Index Guide December 31, 2013

Transcription

1 Index Guide December 31, 2013 Compass EMP

2 Compass Efficient Model Portfolios, LLC (Known as Compass EMP) Compass EMP was founded in Compass EMP has served as consultants to large institutions such as governments, endowments, foundations, pensions and high net worth individuals. Compass EMP began weighting asset classes and securities based on the founder s risk (volatility) parity methodology in Compass EMP is the creator of the patent pending CEMP Volatility Weighted Indexes published by Dow Jones and Standard & Poor's. Compass EMP launched 9 indexes in 2012 based on their methodology going back to CEMP Enhanced Volatility Weighted Indexes Equity Index Symbol Page CEMP U.S. Large Cap 500 Volatility Weighted Index CEMPUSLT 5 CEMP U.S. Large Cap 100 High Dividend Volatility Weighted Index CEMPULDT 7 CEMP U.S. Small Cap 500 Volatility Weighted Index CEMPUSST 9 CEMP International 500 Volatility Weighted Index CEMPDEVT 11 CEMP Emerging Market 500 Volatility Weighted Index CEMPEMT 13 Equity Long/Cash CEMP U.S. Large Cap 500 Long/Cash Volatility Weighted Index CEMPUSHG 15 CEMP U.S. Large Cap 100 High Dividend Long/Cash Volatility Weighted Index CEMPULHT 17 CEMP U.S. Small Cap 500 Long/Cash Volatility Weighted Index CEMPSMHT 19 CEMP International 500 Long/Cash Volatility Weighted Index CEMPDVHG 21 Real Estate CEMP U.S. REIT 100 Volatility Weighted Index CEMPRE 23 Real Estate Long/Cash CEMP U.S. REIT Long/Cash Volatility Weighted Index CEMPREH 25 Commodity CEMP Commodity Volatility Weighted Index CEMPCOM 27 Commodity Long/Cash CEMP Commodity Long/Cash Volatility Weighted Index CEMPCLC 29 For information on our CEMP Indexes visit 2

3 CEMP Enhanced Indexes Broad market indexes combining fundamental criteria and volatility/risk weighting These CEMP Volatility Weighted Indexes provide broad market exposure with an enhancement selection criterion of consistent, positive earnings coupled with an equal weighting of volatility among all securities in each index. The Long/Cash Indexes have the ability to hedge the downside risk by liquidating up to 75% to cash during periods of declining markets. October 2000 December 2013 Symbol 1 Yr. 3 Yr. 5 Yr. 10 Yr. Since Cumulative 9/30/2000 Return CEMP U.S. Large Cap 500 Volatility Weighted Index CEMPUSLT 34.12% 17.14% 20.49% 10.12% 9.78% % CEMP U.S. Large Cap 500 Long/Cash Volatility Weighted Index CEMPUSHG 34.12% 16.28% 20.37% 12.10% 10.29% % CEMP U.S. Large Cap High Dividend 100 Volatility Weighted Index CEMPULDT 27.04% 16.75% 20.22% 10.85% 11.75% % CEMP U.S. Large Cap High Dividend 100 Long/Cash Volatility Weighted Index CEMPULHT 27.04% 16.75% 20.99% 13.35% 13.02% % S&P 500 Index SPXT 32.39% 16.18% 17.94% 7.41% 3.91% 66.33% CEMP U.S. Small Cap 500 Volatility CEMPUSST 43.84% 19.74% 22.11% 11.29% 12.11% % Weighted Index CEMP U.S. Small Cap 500 Long/Cash CEMPSMHT 43.84% 19.51% 22.16% 12.86% 12.52% % Volatility Weighted Index Russell 2000 Index RUTTR 38.82% 15.67% 20.08% 9.07% 7.67% % CEMP International 500 Volatility CEMPDEVT 23.91% 9.00% 16.08% 10.64% 9.58% % Weighted Index CEMP International 500 Long/Cash CEMPDVHG 22.81% 10.42% 16.99% 12.91% 11.29% % Volatility Weighted Index MSCI EAFE Index NDDUEAFE 23.29% 8.66% 12.96% 7.39% 4.70% 83.80% CEMP Emerging Market 500 Volatility CEMPEMT 0.78% 0.43% 19.77% 15.29% 15.91% % Weighted Index Dow Jones Emerging Markets W5DOW 1.14% 2.06% 14.94% 10.37% 9.85% % CEMP US REIT 100 Volatility Weighted Index CEMPRET 3.69% 9.96% 14.15% 7.15% 10.76% % CEMP US REIT Long/Cash Volatility Weighted Index CEMPREH 6.64% 9.33% 13.76% 9.16% 12.12% % Dow Jones U.S. Select REIT DWRTFT 1.22% 9.04% 16.36% 8.22% 10.27% % CEMP Commodity Volatility Weighted Index CEMPCOM 8.56% 4.60% 7.04% 7.40% 7.89% % CEMP Commodity Long/Cash Volatility Weighted Index CEMPCLC 4.29% 2.68% 8.41% 9.35% 9.18% % Dow UBS Commodity Index DJUBSTR 9.52% 8.11% 1.51% 0.87% 3.05% 48.97% 3

4 Please see the thirteen (13) individual CEMP Index Fact Sheets and applicable White Paper on Compass Efficient Model Portfolios, LLC has weighted securities and asset classes based on their volatility since June The index performance represents the application of Compass EMP s methodology dating back to the index inception of June 30, Prior to June 30, 2003 the index performance was calculated by Bloomberg analytics based on the criteria listed above. The CEMP Indexes are published by Dow Jones Indexes and are patent pending (Serial No. 61/645,370) The CEMP Commodity Volatility Weighted Index (the Index ) is the exclusive property of Compass Efficient Model Portfolios, LLC, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ( S&P Dow Jones Indices ) to calculate and maintain the Index. S&P and S&P Custom Indices are registered trademarks of Standard & Poor s Financial Services LLC ( SPFS ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); and these trademarks have been licensed to S&P Dow Jones Indices. Calculated by S&P Custom Indices and its related stylized mark(s) are service marks of SPFS and have been licensed for use by S&P Dow Jones Indices and sublicensed for certain purposes by Compass Efficient Model Portfolios, LLC. Neither S&P Dow Jones Indices, SPFS, Dow Jones, nor any of their affiliates shall be liable for any errors or omissions in calculating the Index. Past performance does not guarantee future results. Indexes are unmanaged, statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index. The CEMP U.S. Large Cap 500 Volatility Weighted Index consists of 500 of the largest U.S. stocks with consistent positive earnings and with an equal weighting of risk among all 500 stocks. The CEMP U.S. Equity Hedge Volatility Weighted Index is based on the daily price of CEMP U.S. Large Cap 500 Volatility Weighted Index. If the underlying index declines from its daily highest value, the CEMP U.S. Equity Hedge Volatility Weighted Index will follow a predefined hedging and dollar cost averaging schedule based on the size of the decline of the underlying index. The CEMP U.S. Small Cap 500 Volatility Weighted Index consists of 500 of the largest U.S. small cap stocks $3 Billion or less with consistent positive earnings and with an equal weighting of risk among all 500 stocks. The CEMP International 500 Volatility Weighted Index consists of 500 of the largest developed country stocks with consistent positive earnings and with an equal weighting of risk among all 500 stocks. The CEMP International Equity Hedge Volatility Weighted Index is based on the daily price of CEMP International 500 Volatility Weighted Index. If the underlying index declines from its daily highest value, the CEMP International Equity Hedge Volatility Weighted Index will follow a predefined hedging and dollar cost averaging schedule based on the size of the decline of the underlying index. The CEMP Emerging Market 500 Volatility Weighted Index consists of 500 of the largest emerging market country stocks with consistent positive earnings and with an equal weighting of risk among all 500 stocks. The CEMP U.S. REIT 100 Volatility Weighted Index consists of 100 of the largest U.S. REIT stocks with consistent positive earnings and with an equal weighting of risk among all 500 stocks. The CEMP Commodity Volatility Weighted Index consists of the 20 most liquid commodities with an equal weighting of risk among all the 20 commodities. The S&P 500 Index is a market-cap weighted index composed of the common stocks of 500 leading companies. The Russell 2000 Index is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The MSCI EAFE Index consists of the most widely held stocks in foreign developed markets (as defined by MSCI) weighted based on their float-adjusted market capitalization. Dow Emerging Markets Index covers approximately 95% of the market capitalization of the represented countries. The industry indexes are created according to definitions used by Dow Jones Indexes proprietary classification system and are maintained at both the country and regional level. More-granular sector indexes are also available. The size-segment indexes (large-cap, mid-cap and small-cap) are defined by cumulative market capitalizations. They are maintained at both the country and regional level. Dow Jones U.S. Select REIT (DWRTF) index is designed to serve as proxies for direct real estate investment, in part by excluding companies whose performance may be driven by factors other than the value of real estate. It represents equity real estate investment trusts (REITs) and real estate operating companies (REOCs) traded in the U.S. The index is a subset of the Dow Jones Americas Select RESISM and includes only REITs and REIT-like securities. The Dow Jones-UBS Commodity Index is a production/liquidityweighted index consisting of the most widely traded commodities around the world. For additional information regarding product development or licensing please contact The CEMP Indices are calculated by Dow Jones Indexes, the marketing name of CME Group Index Services LLC, and are patent pending (Serial No. 61/645,370).The CEMP Volatility Weighted Indexes or the information contained herein may not be replicated or utilized unless there is written consent from Compass Efficient Model Portfolios, LLC. Past returns do not guarantee future results. Index returns do not include any expenses. Investors cannot invest directly in an index. The S&P 500 Index (used as a comparison) consist of 500 of the most widely held stocks weighted based on their market capitalization. "Dow Jones " and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings LLC, and have been licensed for use by CME Group Index Services LLC CEMP01a 4

