The following table depicts returns for an account that was managed by Ray Saleeby on a discretionary basis from the time period of 3/31/2000 - 3/31/2012 compared to the S&P 500 total return. The portfolio numbers are based on a time-weighted return, measuring an investment's performance without regard to inflows.

Calendar Year	S&P 5001	Discretionary (Net)2	Discretionary (Gross)2
Apr-Dec 2000	-11.13%	3.25%	3.76%
2001	-11.87%	0.01%	1.02%
2002	-22.10%	-16.01%	-15.18%
2003	28.69%	34.00%	35.44%
2004	10.87%	15.44%	16.64%
2005	4.89%	9.64%	10.79%
2006	15.79%	18.42%	19.65%
2007	5.50%	11.79%	12.95%
2008	-36.99%	-32.77%	-32.05%
2009	26.45%	28.64%	30.05%
2010	15.08%	20.74%	22.07%
2011	2.12%	-1.73%	-0.68%
Jan-Mar 2012	12.58%	6.24%	6.53%
Since Inception:	1.36%	6.49%	7.59%

NOTES:

1. Source: Thomson Reuters
2. Source: Independently-calculated by service firm B-Ready Solutions, Landis, NC.
3. S&P 500 Composite Index total returns reflects the total return percentage change for the calendar year adjusted for reinvestment of income and dividends and does not reflect the impact of advisory fees.
4. Morningstar Principia™ reports on a universe of mutual fund classes for which information on daily net asset values, dividends, (long-term and short-term capital gains), reinvestment dates, total net assets, initial portfolios, verified returns, fees, expenses, annual reports and prospectuses are available. The reported fund universe is fluid; funds are added and deleted depending on availability of data.
5. Although data are gathered from reliable sources, Saleeby & Associates and Cutter & Company cannot guarantee completeness or accuracy.

 

 

Saleeby Performance based on Time-Weighted Return

	3 Years (Mar 09- Mar 12)	5 Years (Mar 07-Mar 12)	10 Years (Mar 02-Mar 12)	Since Inception (Apr 00-Mar 12)
Discretionary Gross Return1	22.64%	4.38%	8.58%	7.59%
Discretionary Net Return2	21.32%	3.27%	7.44%	6.49%
S&P 500	23.40%	2.01%	4.12%	1.36%

Notes: In this table, and the related chart above, we use Schwab Portfolio Center data for the S&P 500 Index performance statistics. We employ an independent firm to calculate the sample portfolio’s performance numbers using a time-weighted return without regard to inflows. There are no expenses or fees allocated for in the S&P 500, dividends are re-invested.

1. Gross returns of performance with no fees or expenses taken out
2. Net returns of performance with 1% annual fee deducted quarterly

Performance of Saleeby Portfolio vs. Mutual Funds

	3 Years	5 Years	10 Years	Combined (3, 5 & 10-yr)
Mutual Funds with ALL EQUITIES Prospectus Objective3
% of funds that Ray Saleeby outperformed (Gross)	68.82%	86.60%	94.69%	98.41%
% of funds that Ray Saleeby outperformed (Net)	62.74%	78.94%	91.21%	96.44%
Mutual Funds with DOMESTIC EQUITIES Prospectus Objective4
% of funds that Ray Saleeby outperformed (Gross)	61.09%	86.70%	97.48%	98.70%
% of funds that Ray Saleeby outperformed (Net)	53.56%	77.58%	93.67%	96.01%

Notes: We used Morningstar Principia software to provide a comparison of Ray Saleeby's performance versus distinct equity mutual funds tracked by Morningstar using a time-weighted return measuring an investment's performance without regard to inflows. The “Combined 3, 5 & 10-yr” represents those funds Ray Saleeby outperformed for average annual return over the preceding 3-year, 5-year and 10-year windows. Distinct mutual fund portfolios were isolated in the Morningstar database in order to select only one share class (ex. ‘A’ shares or ‘no-load’ shares) per fund. On August 25, 2008 we modified the Morningstar mutual fund search criteria beginning with the period ending 09/30/08 to better reflect an appropriate universe of mutual funds for comparison. The current parameters include:

3. Mutual funds with propsectus objectives to invest in all equity types as defined by Morningstar, Inc.
4. Mutual fnds with prospectus objectives to invest in domestic equity securities as defined by Morningstar, Inc.

It is often stated throughout the industry and numerous publications (i.e. Dow Jones, Forbes) that 80%-90% of mutual funds underperform the S&P 500 Index over a 10 year time frame.

