Target 8 income series

Performance Update:

May 31, 2014

Target 8 Series The Toroso Target 8 Series consists of five distinct portfolios comprised of ETFs and other exchange traded products (ETPs), that are structured to reflect a client’s economic point of view while considering the client’s risk tolerance and time horizon. Risk is mitigated using 4 distinct asset classes such that not one economic scenario will deplete a client’s portfolio under stressful market events.   

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The Vanguard Total Stock Market ETF is the core holding Themes: Spin-Offs, buy-backs, private equity, and mid-cap acquisition targets Highlight: Focused technology exposure

The iShares Barclays 10 to 20 Yr Treas.

Bond (ETF) is the core holding Themes: Mid- term treasuries, zero coupon bonds and taxable municipals Highlight: Lowered primary duration and created a high maturity, high credit position as a barbell effect

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The ETF Securities Precious Metals Basket(ETF) is the core holding Themes: Platinum, silver, natural resources and unconventional oil and gas extraction, and agriculture Highlight: Companies involved in the US energy renaissance

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Inflation Commodities

Prosperity Equities

Recession Cash Equivalents

Deflation Bonds

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The iShares Barclays 1-3 Year Treasury Bond Fund (ETF) is the core holding Themes: Money market outliers and ultra short treasuries Highlight: Avoiding floating rate paper and emerging market debt

Annualized Returns (Time periods less than 1 year are not annualized) Allocation

Strategy

Inception Date QTD

1st

QTR

YTD

1 Year

2013

Inception To Date

Toroso Neutral Strategy - Gross - Net

1.83% 1.62%

3.26% 3.06%

5.16% 4.73%

5.65% 4.81%

2.35% 1.68%

4.62% 3.91%

Solactive Toroso Target Neutral Index

0.41%

2.54%

2.95%

3.36%

0.46%

1.96%

Toroso Prosperity Strategy - Gross - Net

1.56% 1.38%

2.72% 2.54%

4.32% 3.96%

10.25% 9.41%

11.88% 11.01%

10.01% 9.23%

Solactive Toroso Target Prosperity Index

0.69%

2.79%

3.50%

7.98%

8.94%

8.16%

Toroso Recession Strategy - Gross - Net

1.41% 1.16%

2.59% 2.35%

4.04% 3.53%

3.29% 2.38%

N/A N/A

1.94% 1.06%

Solactive Toroso Target Recession Index

0.54%

1.52%

2.07%

2.11%

N/A

1.04%

Toroso Inflation Strategy - Gross - Net

1.18% 0.93%

2.73% 2.48%

3.94% 3.43%

2.63% 1.62%

-4.49% -5.20%

-0.79% -1.57%

Solactive Toroso Target Inflation Index

-0.52%

3.91%

3.37%

0.60%

-6.30%

-2.42%

Toroso Deflation Strategy - Gross - Net

2.83% 2.57%

3.03% 2.78%

5.94% 5.43%

3.18% 2.16%

-3.21% -4.17%

1.43% 0.48%

Solactive Toroso Target Deflation Index

0.93%

1.92%

2.87%

2.46%

-0.75%

1.26%

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10/31/12

10/31/12

3/31/13

10/31/12

10/31/12

Performance Update: May 31, 2014 Recommended Target 8 Holdings as of May 31, 2014*

Equities • • • • • • •

Commodities

Guggenheim Shipping ETF PowerShares Buyback Achievers Portfolio PowerShares Global Listed Private Equity RevenueShares Mid Cap Fund Vanguard Total Stock Market ETF VelocityShares Inverse VIX Med-Term ETN Guggenheim Spin-Off ETF First Trust NASDAQ Technology Dividend Index Fund

SEA PKW PSP RWK VTI ZIV CSD

• • • • • •

GLD MOO SLV GNR

Cash Equivalents •

• •

GLTR FRAK

TDIV

Bonds • •

ETFS Physical PM Basket Shares Market Vectors Unconventional Oil & Gas ETF Gold Shares Market Vectors Agribusiness ETF iShares Silver Trust SPDR S&P Global Natural Resources ETF

iShares 10-20 Year Treasury Bond ETF PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF PowerShares Build America Bond Portfolio iShares 7-10 Year Treasury Bond ETF

TLH ZROZ

•

BAB

•

IEF •

Guggenheim Enhanced Short Duration Bond ETF iShares Barclays 1-3 Year Treasury Bond ETF FlexShares Ready Access Variable Income Fund SPDR Ultra Short Duration ETF

GSY SHY RAVI ULST

Key Advantages    

Fundamental Security Selection  Getting under the hood of ETP construction to avoid concentrated and uncompensated risks.

