Building a. Stuck in Cash? Better Bond Portfolio. How to Get Back on Track. Insights and Updates on the FundX Upgrader Funds

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1 Summer 206 Insights and Updates on the FundX Upgrader Funds Building a Better Bond Portfolio Stuck in Cash? How to Get Back on Track 206 LIPPER FUND AWARD WINNER: Upgrader Fund (FUNDX) Best in class for Mixed-Asset Target Allocation Aggressive Growth Funds among 39 fund of funds for the three years ending /30/205 based on risk-adjusted returns.

2 Building a Better Bond Portfolio What Cash Can & Can t Do Fund Performance & Portfolios The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectuses contain this and other important information about the investment company, and may be obtained by calling , or visiting Upgraderfunds.com. Read it carefully before investing. Mutual fund investing involves risk. Principal loss is possible. The FundX Upgrader Funds ( Funds) are considered funds of funds and an investor will indirectly bear the principal risks and its share of the fees and expenses of the underlying funds. Shareholders will pay higher expenses than they would if they invested directly in the underlying funds. The Funds employ an Upgrading strategy whereby investment decisions are based on near-term performance, however, the Funds may be exposed to the risk of buying underlying funds immediately following a sudden, brief surge in performance that may be followed by a subsequent drop in market value. The Funds invest in underlying funds and these underlying funds may invest in securities of small companies, which involve greater volatility than investing in larger, more established companies, or they may invest in foreign securities, which involve greater volatility and political, economic and currency risks and differences in accounting methods; these risks are greater for investments in emerging markets. The underlying funds may invest in debt securities, which typically decrease in value when interest rates rise; this risk is usually greater for longer-term debt securities. Lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher rated securities. While the Upgrader Funds are diversified, the underlying funds may invest in a limited number of issuers and therefore may be considered nondiversified. The underlying funds may engage in short sales; an underlying fund s investment performance may suffer if it is required to close out a short position earlier than intended. Some underlying funds may borrow money for leveraging and will incur interest expense. Some underlying funds may use derivatives, which involve risks different from, and in certain cases, greater than the risks presented by more traditional investments. ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF s shares may trade at a discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a Fund s ability to sell its shares. The underlying funds may invest in asset-backed and mortgage-backed securities, which involve additional risks such as credit risk, prepayment risk, possible illiquidity and default, and increased susceptibility to adverse economic developments. Past performance does not guarantee future results. While the funds are no-load, management and other expenses still apply. Please refer to the prospectus for further details. The S&P 500 Index is a broad based unmanaged index of 500 stocks, which is widely recognized as representative of the equity market in general. The Barclays Aggregate Bond Index is an unmanaged index generally representative of intermediate-term government bonds, investment grade corporate debt securities and mortgage-backed securities. The MSCI All Country World Index (ACWI) is a market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. The MSCI EAFE Index (Morgan Stanley Capital International, Europe, AustralAsia and Far East) is an unmanaged index of over 000 foreign common stock prices including the reinvestment of dividends. You cannot invest directly in an index. A Lipper Fund Award is awarded to one fund in each Lipper classification for achieving the strongest trend of consistent risk-adjusted performance against its classification peers over a three, five or ten-year period. Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. Lipper Analytical Services, Inc. is an independent mutual fund research and rating service. 206, All Rights Reserved References to other funds should not be interpreted as an offer of these securities. Diversification does not assure a profit or protect against loss in a declining market. Nothing contained on this communication constitutes tax, legal, or investment advice. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Any tax or legal information provided is a summary of our understanding and interpretation of some of the current income tax regulations. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Neither the Fund nor any of its representatives may give legal or tax advice. The FundX Upgrader Funds are distributed by Quasar Distributors, LLC. 2 Summer 206 UPGRADER Call your broker or FUND (3863)

