Agents Separating MYTHS FROM TRUTHS

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SEPARATING MYTHS FROM TRUTH THE STORY OF INVESTING

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• Telling the True Story of Investing • Opportunity to Achieve True Peace of Mind • Dispelling the Traditional Investing Myths SEPARATING MYTHS FROM TRUTH

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DISPELLING THE TRADITIONAL INVESTING MYTHS

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WHAT IS A MYTH ? A Story Made Up To Explain A Phenomenon Beyond The Science Of The Day

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1 MYTH CHOOSING STOCKS BASED ON A BELIEF THEY WILL DO WELL IN THE FUTURE. INVESTMENT ADVISORS WITH "SUPERIOR SKILL". STOCK SELECTION

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THE TRUTH

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SURVIORSHIP BIAS Total Number of Funds Open 2010 27,542 Total Number Born 46,476 Total Number Killed 18,934 * There were 265 funds opened and 47 funds closed in which the year was undisclosed. For illustrative purposes only. Mutual fund data provided by CRSP Survivor Bias Free Mutual Fund Database. CRSP data provided by the Center for Research in Security Prices, University of Chicago. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS AND INVESTORS MAY EXPERIENCE A LOSS.

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For illustrative purposes only. Mutual fund data provided by 2010 CRSP Survivor Bias Free Mutual Fund Database. CRSP data provided by the Center for Research in Security Prices, University of Chicago. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS AND INVESTORS MAY EXPERIENCE A LOSS.

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-77.7%AVERAGE RETURN THE WORSE 200 DEAD MUTUAL FUNDS For illustrative purposes only. Mutual fund data provided by 2010 CRSP Survivor Bias Free Mutual Fund Database. CRSP data provided by the Center for Research in Security Prices, University of Chicago. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS AND INVESTORS MAY EXPERIENCE A LOSS.

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Average of all US Equity funds available in the CRSP Survivor- Bias Free US Mutual Fund Database, data ending Dec. 2010S&P 500 Index and CRSP Market Index data obtained from DFA Returns software 12/10 Past performance is no guarantee of future results and investors may experience a loss. Wealth Lost to Active Stock Picking $1,584,469

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14 Average of all Mutual funds available in the CRSP Survivor- Bias Free U.S. Mutual Fund Database, data ending Dec. 2010 Hypothetical Portfolios based on data in endnote 8. Past performance is no guarantee of future results and investors may experience a loss.

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2 MYTH USING PERFORMANCE HISTORY TO DETERMINE THE BEST INVESTMENTS FOR THE FUTURE FUNDS THAT DO WELL IN THE PAST, WILL DO WELL IN THE FUTURE TRACK RECORD INVESTING

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THE TRUTH

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17 For illustrative purposes only. Mutual funds data provided by CRSP Survivor-Bias Free Mutual Fund Database, includes funds that are U.S. Equity mutual funds. The S&P data are provided by Standard & Poor’s Index Services Group. CRSP data provided by the Center for Research in Security Prices, University of Chicago. Indices are not available fordirect investment, therefore their performance does not reflect the expenses associated with the management of an actual portfolio. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. TRACK RECORD INVESTING

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18 For illustrative purposes only. Mutual funds data provided by CRSP Survivor-Bias Free Mutual Fund Database, includes funds that are U.S. Equity mutual funds. The S&P data are provided by Standard & Poor’s Index Services Group. CRSP data provided by the Center for Research in Security Prices, University of Chicago. Indices are not available for direct investment, therefore their performance does not reflect the expenses associated with the management of an actual portfolio. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. TRACK RECORD INVESTING

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A manager's ability to pick stocks in the past has ZERO CORRELATION to do so in the future.

