$1,400,000,000+ approx. as of 4/30/12

flexibleplan.com | 800-347-3539


Benefits of tactical strategies

• Able to move in and out of no-load, stock market mutual funds in response to varying market conditions

• Uses inverse funds with the goal of profiting even when the traded market is falling

• Employs leveraged funds to have even greater market participation when their models signal particularly favorable market conditions

• Seeks to improve the risk-adjusted returns of the portfolio by reducing drawdown during market sell-offs and increasing participation in market rallies


Introducing two new tactical strategies

Volatility Adjusted NASDAQ (VAN)Contrarian S&P Trading (CSPT)


• Evaluates the current short-term volatility risk

relative to its long-term historical average on a

daily basis

• Combines momentum with this volatility measure

• Targets equity index market exposure through

aggressive leveraged position sizing in low-risk

environments, and partial, neutral or short

positions in volatile markets

• Suitable for more aggressive investors

Benefits of Volatility Adjusted NASDAQ (VAN)

Volatility Adjusted NASDAQ (VAN)

VAN

Accounts = >$5,000

Aggressive leveraged position sizing in low-risk environments

Partial, neutral or short positions in volatile markets

Averages 30 trades per year

Utilizes no-load index funds

Custodied at Trust Company of America


Source: Flexible Plan Investments’ Hypothetical Research Reports (Jan. 98-Dec. 11). Strategy returns shown are after 2.6% advisory fee. An establishment fee of 1.2% has been deducted at inception. The Index shown is not tradable. These results were achieved by means of retroactive application of a computer model and may not represent the results of actual trading.


Past performance does not guarantee future results. Inherent in any investment is the potential for loss as well as profit. A list of all recommendations made within the immediately preceding 12 months is available upon request.


Most frequently asked question:

VAN and Self-Adjusting Trend Following (STF)

VAN STF

Cash 6% 21%

Long 30% 28%

Short 18% 12%

Leverage 46% 39%

1998-2012 YTD

NDX SSTF VAN

NDX 1

SSTF 0.255 1

VAN 0.0491 0.013 1

Correlation matrix for the same period:

VAN

Accounts = >$5,000






STF

Accounts = >$5,000







Source: Flexible Plan Investments’ Hypothetical Research Reports (Jan. 98-Dec. 11). These results were achieved by means of retroactive application of a computer model and may not represent the results of actual trading.


• Seeks to provide “market returns” in up

markets and to outperform the S&P 500 Index

in down markets

• Goes long only when a strict set of high

probability circumstances are present

• Offers low drawdown impact

• May be appropriate for a wide range of

suitability profiles

Benefits of Contrarian S&P Trading (CSPT)

Contrarian S&P Trading

CSPT

Accounts = >$5,000

Averages 20 trades per year, lasting two days or less

100% money market roughly 80%+ of market days




Source: Flexible Plan Investments’ Hypothetical Research Reports (Jan. 98-Dec. 11). Strategy returns shown are after 2.6% advisory fee. An establishment fee of 1.2% has been deducted at inception. The Index shown is not tradable. These results were achieved by means of retroactive application of a computer model and may not represent the results of actual trading.




Suggested client suitability

CSPTVAN



Strategic High Yield Bond growth of $100,000Based on hypothetical research

Source: Flexible Plan Investments’ Hypothetical Research Reports (Jan. ’98 – Mar. ‘12). Strategy returns shown are after 2.6% advisory fee. An establishment fee of 1.2% has been deducted at inception. The Index shown is not tradable. These results were achieved by means of retroactive application of a computer model and may not represent the results of actual trading.


Merrill Lynch High Yield


Strategic High Yield BondBuy-and-sell dates

Source: Merrill Lynch High Yield Index and ProfitScore Capital Management, Inc. buy and sell signal dates. Information utilized for Flexible Plan Hypothetical Research Reports

SOLD MONDAY



Why another high yield bond strategy?