If one were to use the annualized returns over the above time period assuming a $100,000 initial investment the results would have been the following:

Growth of an Initial Investment of $100,000

	3 ~ Years (Mar 09-Mar 12)	5 ~ Years (Mar 07-Mar 12)	10 ~ Years (Mar 02-Mar 12)	Since Inception (Apr 00-Mar 12)
Discretionary Gross Return	$184,458	$123,904	$227,771	$240,582
Discretionary Net Return	$178,565	$117,455	$204,956	$212,670
S&P 500 Return	$187,908	$110,462	$149,741	$117,598

 

These results are based on the performance results of an account managed by Ray Saleeby ("Manager"). Other client accounts of Manager may have higher or lower returns. This account was chosen for performance due to the fact that this account has been managed on a discretionary basis longer than any other client account(s), excluding a composite account managed for 10 years, accessible to accredited investors only. For analytical purposes, the inception date used is 3/31/2000 rather than 4/17/2000. The dollar amount invested on 4/17/2000 was used on 3/31/2000. 

Investment returns and principal value of an investment can rise or fall. An investor's equity, when liquidated, may be worth more or less than the original cost. All investments involve risk, including the possible loss of principal. Past performance is not indicative of future results. You should consider investment objectives, risks, charges and expenses carefully before investing. Nothing on this site is intended to be, nor should it be construed or used as financial, legal, tax or investment advice, be an opinion of the appropriateness or suitability of an investment, or intended to be an offer, or the solicitation of any offer, to buy or sell any security or an endorsement or inducement to invest. The information contained herein was obtained from sources we believe are reliable. However, there is no guarantee of its accuracy.

Composition of Manager's "account" differs significantly from the S&P 500 index and the international and domestic equity funds used for comparison in this analysis. Manager focuses on "value" stocks of all capitalizations (small, mid and large cap). Value is characterized including but not limited to the following qualities:

• Company's barrier to entry
• Free Cash Flow
• Management's understanding of business and ability to execute
• Restructuring, divestments and spinoffs
• Discounted intrinsic value
• Undervalued tangible and intangible assets
• Insider buying
• Institutional ownership

Assets amount for this account have varied between $689,185 on 3/31/2000 to $2,346,155.02 as of 3/31/2012. The gross account figures exclude all expenses and fees. Net figures assume that a 1% annual management fee is taken out quarterly. The 1% annual fee is an assumption, which can vary depending upon amount of monies placed with Advisor, among other factors, such as type or mixture of assets, etc. Cash and dividends are included in the total return. There is no margin involved in the investing and no short sales.

S&P 500 Index

The Standard & Poors 500 Index is comprised of 500 stocks chosen for market size, liquidity, and industry grouping, among other factors. The S&P 500 is designed to be a leading indicator of U.S. Equities and is meant to reflect risk/return characteristics of the large cap universe. The S&P 500 is a market-value weighted index - each stock's weight in the index is proportionate to it's market value.

The S&P 500 Index shown is provided for illustrative purposes only. It is an unmanaged index, reflects reinvestment of income and dividends and does not reflect the impact of advisory fees. Investors cannot invest directly in an index. Comparisons to indexes have limitations because indexes have volatility and other material characteristics that may differ from other investment styles. For example, a portfolio may typically hold substantially fewer securities than are contained in an index. Indices also may contain securities or types of securities that are not comparable to those traded by a portfolio. Therefore, a portfolio's performance may differ substantially from the performance of an index. Because of these differences, indexes should not be relied upon as an accurate measure of comparison.

Morningstar Mutual Fund Returns

Annual total returns are calculated on a calendar-year basis. Annual return numbers include both capital appreciation and reinvested dividends. Morningstar calculates total return by taking the change in a fund's net asset value (NAV), assuming the reinvestment of all income and capital gains distributions (on the actual reinvestment date used by the fund) during the period, and then dividing by the initial NAV. On some funds, Morningstar does adjust total return for sales charges or for redemption fees. Total returns do account for management, administrative, and 12b-1 fees and other costs automatically deducted from fund assets.

Open end mutual funds are available for purchase or sale daily and are valued each day based on the total net asset value of the underlying securities held in the portfolio. Mutual funds are managed by professional money managers, and fees and expenses for such management and administration of the fund are deducted from the fund assets prior to calculation of the return. Mutual funds are offered by prospectus only.

Past performance is not a guarantee of future results. There can be no assuming that investors may not lose money in the future.