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JUST LIKE THROWING SNAKE EYES

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3 MYTH ANY ATTEMPT TO ALTER OR CHANGE THE MIX OF ASSETS BASED ON A PREDICTION OF THE FUTURE. MONEY MANAGERS ARE ABLE TO UTILIZE MARKET TIMING TO PREDICT UP AND DOWN MARKETS MARKET TIMING

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THE TRUTH

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As the chart below clearly indicates – The Average Investor earns significantly less than the market indices, and investors that time the market actually lose money over the period measured. DALBAR Research Study Results DALBAR, Inc., Quantitative Analysis of Investor Behavior, 2011 PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS.

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WHY MARKET TIMING DOES NOT WORK 25 Source: ChartSource®, McGraw-Hill Financial Communications. For the period from October 1, 1990, through September 30, 2010. Based on total returns of Standard & Poor’s Composite Index of 500 Stocks, an unmanaged index that in generally considered representative of the U.S. stock market. It is not possible to invest directly in an index. Past performance is not a guarantee of future results. Copyright © 2011, McGraw-Hill Financial Communications. All rights reserved. Not responsible for any errors or omissions. Based on initial investment of $10,000.

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“Tactical Asset Allocation” is Market Timing in Disguise BEWARE: MARKET TIMING

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27 “The evidence on investment managers’ success with market timing is impressive - and overwhelmingly negative.” Charles D. Ellis, Investment Policy, 1993 Charles D. Ellis is a managing partner of Greenwich Associates, the leading consulting firm specializing in financial services worldwide. B.A. Yale, M.B.A (with distinction) Harvard and Ph.D. New York University

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4 MYTH FEES INCURRED BY INVESTORS TO BUY, SELL, AND OWN STOCKS OR MUTUAL FUNDS. WHAT YOU DON'T SEE CAN'T HURT YOU ! COSTS OF INVESTING

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• MUTUAL FUNDS • BID/ASK SPREAD COST OF INVESTING

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BID/ASK SPREAD

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31 Data is a 31-day average, as of February 28, 2010. Data provided by Instinet. ©2010, Instinet Incorporated and its subsidiaries. All rights reserved. The bid/ask spread is generally regarded as an indication of the cost of liquidity. Securities of small companies are often less liquid than those of large companies. As a result, small company stocks may fluctuate relatively more in price. The Bid/Ask Spread as a percent of price is a conservative estimate of actual trading costs. This estimate is almost 145 times as great for the smallest market segment as for the largest market segment (4.37 vs 0.03). BID/ASK SPREAD What Your Broker Won't Tell You

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COST OF NO LOAD MUTUAL FUNDS • BID SPREAD 2% • ASK SPREAD 2% • EXPENSE RATIO 1.05% 5.05% 1. Mutual fund trading plus bid/ask spread cost taken from Investment Policy - How to Win the Loser’s Game, 2nd Edition by Charles D. Ellis (1993) p.8-9.

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• Telling the True Story of Investing • Dispelling the Traditional Investing Myths SEPARATING MYTHS FROM TRUTH

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THE STORY OF INVESTING FREE MARKET PORTFOLIO THEORY

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• A disciplined approach to capturing market returns while managing volatility. WHAT IS FREE MARKET PORTFOLIO THEORY ?

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FREE MARKET PORTFOLIO THEORY • MODERN PORTFOLIO THEORY • THE THREE-FACTOR MODEL • FREE MARKETS WORK

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“In [a free] market at any point in time the actual price of a security will be a good estimate of its intrinsic value.”

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BELIEFS DICTATE ACTION

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EXAMINES PORTFOLIO PERFORMANCE BASED ON RISK & RETURN

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DR. HARRY MARKOWITZ 50 YEARS

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6 8 10 12 14 16 18 20 6 8 10 12 14 16 One Year Standard Deviation (Volatility) Annualized Compound Return Growth Aggressive S&P 500 Conservative Moderate Maximizing Expected Returns for Any Level of Volatility For Illustrative purposes only. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS.