3 Shareholder Letter What Moves the Market? Dear Fellow Shareholders, In May, I attended a media briefing in New York with six other fund managers and about 20 financial reporters. The fund managers answered a range of questions from the press, but the most common question was, How will the election affect the market? Even though all of the fund managers had different investment strategies and ran very different funds, we had the same answer: current events, whether it s the presidential election or the Brexit, typically don t have as much of an impact on the market and on the economy as many investors expect. In Wharton Professor Jeremy Siegel s classic book, Stocks for the Long Run, Siegel looked at what moves the market, and he found that less than one-quarter [of major market movements] can be associated with a news event of major political or economic import. In other words, what matters in the market isn t often what you re hearing on the news. How you respond to changing markets matters There will always be cause for concern, whether it s volatile markets, changing interest rates, a contentious election, or the Brexit. But one thing we ve learned in our 47 years of fund investing is that it s not what happens in the market or in the news, it s how you respond that likely determines your ability to achieve your long-term goals. Many investors struggle with changing markets. They may react impulsively to market declines or let headlines and market predictions influence their decisions. Even when they know what they need to do in the long run, some investors have trouble following through in the face of short-term losses. This is why some investors own the Upgrader Funds. They know that we have a clear strategy designed to adapt to changing stock and bond markets in a disciplined way. They know that we ve used this strategy to manage portfolios for clients for many decades, and that the strategy has been tested through up and down markets, Democratic and Republican administrations, and periods of global unrest or political upheaval. And they appreciate that they can call us and talk with one of the Fund s portfolio managers. We have a clear strategy designed to adapt to changing stock and bond markets in a disciplined way. If you have questions or need help thinking about how you might use the Upgrader Funds, give us a ring at and ask to speak with an advisor. Janet Brown President, FundX Investment Group UPGRADER Summer 206 3

4 a Better Bond Portfolio I m nervous about interest rates, and yet I know I need to be invested in bonds, an investor told us recently. What can I do? A well-built portfolio should help you navigate many market conditions, including periods of higher and lower interest rates and default rates. We ve been adapting to changing markets for 47 years now, and we ve found that investing in bond funds can help you mitigate risk, capitalize on new opportunities and respond to changing markets far more effectively than using individual bonds. The bond portfolios we manage are entirely invested in funds and ETFs. With bond funds, you can have your money managed by some of the smartest and most experienced fixed income investment teams in the country. You don t have to worry about which companies are likely to repay their debts most funds do it for you. Funds have teams of analysts who do in-depth research on companies before they buy their bonds; they don t just rely on ratings agencies like Moody or Standard and Poor s. And this research can be particularly valuable when it comes to lower-quality bonds issued by smaller companies because these companies often don t pay to have their debt evaluated by the ratings agencies. How bond funds can help you navigate changing markets Funds help you stay diversified & mitigate risk Diversification is another reason to own bond funds. Most funds own hundreds, if not thousands, of bonds, so if one bond defaults, the other positions can help offset losses. This is what happened with Enron, the energy company that went bankrupt 200. Many bond funds owned Enron debt, but because these funds were broadly 4 Summer 206 UPGRADER Call your broker or FUND (3863)

5 diversified, the default didn t have as much of an impact on the funds. Enron s bondholders, on the other hand, got next to nothing when the company went under. Funds are an affordable way to own a diversified bond portfolio. It can take a lot of money (upwards of $ million) to build a truly diversified portfolio of individual bonds, but you can buy a diversified portfolio of bond funds for just a few thousand dollars. You can invest in our Flexible Income Fund (INCMX) for as little as $,000 and with INCMX, you ll own a portfolio of 0-5 different bond funds, representing approximately 3,000 individual bonds. Funds give you access to many different areas of the bond market Today, many investors are concerned about changing interest rates. Investors know that when rates rise, bond prices fall. But higher rates don t affect all bonds in the same way. Some bonds, like bank loans, high-yield bonds, or foreign bonds could hold up better than other bonds if rates rise, but these niche areas can be a challenge for most investors to buy on their own. Bond funds make it easy to invest in these different areas of the bond market. Floating-rate funds, for example, can be appealing if interest rates rise because these funds invest in bank loans and the interest rates on these loans adjust as rates change. Lower-quality bonds, like high yields, could also be a good investment if rates rise gradually because their higher yields could offset a decrease in bond prices. And don t overlook foreign bonds: while the U.S. is expected to experience higher rates, many other countries are cutting rates, and that means some foreign bond funds could offer better results than U.S. bond funds. Funds help you adapt to changing markets Bond funds keep you nimble and allow you to respond to changing markets. Re-shuffling a portfolio of individual bonds can be costly and time-consuming. But with a portfolio of funds, you can efficiently move your portfolio out of lower-quality bond funds and into higher-quality bond funds as we did in INCMX during the 2008 credit crisis. INCMX: a diversified, actively managed portfolio of bond funds that adapts to changing markets Broadly diversified Bond funds offer diversification, and funds of bond funds like the Flexible Income Fund (INCMX), which typically owns 0-5 bond funds, offer potentially greater diversification. INCMX s portfolio represents thousands of individual bonds. INCMX also may own total-return funds; these funds are not fully invested in bonds, so they typically have lower credit and interest-rate risk. Access to many investment opportunities INCMX can seek out opportunities in many different areas of the bond market. As of June 30, 206, INCMX had exposure to corporate and government bonds, as well as floating-rate (bank loan), high yield, and dollar-hedged foreign bond funds. Adapts to changing markets We change INCMX s portfolio in response to changing markets. In the 2008 credit crisis, we moved the portfolio into short-and intermediate-term government bond funds and ETFs. As markets recovered, we took advantage of strong performing high-yield, strategic and world bond funds. INCMX is available at most major brokers, often with no transaction fee. It can also be purchased directly from our shareholder services for as little as $,000. Just call to get started. UPGRADER Summer 206 5