5 CEMP U.S. Large Cap 500 Volatility Weighted Index Index Construction Methodology 1. Fundamental: The Index universe begins with all publicly traded stocks domiciled in the United States then screens for all companies with consistent net positive earnings for four consecutive quarters. 2. Size: The Index identifies up to the 500 largest U.S. stocks by market capitalization. 3. Volatility Weighting: The remaining 500 stocks are weighted based on their daily standard deviation (volatility) over the last 180 trading days compared to the aggregate mean. The Index is reconstituted every March and September. Other Rules The Index may result in less than 500 stocks due to the positive earnings screening. The maximum sector weighting is 25% of the Index. If a particular sector is over the 25% weighting the smallest stocks by market capitalization are removed and not replaced until the initial weighting is below 25%. If a common stock is acquired due to a merger or acquisition the new stock will remain until the Index is reconstituted, unless the company does not have a positive price to earnings ratio each of the last four consecutive quarters. If the company does not have positive earnings, it will be removed and not replaced. Annual Total Return CEMP U.S. Large Cap 500 Volatility Weighted Index 34.12% 15.31% 3.94% 21.78% 29.71% % 5.56% 15.11% 9.44% 18.14% 32.29% -7.42% 0.53% S&P 500 Index (Cap Weighted Index - Comparison Only) 32.39% 16.00% 2.11% 15.06% 26.46% % 5.49% 15.79% 4.91% 10.88% 28.68% % % Average Annual Return (9/30/2000 to 12/31/2013) CEMP U.S. Large Cap 500 Volatility Weighted Index 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 9/30/ % 34.12% 34.12% 17.14% 20.49% 8.43% 10.12% 9.78% S&P 500 Index (Cap Weighted Index - Comparison Only) 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 9/30/ % 32.39% 32.39% 16.18% 17.94% 6.13% 7.41% 3.91% Cumulative Return (since 9/30/2000) CEMP U.S. Large Cap 500 Volatility Weighted Index % S&P 500 Index (Cap Weighted Index - Comparison Only) 66.33% Risk Adjusted Return (Compared to the S&P 500 Index) Beta: 10 Yr Since 9/30/ Alpha: 10 Yr. 2.85% Since 9/30/ % 5

6 CEMP U.S. Large Cap 500 Volatility Weighted Index As of December 31, 2013 Index Characteristics Number of Holdings 494 Average Market Capitalization $31.5B P/E Ratio 18.8 Dividend Yield 1.65% Sector Weightings (GICS ) Consumer Discretionary 16.8% Industrials 15.8% Financials 15.8% Information Technology 12.8% Health Care 10.7% Consumer Staples 9.2% Utilities 6.5% Energy 6.1% Materials 5.8% Telecom Services 0.5% Top 10 Holdings Market Cap. Index Weight ICE Group, Inc. $25.9B 0.53% Amdocs Limited $6.7B 0.36% Sigma-Aldrich Corp. $11.3B 0.35% 3M Company $93.3B 0.34% Exxon Mobil $442.1B 0.33% U.S. Bancorp $73.8B 0.32% Wal-Mart Stores, Inc. $254.6B 0.32% BOK Financial Corp. $4.6B 0.32% American Finc l Group $5.2B 0.32% The Clorox Company $12.0B 0.31% Bottom 10 Holdings Market Cap. Index Weight Rackspace Hosting, Inc. $5.5B 0.05% Questcor Pharma. $3.3B 0.06% Nationstar Mortgage $3.3B 0.06% Netflix, Inc. $21.8B 0.07% Green Mtn. Coffee $11.3B 0.07% Cree, Inc. $7.6B 0.08% LinkedIn Corp. $25.9B 0.08% VMware, Inc. $38.6B 0.08% Teradata Corp. $7.4B 0.09% Edwards Lifesciences $7.2B 0.09% Index Symbols Price: Total Return: CEMPUSL CEMPUSLT Percentage weightings are rounded up to the nearest 100 th of a percent. Compass Efficient Model Portfolios, LLC has weighted securities and asset classes based on their volatility since June The Index performance represents the application of Compass EMP s methodology dating back to the Index inception of June 30, Prior to June 30, 2003 the Index performance was calculated and back tested by Bloomberg analytics based on the criteria listed above. The CEMP Indexes are published by Dow Jones Indexes and are patent pending (Serial No. 61/645,370) Visit For additional information regarding product development or licensing please contact The CEMP Indices are calculated by Dow Jones Indexes, the marketing name of CME Group Index Services LLC, and are patent pending (Serial No. 61/645,370).The CEMP Volatility Weighted Indexes or the information contained herein may not be replicated or utilized unless there is written consent from Compass Efficient Model Portfolios, LLC. Past returns do not guarantee future results. Index returns do not include any expenses. Investors cannot invest directly in an Index. The S&P 500 Index (used as a comparison) consist of 500 of the most widely held stocks weighted based on their market capitalization. "Dow Jones " and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings LLC, and have been licensed for use by CME Group Index Services LLC CEMP10 6

7 CEMP U.S. Large Cap High Dividend 100 Volatility Weighted Index Index Construction Methodology 1. The Index universe begins with the highest 100 dividend yielding stocks of the CEMP U.S. Large Cap 500 Volatility Weighted Index. 2. The remaining 100 stocks are weighted based on their daily standard deviation (volatility) over the last 180 trading days compared to the aggregate mean. The Index is reconstituted every March and September. Other Rules The Index may result in less than 100 stocks due to the positive earnings screening. The maximum sector weighting is 25% of the Index. If a particular sector is over the 25% weighting the smallest stocks by market capitalization are removed and not replaced until the initial weighting is below 25%. If a common stock is acquired due to a merger or acquisition the new stock will remain until the Index is reconstituted, unless the company does not have a positive price to earnings ratio each of the last four consecutive quarters. If the company does not have positive earnings, it will be removed and not replaced. Annual Total Return CEMP U.S. Large Cap High Dividend 100 Volatility Weighted Index 27.04% 10.33% 13.54% 17.76% 33.97% % -1.16% 22.11% 4.93% 16.64% 25.61% -3.28% 8.91% S&P 500 Index (Cap Weighted Index - Comparison Only) 32.39% 16.00% 2.11% 15.06% 26.46% % 5.49% 15.79% 4.91% 10.88% 28.68% % % Average Annual Return (9/30/2000 to 12/31/2013) CEMP U.S. Large Cap High Dividend 100 Volatility Weighted Index 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 9/30/ % 27.04% 27.04% 16.75% 20.22% 9.39% 10.85% 11.75% S&P 500 Index (Cap Weighted Index - Comparison Only) 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 9/30/ % 32.39% 32.39% 16.18% 17.94% 6.13% 7.41% 3.91% Cumulative Return (since 9/30/2000) CEMP U.S. Large Cap High Dividend 100 Volatility Weighted Index % S&P 500 Index (Cap Weighted Index - Comparison Only) 66.33% Risk Adjusted Return (Compared to the S&P 500 Index) Beta: 10 Yr Since 9/30/ Alpha: 10 Yr. 4.64% Since 9/30/ % 7

8 CEMP U.S. Large Cap High Dividend 100 Volatility Weighted Index As of December 31, 2013 Index Characteristics Number of Holdings 98 Average Market Capitalization $46.6B P/E Ratio 17.2 Dividend Yield 3.50% Sector Weightings (GICS ) Utilities 21.9% Financials 19.3% Consumer Staples 16.6% Consumer Discretionary 9.8% Energy 7.8% Industrials 7.2% Information Technology 5.6% Materials 5.6% Health Care 5.1% Telecom Services 1.2% Top 10 Holdings Market Cap. Index Weight Exxon Mobil Corp. $442.1B 1.51% BOK Financial Corp. $4.6B 1.44% The Clorox Company $12.0B 1.41% The Southern Company $36.2B 1.37% McDonald s Corp. $96.6B 1.34% Johnson & Johnson $258.4B 1.34% Duke Energy Corp. $48.7B 1.34% Marsh & McLennan Cos. $26.5B 1.32% Paychex, Inc. $16.6B 1.30% Consolidated Edison $16.2B 1.30% Bottom 10 Holdings Market Cap. Index Weight Gannett Co., Inc. $6.7B 0.43% CenturyLink Inc. $18.8B 0.47% Southern Copper Corp. $24.1B 0.52% ONEOK, Inc. $12.8B 0.56% Freeport-McMoRan $39.2B 0.62% HollyFrontier Corp. $9.9B 0.63% Westlake Chemical Corp. $8.2B 0.65% Iron Mountain Inc. $5.8B 0.66% Maxim Integrated $7.9B 0.67% Windstream Holdings $4.8B 0.69% Percentage weightings are rounded up to the nearest 100 th of a percent. Compass Efficient Model Portfolios, LLC has weighted securities and asset classes based on their volatility since June The Index performance represents the application of Compass EMP s methodology dating back to the Index inception of June 30, Prior to June 30, 2012 the Index performance was calculated and back tested by Bloomberg analytics based on the criteria listed above. Visit For additional information regarding product development or licensing please contact The CEMP Indices are patent pending (Serial No. 61/645,370).The CEMP Volatility Weighted Indexes or the information contained herein may not be replicated or utilized unless there is written consent from Compass Efficient Model Portfolios, LLC. Past returns do not guarantee future results. Index returns do not include any expenses. Investors cannot invest directly in an Index. The S&P 500 Index (used as a comparison) consist of 500 of the most widely held stocks weighted based on their market capitalization CEMP14 8