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1.8 2.1 4.6 91.5 DETERMINANTS OF PORTFOLIO PERFORMANCE

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ASSET CLASS CORRELATION

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INCREASE RETURNS & REDUCE VOLATILITY Return(%) Simplified Example Of Low Correlation BenefitsJanuary 1971–December 2010 (in $U.S.) Standard Deviation Source: DFA Returns Software 12/10 Past performance is no guarantee of future results and investors may experience a loss.

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FACTOR 1 : THE MARKET FACTOR 2 : THE SIZE FACTOR 3 : THE “VALUE”

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Equities are riskier than fixed income. Equities historically provide a higher rate of return. Source: DFA Returns Software, 12/10 Past performance is no guarantee of future results and investors may experience a loss.

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Small companies are riskier than large companies. Small companies historically provide a higher return than large companies. Source: DFA Returns Software, 12/10 Past performance is no guarantee of future results and investors may experience a loss.

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High book-to-market (value) stocks are riskier than low book-to-market (growth) stocks. High book-to-market stocks historically provide higher return than low book-to-market stocks. Source: DFA Returns Software, 12/10 Past performance is no guarantee of future results and investors may experience a loss.

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THE TRUTH Free Markets Work + Modern Portfolio Theory + The Three-Factor Model = Free Market Portfolio Theory

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BUILDING A BETTER PORTFOLIO AVERAGE INVESTOR EQUITY PERFORMANCE

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Portfolio 1 100% Equity Mutual Funds 60% 40% 1990–2010 Portfolio 1 3.83 19.79 Annualized Return (%) Annualized Standard Deviation (%) Dalbar Investor Results Research for period1991-2010 Portfolio 1- Data from DALBAR, Inc. Quantitative Analysis of Investor Behavior, 2011 Past performance is no guarantee of future results.

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• AVERAGE HOLDING PERIOD OF 3.27 YEARS • TRACK RECORD INVESTING – CHASING THE MARKET • HYPERACTIVE STOCK PICKING • MARKET TIMING WHY ARE THE RETURNS SO LOW ? *Data from DALBAR, Inc. Quantitative Analysis of Investor Behavior, 2009, 20-year period

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S&P 500 Index Portfolio 1 100% Portfolio 2 100% Equity Mutual Funds 100% S&P 500 1973–2010 Annualized Return (%) Annualized Standard Deviation (%) Portfolio 1* 3.83 19.79 Portfolio 2 9.81 18.53 Portfolio 1- Data from DALBAR, Inc. Quantitative Analysis of Investor Behavior, 2011; 1990-2009 Return and Standard Deviation data from DFA Returns Software updated through 12/31/09 Past performance is no guarantee of future results. Asset Allocation and diversification strategies cannot insure a profit or protect against a loss.

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60% 20% 20% S&P 500 Index Portfolio 1 100%Portfolio 2 100% Portfolio 3 60% 20% 20% Equity Mutual Funds 5-Year Government Portfolio One-Year Fixed Income 1973–2010 Annualized Return (%) Annualized Standard Deviation (%) Portfolio 1* 3.83 19.79 Portfolio 2 9.81 18.53 Portfolio 3 9.26 11.66 Portfolio 1- Data from DALBAR, Inc. Quantitative Analysis of Investor Behavior, 2011; 1990-2010. Return and Standard Deviation data from DFA Returns Software updated through 12/31/10. Past performance is no guarantee of future results. Asset Allocation and diversification strategies cannot insure a profit or protect against a loss.

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30% 20% 20% 30% S&P 500 Index Portfolio 1 100% Portfolio 2 100% Portfolio 3 60% 20% 20% Portfolio 4 30% 20% 20% 30% Equity Mutual Funds 5-Year Government Portfolio One-Year Fixed Income EAFE Index 1973–2010 Annualized Return (%) Annualized Standard Deviation (%) Portfolio 1* 3.83 19.79 Portfolio 2 9.81 18.53 Portfolio 3 9.26 11.66 Portfolio 4 9.33 11.70 Portfolio 1- Data from DALBAR, Inc. Quantitative Analysis of Investor Behavior, 2011; 1990-2010. Return and Standard Deviation data from DFA Returns Software updated through 12/31/10. Past performance is no guarantee of future results. Asset Allocation and diversification strategies cannot insure a profit or protect against a loss.