6 What Cash Can & Can t Do With higher interest rates on the horizon and volatile stock markets, you might think that this is a good time to steer clear of the markets and just keep your money in cash. In uncertain markets, cash can seem like a neutral choice, a way to press pause on the soundtrack of the market. It can also quiet the feelings of fear or worry you might have about Europe or interest rates and bring you a sense of stability and certainty. Every day, you ll see the same numbers in your bank account and you ll know that it ll be there tomorrow, too. That s a valuable feeling, but that feeling can be very costly. Cash isn t risk-free. That s a common myth. Cash has risks, but these risks are different than the risks you ll face when you re invested in stocks or bonds. You should understand and manage the risks of cash in the same way that you d consider the risks of investing. Cash has its place Cash is an important part of your overall investment plan: you need to keep some of your money in cash to cover your day-to-day expenses and in case of any unexpected events or emergencies. You wouldn t want to have your emergency fund invested in stocks or bonds because these investments can lose money, particularly in the short term. Staying close to shore may not help you get you where you want to go Cash can become a problem, however, when it replaces stocks or bonds in your longterm investment plan. 6 Spring 206 UPGRADER Call your broker or FUND (3863)

7 Cash isn t a substitute for stocks In volatile markets, you might think that being in cash could work out better than staying invested in stocks. You might reason that by avoiding stocks, you ll avoid losses. But history shows that moving to cash, even just for a few months, can also mean avoiding gains. We talked with an investor in the Upgrader Fund (FUNDX) whose returns were far lower than the ones shown on page 0. We went over each year of returns together, and we eventually found the problem: he d sold out of the fund and gone to cash at a crucial point in the market, and by the time he got invested again, he d missed out on gains. It didn t seem like a big deal at the time, but as the years passed, it was clear that this one decision had made a big impact in his results. We all know the risks of taking too much risk: if we invest too much in stocks, we could lose money. But we often overlook the risk of being too conservative. If we don t take enough risk, we may fall short of our investment goals or run out of money in retirement. When we re considering investing in stocks or cash, we need to make sure we re thinking seriously about time. Stocks may feel risky today, but over the long term, stocks have reliably had gains. Remember stocks have always had gains over every 20-calendar-year period since 950. Cash may feel safe today, but it can have significant risks down the road. Cash isn t a substitute for bonds Cash also shouldn t be a substitute for fixed income. Given the low interest yields of money market or checking accounts, cash actually loses value over time due to inflation. But bonds and bond funds usually pay higher dividends than cash accounts, so they have the potential to grow over time; cash doesn t. Over the last five years, the purchasing power of cash has decreased, while investments in bonds have grown, even after factoring in inflation. Bonds have another advantage: they sometimes rise when stocks fall. This means that a portfolio of both stocks and bonds could hold up better in market declines than a portfolio of stocks and cash. If you keep your fixed income allocation in cash, you risk missing out on some pretty good returns and the opportunity to benefit if bonds gain as stocks fall. Stuck in Cash? How to Get Back on Track If you ve been in cash when you know you need to be at least partially invested, then there s no time like the present to get back on track. Make a plan Don t wait for the perfect time to invest because that time may never come. Instead, make a plan decide how much of your cash you re going to invest and then schedule when you ll actually put that money to work. When we re investing a client s account, we ll often invest 30-50% of the portfolio right away. This way, the client has meaningful participation in any market gains that occur while we re putting the rest of the account to work. Then we invest the rest of the portfolio gradually on a set schedule, perhaps every week or every month. Write it out We often pencil out exactly how we ll invest their portfolios, and then we calendar these changes. You might consider doing the same. By deciding in advance where you re going and how you ll get there, and writing it out so you can refer to it later, you re more likely to follow through, even as markets change. Balance your portfolio Not sure where to invest? Balanced portfolios like the Conservative Upgrader Fund (RELAX) can be a good option. RELAX has 60% in core stock funds for potential long-term growth, and it has 40% in bond and total-return funds for stability in difficult markets. UPGRADER Summer 206 7

8 Why FundX? Investors in the FundX Upgrader Funds have professional money managers working for them. We monitor the funds and the markets and make any necessary portfolio changes. When you invest in the FundX Upgrader Funds, we follow the NoLoad FundX Upgrading strategy for you. We execute the NoLoad FundX Upgrading strategy in a disciplined manner. If a fund or ETF falls in our ranks, we sell it and buy a higher ranking fund.