9 CEMP U.S. Small Cap 500 Volatility Weighted Index Index Construction Methodology 1. Fundamental: The Index universe begins with all publicly traded stocks domiciled in the United States that have a market capitalization of less than $2 billion then screens for all companies with consistent net positive earnings for four consecutive quarters. 2. Size: The Index identifies up to the 500 largest U.S. stocks by market capitalization. 3. Volatility Weighting: The remaining 500 stocks are weighted based on their daily standard deviation (volatility) over the last 180 trading days compared to the aggregate mean. The Index is reconstituted every March and September. Other Rules The Index may result in less than 500 stocks due to the positive earnings screening. The maximum sector weighting is 25% of the Index. If a particular sector is over the 25% weighting the smallest stocks by market capitalization are removed and not replaced until the initial weighting is below 25%. If a common stock is acquired due to a merger or acquisition the new stock will remain until the Index is reconstituted, unless the company does not have a positive price to earnings ratio each of the last four consecutive quarters. If the company does not have positive earnings, it will be removed and not replaced. Annual Total Return CEMP U.S. Small Cap 500 Volatility Weighted Index 43.84% 14.94% 3.85% 25.95% 25.56% % -0.99% 16.15% 6.15% 24.32% 38.10% -6.29% 12.72% Russell 2000 Index (Cap Weighted Index - Comparison Only) 38.82% 16.35% -4.18% 26.86% 27.17% % -1.57% 18.37% 4.55% 18.33% 47.25% % 2.49% Average Annual Return (9/30/2000 to 12/31/2013) CEMP U.S. Small Cap 500 Volatility Weighted Index 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 10/ % 43.84% 43.84% 19.74% 22.11% 9.61% 11.29% 12.11% Russell 2000 Index (Cap Weighted Index - Comparison Only) 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 10/ % 38.82% 38.82% 15.67% 20.08% 7.20% 9.07% 7.67% Cumulative Return (since 9/30/2000) CEMP U.S. Small Cap 500 Volatility Weighted Index % Russell 2000 Index (Cap Weighted Index Comparison Only) % Risk Adjusted (Compared to the Russell 2000) Beta: 10 Yr Since 9/30/ Alpha: 10 Yr. 3.02% Since 9/30/ % 9

10 CEMP U.S. Small Cap 500 Volatility Weighted Index As of December 31, 2013 Index Characteristics Number of Holdings 493 Average Market Capitalization $1.3B P/E Ratio 19.8 Dividend Yield 1.35% Sector Weightings (GICS ) Financials 25.3% Industrials 20.0% Information Technology 15.6% Consumer Discretionary 14.7% Health Care 7.2% Materials 6.2% Utilities 4.0% Consumer Staples 3.5% Energy 2.2% Telecom Services 1.4% Index Symbols Top 10 Holdings Market Cap. Index Weight Capitol Federal Financial $1.8B 0.49% WWE, Inc. $1.2B 0.41% Northfield Bancorp, Inc. $0.8B 0.40% Heartland Express, Inc. $1.7B 0.39% RLI Corp. $2.1B 0.39% Westamerica Bancorp. $1.5B 0.37% UNS Energy Corp. $2.5B 0.36% Empire District Electric $1.0B 0.36% CONMED Corporation $1.2B 0.36% Interactive Brokers $1.3B 0.35% Bottom 10 Holdings Market Cap. Index Weight Allied Nevada Gold Corp. $0.4B 0.04% Liquidity Services, Inc. $0.7B 0.06% Alliance Fiber Optic $0.3B 0.06% American Pacific Corp. $0.3B 0.07% Ebix, Inc. $0.6B 0.07% InnerWorkings, Inc. $0.4B 0.07% OSI Systems, Inc. $1.1B 0.07% Cirrus Logic, Inc. $1.3B 0.08% Overstock.com, Inc. $0.7B 0.08% K12 Inc. $0.9B 0.08% Price: Total Return: CEMPUSS CEMPUSST Percentage weightings are rounded up to the nearest 100 th of a percent. Compass Efficient Model Portfolios, LLC has weighted securities and asset classes based on their volatility since June The Index performance represents the application of Compass EMP s methodology dating back to the Index inception of June 30, Prior to June 30, 2003 the Index performance was calculated and back tested by Bloomberg analytics based on the criteria listed above. The CEMP Indexes are published by Dow Jones Indexes and are patent pending (Serial No. 61/645,370) Visit For additional information regarding product development or licensing please contact The CEMP Indices are calculated by Dow Jones Indexes, the marketing name of CME Group Index Services LLC, and are patent pending (Serial No. 61/645,370). The CEMP Volatility Weighted Indices or the information contained herein may not be replicated or utilized unless there is written consent from Compass Efficient Model Portfolios, LLC. Past returns do not guarantee future results. Index returns do not include any expenses. Investors cannot invest directly in an Index. The Russell 2000 Index (used as a comparison) consists of 2000 of the smallest stocks held in the Russell 3000 Index (which represents 98% of the investable U.S. stock market). The Russell 2000 is a market capitalization-weighted Index. "Dow Jones " and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings LLC, and have been licensed for use by CME Group Index Services LLC CEMP13 10

11 CEMP International 500 Volatility Weighted Index Index Construction Methodology 1. Fundamental: The Index universe begins with all publicly traded stocks domiciled in developed countries outside of the United States then screens for all companies with consistent net positive earnings for four consecutive quarters. 2. Size: The Index identifies up to the 500 largest stocks by market capitalization. 3. Volatility Weighting: The remaining 500 stocks are weighted based on their daily standard deviation (volatility) over the last 180 trading days compared to the aggregate mean. The Index is reconstituted every March and September. Other Rules The Index may result in less than 500 stocks due to the positive earnings screening. The maximum country weighting is 20% of the Index. If a particular country is over the 20% weighting the smallest stocks by market capitalization in that country are removed and replaced with the next largest stocks from a different country until the weighting for each country is below 20%. If a common stock is acquired due to a merger or acquisition the new stock will remain until the Index is reconstituted, unless the company does not have a positive price to earnings ratio each of the last four consecutive quarters. If the company does not have positive earnings, it will be removed and not replaced. Annual Total Return CEMP International 500 Volatility Weighted Index 23.91% 21.33% % 14.62% 42.01% % 13.01% 36.12% 17.64% 28.92% 55.39% -8.07% % MSCI EAFE Index (Cap Weighted Index - Comparison Only) 23.29% 17.90% % 8.21% 32.46% % 11.63% 26.86% 14.02% 20.70% 39.17% % % Average Annual Return (9/30/2000 to 12/31/2013) CEMP International 500 Volatility Weighted Index 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 9/30/ % 23.91% 23.91% 9.00% 16.08% 4.18% 10.64% 9.58% MSCI EAFE Index (Cap Weighted Index - Comparison Only) 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 9/30/ % 23.29% 23.29% 8.66% 12.96% 2.26% 7.39% 4.70% Cumulative Return (since 9/30/2000) CEMP International 500 Volatility Weighted Index % MSCI EAFE Index (Cap Weighted Index - Comparison Only) 83.80% Risk Adjusted Return (compared to the MSCI EAFE Index) Beta: 10 Yr Since 9/30/ Alpha: 10 Yr. 3.00% Since 9/30/ % 11

12 CEMP International 500 Volatility Weighted Index As of December 31, 2013 Index Characteristics Number of Holdings 496 Average Market Capitalization $20.1B P/E Ratio 16.1 Dividend Yield 2.82% Average Market Capitalization stated in terms of the U.S. Dollar. Country Weightings Japan 18.8% Germany 12.9% Singapore 9.4% Sweden 8.6% Spain 6.5% United Kingdom 6.1% Switzerland 5.2% Italy 5.0% Denmark 4.2% Netherlands 3.7% Finland 3.2% France 2.9% Israel 2.8% Ireland 2.5% Norway 2.2% Hong Kong 1.9% Austria 1.7% Belgium 1.1% Portugal 0.9% Greece 0.4% New Zealand 0.2% Australia 0.1% Top 10 Holdings Market Cap. Index Weight Deutsche Wohnen AG $5.5B 0.55% AerCap Holdings NV $4.4B 0.52% Sembcorp Industries Ltd. $7.8B 0.39% Keppel Corporation $16.0B 0.39% ACE Limited $35.2B 0.38% Amadeus IT Holding SA $19.2B 0.38% Singapore Airlines Ltd. $9.7B 0.36% AstraZeneca PLC $74.3B 0.36% Swisscom AG $27.4B 0.35% Fresenius SE & Co KGaA $27.5B 0.35% Bottom 10 Holdings Market Cap. Index Weight GungHo Online Entertainment $8.3B 0.04% Truly International Holdings Ltd. $1.6B 0.08% Sinarmas Land Ltd. $1.2B 0.08% AVG Technologies NV $0.9B 0.08% Tokyu Fudosan Holdings Corp. $6.0B 0.08% SodaStream International Ltd. $1.0B 0.10% Hulic Company, Ltd. $8.8B 0.10% Nitto Denko Corporation $7.3B 0.10% CGG SA $3.1B 0.10% Isuzu Motors Limited $10.6B 0.10% Percentage weightings are rounded up to the nearest 100 th of a percent. Market Cap stated in terms of the U.S. Dollar. Index Symbols Price: Total Return: CEMPDEV CEMPDEVT Compass Efficient Model Portfolios, LLC has weighted securities and asset classes based on their volatility since June The Index performance represents the application of Compass EMP s methodology dating back to the Index inception of June 30, Prior to June 30, 2003 the Index performance was calculated and back tested by Bloomberg analytics based on the criteria listed above. The CEMP Indexes are published by Dow Jones Indexes and are patent pending (Serial No. 61/645,370) Visit For additional information regarding product development or licensing please contact The CEMP Indices are calculated by Dow Jones Indexes, the marketing name of CME Group Index Services LLC, and are patent pending (Serial No. 61/645,370).The CEMP Volatility Weighted Indices or the information contained herein may not be replicated or utilized unless there is written consent from Compass Efficient Model Portfolios, LLC. Past returns do not guarantee future results. Index returns do not include any expenses. Investors cannot invest directly in an Index. The MSCI EAFE Index (used as a comparison) consists of the most widely held stocks in foreign developed markets (as defined by MSCI) weighted based on their float-adjusted market capitalization. "Dow Jones " and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings LLC, and have been licensed for use by CME Group Index Services LLC CEMP08 12