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20% 15% 20% 15% 15% 15% S&P 500 Index Portfolio 1 100%Portfolio 2 100% Portfolio 3 60% 20% 20% Portfolio 4 30% 20% 20% 30% Portfolio 5 15% 20% 20% 15% 15% 15% Equity Mutual Funds 5-Year Government Portfolio One-Year Fixed Income EAFE Index US 9-10 Small Co. Int’l Small Cap Stocks 1973–2010 Annualized Return (%) Annualized Standard Deviation (%) Portfolio 1* 3.83 19.79 Portfolio 2 9.81 18.53 Portfolio 3 9.26 11.66 Portfolio 4 9.33 11.70 Portfolio 5 10.49 12.49 Portfolio 1- Data from DALBAR, Inc. Quantitative Analysis of Investor Behavior, 2011; 1990-2010. Return and Standard Deviation data from DFA Returns Software updated through 12/31/10. Past performance is no guarantee of future results. Asset Allocation and diversification strategies cannot insure a profit or protect against a loss.

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20% 20% 7.5% 15% 7.5% 7.5% 15% 7.5% S&P 500 Index Portfolio 1 100% Portfolio 2 100% Portfolio 3 60% 20% 20% Portfolio 4 30% 20% 20% 30% Portfolio 5 15% 20% 20% 15% 15% 15% Portfolio 6 7.5% 20% 20% 15% 7.5% 15% 7.5% 7.5% Equity Mutual Funds 5-Year Government Portfolio One-Year Fixed Income EAFE Index US 9-10 Small Co. Int’l Small Cap Stocks US Small Cap Value US Large Cap Value Annualized Return (%) Annualized Standard Deviation (%) 1973–2010 Portfolio 1* 3.83 19.79 Portfolio 2 9.81 18.53 Portfolio 3 9.26 11.66 Portfolio 4 9.33 11.70 Portfolio 5 10.49 12.49 Portfolio 6 10.99 12.12 Portfolio 1- Data from DALBAR, Inc. Quantitative Analysis of Investor Behavior, 2011; 1990-2010. Return and Standard Deviation data from DFA Returns Software updated through 12/31/10. Past performance is no guarantee of future results. Asset Allocation and diversification strategies cannot insure a profit or protect against a loss.

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THE 20 MUST-ANSWER QUESTIONS FOR YOUR JOURNEY TOWARD PEACE OF MIND ANSWER YES OR NO. MUST BE A 100% YES TO QUALIFY AS A YES.

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85-100: Amazing Investor Congratulations! You are among the most educated, diligent and confident investors. You have experience in the investment markets and understand what it takes to be successful. Now is the time to support your current knowledge with discipline and educational reinforcement. 65-80: Better Investor As a Better Investor, you have been around the block a time or two and maybe had some less than successful investing experiences. Now is the time to expand your knowledge about investing and begin to make some solid choices about your financial future. To achieve this, seek answers to the questions you missed. 45-60: Common Investor You are not alone. Like many investors, you may frequently find yourself uncertain and confused about how to make the right investment choices. If you don’t already have an Investor Coach that you trust completely, now is the time to build a relationship to last a lifetime. 25-40: Discouraged Investor It’s easy to feel discouraged when you have been doing what you thought were the right things with your money without success. You may have followed all of the advice that you’ve read in financial magazines and newspapers, yet you are not getting the exponential results you had expected. 0-20: Frustrated Investor Flustered and confused, you may wonder where to begin – how is it even possible to wade through all of the information that you are being bombarded with on a daily basis. Sort through the chaos and find a path that is right for you.