9 We Navigate Changing Markets for You Equity Capture Global Market Trends Investors in these funds seek to participate in global stock market growth. The funds can invest in different areas of the markets as new opportunities arise, including large-cap and small-cap, value and growth and international and domestic. HOTFX FUNDX TACTX Aggressive Upgrader Fund Global Aggressive Growth Fund Upgrader Fund Global Growth Fund Tactical Upgrader Fund Global Growth & Tactical Hedge Balanced Combine Growth and Stability Investors in this fund seek the growth potential of an equity fund with the lower volatility of a fixed income fund. RELAX Conservative Upgrader Fund Balanced Fund Flexible Income & Total Return Focused on Stability Investors in these funds seek the stability of fixed income and seek a buffer against the volatility of equities. These funds invest in bond and total return funds, targeting those areas excelling in the current market environment. TOTLX INCMX Flexible Total Return Fund Flexible Income & Total Return Flexible Income Fund Fixed Income UPGRADER FUNDS

10 FundX Upgrader Fund ( FUNDX ) Global Growth Fund Quick Info Date: Nov, 200 Ticker: FUNDX Assets: $229.0 Million Minimum Investment: $,000 Redemption Fee: None Expense Ratio:.84 (includes management fee, operating costs and acquired fund fees) Complete Portfolio as of 6/30/6 Risk ishrs US Utilities IDU.40 SPDR Consumer Staples XLP 2.20 SPDR Utilities Sel Sector XLU 2.50 VanEck Vect Gold Miners GDX 0.90 Vanguard Consumer Stpls VDC.00 Vanguard Telecom Svcs VOX.20 Sector Funds 9.20 AMG Yacktman Foc YAFIX.90 ishrs MSCI EAFE SmCp SCZ.90 ishrs S&P SmCp 600 Val IJS 3.40 Janus Enterprise JMGRX 2.0 Oppenheimer Glb Opps OGIYX 0.90 Oppenheimer Intl Sm Co OSMYX.0 PwrShrs Hi Yld Eq Div Ach PEY 2.20 PwrShrs SP500 HiQlty SPHQ.70 SPDR S&P Intl SmCap GWX 2.20 WisdomTree SmCp Div DES 2.20 Aggressive Funds 9.60 FUNDX offers a popular global growth portfolio made up of core, diversified funds and ETFs with limited exposure to more aggressive funds and ETFs. FUNDX is designed to serve as the foundation of a well-diversified portfolio. Who Should Consider Investing in this Fund? Investors who want to participate in global stock market growth with limited exposure to aggressive funds. Performance Commentary: FUNDX seeks to participate in global market trends by owning foreign funds when foreign markets are in favor and U.S. funds when domestic markets have stronger recent returns. Since inception, it has outpaced both U.S. (S&P 500) and global (MSCI ACWI) indexes, as shown below. It has been primarily invested in U.S. funds for the past seven years, which helped the Fund outperform the MSCI All Country World index for the past five- and 0-year periods. Brief exposure to foreign funds during these periods added diversification but caused the Fund to underperform the S&P 500 index. 50% 25% 0% -25% -50% $30,000 $20,000 Yearly Returns Total Returns to 6/30/6 FUNDX $26,433 S&P 500 $26,022 MSCI ACWI $23,43 AmCen Equity Inc Inst ACIIX 6.50 Artisan Value Fund Inv ARTLX 6.40 Clipper Fund CFIMX 5.20 Federated Strat Val Div SVAIX 5.40 ishrs USA Qual Factor QUAL 6.40 ishrs DJ Select Div DVY 7.40 ishrs Edge US Momentum MTUM 5.70 ishrs S&P MidC 400 Val IJJ 2.30 Jensen Quality Growth JENIX 6.30 Mairs & Power Growth MPGFX 4.60 PwrShrs S&P 500 Low Vol SPLV 7.40 SPDR S&P Dividend SDY 7.30 Core Funds Cash 0.30 Fund holdings and class allocations are subject to change and should not be considered a recommendation to buy or sell any of the underlying funds. Funds in bold type were added to the portfolio in the last quarter. $0,000 $6,000 //0 '03 '04 '05 '06 '07 '08 '09 '0 ' '2 '3 '4 '5 6/30/6 PERFORMANCE % to 6/30/6 FUNDX S&P 500 Index MSCI ACWI Index Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling This chart illustrates the performance of a hypothetical $0,000 investment made in the Fund Since through the period ending 6/30/6. It assumes reinvestment of dividends and capital gains, but does not reflect the effect of any applicable sales charge or redemption fees. This chart does not imply any future performance. *The expense ratio figure is from the prospectus dated Jan 30, 206 and includes acquired fund fees and expenses. The management fee is what the advisor charges to manage the fund and is part of the expense ratio; other fees and expenses apply. Please see page 2 for the risks associated with investing in this fund. 0 Summer 206 UPGRADER Call your broker or FUND (3863) 3 YTD Year Average Annual Total Returns 5 0 Since Cumulative Return Since (//0)