13 CEMP Emerging Market 500 Volatility Weighted Index Index Construction Methodology 1. Fundamental: The Index universe begins with all international common stocks domiciled in countries defined as emerging markets then screens for all companies with consistent net positive earnings for four consecutive quarters. 2. Size: The Index identifies up to the 500 largest stocks by market capitalization. 3. Volatility Weighting: The remaining 500 stocks are weighted based on their daily standard deviation (volatility) over the last 180 trading days compared to the aggregate mean. The Index is reconstituted every March and September. Other Rules The Index may result in less than 500 stocks due to the positive earnings screening. The maximum country weighting is 20% of the Index. If a particular country is over the 20% weighting the smallest stocks by market capitalization in that country are removed and replaced with the next largest stocks from a different country until the weighting for each country is below 20%. If a common stock is acquired due to a merger or acquisition the new stock will remain until the Index is reconstituted, unless the company does not have a positive price to earnings ratio each of the last four consecutive quarters. If the company does not have positive earnings, it will be removed and not replaced. Annual Total Return CEMP Emerging Market 500 Volatility Weighted Index -0.78% 20.00% % 29.31% 88.14% % 69.94% 50.64% 13.25% 11.79% 52.58% 6.82% 9.73% Dow Jones Emerging Markets Index (Cap Weighted Index - Comparison Only) -1.14% 17.10% % 20.92% 76.58% % 36.29% 32.87% 28.89% 25.86% 61.70% -9.14% 3.89% Average Annual Return (9/30/2000 to 12/31/2013) CEMP Emerging Market 500 Volatility Weighted Index 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 9/30/ % -0.78% -0.78% 0.43% 19.77% 11.74% 15.29% 15.91% Dow Jones Emerging Markets Index (Cap Weighted Index - Comparison Only) 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 9/30/ % -1.14% -1.14% -2.06% 14.94% 3.17% 10.37% 9.85% Cumulative Return (since 9/30/2000) CEMP Emerging Market 500 Volatility Weighted Index % Dow Jones Emerging Markets Index (Cap Weighted Index - Comparison Only) % Risk Adjusted (Compared to the Dow Jones Emerging Market Index) Beta: 10 Yr Since 9/30/ Alpha: 10 Yr. 6.52% Since 9/30/ % 13

14 CEMP Emerging Market 500 Volatility Weighted Index As of December 31, 2013 Index Characteristics Number of Holdings 499 Average Market Capitalization $12.9B P/E Ratio 13.8 Dividend Yield 2.59% Average Market Capitalization stated in terms of the U.S. Dollar. Country Weightings Taiwan 15.8% South Korea 13.5% Malaysia 11.9% China 10.5% Brazil 8.3% India 7.1% Thailand 5.6% Mexico 5.3% Chile 4.0% Philippines 3.9% Indonesia 3.8% Turkey 3.2% Poland 2.6% Russia 1.6% Colombia 1.3% Hungary 0.7% Czech Republic 0.7% Egypt 0.4% Top 10 Holdings Market Cap. Index Weight Public Bank Bhd $20.7B 0.54% Sime Darby Bhd $17.5B 0.51% Telekom Malaysia Bhd $6.1B 0.50% Taiwan Cooperative Financial $4.7B 0.48% Maxis Bhd $16.7B 0.47% Chunghwa Telecom Co. Ltd. $24.2B 0.42% First Financial Holding Co. $5.4B 0.41% Hanwha Corporation $2.8B 0.41% Asia Cement Corp. $4.3B 0.40% Hua Nan Financial Holdings $5.3B 0.40% Bottom 10 Holdings Market Cap. Index Weight PT Matahari Dept. Store Tbk $2.6B 0.03% TPK Holding Co Ltd. $1.9B 0.07% PT Media Nusantara Citra Tbk $3.0B 0.08% Koza Altin Isletmeleri AS $1.6B 0.08% PT Tambang Batubara Bukit Asam $1.9B 0.08% Reliance Communications Ltd. $4.3B 0.08% LT Group Inc. $3.8B 0.09% Industrias Penoles, S.A. de C.V. $9.8B 0.09% Siam Makro PCL $4.3B 0.09% Jasmine International PCL $1.5B 0.09% Percentage weightings are rounded up to the nearest 100 th of a percent. Market Cap stated in terms of the U.S. Dollar. Index Symbols Price: Total Return: CEMPEM CEMPEMT Compass Efficient Model Portfolios, LLC has weighted securities and asset classes based on their volatility since June The Index performance represents the application of Compass EMP s methodology dating back to the Index inception of June 30, Prior to June 30, 2003 the Index performance was calculated and back tested by Bloomberg analytics based on the criteria listed above. The CEMP Indexes are published by Dow Jones Indexes and are patent pending (Serial No. 61/645,370) Visit For additional information regarding product development or licensing please contact The CEMP Indices are calculated by Dow Jones Indexes, the marketing name of CME Group Index Services LLC, and are patent pending (Serial No. 61/645,370).The CEMP Volatility Weighted Indices or the information contained herein may not be replicated or utilized unless there is written consent from Compass Efficient Model Portfolios, LLC. Past returns do not guarantee future results. Index returns do not include any expenses. Investors cannot invest directly in an Index. The Dow Jones Emerging Markets Index (used as a comparison) represents approximately the largest 95% of stocks in emerging markets as defined by Dow Jones Indexes, weighted based on their float-adjusted market capitalization. "Dow Jones ", "Dow Jones Indexes" and Dow Jones Emerging Markets Index are service marks of Dow Jones Trademark Holdings LLC, and have been licensed for use by CME Group Index Services LLC CEMP06 14

15 CEMP U.S. Large Cap 500 Long/Cash Volatility Weighted Index Index Construction Methodology The CEMP U.S. Large Cap 500 Long/Cash Volatility Weighted Index is based on the daily price of the CEMP U.S. Large Cap 500 Volatility Weighted Index. Investment Strategy 1. The Index universe begins with all publicly traded stocks domiciled in the United States then screens for all companies with consistent net positive earnings for four consecutive quarters. 2. The Index identifies up to the 500 largest U.S. stocks by market capitalization. 3. The remaining 500 stocks are weighted based on their daily standard deviation (volatility) over the last 180 trading days compared to the aggregate mean. The Index is reconstituted every March and September. Long/Cash Strategy A. Exit Strategy: Based on the month-end price of the CEMP U.S. Large Cap 500 Volatility Weighted Index, the Index will liquidate 75% of the securities if the Index has declined -10% from its daily highest value (DHV). B. Reinvestment Strategy: Based on the month-end price, if the Index increases back to or above the -10% decline from its DHV, all securities will be reinvested. The Index would then be fully invested. If the Index declines -20% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 50% invested. If the Index declines -30% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 75% invested. If the Index declines -40% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 100% invested. Annual Total Return CEMP U.S. Large Cap 500 Long/Cash Volatility Weighted Index 34.12% 15.33% 1.66% 21.76% 31.96% % 5.53% 15.17% 9.50% 18.09% 22.68% -6.31% -4.72% S&P 500 Index (Cap Weighted Index - Comparison Only) 32.39% 16.00% 2.11% 15.06% 26.46% % 5.49% 15.79% 4.91% 10.88% 28.68% % % Average Annual Return (9/30/2000 to 12/31/2013) CEMP U.S. Large Cap 500 Long/Cash Volatility Weighted Index 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 9/30/ % 34.12% 34.12% 16.28% 20.37% 11.22% 12.10% 10.29% S&P 500 Index (Cap Weighted Index - Comparison Only) 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 9/30/ % 32.39% 32.39% 16.18% 17.94% 6.13% 7.41% 3.91% Cumulative Return (since 9/30/2000) CEMP U.S. Large Cap 500 Long/Cash Volatility Weighted Index % S&P 500 Index (Cap Weighted Index - Comparison Only) 66.33% Risk Adjusted Compared to the S&P 500 Index Beta: 10 Yr Since 9/30/ Alpha: 10 Yr. 6.07% Since 9/30/ % 15

