600 Montgomery Street, 3 rd Floor San Francisco, CA

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1 An Introduction to the Delta Tactical Strategy and Investment Philosophy 600 Montgomery Street, 3 rd Floor San Francisco, CA

2 Who We Are and What We Do Registered Investment Advisory firm Decades of institutional investment experience Custom investment programs to meet your personal financial objectives Offer discipline and proven tactical strategies Tactical strategies provide strong downside protection in bearish markets and participation in up markets 2

3 Why Invest With Delta Committed to SAFETY and above average returns Pro-active downside risk management Transparency of process and holdings Personalized service 3

4 Tactical Philosophy We believe there are periods in market cycles to be fully invested and there are other periods not to be fully invested. As such, we believe it is necessary to be proactive in managing money. As active managers, we follow a market-tested, proven investment discipline. 4

5 What Sets Delta Apart Premier provider of tactical investment solutions: Delta Tactical ThinkEquity (TE), Delta Tactical Good Harbor (GH), and Delta Tactical Treasury Bond (TB) Strategies have outperformed the S&P 500 with less risk. Preservation of capital in bear markets and maximization of growth in bull markets. History of outperformance with real money and audited records: Since 2005: GH +111%, TE+96% vs. S&P % Since 2007: TB +156%, GH + 96%, TE +45% vs. S&P % In 2008: TB +59%, GH -0.07%, TE -1.79% vs. S&P % NB. Performance is through 6/30/2012. All Tactical performance results are net of fees. S&P 500 performance includes dividends. Please see page 9 for important disclosures. 5

6 Why Invest with Delta Now Equity markets are becoming more volatile. You need a disciplined plan to protect your wealth from major market corrections. You need a disciplined plan to capture positive, compounded returns. Asset allocation alone is not sufficient to protect your wealth. Disciplined, market-tested pro-active management with a SAFETY-FIRST approach is required. 6

7 Client Services Standard Wall Street Reporting Monthly account statements sent directly to client from third party custodian (Charles Schwab, ThinkEquity, FOLIOfn) Trade and Transaction Confirmations 1099 Tax Reporting Online client access Web-based reporting on positions, balances and transactions How client assets are protected Weekly Market Sentiment Indicator Quarterly reports from Delta Client securities are segregated from broker-dealer securities, in compliance with the SEC s customer protection rule. This is a legal requirement for all broker-dealers. The first $500,000 of coverage (including $100,000 on cash holdings) is provided by the Securities Investor Protection Corporation (SIPC). Custodians purchase an additional insurance policy through London Underwriters (with Lloyd s of London Syndicates as the Lead Underwriter). SIPC insures the assets held in brokerage accounts if the brokerage firm fails. SIPC does not protect investors against investment decline or loss. 7

8 Fee Structure INVESTMENT FOCUS INVESTMENT SUITABILITY MANAGEMENT FEE CORE EQUITY $100,000 (minimum) CAPITAL 2.00% $100,000 - $1,000, % $1,000,000 - $2,000, % $2,000,