11 FundX Flexible Income Fund (INCMX) Fixed Income Fund INCMX invests primarily in bond funds of varying maturity and credit quality, targeting those areas excelling in the current market environment. The Fund aims to control downside risk by limiting exposure to more volatile areas of the bond market and through active management. Who Should Consider Investing in this Fund? Investors looking for a dynamic and flexible approach to fixed income. Performance Commentary: INCMX seeks to invest in leading bond funds. It holds a diverse mix of funds, including corporate and government funds; higher and lower quality funds; and foreign and domestic funds, while the Barclays Aggregate Bond index is mostly focused on Treasuries and government bonds. INCMX beat the index since inception, but in 205, narrow bond market leadership favored the governmentbond-heavy Barclays index and punished more diversified funds like INCMX, erasing INCMX s lead for the five- and 0-year periods. 25% Yearly Returns Quick Info Date: July, 2002 Ticker: INCMX Assets: $9. Million Minimum Investment: $,000 Redemption Fee: None Expense Ratio:.58 (includes management fee, operating costs and acquired fund fees) Complete Portfolio as of 6/30/6 Risk ishrs Barc -3 Yrs Treas SHY.50 Short Term Bond Funds.50 ishrs Core US Agg Bond AGG 4.30 PIMCO Invest Grade Corp PIGIX.80 0% Western Asset Core Bond WATFX 4.50 Intermediate Term Bond Funds % Eaton Vance Floating Rate EIBLX 0.00 Floating Rate Bond Funds 0.00 $20,000 Total Returns to 6/30/6 INCMX $20,08 Columbia Strategic Inc CTIVX 8.50 Strategic Bond Funds 8.50 $0,000 Barclay Agg Bond $9,345 Janus High Yield I JHYFX 0.30 Hi Yield Bond Funds 0.30 PIMCO Frgn Bond $Hdgd PFORX 8.00 Vanguard Total Intl Bond BNDX 3.20 $5,000 7//02 '03 '04 '05 '06 '07 '08 '09 '0 ' '2 '3 '4 '5 6/30/6 Vanguard Total Intl Bond VTIFX 7.80 World Bond Funds 9.00 PERFORMANCE % to 6/30/6 3 YTD Year Average Annual Total Returns 5 0 Since Cumulative Return Since (7//02) INCMX Barc Agg Bond Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling This chart illustrates the performance of a hypothetical $0,000 investment made in the Fund Since through the period ending 6/30/6. It assumes reinvestment of dividends and capital gains, but does not reflect the effect of any applicable sales charge or redemption fees. This chart does not imply any future performance. *The expense ratio figure is from the prospectus dated Jan 30, 206 and includes acquired fund fees and expenses. The management fee is what the advisor charges to manage the fund and is part of the expense ratio; other fees and expenses apply. Please see page 2 for the risks associated with investing in this fund. C & S Preferred Sec & Inc CPXIX 7.40 Fidelity Real Estate Inc FRIFX 7.40 Powershares Preferred PGX 5.00 Vanguard Wellesley Inc VWIAX 0.20 Total Return Funds Cash 0.0 Fund holdings and class allocations are subject to change and should not be considered a recommendation to buy or sell any of the underlying funds. Funds in bold type were added to the portfolio in the last quarter. UPGRADER Summer 206

