fndm power point december 2009 v5.4

8/14/2019 FNDM Power Point December 2009 v5.4

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ETFs TO FUND YOUR NEST EGGETFs TO FUND YOUR NEST EGG

Fund.comFund.com

Corporate OverviewCorporate Overview

December 15, 2009


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ETFs TO FUND YOUR NEST EGG / p.


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Forward Looking StatementsForward Looking Statements

The statements contained in this presentation that are not historical are forward-looking statements within themeaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E ofthe Securities Exchange Act of 1934, as amended (the Exchange Act), including statements, withoutlimitation, regarding the Companys expectations, beliefs, intentions or strategies regarding the future. Suchforward-looking statements relate to, among other things: (1) the Companys proposed exploration and drillingoperations on its various properties and targeted properties, (2) the expected production and revenue from itsvarious properties and targeted properties, (3) estimates regarding the reserve potential of its variousproperties and targeted properties and (4) the expected production and revenue from the Companysanticipate acquisitions. These statements are qualified by important factors that could cause the Companysactual results to differ materially from those reflected by the forward-looking statements. Such factors includebut are not limited to: (1) the Companys ability to finance the continued exploration and drilling operations onits various properties and targeted properties, (2) positive confirmation of the reserves, production andoperating expenses associated with its various properties and targeted properties; and (3) the general risksassociated with oil and gas exploration and development, including those risks and factors described from timeto time in the Companys reports and registration statements filed with the Securities and ExchangeCommission, including but not limited to the Companys Current Report on Form 8-K filed on September 21,2009, November 13, 2009, November 23, 2009, December 2, 2009 and December 9, 2009 and on Form 10Qfiled on November 26, 2009. The Company cautions readers not to place undue reliance on any forward-

looking statements. The Company does not undertake, and specifically disclaims any obligation, to update orrevise such statements to reflect new circumstances or unanticipated events as they occur.

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Our Business

We are a non-bank technology-enabled asset managementfirm

We have patents pending on our ETF systems

We have over $1.0 billion in assets under management*

The SEC granted us permission to offer unique activelymanaged ETFs

Our AdvisorShares ETF Platform is used by asset managersand major banks to launch ETFs

We own financial websites offered at www.fund.com andwww.accreditedinvestor.com, designed to help sell our ETFproducts

We combine content and lead generation to create a

distribution platform, distributing ETF products we manufacture

We earn fees on assets under management

*post Weston Capital closing - Jan 1

Our affiliates:

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AdvisorShares was approved in 2009 bythe SEC to offeractively managedETFs, anew asset class in the ETF sector

AdvisorShares is making its SEC approvalavailable to select professional investmentadvisors managing discretionary assets

AdvisorShares makes available a fullyturn-key product manufacturing platformcalled OpenPlatformsm

Investment Advisors use OpenPlatform topackage their own investment strategy intoan ETF that can be purchased by any

investor with access to a brokerage account

Active ETFs: New FinancialTechnology in the Hands of Advisors

OpenPlatform is a proprietary tool designed for over 10,500 InvestmentAdvisors and 7,500 hedge fund managers to achieve distribution efficiencyand breakdown institutional platform barriers

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The Funds [AdvisorShares] may invest in

exchange traded products that invest primarily in

commodities or currency, but otherwise operate in

a manner similar to exchange traded products

registered under the Act. In addition, the Funds

may also invest in equity securities or fixed income

securities traded in a U.S. or non-U.S. markets, as

well as futures contracts, options on such futurescontracts, swaps, forward contracts or other

derivatives, and shares of money market mutual

funds or other investment companies, all in

accordance with their investment objectives. The

Funds may also invest in equity securities or fixed

income securities traded in international markets

or in a combination of equity, fixed income and

U.S. money market securities and/or non-U.S.

money market securities.

http://sec.gov/rules/ic/2008/ic-28568.pdf

Excerpt from SEC OrderRegarding AdvisorShares

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AdvisorShares OpenPlatform is Validated