16 CEMP U.S. Large Cap 500 Long/Cash Volatility Weighted Index As of December 31, 2013 Index Characteristics* Number of Holdings 494 Average Market Capitalization $31.5B P/E Ratio 18.8 Dividend Yield 1.65% *Only if fully invested Sector Weightings (GICS ) Consumer Discretionary 16.8% Industrials 15.8% Financials 15.8% Information Technology 12.8% Health Care 10.7% Consumer Staples 9.2% Utilities 6.5% Energy 6.1% Materials 5.8% Telecom Services 0.5% Index Symbols Total Return: CEMPUSHG Top 10 Holdings Market Cap. Index Weight ICE Group, Inc. $25.9B 0.53% Amdocs Limited $6.7B 0.36% Sigma-Aldrich Corp. $11.3B 0.35% 3M Company $93.3B 0.34% Exxon Mobil $442.1B 0.33% U.S. Bancorp $73.8B 0.32% Wal-Mart Stores, Inc. $254.6B 0.32% BOK Financial Corp. $4.6B 0.32% American Finc l Group $5.2B 0.32% The Clorox Company $12.0B 0.31% Bottom 10 Holdings Market Cap. Index Weight Rackspace Hosting, Inc. $5.5B 0.05% Questcor Pharma. $3.3B 0.06% Nationstar Mortgage $3.3B 0.06% Netflix, Inc. $21.8B 0.07% Green Mtn. Coffee $11.3B 0.07% Cree, Inc. $7.6B 0.08% LinkedIn Corp. $25.9B 0.08% VMware, Inc. $38.6B 0.08% Teradata Corp. $7.4B 0.09% Edwards Lifesciences $7.2B 0.09% Percentage weightings are rounded up to the nearest 100 th of a percent. Compass Efficient Model Portfolios, LLC has weighted securities and asset classes based on their volatility since June The Index performance represents the application of Compass EMP s methodology dating back to the Index inception of June 30, Prior to June 30, 2003 the Index performance was calculated and back tested by Bloomberg analytics based on the criteria listed above. The CEMP Indexes are published by Dow Jones Indexes and are patent pending (Serial No. 61/645,370) Visit For additional information regarding product development or licensing please contact The CEMP Indices are calculated by Dow Jones Indexes, the marketing name of CME Group Index Services LLC, and are patent pending (Serial No. 61/645,370).The CEMP Volatility Weighted Indices or the information contained herein may not be replicated or utilized unless there is written consent from Compass Efficient Model Portfolios, LLC. Past returns do not guarantee future results. Index returns do not include any expenses. Investors cannot invest directly in an Index. The S&P 500 Index (used as a comparison) consist of 500 of the most widely held stocks weighted based on their market capitalization. Hedging involves making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a cash position or a short position which may utilize futures contracts. "Dow Jones " and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings LLC, and have been licensed for use by CME Group Index Services LLC CEMP09 16

17 CEMP U.S. Large Cap High Dividend 100 Long/Cash Volatility Weighted Index Index Construction Methodology The CEMP U.S. Large Cap High Dividend 100 Long/Cash Volatility Weighted Index is based on the daily price of the CEMP U.S. Large Cap High Dividend 100 Volatility Weighted Index. Investment Strategy 1. The Index universe begins with the highest 100 dividend yielding stocks of the CEMP U.S. Large Cap 500 Volatility Weighted Index. 2. The remaining 100 stocks are weighted based on their daily standard deviation (volatility) over the last 180 trading days compared to the aggregate mean. The Index is reconstituted every March and September. Long/Cash Strategy A. Exit Strategy: Based on the month-end price of the CEMP U.S. Large Cap High Dividend 100 Volatility Weighted Index, the Index will liquidate 75% of the securities if the Index has declined -8% from its daily highest value (DHV). B. Reinvestment Strategy: Based on the month-end price, if the Index increases back to or above the -8% decline from its DHV, all securities will be reinvested. The Index would then be fully invested. If the Index declines -16% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 50% invested. If the Index declines -24% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 75% invested. If the Index declines -32% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 100% invested. Annual Total Return CEMP U.S. Large Cap High Dividend 100 Long/Cash Volatility Weighted Index 27.04% 10.33% 13.54% 15.46% 41.08% -8.60% -1.16% 22.11% 4.93% 16.64% 18.26% -4.44% 8.91% S&P 500 Index (Cap Weighted Index - Comparison Only) 32.39% 16.00% 2.11% 15.06% 26.46% % 5.49% 15.79% 4.91% 10.88% 28.68% % % Average Annual Return (9/30/2000 to 12/31/2013) CEMP U.S. Large Cap High Dividend 100 Long/Cash Volatility Weighted Index 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 9/30/ % 27.04% 27.04% 16.75% 20.99% 12.93% 13.35% 13.02% S&P 500 Index (Cap Weighted Index - Comparison Only) 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 9/30/ % 32.39% 32.39% 16.18% 17.94% 6.13% 7.41% 3.91% Cumulative Return (since 9/30/2000) CEMP U.S. Large Cap High Dividend 100 Long/Cash Volatility Weighted Index % S&P 500 Index (Cap Weighted Index - Comparison Only) 66.33% Risk Adjusted Compared to the S&P 500 Index Beta: 10 Yr Since 9/30/ Alpha: 10 Yr. 8.29% Since 9/30/ % 17

18 CEMP U.S. Large Cap High Dividend 100 Long/Cash Volatility Weighted Index As of December 31, 2013 Index Characteristics* Number of Holdings 98 Average Market Capitalization $46.6B P/E Ratio 17.2 Dividend Yield 3.50% *Only if fully invested Sector Weightings (GICS ) Utilities 21.9% Financials 19.3% Consumer Staples 16.6% Consumer Discretionary 9.8% Energy 7.8% Industrials 7.2% Information Technology 5.6% Materials 5.6% Health Care 5.1% Telecom Services 1.2% Top 10 Holdings Market Cap. Index Weight Exxon Mobil Corp. $442.1B 1.51% BOK Financial Corp. $4.6B 1.44% The Clorox Company $12.0B 1.41% The Southern Company $36.2B 1.37% McDonald s Corp. $96.6B 1.34% Johnson & Johnson $258.4B 1.34% Duke Energy Corp. $48.7B 1.34% Marsh & McLennan Cos. $26.5B 1.32% Paychex, Inc. $16.6B 1.30% Consolidated Edison $16.2B 1.30% Bottom 10 Holdings Market Cap. Index Weight Gannett Co., Inc. $6.7B 0.43% CenturyLink Inc. $18.8B 0.47% Southern Copper Corp. $24.1B 0.52% ONEOK, Inc. $12.8B 0.56% Freeport-McMoRan $39.2B 0.62% HollyFrontier Corp. $9.9B 0.63% Westlake Chemical Corp. $8.2B 0.65% Iron Mountain Inc. $5.8B 0.66% Maxim Integrated $7.9B 0.67% Windstream Holdings $4.8B 0.69% Percentage weightings are rounded up to the nearest 100 th of a percent. Compass Efficient Model Portfolios, LLC has weighted securities and asset classes based on their volatility since June The Index performance represents the application of Compass EMP s methodology dating back to the Index inception of June 30, Prior to June 30, 2012 the Index performance was calculated and back tested by Bloomberg analytics based on the criteria listed above. Visit For additional information regarding product development or licensing please contact The CEMP Indices are patent pending (Serial No. 61/645,370).The CEMP Volatility Weighted Indices or the information contained herein may not be replicated or utilized unless there is written consent from Compass Efficient Model Portfolios, LLC. Past returns do not guarantee future results. Index returns do not include any expenses. Investors cannot invest directly in an Index. The S&P 500 Index (used as a comparison) consist of 500 of the most widely held stocks weighted based on their market capitalization. Hedging involves making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a cash position or a short position which may utilize futures contracts CEMP15 18

19 CEMP U.S. Small Cap 500 Long/Cash Volatility Weighted Index Index Construction Methodology The CEMP U.S. Small Cap 500 Long/Cash Volatility Weighted Index is based on the daily price of the CEMP U.S. Small Cap 500 Volatility Weighted Index. Investment Strategy 1. The Index universe begins with all publicly traded stocks domiciled in the United States that have a market capitalization of less than $2 billion then screens for all companies with consistent net positive earnings for four consecutive quarters. 2. The Index identifies up to the 500 largest U.S. stocks by market capitalization. 3. The remaining 500 stocks are weighted based on their daily standard deviation (volatility) over the last 180 trading days compared to the aggregate mean. The Index is reconstituted every March and September. Long/Cash Strategy A. Exit Strategy: Based on the month-end price of the CEMP U.S. Large Cap 500 Volatility Weighted Index, the Index will liquidate 75% of the securities if the Index has declined -10% from its daily highest value (DHV). B. Reinvestment Strategy: Based on the month-end price, if the Index increases back to or above the -10% decline from its DHV, all securities will be reinvested. The Index would then be fully invested. If the Index declines -20% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 50% invested. If the Index declines -30% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 75% invested. If the Index declines -40% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 100% invested. Annual Total Return CEMP U.S. Small Cap 500 Long/Cash Volatility Weighted Index 43.84% 15.15% 3.07% 23.32% 29.23% % -0.99% 16.15% 6.15% 24.32% 30.66% -4.91% 7.16% Russell 2000 Index (Cap Weighted Index - Comparison Only) 38.82% 16.35% -4.18% 26.86% 27.17% % -1.57% 18.37% 4.55% 18.33% 47.25% % 2.49% Average Annual Return (9/30/2000 to 12/31/2013) CEMP U.S. Small Cap 500 Long/Cash Volatility Weighted Index 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 10/ % 43.84% 43.84% 19.51% 22.16% 11.83% 12.86% 12.52% Russell 2000 Index (Cap Weighted Index - Comparison Only) 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 10/ % 38.82% 38.82% 15.67% 20.08% 7.20% 9.07% 7.67% Cumulative Return (since 9/30/2000) CEMP U.S. Small Cap 500 Long/Cash Volatility Weighted Index % Russell 2000 Index (Cap Weighted Index Comparison Only) % Risk Adjusted (Compared to the Russell 2000) Beta: 10 Yr Since 9/30/ Alpha: 10 Yr. 6.41% Since 9/30/ % 19