12 FundX Conservative Upgrader Fund (RELAX) Balanced Fund Quick Info Date: July, 2002 Ticker: RELAX Assets: $55.7 Million Minimum Investment: $,000 Redemption Fee: None Expense Ratio:.95 (includes management fee, operating costs and acquired fund fees) Complete Portfolio as of 6/30/6 Risk AmCen Equity Inc Inst ACIIX 7.20 Artisan Value Fund Inv ARTLX 4.70 Clipper Fund CFIMX 5.20 Federated Strat Val Div SVAIX 5.80 ishrs USA Qual Factor QUAL 4.60 ishrs DJ Select Div Idx DVY 7.30 ishrs Edge US Momentum MTUM 5.90 ishrs S&P MidC 400 Val IJJ 2.00 Lazard Glb Listed Infra GLIFX 0.60 Mairs & Power Growth MPGFX 2.30 PwrShrs S&P 500 Low Vol SPLV 7.50 SPDR S&P Dividend SDY 7.30 Core Funds RELAX offers a classic yet flexible asset allocation (mix of equities and fixed income) in a single fund. The Fund has no exposure to more aggressive equity funds and also has limited exposure to more volatile areas of the bond market. Who Should Consider Investing in this Fund? Investors looking for a balance between the growth potential of an equity fund and the lower volatility of a fixed income fund, actively managed in a single fund. Performance Commentary: RELAX performed in line with our expectations with higher returns than bonds as measured by the Barclays Aggregate Bond index and lower returns than stocks as measured by the S&P 500 since inception (7//2002). The Fund was overweight in large-cap growth stocks and underweight in government bonds during the first quarter, which hurt its performance year-to-date and for the past year. 30% 0% Yearly Returns % PIMCO Inv Grade Corp Bd PIGIX 2.20 Western Asset Core Bond WATFX 5.70 Intermediate Term Bond Fund 7.90 $30,000 Total Returns to 6/30/6 S&P 500 $28,84 Eaton Vance Floating Rate EIBLX 4.00 Floating Rate Bond Funds 4.00 Columbia Strategic Inc CTIVX.80 Strategic Bond Funds.80 $20,000 $0,000 RELAX $23,997 Barclay Agg Bond $9,345 Janus High Yield JHYFX 3.80 Hi Yield Bond Funds 3.80 PIMCO Frgn Bond $Hdgd PFORX 4.00 Vanguard Total Intl Bond BNDX.40 Vanguard Total Intl Bond VTIFX 2.0 World Bond Funds 7.50 C & S Preferred Sec & Inc CPXIX 3.70 Fidelity Real Estate Inc FRIFX 3.20 Powershares Preferred PGX 2.60 Vanguard Wellesley Inc VWIAX 4.00 Total Return Funds 3.50 CASH.0 Fund holdings and class allocations are subject to change and should not be considered a recommendation to buy or sell any of the underlying funds. Funds in bold type were added to the portfolio in the last quarter. 2 Summer 206 UPGRADER $6,000 7//02 '03 '04 '05 '06 '07 '08 '09 '0 ' '2 '3 '4 '5 6/30/6 PERFORMANCE % to 6/30/6 3 YTD Year Average Annual Total Returns 5 0 Since Cumulative Return Since (7//02) RELAX S&P 500 Index Barc Agg Bond Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling This chart illustrates the performance of a hypothetical $0,000 investment made in the Fund Since through the period ending 6/30/6. It assumes reinvestment of dividends and capital gains, but does not reflect the effect of any applicable sales charge or redemption fees. This chart does not imply any future performance. *The expense ratio does not take into account contractual fee waivers for this fund in effect through January 3, 207. The management fee is what the advisor charges to manage the fund and is part of the expense ratio; other fees and expenses apply. Please see page 2 for the risks associated with investing in this fund. Call your broker or FUND (3863)