First OpenPlatform partner IPO on New York StockExchange - September 15, 2009

Now ranked as largest actively managed ETF in themarket

Second launch partner for OpenPlatform is one of the

largest banks in the world - Bank of New York Mellon

IPO in January - SEC already declared registrationstatement effective

Some smaller players, including Grail Advisors and AdvisorShares

Investments, have launched stock-picking versions this year. It's possible these

funds could one day rival those of Fidelity Investments or American Funds

This week, one interesting ETF in this group did make it to market: the Dent

Tactical ETF, which began trading yesterday. The DENT ETF has attracted

surprisingly heavy volume for its first two days of trading.. Bob Pisani

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1,500% growth in ETF Assetsover just last 10 Years

ETFs account for over 35% of alltrading volume in the United States

71% of financial professionals

used ETFs in 2008, up from just25% in 2003

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Source: Barclays Global Investors (BGI)

Unprecedented Historic Opportunity

Financial crisis has created unprecedented opportunity for non-bank financialproduct providers

Bulge Bracket banks no longer have presumed automatic credibility - evenviewed with skepticism now

Plus, financial products must now be LIQUID and TRANSPARENT - like ETFs

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InvestorswarmtothesafetyofanindustryontheupByDavidOakley

Theriseofexchangetradedfundshasbeenoneofthekeydevelopmentsinthe

investmentworldduringthelast10years.Itisapopularitythathasgainedfurther

impetussincethecollapseofLehmanBrothers.ETFsareseenassaferandmorecost

efficientthantheiractivelymanagedrivals.ETFshavegrowndramaticallysince1999fromassetstotaling$39bnto$593.3bn

inFebruarythisyear-a15-foldincrease,accordingtoBarclaysGlobalInvestors(BGI).

ETFsnowaccountfor25percentofalltradinginUSmarketscomparedwith15percent

ayearago,accordingtoCreditSuisse.

Source:TheFinancialTimesLimited30April2009

Billions of Dollars in ETF Net Inflows

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The Dent Tactical ETF

AdvisorShares launched Dent Tactical (NYSE Arca: DENT) on September 15 th, 2009 Kellogg is lead specialist with Goldman Sachs, Credit Suisse registered as Authorized Participants Over $24 million has already been invested in this fund both due to its ease of access as well as thecredibility of its manager, Harry S. Dent. Bearish investment bias. Dent has previously raised and managed a $1.7 billion dollar mutual fund He is New York Times best selling financial author Dent estimates that this the Dent Tactical ETF will surpass his previous fund in size A conservative increase to just $1 billion in assets (42% less than previous mutual fund) wouldgenerate gross income to Fund.com of approximately $15 million and net fee income of $4.5 million -

approximately $400,000 a month with no marketing or infrastructure cost

The investment objective of the Dent Tactical ETF is long term growth of capital DENT seeks to achieve its investment objective by identifying, through proprietary economic and demographic analysis,

the overall trend of the U.S. and global economies and how consumer spending patterns may change based on thisanalysis.

Then, the portfolio manager implements an investment strategy using ETFs (exchange traded funds) across severalasset classes such as domestic and foreign equities, domestic or foreign fixed income or commodities.

The portfolio manager systematicallyselects some of the strongest performing

asset classes and invests in the specificETFs that gains exposure to the targetallocation.

The portfolio is monitored daily givenmarket changes and the portfolio can bereallocated at any time using a selldiscipline designed to mitigate risk.

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Calculated Strategic Investments

Designed to Grow Assets UnderManagement

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Our Investments are Strategically Synergistic -

Designed to Grow Assets

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Online marketing

401k and defined

contribution plans

HNW and InstitutionalSales Force

Product Platform Distribution Platform

Instantaneous globalinvestor accessibility toall Fund.com ETFproducts


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Financial Education Benefits FundProviders Like Us and Benefits Investors

Fund.com seeks to educate by providing straightforwardinteractive online tools and research database access

The National Council on Economic Education reported that thirty-three percent (33%) of employees increased their contributions totheir retirement savings plan after having received financial education

Simply putFinancial education sells more ETF product

Fund.com, The Institute of Modern Economy and Vensure exist toexpand the ETF platform and expand assets under management

OurWhyte Lyon (d/b/a The Institute of Modern Economy)subsidiary is a development stage online provider of financial literacycontent delivered over the Internet - sometimes referred to asdistance learning

