macro Morningstar SEC/Consumer Cyclical TR USD Cornerstone Model S&P North American Natural Resources TR Cougar Global MAR Morningstar Moderately Cons Target Risk Cougar Global MAR S&P 1500 Cons Staples TR Cumberland - Glbl Multi-Asset Eq ETF MSCI ACWI NR USD FA Dynamic ETF MSCI World/Metals&Mining USD Foxhall ETF Hard Assets Strategy S&P 1500 Energy TR IPS Global Balanced Fund MSCI Pacific Ex Japan NR USD Kingfisher Global Tactical MSCI ACWI NR USD LCAS-Global Non-Traditional Morningstar Lifetime Moderate MCM Apto Morningstar Moderately Aggr Target Risk Natixis / AIA Mgd ETF - Aggressive Morningstar Lifetime Moderate NorthCoast Tactical ETF MSCI EAFE Growth NR USD TAG Conservative ETF Morningstar Lifetime Moderate Income TAG Moderate ETF MSCI World/Metals&Mining USD Windhaven Diversified Aggressive Morningstar Moderately Cons Target Risk Windhaven Diversified Conservative Morningstar Lifetime Moderate Income Windhaven Diversified Growth Morningstar Lifetime Moderate Income Selected Benchmark: Global All Asset Blended Benchmark Alternative Main Global Macro Long Short - SMA S&P 1500 Energy TR Sitka Absolute Return AMEX Gold Miners PR USD Balanced 3D Global 40 ETF Morningstar Moderate Target Risk D Global 40 ETF - Tax Managed DJ Moderate TR USD D Global 60 ETF Morningstar Moderately Aggr Target Risk D Global 60 ETF - Tax Managed Morningstar Lifetime Moderate Champion CR Income Plus Equity DJ Moderate TR USD Champion CR Strategic ETF Low Risk Morningstar US Value TR USD Champion CR Strategic ETF Moderate DJ Moderate TR USD Champion CR Tactical ETF Consvtv SA Morningstar Lifetime Moderate Champion CR Tactical ETF Low Risk SA Morningstar Lifetime Moderate Champion CR Tactical ETF Moderate SA Morningstar Lifetime Moderate Clark Navigator Global Opportunity Morningstar Lifetime Moderate CLS ETF Risk Budget 60-Moderately Cnsrv Morningstar Lifetime Moderate CoreStates 20/20 Global Vision Tactical MSCI Europe NR USD Dunn Warren Conservative ETF MSCI Europe NR USD Dunn Warren Moderate ETF BarCap US Treasury Long TR USD First Trust First Trust/Harry Dent Opp MSCI World/Metals&Mining USD Foxhall Capital ETF Strat 50/50 Strat S&P 1500 Energy TR Foxhall Capital Management ETF Bal Strat S&P 1500 Energy TR Source: Morningstar, Inc

43 43 ETF Managed s Landscape Report January 2012 Table H: Selected Risk and Return Statistics Sept. 30, 2011 (Continued) 1-Yr Ret 3-Yr Ret 2008 Ret Best Fit Index vs. Best Fit Index (3-Yr) vs. Selected Benchmark (3-Yr) Alpha Beta R-Sqd Alpha Beta R-Sqd Down Capture GLOBALT innovat ETF Stratg Balnc Wrap DJ Moderate TR USD GLOBALT innovat ETF Stratg Consrvt Wrap DJ Moderate TR USD Green Inv Mgt Guardian Bal Morningstar Lifetime Moderate Green Inv Mgt Guardian Cnsv Bal Morningstar Lifetime Moderate Integrated Managed ETF - Cons Cap App Morningstar Moderately Aggr Target Risk Integrated Mgd ETF - Risk Controlled Gr Morningstar Moderate Target Risk IPS Endowment Fund MSCI Pacific Ex Japan NR USD Klaren Capital GTS Balanced Morningstar Lifetime Moderate Income LCAS-Global Diversified 40/60 (TX) DJ Moderate TR USD LCAS-Global Diversified 60/40 (TE) Morningstar Moderate Target Risk LCAS-Global Diversified 60/40 (TE) SMA Morningstar Moderate Target Risk LCAS-Global Diversified 60/40 (TX) Morningstar Lifetime Moderate Main All Asset - SMA Morningstar Lifetime Moderate Natixis / AIA Mgd ETF - Conservative