FCM Value Proposition

INVESTOR PRESENTATION

1© 2015 Ferrell Capital Management, LLC All Rights ReservedConfidential and ProprietaryPrepared: March 2015

ADVISERPRESENTATION

Measures of Music and Risk: Common languages for all liquid markets

CONCERT Strategies:In tune with markets and client objectives

FERRELL CAPITAL MANAGEMENT

Prepared March 2015 FOR INSTITUTIONAL INVESTOR USE ONLY


2© 2015 Ferrell Capital Management, LLC All Rights ReservedConfidential and Proprietary

Prepared: December 2014

ADVISERPRESENTATION

CONCERT Philosophy

1. Relieve investor fear and protect capital2. Control range of returns by tactically managing and allocating risk 3. Static benchmarks cannot adapt to changing risk – CONCERT can4. Global market turmoil = sovereign bonds or cash5. Wealth preservation critical – superior upside / downside capture





ADVISERPRESENTATION

Value Proposition

Peace of mind and exposure to healthy markets Team - experienced in the math/science of measuring market risk and

the practical application of risk allocation Competitors = “Smart Beta”: static, unreliable CONCERT edge – unique risk pedigree

Unconstrained by industry conventions Continuing thought leadership, new product development





ADVISERPRESENTATION

CONCERT Team – Experience*

Prepared March 2015

William G. Ferrell, President & CIOJulie A., ETF Sales / StrategistJoseph T. D’Avanzo, Financial EngineerStephen H. Bitteker, Sales / MarketingDavid B., Investor & Board MemberCarol D., Legal AdvisorSebastian M., ETF ResearchJim V.P., System Architect

FOR INSTITUTIONAL INVESTOR USE ONLY

* For reference purposes only. These companies are not endorsing nor sponsoring our offering




ADVISERPRESENTATION

Market opportunity

Prepared March 2015

$100B in emerging market ETFs exposure to declines in Russia (2014) and Brazil (2015) 5 year return = 0%

Cap-weighted and “Smart Beta” benchmarks: fixed and inefficient investors copy for lack of viable alternatives

CONCERT – Reallocates high risk to stable return CONCERT – Scalable for global and domestic indices





ADVISERPRESENTATION

Barriers to Entry

Intellectual Property: The CONCERT System - beyond the scope of asset allocators

Team - skills essential for quantitative portfolio management, trading, execution and sales

Common Vision, Professional Values and Focus on favorable investment outcomes for investors

Continued evolution will frustrate attempts to emulate





ADVISERPRESENTATION

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Portfolio

Marginal Sharpe S

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Prepared March 2015

Allocations avoid markets in turmoil and favor countries with uncorrelated, attractive Sharpe ratios

Note : size of bubble denotes investment allocation.

CorrelationFOR INSTITUTIONAL INVESTOR USE ONLY




ADVISERPRESENTATION

Fixed allocation (annual rebalance)*

Marginal Sharpe vs. Fixed Allocation*

Concert Marginal Sharpe Investment allocations represent a customized

version of the MSCI ACWI





ADVISERPRESENTATION

Picture

Marginal Sharpe Fixed Allocation Return over period 106% 34%Annualized return 10.3% 4.1%Average return per month 0.85% 0.44% Annualized volatility 9.2% 17.6%Annualized semi-volatility (below zero) 4.9% 13.0% Sharpe ratio 0.95 0.15 # of winning | losing months 57 | 31 57 | 31Per cent winning | losing 65% 65%# of winning | losing quarters 21 | 9 19 | 11Per cent winning | losing 70% 63%# of winning | losing years 7 | 1 6 | 2Per cent winning | losing 88% 75% Largest drawdown -17.6% -50.9%Months to recover 24 66 Best and worst month 10.0% | -6.0% 17% | -15.0%Best and worst quarter 16.1% | -9.1% 22.3% | -19.6%Best and worst year 34.3% | -13.1% 49.1% | -43.0% 28 Feb 2007 - 09 Jul 2014

Key figures


Strategy is a customized version of the MSCI ACWI



ADVISERPRESENTATION

Crowdfunder terms require removal of private deal information

Capital Request




ADVISERPRESENTATION

CONCERT software / hardware

SMA’s for current clients

Team employment contracts

Distribution / Branding / Sales events

CONCERT Emerging Market ETF launch

Use of Proceeds

Prepared March 2015

“The investment will launch a transformational risk allocation philosophy uniquely designed to protect wealth and produce consistent performance without relying on return forecasting.”

William G. Ferrell




ADVISERPRESENTATION

Crowdfunder terms require removal of private deal information

Financial Overview

(,000) Year 1 Year 2 Year 3

Revenue

Expenses

EBITDA

SH ROE




ADVISERPRESENTATION

Vision“Create efficient investment products that provide

peace of mind and better returns than traditional benchmarks”

__________________________________3 Greenwich Office Park

Greenwich, Connecticut 06831+001 (203) 862-9500

[email protected]

Summary

Prepared March 2015

VWO


mailto:[email protected]

http://www.ferrellcapital.com/

Business

FCM Value Proposition