Table 1. Model Fund Portfolio

Type	Fund (Ticker)	Market Cap Size	YTD Return (%)	Annual Return (%)				Fund Assets ($ Mil)	Exp Ratio (%)	Std Dev (36 Mo. Ann’l) (%)	Worst 3-Yr Cal Period (%)
				1- Yr	5- Yr	10- Yr	Since 6/30/03
MF	Aston/Fairpointe Mid Cap N (CHTTX)*	Large-Cap	10.3	30.3	25.1	11.4	13.2	2,481.5	1.12	18.4	-7.9
MF	Fidelity Capital & Income (FAGIX)	na**	7.3	15.0	15.5	9.8	9.8	10,548.9	0.73	8.0	-7.2
MF	Fidelity OTC (FOCPX)	Large-Cap	6.8	34.4	21.3	11.1	nmf	7,786.2	0.76	16.9	-8.3
MF	FMI Common Stock (FMIMX)*	Mid-Cap	6.8	27.5	19.2	11.2	12.3	1,408.4	1.19	12.8	-3.0
ETF	Guggenheim S&P 500 Equal Weight (RSP)	Large-Cap	8.4	26.8	21.8	9.5	11.1	7,794.1	0.40	14.0	-11.4
ETF	Guggenheim S&P MidCap 400 Pure Val (RFV)	Mid-Cap	6.5	25.6	24.2	nmf	nmf	98.7	0.38	16.3	-4.3
ETF	Guggenheim S&P SmallCap 600 Pure Val (RZV)	Small-Cap	2.9	26.7	21.9	nmf	nmf	178.2	0.35	19.5	-7.9
ETF	iShares MSCI Frontier 100 (FM)	Large-Cap	9.9	24.6	nmf	nmf	nmf	803.3	0.79	nmf	nmf
ETF	Vanguard REIT Index (VNQ)***	Large-Cap	17.7	13.4	23.8	9.6	nmf	23,050.0	0.10	16.2	-11.9
Avg of Funds in Actual Model Fund Portfolio†			8.5	25.0	15.3	10.4	11.6	6,016.6	0.65	15.3	-7.7
Actual Fund Portfolio Performance††			7.5	22.9	14.1	8.1	9.8	—	—	12.8	-6.4
Optional Investment:
ETF	iShares Barclays 1-3 Year Treasury Bond (SHY)		0.4	0.6	1.0	2.5	3.1	7,785.9	0.15	0.4	1.3
Comparison:
MF	Vanguard 500 Index (VFINX)	Giant-Cap	7.0	24.4	18.7	7.7	8.6	28,077.9	0.17	12.1	-8.4

*CHTTX and FMIMX are closed to new investors. Current shareholders can continue to invest in both funds. Other investors should simply use the other seven funds to form their portfolio.
**Distressed securities - stock and bond.
***Vanguard REIT Index Investors mutual fund (VGSIX) returns used before October 2004.
†A simple average of the funds in the current Model Fund Portfolio.
††Performance of actual portfolio since inception (June 2003) including reinvested dividends.
nmf = no meaningful figure
Source: Morningstar, Inc. Data as of 6/30/2014.

Table 2. Model Fund Portfolio Annual Performance

	Average Annual Return (%)		Cumulative Return of $10,000($)
	Model Fund Portfolio	Vanguard 500 Index (VFINX)	Model Fund Portfolio	Vanguard 500 Index (VFINX)
2003*	18.6	15.0	11,858	11,503
2004	17.7	10.8	13,955	12,742
2005	5.4	4.8	14,711	13,350
2006	16.1	15.6	17,086	15,436
2007	10.2	5.4	18,820	16,267
2008	-35.9	-37.0	12,071	10,245
2009	24.9	26.5	15,080	12,959
2010	20.3	14.9	18,136	14,892
2011	-1.7	2.0	17,827	15,186
2012	15.5	15.8	20,597	17,589
2013	26.7	32.2	26,097	23,250
YTD**	7.5	7.0	28,054	24,885
Since Inception**	9.8	8.6	26,097	23,250

*June 30 to December 31, 2003
**Through June 30, 2014. Portfolio was started on June 30, 2003.

Model Fund Portfolio:
Selection Rationale

First Methodology

The fund selection rationale consists of two distinct approaches. The first approach is to select actively managed funds where the managers have shown a long-term ability to outperform the market after allowing for additional portfolio risk, regardless of the sector invested in. A fund must have the following characteristics to be considered for the Model Fund Portfolio:

1. It must be a pure no-load fund. Short-term holding penalties are allowed if paid to the fund and not the manager.
2. It must have been active for 10 years. However, exceptions are possible.
3. It must have outperformed the S&P 500 index over the past five-year and 10-year periods.
4. In its worst three-year (calendar) period, it must not have had a loss; or, in particularly difficult market periods, its loss must have been substantially less than that of the S&P 500 index.
5. Its expense ratio must not be above 1.25%. Lower ratios will increase desirability.
6. Fund assets must not be over $10 billion. Some exceptions are permitted, depending on fund objectives.
7. It must currently be open to individual investors, with a minimum investment of $25,000 or less.

The above rules apply to new fund selections. Funds will not automatically be eliminated if they later violate the rules without considering other factors.

Second Methodology

The second methodology selects investment approaches that have provided excess returns or reduced portfolio risk to investors over the long term and then searches for the best traditional fund or exchange-traded fund (ETF) in that area. Factors to be considered are:

1. The liquidity of the fund.
2. The resources of the management company, in the case of ETFs.
3. The investment returns and risk over as long a term as possible, given the newness of so many ETFs.
4. Selection of areas with demonstrated long-term excess returns: value stocks, small-cap stocks, real estate and special areas where individuals cannot easily invest. An example of a fund in a special area would be Fidelity Capital & Income fund (FAGIX), which invests in distressed securities.

Portfolio Management Notes

• The Model Fund Portfolio is meant to be a portfolio, and we suggest you invest in the entire portfolio on an equal investment basis—that is, invest equal dollar amounts in each fund initially. If you are building an All-ETF Portfolio, see the recommended weightings shown in Table 3.
• If a fund is closed, create your portfolio from the remaining funds.
• You may make adjustments based on your non-fund holdings. For example, if you have partnership or individual holdings in investment real estate (not personal housing), you may reduce or eliminate any REIT funds.
• There is no need to rebalance on a regular basis. Rebalancing can be accomplished when there are portfolio changes or if one holding gets way out of line. We will notify you of any rebalancing in the Model Fund Portfolio.

Table 3. Alternative All-ETF Portfolio

Fund (Ticker)	Weight	Annual Return (%)
		YTD	2013
Guggenheim S&P 500 Equal Weight (RSP)	40%	8.4	35.6
Guggenheim S&P MidCap 400 Pure Value (RFV)	20%	6.5	38.3
Guggenheim S&P SmallCap 600 Pure Value (RZV)	20%	2.9	45.1
iShares MSCI Frontier 100 (FM)	10%	9.9	25.6
Vanguard REIT Index (VNQ)	10%	17.7	2.4
Portfolio Weighted Performance	100%	7.7	33.7
Comparison: SPDR S&P 500 (SPY)		7.1	32.2

	Annual Return (%)		Cumulative Return of $10,000 ($)
	YTD	2013	YTD	2013
ETF Alternative Portfolio	7.7	33.7	$14,399	$13,372
Comparison: Spider S&P 500 (SPY)	7.1	32.2	$14,153	$13,221

Source: Morningstar, Inc. Data as of 6/30/2014.