20 CEMP U.S. Small Cap 500 Long/Cash Volatility Weighted Index As of December 31, 2013 Index Characteristics Number of Holdings 493 Average Market Capitalization $1.3B P/E Ratio 19.8 Dividend Yield 1.35% Sector Weightings (GICS ) Financials 25.3% Industrials 20.0% Information Technology 15.6% Consumer Discretionary 14.7% Health Care 7.2% Materials 6.2% Utilities 4.0% Consumer Staples 3.5% Energy 2.2% Telecom Services 1.4% Top 10 Holdings Market Cap. Index Weight Capitol Federal Financial $1.8B 0.49% WWE, Inc. $1.2B 0.41% Northfield Bancorp, Inc. $0.8B 0.40% Heartland Express, Inc. $1.7B 0.39% RLI Corp. $2.1B 0.39% Westamerica Bancorp. $1.5B 0.37% UNS Energy Corp. $2.5B 0.36% Empire District Electric $1.0B 0.36% CONMED Corporation $1.2B 0.36% Interactive Brokers $1.3B 0.35% Bottom 10 Holdings Market Cap. Index Weight Allied Nevada Gold Corp. $0.4B 0.04% Liquidity Services, Inc. $0.7B 0.06% Alliance Fiber Optic $0.3B 0.06% American Pacific Corp. $0.3B 0.07% Ebix, Inc. $0.6B 0.07% InnerWorkings, Inc. $0.4B 0.07% OSI Systems, Inc. $1.1B 0.07% Cirrus Logic, Inc. $1.3B 0.08% Overstock.com, Inc. $0.7B 0.08% K12 Inc. $0.9B 0.08% Percentage weightings are rounded up to the nearest 100 th of a percent. Compass Efficient Model Portfolios, LLC has weighted securities and asset classes based on their volatility since June The Index performance represents the application of Compass EMP s methodology dating back to the Index inception of June 30, Prior to June 30, 2003 the Index performance was calculated and back tested by Bloomberg analytics based on the criteria listed above. Visit For additional information regarding product development or licensing please contact The CEMP Indices are patent pending (Serial No. 61/645,370). The CEMP Volatility Weighted Indices or the information contained herein may not be replicated or utilized unless there is written consent from Compass Efficient Model Portfolios, LLC. Past returns do not guarantee future results. Index returns do not include any expenses. Investors cannot invest directly in an Index. The Russell 2000 Index (used as a comparison) consists of 2000 of the smallest stocks held in the Russell 3000 Index (which represents 98% of the investable U.S. stock market). The Russell 2000 is a market capitalization-weighted Index CEMP16 20

21 CEMP International 500 Long/Cash Volatility Weighted Index Index Construction Methodology The CEMP International 500 Long/Cash Volatility Weighted Index is based on the daily price of CEMP International 500 Volatility Weighted Index. Investment Strategy 1. The Index universe begins with all publicly traded stocks domiciled in developed countries outside of the United States then screens for all companies with consistent net positive earnings for four consecutive quarters. 2. The Index identifies up to the 500 largest stocks by market capitalization. 3. The remaining 500 stocks are weighted based on their daily standard deviation (volatility) over the last 180 trading days compared to the aggregate mean. The Index is reconstituted every March and September. Long/Cash Strategy A. Exit Strategy: Based on the month-end price of the CEMP International 500 Volatility Weighted Index, the Index will liquidate 75% of the securities if the Index has declined -10% from its daily highest value (DHV). B. Reinvestment Strategy: Based on the month-end price, if the Index increases back to or above the -10% decline from its DHV, all securities will be reinvested. The Index would then be fully invested. If the Index declines -20% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 50% invested. If the Index declines -30% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 75% invested. If the Index declines -40% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 100% invested. Annual Total Return CEMP International 500 Long/Cash Volatility Weighted Index 22.81% 10.44% -0.75% 14.64% 42.01% % 13.02% 36.10% 17.64% 28.88% 47.26% -2.33% -9.92% MSCI EAFE Index (Cap Weighted Index - Comparison Only) 23.29% 17.90% % 8.21% 32.46% % 11.63% 26.86% 14.02% 20.70% 39.17% % % Average Annual Return (9/30/2000 to 12/31/2013) CEMP International 500 Long/Cash Volatility Weighted Index 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 9/30/ % 22.81% 22.81% 10.42% 16.99% 7.24% 12.91% 11.29% MSCI EAFE Index (Cap Weighted Index - Comparison Only) 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. Since 9/30/ % 23.29% 23.29% 8.66% 12.96% 2.26% 7.39% 4.70% Cumulative Return (since 9/30/2000) CEMP International 500 Long/Cash Volatility Weighted Index % MSCI EAFE Index (Cap Weighted Index - Comparison Only) 83.80% Risk Adjusted Return (compared to the MSCI EAFE Index) Beta: 10 Yr Since 9/30/ Alpha: 10 Yr. 6.27% Since 9/30/ % 21

22 CEMP International 500 Long/Cash Volatility Weighted Index As of December 31, 2013 Index Characteristics* Number of Holdings 496 Average Market Capitalization $20.1B P/E Ratio 16.1 Dividend Yield 2.82% *Only when fully invested. Average Market Capitalization stated in terms of the U.S. Dollar. Country Weightings Japan 18.8% Germany 12.9% Singapore 9.4% Sweden 8.6% Spain 6.5% United Kingdom 6.1% Switzerland 5.2% Italy 5.0% Denmark 4.2% Netherlands 3.7% Finland 3.2% France 2.9% Israel 2.8% Ireland 2.5% Norway 2.2% Hong Kong 1.9% Austria 1.7% Belgium 1.1% Portugal 0.9% Greece 0.4% New Zealand 0.2% Australia 0.1% Top 10 Holdings Market Cap. Index Weight Deutsche Wohnen AG $5.5B 0.55% AerCap Holdings NV $4.4B 0.52% Sembcorp Industries Ltd. $7.8B 0.39% Keppel Corporation $16.0B 0.39% ACE Limited $35.2B 0.38% Amadeus IT Holding SA $19.2B 0.38% Singapore Airlines Ltd. $9.7B 0.36% AstraZeneca PLC $74.3B 0.36% Swisscom AG $27.4B 0.35% Fresenius SE & Co KGaA $27.5B 0.35% Bottom 10 Holdings Market Cap. Index Weight GungHo Online Entertainment $8.3B 0.04% Truly International Holdings Ltd. $1.6B 0.08% Sinarmas Land Ltd. $1.2B 0.08% AVG Technologies NV $0.9B 0.08% Tokyu Fudosan Holdings Corp. $6.0B 0.08% SodaStream International Ltd. $1.0B 0.10% Hulic Company, Ltd. $8.8B 0.10% Nitto Denko Corporation $7.3B 0.10% CGG SA $3.1B 0.10% Isuzu Motors Limited $10.6B 0.10% Percentage weightings are rounded up to the nearest 100 th of a percent. Market Capitalization stated in terms of the U.S. Dollar. Index Symbols Total Return: CEMPDVHG Compass Efficient Model Portfolios, LLC has weighted securities and asset classes based on their volatility since June The Index performance represents the application of Compass EMP s methodology dating back to the Index inception of June 30, Prior to June 30, 2003 the Index performance was calculated and back tested by Bloomberg analytics based on the criteria listed above. The CEMP Indexes are published by Dow Jones Indexes and are patent pending (Serial No. 61/645,370) Visit For additional information regarding product development or licensing please contact The CEMP Indices are published by Dow Jones, Inc and are patent pending (Serial No. 61/645,370). The CEMP Volatility Weighted Indices or the information contained herein may not be replicated or utilized unless there is written consent from Compass Efficient Model Portfolios, LLC. Past returns do not guarantee future results. Index returns do not include any expenses. Investors cannot invest directly in an Index. The MSCI EAFE Index (used as a comparison) consists of the most widely held stocks in foreign developed markets (as defined by MSCI) weighted based on their float-adjusted market capitalization. Hedging involves making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a cash position or a short position which may utilize futures contracts. "Dow Jones " and "Dow Jones Indexes" are service marks of Dow Jones Trademark Holdings LLC, and have been licensed for use by CME Group Index Services LLC CEMP07 22