13 FundX Aggressive Upgrader Fund (HOTFX) Global Aggressive Growth Fund HOTFX invests primarily in aggressive funds and ETFs in the hope of achieving higher potential returns over time. Who Should Consider Investing in this Fund? Investors who want to enhance their growth potential. HOTFX can be an aggressive component of a more diversified growth portfolio or a core holding for investors willing to withstand above-average volatility. Performance Commentary: HOTFX seeks to participate in global market trends and sector rotations. The Fund s active global investment approach outperformed the MSCI All Country World index since inception, but lagged the domestic S&P 500 index. Its exposure to financials and large-cap growth stocks in the first quarter hurt its performance year-todate and for the trailing year. Quick Info Date: July, 2002 Ticker: HOTFX Assets: $54.5 Million Minimum Investment: $,000 Redemption Fee: None Expense Ratio: 2.07 (includes management fee, operating costs and acquired fund fees) Complete Portfolio as of 6/30/6 Risk ishrs NAmer Tech/Soft IGV % 25% 0% -25% -50% Yearly Returns ishrs US Utilities IDU 6.70 SPDR Consumer Staples XLP 5.40 SPDR Utilities Select XLU 6.20 VanEck Vect Gold Miners GDX 5.70 Vanguard Telecom Svcs VOX 5.60 Sector Funds $30,000 $20,000 $0,000 Total Returns to 6/30/6 S&P 500 $28,84 HOTFX $27,799 MSCI ACWI $24,549 AMG Yacktman Foc YAFIX 2.70 ishrs MSCI EAFE SmCp SCZ 3.00 ishrs S&P SmCp 600 Val IJS 6.50 Janus Enterprise JMGRX 7.50 Oppenheimer Glb Opps OGIYX 7.30 Oppenheimer Intl Sm Co OSMYX 5.0 $6,000 7//02 '03 '04 '05 '06 '07 '08 '09 '0 ' '2 '3 '4 '5 6/30/6 PwrShrs Hi Yld Eq Div Ach PEY 7.30 PERFORMANCE % to 6/30/6 3 YTD Year Average Annual Total Returns 5 0 Since Cumulative Return Since (7//02) HOTFX S&P 500 Index MSCI ACWI Index Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling This chart illustrates the performance of a hypothetical $0,000 investment made in the Fund Since through the period ending 6/30/6. It assumes reinvestment of dividends and capital gains, but does not reflect the effect of any applicable sales charge or redemption fees. This chart does not imply any future performance. *The expense ratio does not take into account contractual fee waivers for this fund in effect through January 3, 207. The management fee is what the advisor charges to manage the fund and is part of the expense ratio; other fees and expenses apply. Please see page 2 for the risks associated with investing in this fund. PowerShrs SP500 HiQlty SPHQ 6.80 SPDR S&P Intl SmCap GWX 4.60 Vanguard Sm Cap Val VBR 6.00 WisdomTree SmCp Div DES 7.00 Aggressive Funds Cash 0.40 Fund holdings and class allocations are subject to change and should not be considered a recommendation to buy or sell any of the underlying funds. Funds in bold type were added to the portfolio in the last quarter. UPGRADER Summer 206 3

14 FundX Tactical Upgrader Fund (TACTX) Global Growth with Tactical Hedge Quick Info Date: Feb 29, 2008 Ticker: TACTX Assets: $37.7 Million Minimum Investment: $,000 Redemption Fee: None Expense Ratio:.77 (includes management fee, operating costs and acquired fund fees) Complete Portfolio as of 6/30/6 Risk ishrs NAmer Tech/Soft IGV.00 SPDR Consumer Staples XLP 2.00 SPDR Utilities Sel Sector XLU 2.20 VanEck Vect Gold Miners GDX.20 Sector Funds 6.40 TACTX seeks to participate in global stock market growth with less volatility than the broad equity market. The portfolio may be tactically hedged using options and other tools. Who Should Consider Investing in this Fund? Investors who want to invest in global equities but also are willing to have less upside potential at times versus our fully invested funds in exchange for potentially less volatility. Performance Commentary: TACTX has generated positive returns in every calendar year since inception. While the Fund lagged the S&P 500 since inception and for the trailing five years, it was often less volatile than the broad market, as the chart illustrates. It outpaced the S&P 500 in 205 gaining 2.7% versus -.38% for the index due to modest changes in market exposure (we scaled back exposure into market rallies and we invested more of the Fund s portfolio in dips). 0% 0% Yearly Returns ishrs MSCI EAFE SmCp Idx SCZ 4.70 ishrs S&P SmCp 600 Val IJS 5.20 Oppenheimer Intl Sm Co OSMYX.20 SPDR S&P Intl SmCap GWX 5.00 WisdomTree SmCp Div DES 2.0 Aggressive Funds 8.20 AmCen Equity Inc Inst ACIIX 2.80 Artisan Value Fund Inv ARTLX 2.70 Clipper Fund CFIMX 9.80 ishrs USA Qual Factor QUAL 0.90 ishrs DJ Select Div Idx DVY 0.40 ishrs Edge US Momentum MTUM 0.0 ishrs S&P MidC 400 Val IJJ 2.00 Lazard Glb Listed Infra GLIFX 2.60 Mairs & Power Growth MPGFX 2.70 PwrShrs S&P 500 Low Vol SPLV.30 Core Funds GDX US 7/5/6 C Options -0.0 Cash 0.20 Fund holdings and class allocations are subject to change and should not be considered a recommendation to buy or sell any of the underlying funds. Funds in bold type were added to the portfolio in the last quarter. 4 Summer 206 UPGRADER -0% $25,000 $20,000 $5,000 $0,000 Total Returns to 6/30/6 $5,000 2/3/09 PERFORMANCE % to 6/30/ '0 3 ' YTD '2 '4 '5 6/30/6 Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling This chart illustrates the performance of a hypothetical $0,000 investment made in the Fund on 2/3/09 for the period ending 6/30/6. (We changed the Tactical strategy substantially at the end of 2009; performance is shown from that date forward.) It assumes reinvestment of dividends and capital gains, but does not reflect the effect of any applicable sales charge or redemption fees. This chart does not imply any future performance. *The expense ratio does not take into account contractual fee waivers for this fund in effect through January 3, 207. The expense ratio figure is from the prospectus dated Jan 30, 206 and includes acquired fund fees and expenses. Morningstar Long-Short equity funds hold sizable stakes in both long and short positions. The management fee is what the advisor charges to manage the fund and is part of the expense ratio; other fees and expenses apply. Please see page 2 for the risks associated with investing in this fund. Call your broker or FUND (3863) '3 Average Annual Total Returns Year 5 S&P 500 $2,596 TACTX $3,076 Long/short equity $,643 Since Cumulative Return Since (2/29/08) TACTX S&P 500 Index Long/short equity