9 Performance Disclosures Delta Investment Management offers several investment strategies to clients. Our primary tactical strategies are Delta Tactical ThinkEquity, Delta Tactical Good Harbor and Delta Tactical Treasury Bond. has engaged the services of subadvisors, ThinkEquity LLC, Good Harbor Financial, LLC, and System Research LLC for the purpose of determining the purchase and sale of securities for the Delta Tactical ThinkEquity strategy, the Delta Tactical Good Harbor strategy, and Delta Tactical Treasury Bond strategy, respectively The performance information is provided by ThinkEquity LLC and Good Harbor,LLC and System Research LLC. Separately managed accounts opened with Delta Investment Management as part of the Delta Tactical strategy are managed by ThinkEquity Michael Kress as part of the Kress Composite. Separately managed accounts opened with Delta Investment Management as part of the Delta Tactical Good Harbor strategy are managed by Good Harbor Financial. Separately managed accounts opened with Delta Investment Management as part of the Delta Tactical Treasury Bond strategy are managed in accordance with signals provided by System Research. The performance information provided is net performance of representative accounts in the strategies and is measured against the S&P 500 Total Return Index. Composite returns are presented net of foreign withholding tax on dividends, interest, and capital gains where applicable. ThinkEquity LLC and Good Harbor Financial, LLC results prepared and presented in this report are in compliance with the Global Investment Performance Standards (GIPS ). ThinkEquity LLC is a registered investment adviser and Mr. Kress is a registered investment representative of ThinkEquity LLC. Kress Group operates semiautonomous within ThinkEquity LLC. For GIPS purposes, firm assets consist of all accounts managed by Michael Kress. The firm maintains a complete list and description of composites, which is available upon request. Good Harbor Financial and System Research are also registered investment advisers. The U.S. Dollar is the currency used to express performance. Returns are presented net of management fees and include the reinvestment of all income. Performance was calculated using actual management fees. The annual composite dispersion is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Additional information regarding the policies for calculating and reporting returns is available upon request. The investment management fee schedule for the Delta Tactical ThinkEquity strategy is 2% on the first $100,000 to $1,000,000, 1.75% on the next $1,000,000, and 1.50% on accounts above $2,000,000 when assets are held at ThinkEquity (all transaction fees are included). The investment fee for strategies held at Charles Schwab start at 1.8% (transaction fees are not included). Actual investment advisory fees incurred by clients may vary. Limitations: The actual performance experienced by any individual client may differ from the performance shown as a result of the client s being subject to an alternative fee structure and various other factors. The performance results reflect investments for a limited period of time and therefore do not reflect performance in all economic or market cycles. While the performance was generated with investment philosophies and methodologies, future investments will be made under different economic and market conditions and may be in different positions and instruments. It should not be assumed that clients will in the future experience returns, if any, comparable to those presented in this presentation. Individual account results may vary. Past performance is not indicative of future results. Investment losses are possible. Index Data: The index data presented do not reflect the performance of instruments or strategies that the Delta tactical strategies pursue. The S&P 500 Total Return Index is a broad-based unmanaged index of 500 U.S. stocks that is intended to reflect the risk/return characteristics of the U.S. large-capitalization equity market. This data is included only to provide some indication of the performance of U.S. securities markets generally during the periods for which the performance data are presented. The index is unmanaged and diversified (across companies, industries and sectors) securities indices. Performance data for the index (which Delta Investment Management obtained from publicly-available sources) reflects reinvestment of income but does not reflect the deduction of any transaction or management fees or costs. Returns for the Delta tactical strategies are net of investment management fees. End Notes The contents of this presentation should not be construed as legal or tax advice and should not be acted upon without consulting appropriate legal and/or tax counsel. This information is intended for your use to arrive at a reasonable, fully-explained investment decision and does not represent the only possible investment or strategy, nor a representation of every material fact associated with an investment. This document is for information purposes only and is neither to be copied nor disseminated to anyone other than the original recipient. Delta Investment Management, ThinkEquity, God Harbor Financial and System Research, its managers, officers and employees shall have no liability for any mistakes or inaccuracies in this material. This communication is for informational purposes only. It is no intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. All market prices, data and other information are not warranted as to completeness or accuracy and are subject to change without notice. Past performance is not indicative of future success. You should rely on your monthly statements for an accurate record of your account activity. The information contained in this presentation is intended only for the confidential use of the designated recipient named above. This message may contain contractual and proprietary information and as such is privileged and confidential. If the reader of this message is not intended recipient or an agent responsible for delivering it to the intended recipient, you are hereby notified that you have received this document in error, and that any review, dissemination, distribution or copying of this message is strictly prohibited. If you have received this communication in error, please notify us immediately by telephone. 9

10 600 Montgomery Street, 3rd Floor San Francisco, CA Nick Atkeson, Partner (415) Andrew Houghton, Partner (415)