• One of the most effective active management strategies• Trades more often then most competitors• Other providers are at capacity – many of the best high

yield funds are not available to them – we’re still small & flexible

• Diversify your clients’ managed high yield investments by adding a manager


Third Day Tactical Blend growth of $100,000Based on hypothetical research

Source: Flexible Plan Investments’ Hypothetical Research Reports (Jan. ’98 – Mar. ‘12). Strategy returns shown are after 2.6% advisory fee. An establishment fee of 1.2% has been deducted at inception. The Index shown is not tradable. These results were achieved by means of retroactive application of a computer model and may not represent the results of actual trading.


S&P 500


The Third Day strategies seek to reduce risk and enhance performance by:

• being completely out of the market much of the time

• calculating each trade’s position size according to the historical success of the indicators that are operative for that trade

Tactical Blend and Tactical Blend Balanced are absolute return strategies, tending to produce returns in a non-correlated fashion to:

1) the equity markets and

2) momentum or trend-following strategies

Key Points


Marketing materials availableUpon request

Contact our Internal Sales Department at 800-347-3539 ext. 2 or [email protected]

VAN marketing flier CSPT marketing flier


mailto:[email protected]


3 Easy ways to illustrate to clients

OnTarget proposal Research report

Illustration Generator



5 profiles


https://www.flexibleplan.com/public/schwab.aspx

https://www.flexibleplan.com/public/strategic.aspx


This presentation is provided for information purposes only and should not be used or construed as an indicator of future performance, an offer to sell, a solicitation of an offer to buy, or a recommendation for any security. Flexible Plan Investments, Ltd. cannot guarantee the suitability or potential value of any particular investment. Advisor provides suitability-based profiles designated Enhanced Income, Conservative, Moderate, Balanced, Growth and Aggressive. Clients should draw no conclusions from such titles. They are simply a way of designating the hierarchical ranking of the MAPS portfolios within the MAPS program. They are not meant to imply any ranking within some universal risk measure or benchmark, nor are they equivalent to a client’s subjective concept of the term. The Research results provided are HYPOTHETICAL. These results were achieved by means of retroactive application of a computer model and may not represent the results of actual trading. Annual returns are compounded weekly and are inclusive of the last full trading week of the year, but may not necessarily include the last trading day of the year. Research results are NOT represented as actual trading of client experience nor do they reflect the impact on decision making of economic or market factors experienced during actual management of funds. Performance between selected dates may be misleading as indicative of overall performance of a strategy since the dates chosen by the operator of the program are susceptible of having been selected to present optimum performance. The maximum investment advisory fee is 2.6% yearly, dependent upon assets under management, and is deducted quarterly. Expenses of the funds or sub-accounts are included to the extent they are reflected in the NAV. Other fees may apply. All expenses are required to be disclosed in each investment’s prospectus available from your financial representative and the product provider. Distributions have been reinvested. When provided, dividends are reinvested for indexes. In those cases where indexes do not provide dividend information, those returns would be understated. And, as with all third parties, Flexible Plan by necessity relies on their information, data and software provided, but whose reliability, while believed to be accurate, cannot be guaranteed and losses may result from reliance upon them. These are normal risks for which Flexible Plan takes no responsibility beyond use of reasonable care in its selection of the third party. As individual tax rates vary, taxes have not been considered. Various minimum-holding periods for each fund may be utilized to comply with trading restrictions. Advisor reserves the right to change these periods. No index is directly tradable. Actual investment performance of any trading strategy may frequently be materially different than the results shown. Some funds used in the model may not be available for future use. As supplemental information, a listing of all assumed trades and other data used to generate the referenced results is available upon requests. Inquiry of more current results is advised. The performance data quoted on reverse represents past hypothetical performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate, and investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. If the Universe Components consist of Evolution Funds, since Flexible Plan Investments would receive a fee for its sub-advisor activities, the client will receive a pro-rata credit on his billing. These credits are not reflected in the results shown, causing an understatement of returns where they exist. Rafferty Asset Management, LLC serves as the Funds’ Investment Advisor and Flexible Plan Investments, Ltd. serves as the Funds’ sub-advisor. Read the Direxion Funds Prospectus and Flexible Plan Investments’ Brochure Form ADV Part 2A carefully before investing. In deciding whether to invest in the Funds described, you should carefully consider the investment objectives, risks and the charges and expenses of the investment company before investing. The Prospectus and Funds’ SAI contain information regarding the above considerations and more. You may obtain a Prospectus and SAI by calling Direxion Funds at (800) 851-0511 or writing Evolution Managed Funds, P.O. Box 1993, Milwaukee, WI 53201-1993 or download the PDF from http://www.flexibleplan.com/files/docs/EVProspectus.pdf. Returns shown are net of a 2.6% management fee. A Maximum Establishment Fee of 1.2% has been deducted at inception. PAST RESEARCH REPORT RESULTS DO NOT GUARANTEE FUTURE RESULTS. Inherent in any investment is the potential for loss as well as the potential for gain. A list of all recommendations made within the immediately preceding year is available upon written request. See “Risk Considerations” in Brochure Form ADV Part 2.