DJ Moderate TR USD Natixis / AIA Mgd ETF - Inc. Aggrsv Morningstar Lifetime Moderate Natixis / AIA Mgd ETF - Inc. Cons Morningstar Moderately Cons Target Risk Natixis / AIA Mgd ETF - Moderate Strat Morningstar Lifetime Moderate Nottingham Diversified Index Cons QA Global Balanced 40/ Morningstar Lifetime Moderate QA Global Balanced 60/ Morningstar Lifetime Moderate Raylor Strategic World Income SMA Morningstar Moderately Cons Target Risk Riverfront AA Moderate Growth and Income Morningstar Lifetime Moderate Riverfront Asset Allocation Consrv Grth Morningstar Lifetime Moderate Riverfront ETF Conservative Growth Morningstar Moderate Target Risk Sage Tactical ETF Moderate Morningstar Moderately Cons Target Risk Sage Tactical ETF Moderate Growth Morningstar Moderately Aggr Target Risk SFS Tax Efficient Growth & Income Morningstar Lifetime Moderate SRCM Growth & Income Blend Morningstar Lifetime Moderate SRCM Growth & Income Morningstar Lifetime Moderate SRCM Income & Preservation DJ Moderate TR USD Transamerica I-Series-Moderate Morningstar Lifetime Moderate Transamerica I-Series-Moderate Consvtv DJ Moderate TR USD Selected Benchmark: Global Balanced Blended Benchmark Equity 3D Global 100 ETF Morningstar Lifetime Moderate D Global 80 ETF Morningstar Lifetime Moderate D Global 80 ETF - Tax Managed Morningstar Lifetime Moderate Accuvest Core Equity MSCI ACWI NR USD Accuvest Global Opportunities MSCI ACWI Ex USA NR USD Appleton Group PLUS Russell 1000 Value TR USD Appleton Group Russell 1000 Value TR USD Appleton Group Tax Managed Russell 1000 Value TR USD BCM AlphaSector Global Premium IDX MSCI Europe NR USD Champion CR Strategic ETF Enhanced Gth Morningstar Lifetime Moderate Champion CR Strategic ETF Growth Morningstar Lifetime Moderate Champion CR Tactical ETF Enhcd Growth SA Morningstar Lifetime Moderate Champion CR Tactical ETF Growth SA Morningstar Lifetime Moderate Source: Morningstar, Inc

44 44 ETF Managed s Landscape Report January 2012 Table H: Selected Risk and Return Statistics Sept. 30, 2011 (Continued) 1-Yr Ret 3-Yr Ret 2008 Ret Best Fit Index vs. Best Fit Index (3-Yr) vs. Selected Benchmark (3-Yr) Alpha Beta R-Sqd Alpha Beta R-Sqd Down Capture Clark Navigator Global Eq ETF Hedged Morningstar SEC/Basic Materials TR USD Clark Navigator Global Equity ETF Morningstar Lifetime Moderate CLS ETF Risk Budget Aggressive Morningstar Lifetime Moderate CLS ETF Risk Budget 80 - Moderate Morningstar Lifetime Moderate CLS ETF Risk Budget 90-Moderately Agrsv Morningstar Lifetime Moderate Cookson Peirce All-Cap World Equity MSCI ACWI NR USD Dunn Warren Aggressive ETF BarCap US Treasury Long TR USD Dunn Warren Growth ETF BarCap US Treasury Long TR USD ELF ETF Strategy Morningstar SEC/Industrials TR USD FEG Equity Morningstar Lifetime Moderate Foxhall ETF Growth and Income Strategy S&P 1500 Energy TR Foxhall ETF Growth Strategy S&P 1500 Energy TR FTA ETF Asset Allc - Mod Gr DJ Moderate TR USD FTA ETF Asset Allocation - Gr Morningstar Mid Cap TR USD GLOBALT innovat ETF Stratg Gro Wrap Morningstar Lifetime Moderate GLOBALT innovat ETF Stratg Hig Gro Wrap Morningstar Lifetime Moderate Green Inv Mgt Guardian Bal Gr Morningstar Lifetime Moderate Green Inv Mgt Guardian Bal Mosaic Morningstar Lifetime Moderate Green Inv Mgt Guardian Stk Morningstar Lifetime Moderate Green Inv Mgt Opp Bal Gr Morningstar Lifetime