The Institute of Modern Economy was co-owned by Credit.com, aprolific high trafficked financial website - credit.com has joint venturedto manage the fund.com website

Vensure has licensed Fund.com and The Institute of Modern

Economy content in order to educate its employees about retirement Vensure has a revenue participation in additional products sold toemployees for their 401k plans

Vensure employs 4,500 employees and projects 35,000 employeesin 36 months


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ETFs TO FUND YOUR NEST EGG / p. 13

Vensures target client market is composed of small and medium sizedbusinesses in the U.S. geographic market

Vensure assumes role of outsourced legal employer of record

There are approximately 9.4 million employers in the U.S. geographic market

Of those, over 99% of employers have fewer than 100 employees, whichemployers are Vensures primary target customers

The $51 billion PEO industry is highly fragmented and is rapidly growingmarket

According to The Harvard Business Review, the PEO industry was the fastestgrowing business service in the United States during the 1990s

There is an increasing retirement savings deficit for retirees from the U.S.workforce that require employer-sponsored pension oriented products

As employer of record, Vensure is in a unique position to provide thesepension products - like ETFs - to many thousands of employees

AdvisorShares acquires access to a unique distribution channel for its ETFs

401k Contributions Have Powered the

$11 Trillion Mutual Fund Revolution


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Acquisition of highly credible established manager $1.0 billion of AUM - puts us in the billion dollar club

15 experienced fund sales professionals that have sold billions of fund product

Synergies between ETF Platform and Weston

Distribution Expertise. Weston sales force will sell AdvisorShares ETFproducts Business Development. As a fund of funds manager, Weston has wideaccess to managers that would be suited to serve as investment manager tonew ETFs Risk Management. Weston has a highly successful incubation platform thathas already seeded over a dozen funds Speed to Market. Weston fund of funds will feed allocations to ETFs createdby AdvisorShares Credibility. In November, Weston has also completed the formation of a jointventure with Zurich-based Harcourt Investment Consulting AG, a $4 billionleading global provider of alternative investment solutions owned by $65 billionVontobel. This partnership will further add to AdvisorShares footprint worldwideas Harcourt will help promote and expand the use of its family of activelymanaged ETFs Enhanced Profitability. An added benefit Westons incubation platform is thatin-house ETFs are 300% more profitable for AdvisorShares - no sharing withETF partners results in capturing a total of 150 basis points per year, comparedto the 40 net bps received when another high profile or celebrity managerseeds and manages the fund

Weston and ETF Platform: Seed and Feed


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Noah Hamman, CEO, AdvisorShares - Former Head of ProductDevelopment at Rydex Investments, which sold to SecurityBenefits for $776 million. Former Fidelity managing director.Launched 40 ETFs.

Greg Webster, CEO - Former CEO HSBC Securities and Directorof HSBC Wealth Management. $32 billion assets undermanagement. 5,000 registered reps. Former COO of New York

Life Securities.

Joe Bianco, Chairman - Chairman and CEO of NYSE listedAlliance. 22 acquisitions. Revenue of $800 million. Sold toWasserstein Perrella. Bought sports car company Lotus and soldto General Motors. Yale Law professor.

Albert Hallac, Founder and CEO, Weston Capital - Establishedin 1993. Grew to $2.8 billion AUM by 2008. 40 years of hands-on

experience in money management, trading, and marketing.Formerly Chief Executive Officer of Hallac Associates, a privateinvestment advisory firm that he founded in 1969.

Who are we?

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Management Has Done This Before

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Raul Biancardi, Independent Director

Currently Chief Operating Officer, NCB Capital, Jeddah, Saudi Arabia

NCB is 100% owned by the Saudi Crown

Former Head of Asset Management, Lehman Brothers International, London

Former Head of Emerging Markets, Morgan Stanley International, London

Ivar Eilertsen,Independent Director

Founding Partner of Harbor Capital Technologies LLC, a financial technology company

Formerly Managing Director and Senior Vice President, Global Accounts for Thomson Financial(now Thompson Reuters), the largest financial information provider in the world

Formerly CEO Americas, ADP Brokerage Services Group (now Broadridge) and GeneralManager, ADP Wilco.