Disclosures


Mark your calendars

Coming June 1 more out-of-the-box solutions

• Utilize all of Flexible Plan’s universe of strategies to draw from, including any

new strategies that become available as well as those from 1998 or prior

• Draws from all asset categories

• Ability to go long or short and use leverage

• Many have GIPS reports

• Offers low volatility and low correlation that may lead to a smoother equity line

• All portfolios use the same strategies in different allocations depending on the

suitability

Features


• Actively managed strategies that move in and

out of no-load equity mutual funds in response

to tactical signals

• Volatility Adjusted portfolio allocations quarterly

• Available on accounts as low as $5,000

Features Diversified Tactical Equity is always invested in all of these no-load equity mutual fund strategies:

Classic


Market Leaders Dynamic Aggressive

Political Seasonality Index

Self-adjusting Trending Following (STF)

Systematic Advantage

Tactical Gold Equities

Third Day Tactical strategies


Diversified Tactical Equity


Diversified Tactical Equity growth of $100,000Based on hypothetical research

Source: Flexible Plan Investments’ Hypothetical Research Reports (Jan. ’03 – Apr. ‘12). Strategy returns shown are after 2.6% advisory fee. An establishment fee of 1.2% has been deducted at inception. The Index shown is not tradable. These results were achieved by means of retroactive application of a computer model and may not represent the results of actual trading.


S&P 500


Diversified Bonds is always invested in all these no-load bond mutual fund strategies:

Global Maturities

Managed Income

Managed Income Aggressive

Managed Income 100% EMF

Systematic Long/Short Bond Trading

Strategic High Yield Bond

• Diversified portfolios that utilize low-correlated, actively

managed bond strategies that seek to provide investors

with competitive returns while reducing risk

• Actively managed strategies that move in and out of

no-load bond mutual funds in response to tactical

signals

• Volatility Adjusted portfolio allocations quarterly

• Available on accounts as low as $5,000

Features

Diversified Bonds


Diversified Bonds growth of $100,000Based on hypothetical research

Source: Flexible Plan Investments’ Hypothetical Research Reports (Jan. ’03 – Apr. ‘12). Strategy returns shown are after 2.6% advisory fee. An establishment fee of 1.2% has been deducted at inception. The Index shown is not tradable. These results were achieved by means of retroactive application of a computer model and may not represent the results of actual trading.


DJ Corporate Bond Index


Efficient Frontier DTE and DBD Combination


0% 5% 10% 15% 20% 25% 30% 35%0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

100%BD

70%BD-30%EQ

50%BD-50%EQ

20%BD-80%EQ100%EQ

S&P500 Capital Market Line

DJCB

Risk

Retur

n

T-Bill


Website resources

0


Strategic Solutions – SYSTEMATIC LONG/SHORT BOND TRADING (SLSBT) 6.37%Strategic Solutions - MANAGED INCOME 0.60%Wolf Pack Advisors - WOLF PACK ADVISORS INCOME BUILDER 0.15%Strategic Solutions - MANAGED 100% B/0%E 0.09%Strategic Solutions - DISCIPLINED MANAGEMENT (PAMS) -0.11%

Strategic Solutions - MARKET LEADERS EQUITY ONLY -9.87%Strategic Solutions - CLASSIC -11.02%Schwab Institutional - SELF-ADJUSTING TREND FOLLOWING (STF) -14.43%Strategic Solutions - SELF-ADJUSTING TREND FOLLOWING (STF) -14.45%Strategic Solutions - VOLATILITY ADJUSTED NASDAQ (VAN) -16.75%

Best and worst in the 4/2 – 5/22/12 downturn

Index returns during the same period: S&P 500 -6.5%Barclays Aggregate Bond Index 1.2%

FPI, all Strategic Solutions, Wolf Pack Advisors and Schwab strategies 4/2/2012 – 5/22/2012. Performance is after applying prorata maximum advisory fee of 2.6%.


