Investment Strategy

The Multi-Index Equity Strategy employs long or inverse positions within Rydex mutual funds. The mutual funds used are Rydex Dynamic OTC and Inverse Dynamic OTC; Rydex Dynamic S&P 500 and Inverse Dynamic S&P 500; and Rydex Dynamic Russell 2000 and Inverse Dynamic Russell 2000. Rydex Money Market is also included as part of risk management. Assets are allocated in varying percentages to the appropriate funds according to the program's model. Up to 100% of an account's assets may be committed to any of the above funds on any given day. Rydex dynamic funds may be traded twice a day.

The Multi-Index Equity Strategy seeks to identify opportunities where the short-term direction of the above mutual funds' underlying indexes can be predicted with high probability. The model comprises several proprietary, independent signal mechanisms.

Risk Summary

Risk associated with Multi-Index Equity Strategy include both principal risk and market, or systemic, risk. While the program seeks to mitigate these risks by using an active, sophisticated investment approach, it cannot remove all market risk. The program cannot be considered diversified among all asset classes. The index funds utilized are two beta (200%) mutual funds which can heighten volatility and risk.

The program seeks to control risk by being completely out of the market until an opportunity arises where potential reward exceeds risk. The program scales assets into the various indexes' mutual funds according to the success probabilities.

Suitability

Multi-Index Equity Strategy may be suitable for investors who seek aggressive growth of capital, have a two-to-three year time horizon, and who value an investment approach other than buy-and-hold. The program is not expected to be tax efficient and may have short-term or long-term drawdowns of more than 20%. Alternative vehicles, such as annuities, may be able to be used in a tax-deferred environment. Please consult your financial advisor.

Fees and Minimum Requirements

Maximum annual fee is 2.9% with applicable breakpoints. Minimum investment is $50,000.

Signal Provider

Purcell has a signal agreement with Len Fox, president of Scarecrow Trading, Inc. Mr. Fox, the developer of the model for Purcell's Multi-Index Equity Strategy, earned undergraduate degrees in businessa administration and an MBA in international business from Regis University, Denver, Colorado. Len and his family reside in Savage, Minnesota.