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THE OPPORTUNITY LEARN MORE ABOUT WHAT THIS MEANS FOR YOU

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85 No commissions or fees have been deducted from the market performance figures because the intent is to show the benefits of diversification of asset classes and not to indicate the results Matrix would have achieved if it managed a client’s funds. If an investor invested in mutual funds designed to reflect asset class performance, the investor would, in effect, be paying an advisory fee to the mutual fund manager and brokerage commissions because these fees and commissions would be relected in the mutual fund’s expenses that are deducted from the value of each share of the mutual fund. If, in addition, an investor engaged an investment advisor to manage the assets, the investor would pay an investment advisory fee to this manager. If an investor also utilized the services of a separate custodian, the investor would pay additional fees to the custodian. The returns of the hypothetical asset class mixes frequently exceeded the results of Matrix clients’ portfolios with similar investment objectives for the period Matrix has managed clients’ funds from 1991 to present. This difference is due to differing allocations over the time periods shown. These allocations differed because of different asset classes used, new research applied, and because of deduction of commission. Also, it is not possible to invest in an index. Past performance of markets is no guarantee of future performance and clients may experience a loss. US Large Value = U.S. Large Cap Value Portfolio: July 1926-March 1993: Fama-French Large Cap Value Strategy. Simulates Dimensional’s hold range and estimated trading costs. Courtesy of Fama-French and CRSP: deciles 1-5 size, (.7) BtM. April 1993-Present: U.S. Large Cap Value Portfolio net of all fees. DFA International Small Company Strategy/DFA International Large Company Strategy: January 1970-June 1998: 50% DFA Japanese Portfolio, 50% DFA U.K. Portfolio net of all fees. July 1998-September 1989: 50% DFA Japanese Portfolio, 20% DFA UK Portfolio, 30% DFA Continental Portfolio net of all fees. October 1989-March 1990: 40% DFA Japanese Portfolio, 30% DFA Continental Portfolio, 20% DFA UK Portfolio, 10% DFA Asia/Australia Portfolio net of all fees. April 1990-December 1992: 40% DFA Japanese Portfolio, 35% DFA Continental Portfolio, 15% DFA UK Portfolio, 10% DFA Asia/Australia Portfolio net of all fees. January 1993-March 1997: 35% DFA Japanese Portfolio, 35% DFA Continental Portfolio, 15% DFA UK Portfolio, 15% DFA Asia/Australia Portfolio net of all fees. April 1997-March 1998: 30% DFA Japanese Portfolio, 35% DFA Continental Portfolio, 15% DFA UK Portfolio, 20% DFA Asia/Australia Portfolio net of all fees. April 1998-Present: 25% DFA Japanese Portfolio, 40% DFA Continental Portfolio, 20% DFA UK Portfolio, 15% DFA Asia/Australia Portfolio net of all fees. 4. DFA International Small Company Portfolio: January 1970-September 1996: DFA International Small Company Strategy. October 1996-Present: DFA International Small Company Portfolio net of all fees. EAFE Index: Courtesy of Morgan Stanley Capital International. Europe, Australia, and Far East Index net dividends ($). January 1969-Present: EAFE Index Including gross dividends ($). 6. US Small Co = CRSP 9-10 Index: Courtesy of Center for Research in Security Prices, University of Chicago. Small Company Universe Returns (Deciles 9 &10) all Exchanges. January 1926-June 1962: NYSE, rebalanced semi-annually. July 1962-December 1972: CRSP Database, NYSE & AMEX, rebalanced quarterly. January 1973-September 1988: CRSP Database, NYSE, AMEX & OTC, rebalanced quarterly. October 1988-Present: CRSP Index (NYSE & AMEX & OTC). S&P 500: Courtesy of Roger G. Ibbotson and Rex A. Sinquefield, Stocks, Bonds, Bills, and Inflation: The Past and the Future, Dow Jones, 1989. Ibbotson Associates, Chicago, annually updates work by Roger Ibbotson and Rex A. Sinquefield. Used with Permission. All rights reserved. The S&P 500 is an unmanaged market value-weighted index which measures the change in aggregate market value of 500 stocks relative to the base period 1941-1943. This index does not incur fees and charges typically associated with investing and values would be lower if such fees and charges were taken into consideration. Individuals may not invest directly in an index. Past performance is not a guarantee of future results. ENDNOTES