Source: Performance is derived from the exchange history files of each strategy used. Actual buy-sell trading signals and pricing are used in conjunction with such files to create the applicable statistics for each model account. These exchange-history derived returns are believed representative of each strategy’s actual results, but the results do not represent the actual experience of any client during the period.

Best and worst 2012 YTDStrategic Solutions - VOLATILITY ADJUSTED NASDAQ (VAN) 13.69%Schwab Institutional - SELF-ADJUSTING TREND FOLLOWING (STF) 10.84%Strategic Solutions – SELF-ADJUSTING TREND FOLLOWING (STF) 10.75%Strategic Solutions - THIRD DAY TACTICAL BLEND (TDTB) 7.54%Strategic Solutions - SYSTEMATIC LONG/SHORT BOND TRADING (SLSBT) 6.33%

Strategic Solutions - STRATEGIC ALLOCATION 32 -4.94%Schwab Institutional - SYSTEMATIC ADVANTAGE -5.17%Strategic Solutions - BEAR NECESSITIES -6.78%Strategic Solutions - MANAGED INCOME AGGRESSIVE -12.25%Schwab Institutional - MANAGED INCOME AGGRESSIVE -14.15%

Index returns during the same period: S&P 500 4.7%Barclays Aggregate Bond Index 1.4%


4/6/2012 4/13/2012 4/20/2012 4/27/2012 5/4/2012 5/11/2012 5/18/2012 to-date (5/22/2012)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

63%

70%67%

61%

68%

79%81%

79%

Percentage of FPI strategies beating S&P 500 since 4/2/2012 decline began

FPI, all Strategic Solutions, Wolf Pack Advisors and Schwab strategies 4/2/2012 – 5/22/2012. Performance is after applying prorata maximum advisory fee of 2.6%.


Source: Performance is derived from the exchange history files of each strategy used. Actual buy-sell trading signals and pricing are used in conjunction with such files to create the applicable statistics for each model account. These exchange-history derived returns are believed representative of each strategy’s actual results, but the results do not represent the actual experience of any client during the period.


