Flexible Plan Investments – An Overview

2. Flexible Plan Investments – An Overview

3. Flexible Plan Investments, Ltd. Founded February 1, 1981 Approximately $500 million assets under management* 40+ employees 500+ B/D or RIA contracts Have managed: Over 20,000 clients Over 1,000 retirement plans Client Communications including: OnTarget Monitoring Quarterly Client Newsletter Weekly Hotline Daily web access Firm Highlights * Approximate Value as of March 31, 2010. FPI and subsidiary. www.flexibleplan.com

4. Who We Are • Research-driven • Ph.D led research department with over 65 combined years of professional experience in market analysis • Compliance-focused • Over 70 years combined legal experience with 3 attorneys on staff • Separate Compliance Officer • Service-oriented • 12 external Regional Sales Managers • 5 person internal advisor support team • Client Services call center • Interactive website

6. The Elevator Pitch Flexible Plan Investments has managed mutual fund and variable annuity accounts for tens of thousands of clients and retirement plan participants for over 25 years. We work through financial advisors to increase their income and free time – allowing them to develop and help more clients, while we manage their investments – seekingto reduce risk and enhance returns systematically.

7. Why Risk Management? Chinese Proverb: Fish see the bait, but not the hook; men see the profit, but not the peril.

8. Bear Markets Hurt — The Facts • Bear Market defined: > 20% decline • Average frequency since 1929: A newbear market begins every 5.29 years • Average duration of a bear market: 18.1 months • Average bear market decline: 38.2% • Average time lost making up a bear market loss: 3.5 years SOURCE: FPI 2008.

9. S&P 500 Index Bear Market Study September 1929 through December 2007 Duration Time Needed Bear Market in Months % Decline to Breakeven Sept. ’29 - June ’32 33 86.7 25.2 July ’33-Mar ’35 20 33.9 2.3 Mar ’37-Mar ’38 12 54.5 8.8 Nov ’38-Apr ’42 41 45.8 6.4 May ’46-Mar ’48 22 28.1 4.1 Aug ’56-Oct ’57 14 21.6 2.1 Dec ’61-June ’62 6 28 1.8 Feb ’66-Oct ’66 8 22.2 1.4 Nov ’68-May ’70 18 36.1 3.3 Jan ’73-Oct ’74 21 48.2 7.6 Nov ’80-Aug ’82 21 27.1 2.1 Aug ’87-Dec ’87 4 33.5 1.9 July ’90-Oct ’90 3 19.9 0.6 Mar ’00-Oct ’02 31 49.1 ? SOURCE: FPI 2008.

10. Mathematics of Declines and Advances It takes the following If the decline is to break even -5% +5.3% -10% +11.1% -25% +33.3% -33.3% +50% -50% +100% -75% +300% -90% +900%

11. Which Investor Would You Rather Be? Portfolio APortfolio B Year 1 +20% +10% Year 2 +20% +10% Year 3 -20% +10% Year 4 +20% +10%

12. Based on a $100,000 investment... • Portfolio A would have generated $38,240, experiencing a compound return of 8.43%. • Portfolio B would have generated $46,410 pursuing more stable returns of 10%.

13. The Average Stock Market CycleBased on Average +20% Bull and Bear Markets in the Dow 1885-1993 Bull Market High Previous High Break Even Next Low Bear Market Low Actually Making Money Only 24% of Time Average Number of Months SOURCE: Wagner, The Journal of Investing, Summer 1997.

14. Pros and Cons of Traditional Asset Allocation Definition: A portfolio statically allocated to funds representing different asset classes. Advantage: Risk is lower than the average risk of each asset class used. Disadvantage: 50 Year old Technology Draws on Limited Asset Classes Percentage allocations reviewed only quarterly Reallocations merely tweak the percentages Not responsive to the market Mediocre performance by definition Requires investor to throw good money after bad Must sell winners to buy losers

15. Next Generation Asset Allocation

16. Why Use 20th Century Technology For 21st Century Investments? Modern Portfolio Theory Time-Line See Important Disclosures and Glossary of Terms

17. Components of Next Generation Asset Allocation • State of the Art Asset Allocation: • Patented Software from Ibbotson/Morningstar • 9 Domestic and International Asset Classes • Including Alternative Funds • USharpe-Filtered Fund Universe • Hedging Based on Targeted Volatility Analysis • Automatic Monitoring and Rebalancing Programs • 5 Suitability-Based Profiles • Together with premium services, such as • automatic age-based profile adjustments • default management, and • customized OnTarget Investing quarterly reporting

18. Principle Components of Next Generation Asset Allocation See Important Disclosures and Glossary of Terms

19. Patented Asset Allocation With Resampled Efficiency After Nobel Prize winner Dr. Harry Markowitz tested resampling, Pensions & Investments reported that Markowitz found it to be: “… a Better Mousetrap." Pensions & Investments, December 2003 issue

20. The Difference is True Diversification Source: Morningstar Source: Flexible Plan Investments See Important Disclosures and Glossary of Terms

21. 2002 Index Comparison Traditional Diversification Source: Dial Data, DTN and Thompson Financial, FPI Strategic Solutions Model Accounts.