15 FundX Flexible Total Return Fund (TOTLX) A Flexible Approach to Income & Total Return TOTLX invests in bond and total return funds, targeting those areas excelling in the current market environment in an attempt to provide steady returns with dampened volatility. Who Should Consider Investing in this Fund? Investors who seek long-term growth with substantially less volatility than the broad equity market or a traditional balanced fund. Performance Commentary: TOTLX is less constrained than our Flexible Income strategy and may have substantial exposure to total-return funds and high-yield bond funds. Its diverse mix of higher and lower quality bonds; government and corporate bonds; and balanced and alternative funds lagged the government-bond-heavy Barclays Aggregate Bond index, but surpassed the Morningstar Multialternative category since inception. 0% 0% Yearly Returns Quick Info Date: May 29, 2009 Ticker: TOTLX Assets: $2.2 Million Minimum Investment: $,000 Redemption Fee: None Expense Ratio: 2.42 (includes management fee, operating costs and acquired fund fees) Complete Portfolio as of 6/30/6 Risk ishrs Core US Agg Bond AGG.80 PIMCO Invest Grade Corp PIGIX 6.0 Western Asset Core Bond WATFX 3.90 Intermediate Term Bond Funds % Eaton Vance Floating Rate EIFAX 7.90 Floating Rate Bond Funds 7.90 $4,000 $3,000 $2,000 $,000 $0,000 Total Returns to 6/30/6 Barclay Agg Bond $3,762 TOTLX $2,36 Multialternative $,895 Columbia Strategic Inc CTIVX 6.70 PIMCO Diversified Inc PDIIX 8.20 Strategic Bond Funds 4.90 Janus High Yield JHYFX 5.20 High Yield Bond Funds 5.20 $9,000 5/29/09 '0 ' '2 '3 '4 '5 6/30/6 Vanguard Total Intl Bond BNDX 0.30 World Bond Funds 0.30 PERFORMANCE % to 6/30/6 3 YTD Average Annual Total Returns Year 5 Since Cumulative Return Since (5/29/09) TOTLX Barc Agg Bond Multi Alt Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month-end may be obtained by calling The expense ratio figure is from the prospectus dated Jan 30, 206 and includes acquired fund fees and expenses. *The expense ratio does not take into account contractual fee waivers for this fund in effect through January 3, 207. Morningstar Multialternative funds have a majority of their assets exposed to several different alternative strategies. The management fee is what the advisor charges to manage the fund and is part of the expense ratio; other fees and expenses apply. Please see page 2 for the risks associated with investing in this fund. This chart illustrates the performance of a hypothetical $0,000 investment made in the Fund Since through the period ending 6/30/6. It assumes reinvestment of dividends and capital gains, but does not reflect the effect of any applicable sales charge or redemption fees. This chart does not imply any future performance. C & S Preferred Sec & Inc CPXIX 5.50 Powershares Preferred PGX 3.20 Principal Preferred Sec PPSIX 5.40 Vanguard Wellesley Inc VWIAX 5.50 Total Return Funds Cash 0.30 Fund holdings and class allocations are subject to change and should not be considered a recommendation to buy or sell any of the underlying funds. Funds in bold type were added to the portfolio in the last quarter. UPGRADER Summer 206 5

16 235 Montgomery Street, Suite 049 San Francisco, CA In the Summer 206 Issue Shareholder Letter... Building a Better Bond Portfolio... What Cash Can and Can t Do... Fund Performance & Portfolios By Mail: Go to UPGRADERFUNDS.com Download an Application to send in. Online: Go to upgraderfunds.com & click Open a New Account By Broker: FundX Upgrader Funds are also available at most major brokers. FundX Investment Group is publisher of the monthly investment newsletter NoLoad FundX and advisor to the FundX Upgrader Funds.