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86 6. US Small Co = CRSP 9-10 Index: Courtesy of Center for Research in Security Prices, University of Chicago. Small Company Universe Returns (Deciles 9 &10) all Exchanges. January 1926-June 1962: NYSE, rebalanced semi-annually. July 1962-December 1972: CRSP Database, NYSE & AMEX, rebalanced quarterly. January 1973-September 1988: CRSP Database, NYSE, AMEX & OTC, rebalanced quarterly. October 1988-Present: CRSP Index (NYSE & AMEX & OTC). S&P 500: Courtesy of Roger G. Ibbotson and Rex A. Sinquefield, Stocks, Bonds, Bills, and Inflation: The Past and the Future, Dow Jones, 1989. Ibbotson Associates, Chicago, annually updates work by Roger Ibbotson and Rex A. Sinquefield. Used with Permission. All rights reserved. The S&P 500 is an unmanaged market value-weighted index which measures the change in aggregate market value of 500 stocks relative to the base period 1941-1943. This index does not incur fees and charges typically associated with investing and values would be lower if such fees and charges were taken into consideration. Individuals may not invest directly in an index. Past performance is not a guarantee of future results. 35- Year performance figures taken from Dimensional Fund Advisor, Inc. (DFA) Returns software 12/07. Some data provided to DFA by the Center for Research & Security Pricing (CRSP), University of Chicago. Asset Classes defined as: Consumer Price Index for inflation, CRSP 30 day bill index for Treasury Bills, CRSP Long-term U.S. Government Bond Index for Long-Term Government Bonds, S&P 500 Index for U.S. large stocks, CRSP 9-10 Index for U.S. small stocks, Morgan Stanley Europe, Australia, Far East (EAFE) Index for international large stocks, and the international small stock index created by DFA using CRSP data. CONSERVATIVE, MODERATE, GROWTH, & AGGRESSIVE These results are based on the performance of 30 day T-Bills, Dimensional’s One-Year Fixed Strategy [1972- July 1983 – Simulated CD Fixed Income Strategy (maximum maturity 1 year) Aug. 1983 – DFA Fixed Income Portfolio returns net of all fees (weighted average maturity under 1 year)], Dimensional’s Five-Year Government Portfolio [Average maturity: Under Five Years, 1953-May 1987 – Simulation using U.S. Government Instruments (maximum maturity five years) June 1987 – DFA Five Year Government Portfolio net of all fees], S&P 500 Index, CRSP Large Value Index, CRSP (Center for Research & Security Pricing) 9-10, CRSP 6-10, CRSP Small Value Index, EAFE Index, and Dimensional’s Small International Index (1970-June 1988 – 50% Japan, 50% United Kingdom. July 1988- September 1989 – 50% Japan, 30% Continental, 20% United Kingdom, October 1989 – March 1990 -40% Japan, 40% Continental, 20% United Kingdom, 10% Asia-Australia. April 1990 – December 1992 – 40% Japan, 35% Continental, 15% United Kingdom, 10% Asia-Australia. January 1993 to present – 35% Japan, 35% Continental, 15% United Kingdom, 15% Australia.], and assume the asset allocation among these indices as shown under “Conservative”, “Moderate”, “Growth”, and “Aggressive” in the chart entitled Allocation of Sample Asset Class Mixes. All investing involves risk and costs. Your advisor can provide you with more information about the risks and costs associated with specific programs. No investment strategy (including asset allocation and diversification strategies) can ensure peace of mind, assure profit, or protect against loss. ENDNOTES