22. Add In The Alternative Indexes True Diversification Source: Dial Data, DTN and Thompson Financial, FPI Strategic Solutions Model Accounts.

23. Alternatives Components S&P uses 9 “Styles” for their Hedge Fund Index Hedge Fund Types Commodities/Hard Assets Convertible Arbitrage Distressed Fixed Income Arbitrage Global Macro Long / Short Market Neutral Merger Arbitrage Special Situations Select Alternatives covers all 9 hedge fund “styles” in the universe of over 35 funds that it draws upon… and most styles are represented by at least 3 separate funds

24. Select AlternativesResearch Report (Jan '97 - Mar '08) Data Source: Dial Data and DTN. See Strategic Solutions Research Report and glossary for strategy details and Brochure Form ADV for “Risk Considerations.” ** Disclosure Page is an integral part of this presentation.

25. Why A Separate Alternatives Portfolio ▲12 suitability profiles of 80% Flexible Plan Asset Allocation with 20% Alternatives ■ 12 suitability profiles of 100% Flexible Plan Asset Allocation Source: Flexible Plan Investments Model Account Research. Hypothetical results: January 1, 1997 – Dec 31, 2007, after 2% annual l\investment advisor fee.

26. Academic Research Citation Securities Studied Period Studied Yin-Ching Jan and Mao-Wei Hung, Short-Run and Long-Run Persistence in Mutual Funds, The Journal of Investing, Spring 2004, p. 67 3316 Mutual Funds 1966-2000 Ajay Khorana and Edward Nelling, The Determinants and Predictive Ability of Mutual Fund Ratings, The Journal of Investing, July 1998, p. 61 2871 Mutual Funds July 1992 – June 1995 James P. O’Shaughnessy, “What Works on Wall Street,” 1998, p. 233 All common stocks on S&P’s Compustat data base, the largest stock database available. 1951-1996 - Relative Strength Ranking Works

27. We target a level of volatility for the portfolio and then use cash or inverse (hedged) positions to maintain it. TVA – How It Works

28. TVA In Practice You missed some of the bubble but the hedged version was back to new highs by 2001 (while the index is still 50% underwater). TVA management resulted in 33% more return with 46% less risk (Standard Deviation). Walk-forward Back test HYPOTHETICAL Research Report. Source: Flexible Plan investments, Ltd.

29. Putting It All Together Next Generation Asset Allocation Efficient Frontier vs. Traditional Asset Allocation (1997-2007) • Patented Resampling Asset Allocation Software • Plus 9 asset classes including alternatives • Plus Active Risk-Adjusted Momentum Ranking • Plus TVA hedging Source: Flexible Plan Investments See Important Disclosures and Glossary of Terms

30. Next Generation Asset Allocation White Paper Is Now Available Next Generation Asset Allocation Investment Methodology White Paper Bruce Greig, CFA Vice-President, Research Flexible Plan Investments, Ltd.

31. Doing Business is Easy • Fax us • A recent client statement & • A one-page client suitability questionnaire • We will send you • A personalized client proposal & • “Signature-ready” paperwork.