Economy Focused  The prevailing economic climate exerts the greatest long-term effect on the markets.

Four Asset Classes Used  Most asset allocation strategies stick to a stock-bond or a stock-bond-cash mix.

Correlation Profile Enhanced  When market turbulence strikes, many “correlations go to one” – particularly U.S. and international stocks

Disclosure -- The Toroso Target 8 Series of Portfolios are subject to underlying expenses such as the annual expense ratios of the ETPs used to construct the portfolios, which generally

include an embedded investment management fee paid to the investment adviser of the ETP. In addition, trading and transaction fees and other expenses such as custody and clearing are incurred in the management of these strategic multi-asset allocation portfolios.

The market price for a share of an ETP may fluctuate from the value of its underlying securities. Consequently, ETPs can trade at a discount or premium to their net asset value. Certain equity and commodity ETPs are often more volatile and less liquid and present greater risks of loss of capital. Furthermore, certain ETPs employ strategies such as leverage or have the investment goal of performing opposite to a particular benchmark and may not be suitable for investment periods longer than one day due to the high volatility in their market price.

Investments in fixed income ETPs are subject to the risks associated with debt securities including credit risk and interest rate risk.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS, WHICH MAY VARY. The Gross and Net Returns presented for each strategy of the Toroso Target 8 Series reflects the composite performance of all actual Toroso accounts managed in accordance with such strategy for the entire calendar month. The Gross and Net returns presented for the Toroso Recession Strategy is comprised of the returns of a single client account. The Gross and Net Returns for each strategy of the Toroso Target 8 Series reflect the reinvestment of dividends and other earnings. * The Target 8 Holdings presented represent all of the securities that would be potentially recommended by Toroso Investments, LLC to a new client account opened on the "as of" date with only cash. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in the Target 8 Holdings list.

The investment process and strategies described above reflect Toroso Investments’ ongoing efforts to monitor and manage various risks in its clients’ portfolios, but does not imply, and no representation is made, that client portfolios are low risk. The investment strategies presented and/or discussed may not be suitable for all types of prospective investors or clients and Toroso Investments, LLC’s investment advisory services may not be available in all states or countries. All investing involves risk, including the possible loss of all principal invested. The information and statements presented above should not be construed as investment advice and should not be relied upon solely as the basis for evaluating the investment strategies presented or Toroso Investments LLC’s advisory services. Prospective clients should perform an independent review of all facts and information prior to making a determination as to whether Toroso Investments LLC’s advisory services are appropriate for them based on their individual circumstances. Registration with the SEC does not imply a certain level of skill or training.

The Solactive Toroso Target Neutral Index, Solactive Toroso Target Prosperity Index, Solactive Toroso Target Recession Index, Solactive Toroso Target Inflation Index, and Solactive Toroso Target Deflation Index (collectively, the "Solactive Toroso Indices") were created at the request of Toroso Investments, LLC by Solactive AG. The Solactive Toroso Indices are composed of four different asset classes (i.e., equities, bonds, commodities, and cash) in the same weightings as the corresponding Toroso strategy that it is compared against and each component of the Solactive Toroso Indices is generally comprised of one exchange-traded product, which may also be held in Target 8 Series accounts. The Solactive Toroso indices are unmanaged and it is not possible to invest directly in an index. Furthermore, the returns of the Solactive Toroso indices reflect the reinvestment of dividends and other earnings. The Gross and Net Returns for the Toroso Target 8 Series represent the returns of portfolios that may be substantially more diversified than the composition of the corresponding Solactive Toroso Index.

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