Moderate Hays Advisory Global ETF MSCI ACWI NR USD LCAS-Global Diversified 75/25 (TE) Morningstar Lifetime Moderate LCAS-Global Diversified 75/25 (TX) Morningstar Lifetime Moderate LCAS-Global Equity Morningstar Lifetime Moderate LCAS-Global Equity SMA Morningstar Lifetime Moderate Metropolitan Tactical Growth Russell 2000 Growth TR USD Metropolitan Tactical Moderate Russell 2000 Value TR USD Natixis / AIA Mgd ETF - Glob Equity Morningstar Lifetime Moderate New Path Actively Mgd Allc Strat (AMAS) MSCI Europe NR USD Nottingham Diversified Index Dynamic Nottingham Index Port Moderate QA Global Aggressive Russell 1000 Growth TR USD QA Global Balanced 80/ Morningstar Lifetime Moderate QA Global Equity Russell 3000 TR USD QA Global Sector Russell 1000 Growth TR USD QA Global Style DJ US Total Full Cap TR USD Raylor Strategic World Equity SMA Morningstar Lifetime Moderate Raylor Strategic World Opportunity SMA MSCI ACWI Ex USA NR USD Riverfront AA Long Term Growth Morningstar Lifetime Moderate Riverfront AA Moderate Growth Morningstar Lifetime Moderate Riverfront ETF Long Term Growth Morningstar Lifetime Moderate Riverfront ETF Moderate Growth Morningstar Lifetime Moderate Sage Tactical ETF All Cap Equity Plus Russell 1000 TR USD Sage Tactical ETF Growth Morningstar Moderately Aggr Target Risk SFS Tax Efficient Growth Morningstar Lifetime Moderate SignalPoint Global Signal SRCM Aggressive Growth Morningstar Lifetime Moderate SRCM Growth Morningstar Lifetime Moderate Source: Morningstar, Inc

45 45 ETF Managed s Landscape Report January 2012 Table H: Selected Risk and Return Statistics Sept. 30, 2011 (Continued) 1-Yr Ret 3-Yr Ret 2008 Ret Best Fit Index vs. Best Fit Index (3-Yr) vs. Selected Benchmark (3-Yr) Alpha Beta R-Sqd Alpha Beta R-Sqd Down Capture Stadion Core Advantage Strategy Morningstar US Core TR USD Stadion Managed Strategy Morningstar Small Value TR USD Steinberg Global ETF Multi Cap Morningstar Moderately Aggr Target Risk TAG Aggressive ETF MSCI EM Latin America NR USD Transamerica I-Series-Aggressive Morningstar Lifetime Moderate Transamerica I-Series-ModerateAggressive Morningstar Lifetime Moderate Westport Res Mgt ETF Morningstar SUP/Sensitive TR USD Selected Benchmark: Morningstar Global GR Fixed Income Financial Trust Flexible Income BarCap US Credit TR USD Foxhall ETF Conservative Strategy Morningstar Large Value TR USD Green Inv Mgt Guardian Bal Inc MSCI World/Real Estate NR USD Integrated Mgd ETF-Inc & Inflation Hdg Morningstar Moderately Cons Target Risk Sage Tactical ETF Conservative Morningstar Lifetime Moderate Income Sage Tactical ETF Core Plus Fixed Income BarCap US Govt/Credit 5-10 Yr TR USD SCA Fixed Alternative BarCap US Universal TR USD Transamerica I-Series-Conservative DJ Moderate TR USD Selected Benchmark: Global Fixed Income Blended Benchmark International Equity Accuvest Non US Equity MSCI ACWI Ex USA NR USD BCM AlphaSector Int'l Premium IDX MSCI Europe NR USD Champion CR Glb Mac Intl Diver-Panoptic MSCI ACWI Ex USA NR USD Champion CR Global Macro Emerg Mkt Core MSCI EM NR USD Clark Navigator Intl Opportunity MSCI ACWI Ex USA NR USD Cumberland - Intl Equity ETF MSCI ACWI Ex USA NR USD Foxhall ETF Pac Rim and Emerg Mkts Strat MSCI EASEA NR USD Glovista Global Emging Market Equities MSCI EM Latin America NR USD Gratry International ETF Allocation MSCI ACWI Ex USA NR USD