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1. No commissions or fees have been deducted from the market performance figures because the intent is to show the benefits of diversification of asset classes and not to indicate the results Matson Money, Inc. would have achieved if it managed a client’s funds. If an investor invested in mutual funds designed to reflect asset class performance, the investor would, in effect, be paying an advisory fee to the mutual fund manager and brokerage commissions because these fees and commissions would be reflected in the mutual fund’s expenses that are deducted from the value of each share of the mutual fund. If, in addition, an investor engaged an investment advisor to manage the assets, the investor would pay an investment advisory fee to this manager. If an investor also utilized the services of a separate custodian, the investor would pay additional fees to the custodian. The returns of the hypothetical asset class mixes frequently exceeded the results of Matson Money, Inc. clients’ portfolios with similar investment objectives for the period Matson Money, Inc. has managed clients’ funds from 1991 to present. This difference is due to differing allocations over the time periods shown. These allocations differed because of different asset classes used, new research applied, and because of deduction of commission. Also, it is not possible to invest in an index. Past performance of markets is no guarantee of future performance and clients may experience a loss. 2. U.S. Large Value = U.S. Large Cap Value Portfolio: July 1926-March 1993: Fama-French Large Cap Value Strategy. Simulates Dimensional’s hold range and estimated trading costs. Courtesy of Fama-French and CRSP: deciles 1-5 size, (.7) BtM. April 1993-Present: U.S. Large Cap Value Portfolio net of all fees. 3. DFA International Small Company Strategy/DFA International Large Company Strategy: January 1970-June 1998: 50% DFA Japanese Portfolio, 50% DFA UK Portfolio net of all fees. July 1998-September 1989: 50% DFA Japanese Portfolio, 20% DFA UK Portfolio, 30% DFA Continental Portfolio net of all fees. October 1989-March 1990: 40% DFA Japanese Portfolio, 30% DFA Continental Portfolio, 20% DFA UK Portfolio, 10% DFA Asia/Australia Portfolio net of all fees. April 1990-December 1992: 40% DFA Japanese Portfolio, 35% DFA Continental Portfolio, 15% DFA UK Portfolio, 10% DFA Asia/Australia Portfolio net of all fees. January1993-March 1997: 35% DFA Japanese Portfolio, 35% DFA Continental Portfolio, 15% DFA UK Portfolio, 15% DFA Asia/Australia Portfolio net of all fees. April 1997-March 1998: 30% DFA Japanese Portfolio, 35% DFA Continental Portfolio, 15% DFA UK Portfolio, 20% DFA Asia/Australia Portfolio net of all fees. April 1998-Present: 25% DFA Japanese Portfolio, 40% DFA Continental Portfolio, 20% DFA UK Portfolio, 15% DFA Asia/Australia Portfolio net of all fees. 4. DFA International Small Company Portfolio: January 1970-September 1996: DFA International Small Company Strategy. October 1996-Present: DFA International Small Company Portfolio net of all fees. 5. EAFE Index: Courtesy of Morgan Stanley Capital International. Europe, Australia, and Far East Index net dividends ($). January 1969-Present: EAFE Index Including gross dividends ($). 6. U.S. Small Co = CRSP 9-10 Index: Courtesy of Center for Research in Security Prices, University of Chicago. Small Company Universe Returns (Deciles 9 &10) all Exchanges. January 1926-June 1962: NYSE, rebalanced semi-annually. July 1962-December 1972: CRSP Database, NYSE & AMEX, rebalanced quarterly. January 1973-September 1988: CRSP Database, NYSE, AMEX & OTC, rebalanced quarterly. October 1988-Present: CRSP Index (NYSE & AMEX & OTC). 7. S&P 500: Courtesy of Roger G. Ibbotson and Rex A. Sinquefield, Stocks, Bonds, Bills, and Inflation: The Past and the Future, Dow Jones, 1989. Ibbotson Associates, Chicago, annually updates work by Roger Ibbotson and Rex A. Sinquefield. Used with Permission. All rights reserved. The S&P 500 is an unmanaged market value-weighted index which measures the change in aggregate market value of 500 stocks relative to the base period 1941-1943. This index does not incur fees and charges typically associated with investing and values would be lower if such fees and charges were taken into consideration. Individuals may not invest directly in an index. Past performance is not a guarantee of future results. 8. DFA One-Year Fixed Income Portfolio: August 1983-Present: DFA One-Year Fixed Income Portfolio November 1971-July 1983: Stimulation Using CD Returns 9. DFA Five-Year Government Portfolio: June 1987-Present: DFA Five-Year Government Fixed Income Portfolio July 1952-May 1987: Stimulation Using U.S. Government Instruments 10. Lehman Brothers Government/Credit Bond Index 1-30+ Years: January 1973-Present: Lehman Brothers Government/Credit Bond Index Range 1-30+ Years All investing involves risk and costs. Your advisor can provide you with more information about the risks and costs associated with specific programs. No investment strategy (including asset allocation and diversification strategies) can ensure peace of mind, assure profit, or protect against loss. This booklet is based on the views of Matson Money, Inc. Other persons may analyze investing from a different perspective. Nothing included herein is intended to infer that the approach to investing espoused in this booklet will assure any particular results. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. ENDNOTES