BONUS

Market insights from Jerry Wagner

Bespoke Investment GroupBespoke Investment Group


Bespoke Investment Group


This presentation is provided for information purposes only and should not be used or construed as an indicator of future performance, an offer to sell, a solicitation of an offer to buy, or a recommendation for any security. Flexible Plan Investments, Ltd. cannot guarantee the suitability or potential value of any particular investment. Advisor provides suitability-based profiles designated Enhanced Income, Conservative, Moderate, Balanced, Growth and Aggressive. Clients should draw no conclusions from such titles. They are simply a way of designating the hierarchical ranking of the MAPS portfolios within the MAPS program. They are not meant to imply any ranking within some universal risk measure or benchmark, nor are they equivalent to a client’s subjective concept of the term. The Research results provided are HYPOTHETICAL. These results were achieved by means of retroactive application of a computer model and may not represent the results of actual trading. Annual returns are compounded weekly and are inclusive of the last full trading week of the year, but may not necessarily include the last trading day of the year. Research results are NOT represented as actual trading of client experience nor do they reflect the impact on decision making of economic or market factors experienced during actual management of funds. Performance between selected dates may be misleading as indicative of overall performance of a strategy since the dates chosen by the operator of the program are susceptible of having been selected to present optimum performance. The maximum investment advisory fee is 2.6% yearly, dependent upon assets under management, and is deducted quarterly. Expenses of the funds or sub-accounts are included to the extent they are reflected in the NAV. Other fees may apply. All expenses are required to be disclosed in each investment’s prospectus available from your financial representative and the product provider. Distributions have been reinvested. When provided, dividends are reinvested for indexes. In those cases where indexes do not provide dividend information, those returns would be understated. And, as with all third parties, Flexible Plan by necessity relies on their information, data and software provided, but whose reliability, while believed to be accurate, cannot be guaranteed and losses may result from reliance upon them. These are normal risks for which Flexible Plan takes no responsibility beyond use of reasonable care in its selection of the third party. “Model Account” results for the identified investment management strategy shown are time weighted geometrically linked returns. Except where noted, statistics are taken from single strategy accounts and are representative of our largest mutual fund and variable annuity holdings. These returns reflect actual accounts and dates of Flexible Plan's buy and sell signals. If an account terminates during a period, an alternative single account is substituted. Selection of accounts to serve as “model accounts” is based on the longevity of the account and least number of additions and withdrawals. Accordingly, many of the single accounts serving as ‘models’ are titled in the name of Flexible Plan’s President and sole shareholder, a person related to Flexible. If single strategy account histories are unavailable, statistics applicable to such accounts are derived from the exchange history files of each strategy used. Actual buy-sell trading signals and pricing are used in conjunction with such files to create the applicable statistics for each model account. These exchange-history derived returns are believed representative of each strategy’s actual results, but the results do not represent the actual experience of any client during the period. Therefore, these results may not reflect the impact that material economic and market factors might have had on the results. Nor do they reflect any problems of execution or pricing that may have been encountered in the actual implementation of the buy and sell signals shown in the exchange history files, the effect of which has not been determined, and may be indeterminable.

As individual tax rates vary, taxes have not been considered. Various minimum-holding periods for each fund may be utilized to comply with trading restrictions. Advisor reserves the right to change these periods. No index is directly tradable. Actual investment performance of any trading strategy may frequently be materially different than the results shown. Some funds used in the model may not be available for future use. As supplemental information, a listing of all assumed trades and other data used to generate the referenced results is available upon requests. Inquiry of more current results is advised. The performance data quoted on reverse represents past hypothetical performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate, and investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted. If the Universe Components consist of Evolution Funds, since Flexible Plan Investments would receive a fee for its sub-advisor activities, the client will receive a pro-rata credit on his billing. These credits are not reflected in the results shown, causing an understatement of returns where they exist. Rafferty Asset Management, LLC serves as the Funds’ Investment Advisor and Flexible Plan Investments, Ltd. serves as the Funds’ sub-advisor. Read the Direxion Funds Prospectus and Flexible Plan Investments’ Brochure Form ADV Part 2A carefully before investing. In deciding whether to invest in the Funds described, you should carefully consider the investment objectives, risks and the charges and expenses of the investment company before investing. The Prospectus and Funds’ SAI contain information regarding the above considerations and more. You may obtain a Prospectus and SAI by calling Direxion Funds at (800) 851-0511 or writing Evolution Managed Funds, P.O. Box 1993, Milwaukee, WI 53201-1993 or download the PDF from http://www.flexibleplan.com/files/docs/EVProspectus.pdf. Returns shown are net of a 2.6% management fee. A Maximum Establishment Fee of 1.2% has been deducted at inception. PAST RESEARCH REPORT RESULTS DO NOT GUARANTEE FUTURE RESULTS. Inherent in any investment is the potential for loss as well as the potential for gain. A list of all recommendations made within the immediately preceding year is available upon written request. See “Risk Considerations” in Brochure Form ADV Part 2.

Disclosures


Updated 5/2012

OUR SCHWAB 1-YEAR ANNIVERSARY SPECIAL ON NON-PCRA ASSETS

• Bring new assets or transfer new assets to FPI actively managed strategies at Schwab (PCRA accounts not eligible).

• We will permanently reduce our portion of the fees by 20 bps on the first $500,000 of your client's assets, or you can increase your fees by the same amount.

• We make it easy for clients who select Flexible Plan's active management strategies at Schwab.

• Discount authorized through June 30, 2012

$1,400,000,000+ approx. as of 4/30/12

Documents

riskadjusted returns

traded market

future results

nasdaq van vanaccounts

varying market conditions

favorable market conditions

greater market participation

results of actual trading