Green Inv Mgt Guardian Country MSCI EM NR USD Hays Advisory International ETF MSCI EM NR USD Laffer Investments Glbl Equity Composite MSCI ACWI Ex USA NR USD Main International - SMA MSCI ACWI Ex USA NR USD Mesirow Financial Inv Mgt EAFE Plus MSCI ACWI Ex USA NR USD Mesirow Financial Inv Mgt Emg mkt MSCI EM NR USD MRM Dynamic International Strategy MSCI ACWI Ex USA NR USD Natixis / AIA Mgd ETF - China MSCI AC Far East Ex Japan NR USD Niemann Dynamic International MSCI EM NR USD QA International Equity Morningstar Lifetime Moderate SGA International Country Allocation MSCI ACWI Ex USA NR USD SignalPoint International Signal Zacks International MSCI ACWI Ex USA NR USD Selected Benchmark: Morningstar Global GR Source: Morningstar, Inc

46 46 ETF Managed s Landscape Report January 2012 Table H: Selected Risk and Return Statistics Sept. 30, 2011 (Continued) 1-Yr Ret 3-Yr Ret 2008 Ret Best Fit Index vs. Best Fit Index (3-Yr) vs. Selected Benchmark (3-Yr) Alpha Beta R-Sqd Alpha Beta R-Sqd Down Capture United States All-Asset BCM Diversified Equity S&P 1500 Energy TR BCM Premium Diversified Equity S&P North American Natural Resources TR Confluence Growth Morningstar Lifetime Moderate Confluence Growth and Income Morningstar Lifetime Moderate Selected Benchmark: US All Asset Blended Benchmark Alternative Astor Long/Short Balanced Program Morningstar SUP/Sensitive TR USD Balanced Appleton Group PLUS-Conservative Russell 1000 Value TR USD Appleton Group-Conservative MSCI EAFE Value NR USD Avatar Conservative Growth Morningstar Lifetime Moderate Avatar Conservative Morningstar Lifetime Moderate Avatar Moderate Morningstar Lifetime Moderate Efficient Market Years Aggressive Russell Mid Cap Value TR USD Efficient Market Years Consvt Morningstar US Core TR USD Efficient Market Years Moderate Morningstar Mid Cap TR USD Efficient Market 2-5 Years Aggressive Russell Mid Cap Value TR USD Efficient Market 2-5 Years Conservative DJ Moderate TR USD Efficient Market 2-5 Years Moderate Russell Mid Cap Value TR USD Efficient Market 6-10 Years Aggressive Russell Mid Cap Value TR USD Efficient Market 6-10 Years Conservative Morningstar Moderately Aggr Target Risk Efficient Market 6-10 Years Moderate Russell Mid Cap Value TR USD Horizon Moderate ETF S&P 500 TR isectors Post-MPT Mod Allocation SMA AMEX Gold Miners PR USD Selected Benchmark: US Balanced Blended Benchmark Equity Appleton Group PLUS-Moderate Russell 1000 Value TR USD Appleton Group-Moderate MSCI EAFE Value NR USD Astor Style Preferred Growth Program Morningstar Moderately Aggr Target Risk Avatar Aggressive Russell 1000 TR USD Avatar Growth Russell 1000 TR USD Avatar Moderate Growth Russell 1000 TR USD BCM AlphaSector Premium IDX Morningstar SUP/Sensitive TR USD BCM AlphaSector Rotation IDX Morningstar SUP/Sensitive TR USD Braver Tactical Balanced Morningstar SUP/Sensitive TR USD Braver Tactical Equity Opportunity Russell 2000 Value TR USD Braver Tactical Equity Sector Rotation Russell 2000 Value TR USD Clark Navigator Sector Opportunity Russell Mid Cap Growth TR USD Clark Navigator U.S. Style Opportunity S&P MidCap 400 TR Cumberland - US Equity ETF Morningstar US Core TR USD Efficient Market 20 Plus Years Consvt Morningstar Mid Cap TR USD Efficient Market 20 Plus Years Moderate Morningstar Mid Cap TR USD Efficient Market 20 Plus Yrs Aggressive Morningstar Mid Value TR USD Source: Morningstar, Inc