23 CEMP U.S. REIT 100 Volatility Weighted Index Index Construction Methodology 1. Fundamental: The Index universe begins with all publicly traded REIT stocks domiciled in the United States, then screens for all companies with consistent net positive earnings for four consecutive quarters. 2. Size: The Index identifies up to the 100 largest U.S. REIT stocks by market capitalization. 3. Volatility Weighting: The remaining 100 stocks are weighted based on their daily standard deviation (volatility) over the last 180 trading days compared to the aggregate mean. The Index is reconstituted every March and September. Other Rules The Index may result in less than 100 REITs due to the positive earnings screening. The maximum sector weighting is 25% of the Index. If a particular sector is over the 25% weighting the smallest stocks by market capitalization are removed and not replaced until the initial weighting is below 25%. If a common stock is acquired due to a merger or acquisition the new stock will remain until the Index is reconstituted, unless the company does not have a positive price to earnings ratio each of the last four consecutive quarters. If the company does not have positive earnings, it will be removed and not replaced. Annual Total Return CEMP U.S. REIT 100 Volatility Weighted Index 3.69% 19.50% 7.30% 21.36% 20.13% % % 34.92% 4.46% 27.26% 39.22% 10.16% 21.65% Dow Jones U.S. Select REIT Index (Cap Weighted Index - Comparison Only) 1.22% 17.12% 9.37% 28.07% 28.46% % % 35.97% 13.82% 33.16% 36.18% 3.58% 12.35% Average Annual Return (9/30/2000 to 12/31/2013) CEMP U.S. REIT 100 Volatility Weighted Index 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. 9/30/ % 3.69% 3.69% 9.96% 14.15% 1.53% 7.15% 10.76% Dow Jones U.S. Select REIT Index (Cap Weighted Index - Comparison Only) 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. 9/30/ % 1.22% 1.22% 9.04% 16.36% 0.96% 8.22% 10.27% Cumulative Return (since 9/30/2000) CEMP U.S. REIT 100 Volatility Weighted Index % Dow Jones U.S. Select REIT Index (Cap Weighted Index - Comparison Only) % Risk Adjusted (compared to the Dow Jones U.S. Select REIT Index) Beta: 10 Yr Since 9/30/ Alpha: 10 Yr. 0.10% Since 9/30/ % 23

24 CEMP U.S. REIT 100 Volatility Weighted Index As of December 31, 2013 Index Characteristics Number of Holdings 66 Average Market Capitalization $6.4B P/E Ratio 34.9 Dividend Yield 4.40% BICS REIT Sub-Industry Weightings Diversified 24.8% Apartments 17.9% Office Property 13.4% Health Care 8.7% Shopping Centers 7.9% Regional Malls 6.6% Single Tenant 5.5% Storage 4.5% Warehouse/Industrial 3.3% Manufactured Homes 1.9% Real Estate Management 1.2% Top 10 Holdings Market Cap. Index Weight Equity Lifestyle Properties $3.0B 1.87% Post Properties, Inc. $2.5B 1.85% Federal Realty Investment Trust $6.6B 1.85% Acadia Realty Trust $1.4B 1.84% Piedmont Office Realty Trust $2.7B 1.80% Mid-America Apt. Communities $4.5B 1.79% BRE Properties, Inc. $4.2B 1.79% Home Properties, Inc. $3.1B 1.79% SL Green Realty Corp. $8.9B 1.79% Essex Property Trust Inc. $5.5B 1.78% Bottom 10 Holdings Market Cap. Index Weight Digital Realty Trust Inc. $6.3B 1.05% Medical Properties Trust, Inc. $2.0B 1.07% Corrections Corp. of America $3.7B 1.12% Universal Health Realty $0.5B 1.12% Amreit, Inc. $0.3B 1.12% Campus Crest Communities $0.6B 1.14% OMEGA Healthcare Investors $3.7B 1.20% WP Carey Inc. $4.2B 1.22% Dupont Fabros Technology $1.6B 1.24% HCP, Inc. $16.6B 1.24% Index Symbols Price: Total Return: CEMPRE CEMPRET Percentage weightings are rounded up to the nearest 100 th of a percent. Compass Efficient Model Portfolios, LLC has weighted securities and asset classes based on their volatility since June The Index performance represents the application of Compass EMP s methodology dating back to the Index inception of June 30, Prior to June 30, 2003 the Index performance was calculated and back tested by Bloomberg analytics based on the criteria listed above. The CEMP Indexes are published by Dow Jones Indexes and are patent pending (Serial No. 61/645,370) Visit For additional information regarding product development or licensing please contact The CEMP Indices are calculated by Dow Jones Indexes, the marketing name of CME Group Index Services LLC, and are patent pending (Serial No. 61/645,370). The CEMP Volatility Weighted Indices or the information contained herein may not be replicated or utilized unless there is written consent from Compass Efficient Model Portfolios, LLC. Past returns do not guarantee future results. Index returns do not include any expenses. Investors cannot invest directly in an Index. The Dow Jones U.S. Select REIT Index (used as a comparison) consists of publicly traded REITs and REIT-like securities, weighted based on their float-adjusted market capitalization. Investments in real estate have various risks including possible lack of liquidity and devaluation based on adverse economic and regulatory changes. "Dow Jones ", "Dow Jones Indexes" and Dow Jones U.S. Select REIT Index are service marks of Dow Jones Trademark Holdings LLC, and have been licensed for use by CME Group Index Services LLC CEMP11 24

25 CEMP U.S. REIT Long/Cash Volatility Weighted Index Index Construction Methodology The CEMP U.S. REIT Long/Cash Volatility Weighted Index is based on the daily price of CEMP U.S. REIT 100 Volatility Weighted Index. Investment Strategy 1. The Index universe begins with all publicly traded REIT stocks domiciled in the United States, then screens for all companies with consistent net positive earnings for four consecutive quarters. 2. The Index identifies up to the 100 largest U.S. REIT stocks by market capitalization. 3. The remaining 100 stocks are weighted based on their daily standard deviation (volatility) over the last 180 trading days compared to the aggregate mean. The Index is reconstituted every March and September. Long/Cash Strategy A. Exit Strategy: Based on the month-end price of the CEMP U.S. REIT 100 Volatility Weighted Index, the Index will liquidate 75% of the securities if the Index has declined -10% from its daily highest value (DHV). B. Reinvestment Strategy: Based on the month-end price, if the Index increases back to or above the -10% decline from its DHV, all securities will be reinvested. The Index would then be fully invested. If the Index declines -20% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 50% invested. If the Index declines -30% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 75% invested. If the Index declines -40% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 100% invested. Annual Total Return CEMP U.S. REIT Long/Cash Volatility Weighted Index 6.64% 14.20% 7.31% 21.34% 20.14% % -9.24% 34.94% 4.45% 18.74% 39.24% 7.39% 21.65% Dow Jones U.S. Select REIT Index (Cap Weighted Index - Comparison Only) 1.22% 17.12% 9.37% 28.07% 28.46% % % 35.97% 13.82% 33.16% 36.18% 3.58% 12.35% Average Annual Return (9/30/2000 to 12/31/2013) CEMP U.S. REIT Long/Cash Volatility Weighted Index 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. 9/30/ % 6.64% 6.64% 9.33% 13.76% 5.30% 9.16% 12.12% Dow Jones U.S. Select REIT Index (Cap Weighted Index - Comparison Only) 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. 9/30/ % 1.22% 1.22% 9.04% 16.36% 0.96% 8.22% 10.27% Cumulative Return (since 9/30/2000) CEMP U.S. REIT Long/Cash Volatility Weighted Index % Dow Jones U.S. Select REIT Index (Cap Weighted Index - Comparison Only) % Risk Adjusted (compared to the Dow Jones U.S. Select REIT Index) Beta: 10 Yr Since 9/30/ Alpha: 10 Yr. 2.71% Since 9/30/ % 25

26 CEMP U.S. REIT Long/Cash Volatility Weighted Index As of December 31, 2013 Index Characteristics* Number of Holdings 66 Average Market Capitalization $6.4B P/E Ratio 34.9 Dividend Yield 4.40% *Only if fully invested BICS REIT Sub-Industry Allocations* Diversified 24.8% Apartments 17.9% Office Property 13.4% Health Care 8.7% Shopping Centers 7.9% Regional Malls 6.6% Single Tenant 5.5% Storage 4.5% Warehouse/Industrial 3.3% Manufactured Homes 1.9% Real Estate Management 1.2% *Only if fully invested Index Symbols Top 10 Holdings Market Cap. Index Weight U.S. 30-Day Treasury Bill % Equity Lifestyle Properties $3.0B 0.47% Post Properties, Inc. $2.5B 0.46% Federal Realty Investment Trust $6.6B 0.46% Acadia Realty Trust $1.4B 0.46% Piedmont Office Realty Trust $2.7B 0.45% Mid-America Apt. Communities $4.5B 0.45% BRE Properties, Inc. $4.2B 0.45% Home Properties, Inc. $3.1B 0.45% SL Green Realty Corp. $8.9B 0.45% Bottom 10 Holdings Market Cap. Index Weight Digital Realty Trust Inc. $6.3B 0.26% Medical Properties Trust, Inc. $2.0B 0.27% Corrections Corp. of America $3.7B 0.28% Universal Health Realty $0.5B 0.28% Amreit, Inc. $0.3B 0.28% Campus Crest Communities $0.6B 0.29% OMEGA Healthcare Investors $3.7B 0.30% WP Carey Inc. $4.2B 0.31% Dupont Fabros Technology $1.6B 0.31% HCP, Inc. $16.6B 0.31% Percentage weightings are rounded up to the nearest 100 th of a percent. Total Return: CEMPREH Compass Efficient Model Portfolios, LLC has weighted securities and asset classes based on their volatility since June The Index performance represents the application of Compass EMP s methodology dating back to the Index inception of June 30, Prior to June 30, 2003 the Index performance was calculated and back tested by Bloomberg analytics based on the criteria listed above. The CEMP Indexes are published by Dow Jones Indexes and are patent pending (Serial No. 61/645,370) Visit For additional information regarding product development or licensing please contact The CEMP Indices are calculated by Dow Jones Indexes, the marketing name of CME Group Index Services LLC, and are patent pending (Serial No. 61/645,370). The CEMP Volatility Weighted Indices or the information contained herein may not be replicated or utilized unless there is written consent from Compass Efficient Model Portfolios, LLC. Past returns do not guarantee future results. Index returns do not include any expenses. Investors cannot invest directly in an Index. The Dow Jones U.S. Select REIT Index (used as a comparison) consists of publicly traded REITs and REIT-like securities, weighted based on their float-adjusted market capitalization. Investments in real estate have various risks including possible lack of liquidity and devaluation based on adverse economic and regulatory changes. Hedging involves making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a cash position or a short position which may utilize futures contracts. "Dow Jones ", "Dow Jones Indexes" and Dow Jones U.S. Select REIT Index are service marks of Dow Jones Trademark Holdings LLC, and have been licensed for use by CME Group Index Services LLC CEMP12 26