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35-Year performance figures taken from Dimensional Fund Advisors, Inc. (DFA) Returns software 12/07. Some data provided to DFA by the Center for Research & Security Pricing (CRSP), University of Chicago. Asset Classes defined as: Consumer Price Index for inflation, CRSP 30 day treasury bill index for Treasury Bills, CRSP long-term U.S. Government Bond index for Long-Term Government Bonds, S&P 500 Index for U.S. large stocks, CRSP 9-10 Index for U.S. small stocks, Morgan Stanley Europe, Australia, Far East (EAFE) Index for international large stocks, and the international small stock index created by DFA using CRSP data. CONSERVATIVE, MODERATE, GROWTH, & AGGRESSIVE These results are based on the performance of 30 Day T-bills, Dimensional’s One-Year Fixed Strategy [1972 maturity under 1 year)], Dimensional’s Five-Year Government Portfolio [Average maturity: Under Five Years, 1953-May 1987 — Simulation using U.S. Government Instruments (maxium maturity five years) June 1987 — DFA Five Year Government Portfolio net of all fees], S&P 500 Index, CRSP Large Value Index, CRSP Large Value Index, CRSP Large Value Index, CRSP (Center Research & Secruity Pricing) 9-10, CRSP 6-10, CRSP Small Value Value Index, EAFE Index, and Dimensional’s Small International Index [1970–June 1988 — 50% Japan, 50% United Kingdom, 10% Asia-Australia, April 1990 - December1992— 40% Japan, 35% Continental, 15% Australia.], and assume the asset allocation among these indices as shown under “Conservative”, “Moderate”, “Growth”, and “Aggressive” in the chart entitled Allocation of Sample Asset Class Mixes. The objective of allocation for each asset class shown in the charts is to reduce the likelihood that different assets move together in tandem. The asset class mixes shown in these charts were rebalanced annually in order to continually preserve the original investment allocations. No reinvestment of dividends or other earnings were included in the calculations. No commissions or fees have been deducted from the market performance figures shown in the charts because the intent is to show the benefits of diversification of asset classes and not to indicate the results Matson Money, Inc. would have achieved if Matson Money, Inc. had managed a client’s funds. If an investor invested in mutual funds designed to reflect asset class performance, the investor would, in effect, be paying an advisory fee to the mutual fund manager and brokerage commissions. These fees and commissions would be reflected in the mutual fund’s expenses that are deducted from the value of each share of the mutual fund. If, in addition, an investor engaged an investment advisor to manage the assets, the investor would also pay an investment advisory fee to this manager. If an investor also utilized the services of a separate custodian, the investor would pay additional fees to the custodian. ENDNOTES