32. IMPORTANT DISCLOSURES Portfolio Returns Utilized: Unless otherwise noted, the strategy returns utilized in creating the charts described above are HYPOTHETICAL returns drawn from our research reports. As such, the performance results depicted have been produced by application of selected mathematical calculation criteria to historical price data. Annual returns are compounded weekly and are inclusive of the last full trading week of the year, but may not necessarily include the last trading day of the year. Research Report results are NOT represented as actual trading or client experience nor do they reflect the impact on decision making of economic or market factors experienced during actual management of funds. Where returns or risk of your portfolio are referenced the returns are your actual account’s risk and return, gross of fees. FPI fees at the maximum applicable rate as well as expenses reflected in NAV of the funds utilized in the research are included in the hypothetical returns utilized. Other fees may apply. All expenses are required to be disclosed in each investment’s prospectus, available from your financial representative and the product provider. Distributions have been reinvested. When provided, dividends are reinvested for indexes. In those cases where indexes do not provide dividend information, those returns would be understated. As individual tax rates vary, taxes have not been considered. Various minimum-holding periods for each fund may be utilized to comply with trading restrictions. Fund or Advisor may change these periods. Actual investment performance of any trading strategy may frequently be materially different than the results shown. “Model Accounts,” where referenced, reflect actual accounts. Accounts used are based on the account longevity and its activity. Many are titled in the name of Flexible’s President. The returns of the Evolution Funds (the “Funds”), sub-advised by Flexible Plan, reflect the actual price changes. The Fund returns, while believed representative of actual results, may not necessarily represent the actual experience of any client. Enhancements have been made in our methodologies, which are believed to have had a positive effect on returns. The amount is not precisely quantifiable, but as actual price history is used, the effect of these enhancements is reflected. Continued development efforts may result in further changes. Utilizing performance between selected dates may not be indicative of overall performance. Inquiry for total results is always advised. Return examples given will vary based upon their volatility as they relate to the indices shown. Other accounts, investments and indices may materially outperform or under perform. Various investments used may no longer be available due to the result of periodic review, consolidations and/or exchange conditions imposed. Dividends, where available, are reinvested. Index dividends are posted after the end of each month, and then retroactively prorated on a daily basis. Generally an index may not be comparable due to the differences between the index and the client’s objectives, diversification, represented industries, number and type of component investments, their volatility and the weight ascribed to them. The indexes should not be considered benchmarks. Rather, they are simply indicative of the market environment in which the returns were achieved. No index is a directly tradable investment. Investment management fees range from 0.5% to 2.6% annually and are prorated and deducted quarterly. Use of the Funds will generate an annual credit of 1%, reduced by platform charges, if any. As a result, actual fees may vary. Unless otherwise noted, if Fund returns are referenced, they will be shown net of 1.85% fee, which assumes 100% usage of the Funds at Strategic Solutions with a 25 basis points platform charge and 75 basis point credit. Otherwise the maximum fee is applied. When returns are shown from strategy inception, the maximum Strategic Solutions Establishment Fee of 1.2% has been deducted. All mutual fund fees and expenses are included to the extent they are reflected in net asset value and not offset against management fees; other fees may apply. As tax rates vary, taxes have not been considered. Rafferty Asset Management, LLC serves as the Funds’ Investment Adviser and Flexible Plan Investments, Ltd., serves as the Funds’ sub-adviser. Read the Funds Prospectus and Flexible Plan Investments’ Brochure Form ADV Part II carefully before investing. You should carefully consider the investment objectives, risks and the charges and expenses of the Funds before investing. The Funds’ SAI and Prospectus contain information regarding the above considerations and more. You may obtain both, as well as current month-end Fund performance information, at http://www.direxionfunds.com/evolution; by calling Direxion Funds at (800) 851-0511; or writing Evolution Managed Funds, P.O. Box 1993, Milwaukee, WI 53201-1993. Fund investment return and principal value will fluctuate; an investor’s account may be worth more or less than its original cost; and is subject to a number of risks that could affect its value. Investments in mutual funds are subject to market risk, including the potential loss of principal invested. Investing in the Funds may be more volatile than investing in broadly diversified funds. Current performance may be lower or higher than the performance quoted. Returns and portfolio values are provided for information purposes only and should not be used or construed as an indicator of future performance, an offer to sell, a solicitation of an offer to buy, or a recommendation for any security. Flexible Plan Investments, Ltd. cannot guarantee the suitability or potential value of any particular investment. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. Inherent in any investment is the potential for loss as well as profit. A list of all recommendations made within the immediately preceding twelve months is available upon written request. Information used and cited is from sources believed to be reliable but Flexible Plan cannot guarantee its accuracy.