47 47 ETF Managed s Landscape Report January 2012 Table H: Selected Risk and Return Statistics Sept. 30, 2011 (Continued) 1-Yr Ret 3-Yr Ret 2008 Ret Best Fit Index vs. Best Fit Index (3-Yr) vs. Selected Benchmark (3-Yr) Alpha Beta R-Sqd Alpha Beta R-Sqd Down Capture Good Harbor U.S. Tactical Core Morningstar Small Value TR USD Green Inv Mgt Guardian Mosaic Morningstar US Market TR USD Green Inv Mgt Guardian Sector DJ US Total Full Cap TR USD Horizon Focused ETF Russell 1000 TR USD Horizon Growth ETF Russell 1000 TR USD isectors Post-MPT Growth Allocation-SMA AMEX Gold Miners PR USD KCM Global Opportunity Morningstar US Market TR USD Main Active - SMA Russell 1000 Growth TR USD Mench Aggressive Equity Russell 2000 TR USD MRM Dynamic Overlay Strategy Morningstar Large Cap TR USD Niemann Dynamic Sector Morningstar SEC/Basic Materials TR USD Niemann Risk Managed Sector MSCI World NR USD PTI Russell 2000 Protected Index S&P 1500 Cons Discretionary TR PTI Securities & Futures Prot Idx Prog DJ US Financial TR USD QA US Equity Russell 1000 Growth TR USD Raylor Strategic US Equity SMA Russell 1000 TR USD Robinson Market Opportunity Comp AMEX Gold Miners PR USD SignalPoint Domestic Signal Russell 2000 Value TR USD SSWM Strategic Allocation Model 75/ Morningstar Lifetime Moderate Swan Defined Risk Strategy Morningstar Mid Core TR USD Selected Benchmark: Morningstar US Market TR Fixed Income Avatar Capital Preservation Morningstar Moderately Cons Target Risk Braver Tactical High Yield Bond BofAML US HY Master II TR USD Champion CR Fixed Income Qualified BofAML US HY Master II TR USD Clark Navigator Fixed Income TR Citi ESBI Capped Brady USD Efficient Market Taking Income-Aggr DJ Moderate TR USD Efficient Market Taking Income-Consvt MSCI World/Real Estate NR USD Efficient Market Taking Income-Moderate DJ Moderate TR USD Green Inv Mgt Guardian Fix-Inc Credit Suisse HY USD Laffer Investments Fixed Income ETF BarCap US Credit TR USD Marquette University AIM Fixed Income BarCap US Agg Bond TR USD SignalPoint Moderate Income Point Selected Benchmark: Morningstar Core Bond MCBI TR Source: Morningstar, Inc

48 48 ETF Managed s Landscape Report January 2012 Table I: Summary Return Comparison, Attribute Medians, Open-End Mutual Fund, and Separate Account Category Returns, Sept. 30, Yr Ret 3-Yr Ret 5-Yr Ret Global All Asset Median United States All Asset Median Hybrid Median United States All Asset Blended Benchmark Strategic Median US OE Moderate Allocation Tactical Median US OE Aggressive Allocation Global All Asset Blended Benchmark US SA Conservative Allocation US SA World Allocation US OE Conservative Allocation US OE World Allocation Yr Ret 3-Yr Ret 5-Yr Ret w United States Balanced Median Global Balanced Median United States Balanced Blended Benchmark Hybrid Median US OE Moderate Allocation Strategic Median US OE Aggressive Allocation Tactical Median US SA Conservative Allocation Global Balanced Blended Benchmark US OE Conservative Allocation US SA World Allocation US OE World Allocation United States Equity Median Hybrid Median Global Equity Median Strategic Median Hybrid Median Tactical Median Strategic Median Morningstar US Market TR Tactical Median US SA Large Blend Morningstar Global GR US OE Large Blend US SA World Stock US SA Large Growth US OE World Stock US OE Large Growth US