27 CEMP Commodity Volatility Weighted Index Index Construction Methodology Universe The CEMP Commodity Volatility Weighted Index begins with the twenty most liquid commodities by trading volume. Volatility Weighting The twenty most liquid commodities are then weighted based on their daily standard deviation over the last 180 days compared to the aggregate mean. The Index is reconstituted every March and September. Annual Total Return CEMP Commodity Volatility Weighted Index -8.56% 3.43% -8.21% 27.16% 27.30% % 18.54% 14.42% 20.22% 13.43% 26.27% 18.96% % Dow Jones-UBS Commodity Index (Production/Liquidity-Weighted Index - Comparison Only) -9.52% -1.06% % 16.83% 18.91% % 16.23% 2.07% 21.36% 9.15% 23.93% 25.91% % Average Annual Return (9/30/2000 to 12/31/2013) CEMP Commodity Volatility Weighted Index 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. 9/30/ % -8.56% -8.56% -4.60% 7.04% 3.91% 7.40% 7.89% Dow Jones-UBS Commodity Index (Production/Liquidity-Weighted Index - Comparison Only) 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. 9/30/ % -9.52% -9.52% -8.11% 1.51% -3.03% 0.87% 3.05% Cumulative Return (since 9/30/2000) CEMP Commodity Volatility Weighted Index % Dow Jones-UBS Commodity Index (Production/Liquidity-Weighted Index - Comparison Only) 48.97% Risk Adjusted (Compared to Dow Jones-UBS Commodity Index) Beta: 10 Yr Since 9/30/ Alpha: 10 Yr. 6.55% Since 9/30/ % 27

28 CEMP Commodity Volatility Weighted Index As of December 31, 2013 Commodity Sector Weightings Grains 21.3% Softs 19.5% Energy 18.9% Livestock 18.2% Industrial Metals 16.3% Precious Metals 5.9% Top 5 Holdings Index Weight Live Cattle 11.51% Lean Hogs 6.69% Zinc 6.41% Sugar 6.22% Soybean Oil 6.13% Index Symbols Total Return: CEMPCOM Bottom 5 Holdings Index Weight Silver 2.30% Corn 3.13% Soybean Meal 3.47% Gold 3.57% Coffee 3.70% Percentage weightings are rounded up to the nearest 100 th of a percent. Compass Efficient Model Portfolios, LLC has weighted securities and asset classes based on their volatility since June The Index performance represents the application of Compass EMP s methodology dating back to the Index inception of June 30, Prior to June 30, 2003 the Index performance was calculated and back tested by Bloomberg analytics based on the criteria listed above. The CEMP Indexes are patent pending (Serial No. 61/645,370) Visit For additional information regarding product development or licensing please contact The CEMP Commodity Volatility Weighted Index (the Index ) is the exclusive property of Compass Efficient Model Portfolios, LLC, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ( S&P Dow Jones Indices ) to calculate and maintain the Index. S&P and S&P Custom Indices are registered trademarks of Standard & Poor s Financial Services LLC ( SPFS ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); and these trademarks have been licensed to S&P Dow Jones Indices. Calculated by S&P Custom Indices and its related stylized mark(s) are service marks of SPFS and have been licensed for use by S&P Dow Jones Indices and sublicensed for certain purposes by Compass Efficient Model Portfolios, LLC. Neither S&P Dow Jones Indices, SPFS, Dow Jones, nor any of their affiliates shall be liable for any errors or omissions in calculating the Index.Past returns do not guarantee future results. Index returns do not include any expenses. Investors cannot invest directly in an Index. The Dow Jones-UBS Commodity Index (used as a comparison) is a production/liquidity-weighted Index consisting of the most widely traded commodities around the world CEMP05 28

29 CEMP Commodity Long/Cash Volatility Weighted Index Index Construction Methodology The CEMP Commodity Long/Cash Volatility Weighted Index is based on the daily price of the CEMP Commodity Volatility Weighted Index. Volatility Weighting The twenty most liquid commodities are then weighted based on their daily standard deviation over the last 180 days compared to the aggregate mean. The Index is reconstituted every March and September. Long/Cash Strategy A. Exit Strategy: Based on the month-end price of the CEMP Commodity Volatility Weighted Index, the Index will liquidate 75% of the securities if the Index has declined -10% from its daily highest value (DHV). B. Reinvestment Strategy: Based on the month-end price, if the Index increases back to or above the -10% decline from its DHV, all securities will be reinvested. The Index would then be fully invested. If the Index declines -20% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 50% invested. If the Index declines -30% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 75% invested. If the Index declines -40% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 100% invested. Annual Total Return CEMP Commodity Long/Cash Volatility Weighted Index -4.29% 3.21% -6.70% 27.16% 27.77% -7.93% 18.54% 9.65% 20.22% 13.43% 26.27% 12.47% -7.90% Dow Jones-UBS Commodity Index (Production/Liquidity-Weighted Index - Comparison Only) -9.52% -1.06% % 16.83% 18.91% % 16.23% 2.07% 21.36% 9.15% 23.93% 25.91% % Average Annual Return (9/30/2000 to 12/31/2013) CEMP Commodity Long/Cash Volatility Weighted Index 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. 9/30/ % -4.29% -4.29% -2.68% 8.41% 7.27% 9.35% 9.18% Dow Jones-UBS Commodity Index (Production/Liquidity-Weighted Index - Comparison Only) 3 Mo. YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr. 10 Yr. 9/30/ % -9.52% -9.52% -8.11% 1.51% -3.03% 0.87% 3.05% Cumulative Return (since 9/30/2000) CEMP Commodity Long/Cash Volatility Weighted Index % Dow Jones-UBS Commodity Index (Production/Liquidity-Weighted Index - Comparison Only) 48.97% Risk Adjusted (Compared to Dow Jones-UBS Commodity Index) Beta: 10 Yr Since 9/30/ Alpha: 10 Yr. 8.56% Since 9/30/ % 29

30 CEMP Commodity Long/Cash Volatility Weighted Index As of December 31, 2013 Commodity Sector Weightings Grains 21.3% Softs 19.5% Energy 18.9% Livestock 18.2% Industrial Metals 16.3% Precious Metals 5.9% Top 5 Holdings Index Weight Cash 50.00% Live Cattle 5.75% Lean Hogs 3.35% Zinc 3.21% Sugar 3.11% Index Symbols Total Return: CEMPCOM Bottom 5 Holdings Index Weight Silver 1.15% Corn 1.57% Soybean Meal 1.73% Gold 1.78% Coffee 1.85% Percentage weightings are rounded up to the nearest 100 th of a percent. Compass Efficient Model Portfolios, LLC has weighted securities and asset classes based on their volatility since June The Index performance represents the application of Compass EMP s methodology dating back to the Index inception of June 30, Prior to June 30, 2003 the Index performance was calculated and back tested by Bloomberg analytics based on the criteria listed above. The CEMP Indexes are patent pending (Serial No. 61/645,370) Visit For additional information regarding product development or licensing please contact The CEMP Commodity Volatility Weighted Index (the Index ) is the exclusive property of Compass Efficient Model Portfolios, LLC, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ( S&P Dow Jones Indices ) to calculate and maintain the Index. S&P and S&P Custom Indices are registered trademarks of Standard & Poor s Financial Services LLC ( SPFS ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); and these trademarks have been licensed to S&P Dow Jones Indices. Calculated by S&P Custom Indices and its related stylized mark(s) are service marks of SPFS and have been licensed for use by S&P Dow Jones Indices and sublicensed for certain purposes by Compass Efficient Model Portfolios, LLC. Neither S&P Dow Jones Indices, SPFS, Dow Jones, nor any of their affiliates shall be liable for any errors or omissions in calculating the Index.Past returns do not guarantee future results. Index returns do not include any expenses. Investors cannot invest directly in an Index. The Dow Jones-UBS Commodity Index (used as a comparison) is a production/liquidity-weighted Index consisting of the most widely traded commodities around the world CEMP04 30

31 Compass EMP

32 March, 2014