33. Research Report Glossary of Terms Capital Market Line (CML): CML graphically depicts the relationship between risk (as measured by volatility using the investment’s Stand­ard Deviation) and Compounded Annual Rate of Return. By plotting the risk and return (horizontal and vertical axes, respectively) of an invest­ment on a chart, one can compare such measurements to the same qualities of the S&P 500 Index. The line drawn between the T-bill Rate of Return and the Index is known as the Capital Market Line (CML). Values above the line represent a level of return greater than historical data would predict for the level of risk exhibited by the investment. Values below the line demonstrate lower than expected returns. Risk (Standard Deviation): Standard Deviation is a statistical measurement of the dispersion or variability of the return of a security from the mean average. It is one measure of volatility. In the case of mutual funds, it depicts how widely returns varied over a certain period of time. Standard Deviation uses the volatility of an investment’s historical returns to predict the most likely range of its future returns. When a fund has a high standard deviation, this predicted range is wide, implying greater volatility and, therefore, a greater level of risk. Investors are cautioned, however, that in calculating risk, high positive returns are treated the same as high negative returns. Thus, strategies with above-average returns can have high standard deviations. See “Risk Considerations” in Brochure Form ADV. Beta: Beta is a measurement of the risk of a security as determined from its sensitivity to market movements. Beta is obtained by mea­suring the variability of weekly returns as compared to a “benchmark” market measure (e.g., the S&P 500). The beta of the benchmark is one by definition. The beta for US T-bills is zero. Low or even negative betas may also be indicative of low correlation of return with the benchmark, i.e., different risk characteristics are being exhibited between the research portfolio and the benchmark. Thus, the lower the beta of an investment the less volatile or risky that measurement is when compared to the benchmark. Conversely, a beta higher than one implies greater volatility than the benchmark market index. Alpha: Alpha is a measurement of the risk-adjusted rate of return of a security. The alpha of the benchmark (e.g., the S&P 500) is always equal to zero. Given its level of risk, alpha measures the difference between a fund’s actual return and its expected return for the level of risk the fund has exhibited historically. Risk is measured by beta. A positive alpha indicates the fund has actually performed better than its beta would predict. A negative alpha indicates the fund’s underperform­ance, given the risk expectations established by the fund’s beta. Each of the previously described statistics is annualized for easy comparison. Maximum Loss: The percentage drop from the highest level of equity to the subsequent lowest level. Also referred to as maximum drawdown. Risk-Adjusted Return: The Risk-Adjusted Return determines the reward per unit of risk. The higher the value, the better the fund’s historical risk-adjusted performance. It is calculated by dividing a fund’s annualized excess returns (return – 90-day T-bill) by the standard deviation of a fund’s annualized returns. Also referred to as the Sharpe Ratio. Return: Return is the Compounded Annual Return for the time period shown and is compounded weekly. FPI Management Fees are deduc­ted quarterly, prorated for additions, withdrawals and for partial quarters. Period: Period is inclusive of the last full trading week of the year, but may not necessarily include the last trading day of the year. Efficient Frontier: Graphically represents a set of portfolio diversifications that maximize expected returns for each level of risk. Simply stated, find a comfortable level of risk and move upward to locate the portfolio that corresponds to that risk. The selected portfolio seeks to produce the maximum return for the level of risk preferred. The combination of the best portfolios for a given level of risk produces the Efficient Frontier. Walk Forward Testing: Research Reports were not generated from an optimization procedure, rather, a method known as “walk forward testing” was used for a number of years. Thereafter real-time data driven by the methodology is used. Walk forward testing ensures that we do not use information unavailable to us during the test period. For example, to test the year 1993, we only use data that was available at the end of 1992. This process is repeated for subsequent years until the fixed fund universe change date (FCD). Data for years subsequent to the FCD is reflective of the methodology trade signals applied to the effective fund universe and the resulting statistics derived from exchange history files. This method of testing does not ensure that the future will mirror the past, but it does give us confidence that our strategies are robust enough for us to rely upon going forward in time.

34. Research Report Glossary of Terms(Continued) Enhancements: Research on enhancements to strategies is ongoing and changes have been made when a positive effect has been demon­strated over the period studied. Unless otherwise noted, those incor­porated into actual management at the time of publication are utilized in the reports and applied throughout the period presented. Passive: Results shown for Passive investment represent the risks and returns of an equal dollar investment in each of the funds that were in the Fund Universe (the current universe of which is shown on each Research Report) from which funds could be chosen by the strategy described. In the case of strategies that use a “weighted”income/equity allocation (The Flex Plan and Lifetime Evolution), the passive results are also weighted in the same proportions. As such, we believe they are representative of the market and economic conditions during the periods shown. However, we also believe it is unlikely that any investor would own equal dollar investments in every fund in the fund universe. Minimum or Maximum Fees: Results are shown after Minimum Fees (1%) and/or Maximum Fees (2.6%) to illustrate the performance for the full range of fees charged. These fees are not taken into account in computing Risk, Beta or Maximum Loss. Dollar Growth: Shows the growth projections for the period(s) shown of the initial investment if it were invested at the S&P 500, passive and Combination’s rate of return. The establishment fee, if chosen, is de­ducted, as are management fees based on initial account size. Inclu­sion of this calculation is not meant to imply that such returns will be achieved. It is merely meant to illustrate the power of compounding at the rate determined by the research for the account size chosen. In-Sample and Out-of-Sample: In-sample testing used on some of the strategies refers to the optimization of system parameters for a limited period of the total test period available. Out-of-sample testing means taking the optimized parameters from the in-sample test period and applying them to dates not used in such optimizations. Indexes: Reference to popular market indexes or individual fund(s) are included to demonstrate the market environment during the period shown and are not intended as “benchmarks.” Such indexes may not be comparable to the identified investment strategies due to the differences between the indexes’ and the strategies’ objectives, diversification, represented industries, number and type of component investments, their volatility and the weight ascribed to them. No index is a directly tradable investment. NAV: Net asset value