SA Large Value Global Fixed Income Median US OE Large Value Global Fixed Income Blended Benchmark US OE World Bond United States Fixed Income Median US SA World Bond 2.70 Hybrid Median Strategic Median International Equity Median Tactical Median Strategic Median Morningstar Core Bond MCBI TR Tactical Median US SA Intermediate Government Morningstar Gbl Ex US GR US OE Intermediate Government US OE Foreign Large Blend US SA Intermediate-Term Bond US OE Foreign Large Value US OE Intermediate-Term Bond US SA High Yield Bond US OE High Yield Bond Source: Morningstar, Inc

49 49 ETF Managed s Landscape Report January 2012 Table J: Blended Benchmark Information (Asset allocations were re-balanced quarterly) Global All-Asset Morningstar Global GR Morningstar Core Bond MCBI TR BarCap Gbl Agg Ex USD TR Morningstar Long-Only Commodity TR Global Balanced Morningstar Global GR Morningstar Core Bond MCBI TR BarCap Gbl Agg Ex USD TR Global Fixed Income Morningstar Core Bond MCBI TR BarCap Gbl Agg Ex USD TR US All-Asset Morningstar US Market TR Morningstar Core Bond MCBI TR Morningstar Long-Only Commodity TR US Balanced Morningstar US Market TR Morningstar Core Bond MCBI TR

50 Author Andrew Gogerty, ETF Managed Strategist 2012 Morningstar. All Rights Reserved. The information, data, analyses, and opinions contained herein: (1) are proprietary to Morningstar, Inc., and its affiliates (collectively, Morningstar ) and/or their content providers; (2) may not be copied or redistributed; (3) are provided solely for informational purposes and therefore are not an offer to buy or sell a security; and (4) are not warranted to be accurate, complete, or timely. For certain types of investment vehicles (e.g., separate accounts), Morningstar depends on the investment vehicle itself to provide Morningstar with accurate and complete data. To the extent that one or more of these investment vehicles do not provide Morningstar with data or these data are deficient in any way, the data and statistics provided by Morningstar may be compromised. In addition, because the data contained in Morningstar s database are primarily backward looking (i.e., they re comprised of historical performance statistics), neither the data nor Morningstar s analysis of them can be relied upon to predict or assess future performance whether of an individual investment, any particular industry segment or the totality of all strategies or investment vehicles in the industry. Unless otherwise specified, the data contained herein represent composite data for those reporting vehicles comprising the applicable industry segment or the industry as a whole (to the extent included in Morningstar s database). Please note that, as a general matter, any return or related statistics that are based upon a limited number of data points are considered statistically suspect and, therefore, may be of limited value. Morningstar is not providing investment advice or acting as an investment advisor to anyone in any jurisdiction. All information, data, analyses and opinions are subject to change without notice. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of the content of this report or any information contained in or derived from it. Morningstar and the Morningstar logo are registered marks of Morningstar, Inc. All other marks are the property of their respective owners.