DEFINITIONS:

Alpha - The excess return of the portfolio relative to the return of a benchmark index. Alpha is often considered to represent the value that a portfolio manager adds to or subtracts from a portfolio’s return. A positive alpha of 1.0 means the portfolio has outperformed its benchmark index by 1%. Correspondingly, a similar negative alpha would indicate an underperformance of 1%.

Benchmark - The performance of a predetermined set of securities, for comparison purposes. Such sets may be based on published indexes or may be customized to suit an investment strategy.

R^2 - A statistical measure that represents the percentage of a portfolio’s movements that can be explained by movements in a relative benchmark index. R-squared values range from 0 to 100. An R-squared of 100 means that all movements of a portfolio are completely explained by movements in the index. A high R-squared (between 85 and 100) indicates the portfolios performance patterns have been in line with the index. A portfolio with a low R-squared (70 or less) doesn’t act much like the index.

Beta - The measure of a portfolio’s risk in relation to the market. A beta of 0.7 means the portfolio’s total return is likely to move up or down 70% of the market change; 1.3 means total return is likely to move up or down 30% more than the market.

Sharpe Ratio - A measure of a portfolio’s excess return relative to the total variability of the portfolio. The Sharpe ratio shows whether a manager’s returns are due to smart investment decisions or a result of taking excess risk. The greater the manager’s Sharpe ratio, the better its risk-adjusted return has been.

Standard Deviation - A measure of dispersion of a set of data from their mean. A volatile portfolio will have a high standard deviation while the deviation of a stable portfolio will be lower. A large dispersion tells how much the return on the portfolio is deviating from the expected normal returns.

ARTESYS MODEL PORTFOLIO HISTORICAL PERFORMANCE DISCLOSURE:

Artesys – The investment performance shown provides some indication of the risks of investing in Artesys’ Model Portfolios. Performance returns shown are those of mutual funds selected by R.T. Jones Capital Equities Management, Inc. (“Adviser”) for a proprietary account established by Adviser for each Artesys Model Portfolio. Adviser recommends the same mutual funds to its advisory clients who invest in the Artesys Model Portfolios. For a complete list of mutual funds that comprise each Artesys Model Portfolio and dates of any changes in funds during period shown, please contact us. Performance returns represent actual trading by Adviser. Performance returns were calculated based on total return, using a time-weighted method, and include the reinvestment of dividends and income after deducting fees charged by the Adviser during the period. Performance data prior to March 2012 is shown after deducting Adviser’s highest advisory fee. Returns also are shown separately net of all fees described above, after deducting fees, if any, charged by an independent Financial Consultant to an Artesys individual account. Advisory fees are negotiable and transaction costs will vary over time. Mutual funds in which the client’s assets may be invested charge their own advisory and other fees as described in each fund’s prospectus. Mutual fund performance returns are shown after deducting the funds’ fees and expenses. Stock and bond indices shown may have higher returns because stocks and bonds do not pay management fees and operating expenses incurred by mutual funds and exchange-traded funds. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

Market Indices - The S&P 500 Index (SP500) is an unmanaged index generally considered to be representative of stock market activity. The Barclays Capital US Aggregate Bond Index (BAgg) is an unmanaged index generally considered to be representative of bond market activity. The MSCI EAFE Index (EAFE) is an unmanaged index generally considered to be representative of international stock market activity. The index performance reflects the reinvestment of dividends and other earnings but does not include any transaction costs, management fees or other costs. Individuals cannot invest directly in these indices.   

Benchmarks - Composition as of April 2011. Benchmark is rebalanced to new allocation in the first quarter of every calendar year. Details of past changes to underlying indices and/or allocations is available upon request.

Benchmark 1 = 40% S&P500 / 60% BarCap Agg Bond
Benchmark 2 = 72% S&P500 / 28% BarCap Agg Bond
Benchmark 3 = 24% S&P500 / 76% BarCap Agg Bond
Benchmark 4 = 55% S&P500 / 45% BarCap Agg Bond
Benchmark 5 = 80% S&P500 / 20% BarCap Agg Bond
Benchmark 6 = 100% S&P500
Benchmark 7 = 100% S&P500

There can be no assurance that the investment objectives of the Artesys portfolios will be achieved or that investment results will be better than that of a simple buy and hold strategy or that results will be profitable. The information contained herein is for informational purposes only and should not be construed as a recommendation to buy nor as a solicitation to sell.

Artesys, R.T. Jones Capital Equities Management, Inc. and R.T. Jones Capital Equities, Inc. (a FINRA member broker-dealer) are wholly owned by R.T. Jones, F.S. Ladner & Associates, Inc.

A prospectus is available upon request. Mutual funds are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information, can be obtained by calling your financial advisor. Read it carefully before you invest.