Keith Laslop, Independent Director

A chartered accountant and Chartered Financial Analyst (CFA)

Formerly President of Prolexic Technologies, Inc, a managed digital security service provider

Formerly Chief Financial Officer and Business Development Director of Elixir Studios Ltd., a

London-based interactive entertainment software developer Formerly Director of Business Development EMEA at Inktomi, a public Internet infrastructuresoftware company

Formerly five years in the mergers and acquisitions group of PricewaterhouseCoopers inLondon, England and Toronto, Canada.

Corporate Governance

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Revenue and Expense Model

Recurring fee income from ETFs

Average 1.4% of assets under management

We share 50/50 with our product partners However, costs to acquire assets under managementnot born by us - all fund marketing born by partner firm

Extremely high margin - 40 basis point net net net

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OpenPlatform seeks rapid growth by partnering with managers with existing assetsthat can rapidly be allocated to the ETFs

Entirely avoids retail marketing cost and time - major differentiator from ProShares,iShares, PowerShares, WisdomTree or State Street

Bank of New York Mellon marketing agreements represent a totally unique distribution

opportunity - 16,000 institutional and UHNW accounts across $21 trillion in assets - noother bank like it in the world

Harcourt/Vontobel manage over $65 billion and represents another advantageousdistribution opportunity for ETFs

ETF Wholesale Platform ModelAccelerates Growth in Assets

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We manage $1.0 billion today - and had $2.8 billion before financial crisis

To date all accredited investors - now with ETFs we expand market by a factor of 15x

We expect to manage $20 billion in three to five years - still small in mutual fund terms

$20 billion represents just 2% market penetration into RIA channel

40 basis point net generates $80 million in net fee income per annum

OUR DISTRIBUTION ADVANTAGES

OUR ASSETS UNDER MANAGEMENT


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Valuation Comp

Morningstar, Inc. (NASDAQ: MORN)

$2.35 billion market capitalization

Founded by Joe Mansueto in 1984 from his one-bedroom Chicagoapartment with an initial investment of US$80,000

July 1999 Softbank invested US$91 million Morningstar's initial public offering occurred on May 3, 2005, with 7,612,500shares at $18.50 each.

Historically a mutual fund data provider and rating service

Today also directly manages assets via Morningstar Investment Services(MIS), a registered investment advisor and wholly owned subsidiary

Morningstar is also a magazine publisher - business titles Inc. and FastCompany

p/e multiple of 27.2 times earnings (as of December 18, 2009)

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Precedent for Highly Successful

Online Financial Media Exits

Vertically focused lead generation websites are a proven businessmodel

By specializing exclusively in the fund market, Fund.com presents morein-depth and structured information on the fund industry than otherfinancial sites

An online-enabled financial business with recurring fee income attributesof the ETF business is a desirable unit for a larger bank or mutual fundcomplex to acquire

Vertical networks are

emerging as one of the

most important innovations

in online advertising.

-Nicole RousseauVice President of Retail

Marketing at HSBC

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Acquired byRH Donnelleyfor $345 Million

Acquired byBarry Diller/IACfor $745 Million

Acquired byAustin Venturesfor $134 Million

Acquired byBy Apax

for $571 Million

Market Cap$2.35 BillionP/E 27.4


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Summary

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Right place,

right time

The financial crisis demands liquidity and transparency in all

financial products

Rightproduct

Proprietaryplatform

Barriersto entry

Management has built and managed large businesses

ETFs are the fastest growing financial product of all time andmost significant innovation since the money market fund

Patent pending systems and trade secrets in launchingactively managed ETFs

(i) Regulatory compliance of 40 Act virtually eliminates all non-financialentrepreneurial firms (ii) SEC approval stalls large industry players (iii) legacy corebusinesses dissuade other fund providers that need to protect existing franchises

ProvenManagement

Compellingeconomics

Wholesaleplatform model

Harness the growth engine of existing managers with existingassets

No inventory, no advertising, no receivables, together withhigh-quality recurring fee income


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Thank you

fndm power point december 2009 v5.4

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