Our indexes fall into one of two categories: AlphaCycle™ Indexes (18) and AlphaSector™ Indexes (6). All 18 AlphaCycle Indexes are published on a daily basis by the NYSE Arca. One of the six AlphaSector Indexes is published daily by NASDAQ OMX, the other five are published monthly by Active Index Solutions.

Our Indexes are overseen by the Index Investment Committee.

Third party Registered Investment Advisors, Wealth Managers, Broker dealers and Trust Companies make available to individual investors separately managed accounts (SMAs) that track our indexes. As of September 30, 2009 two mutual funds offered by (Virtus Investment Advisers) are converting, to begin tracking our AlphaSector™ Rotation Index.

F-Squared makes available for institutional investors separate accounts that track all of our AlphaSector Indexes and many of our AlphaCycle Indexes.

Please see our Contact Us page for more information about accessing these tracking portfolios.

For more information about the Indexes, including performance information, visit our website at www.activeindexsolutions.com.

AlphaSector™ Indexes

There are currently six AlphaSector Indexes:

AlphaSector Indexes utilize an investment approach known as Defensive Allocation, which is designed to providing the Indexes to participate or outperform in normal markets while providing for significant outperformance in weak or bear markets. ¹

To understand the benefits of Defensive Allocation, and how avoiding down markets can dramatically improve wealth creation, please refer to one or more of our following presentations:

Winning By Not Losing Hidden Power of Defensive AllocationAlphaSector Rotation Defensive Allocation in Practice

APPROACH AND METHODOLOGY OF THE ALPHASECTOR INDEXES

All AlphaSector Indexes use disciplined buy and sell signals to build portfolios constructed from the major sectors of the S&P 500 and/or international markets.

AlphaSector Indexes only invest through a limited number of Exchange Traded Funds (ETFs), which provide ease of access, liquidity, transparency, and low transaction costs.

The domestic AlphaSector Indexes have an inception date of April 1, 2001. The Global and International AlphaSector Indexes have an inception date of April 1, 2003, although the performance data prior to March, 2009 reflects backtested data.

To learn more about our specific Indexes, their methodologies, and portfolio construction design, please view one or more of the following presentations:

AlphaSector PresentationAlphaSector Suite of Indexes

AlphaCycle™ Indexes

There are currently 18 AlphaCycle Indexes :

The Indexes deliver many critical benefits to investors not traditionally available by investing directly into individual mutual funds, including diversification across management firms and investment process, active monitoring of fund performance, and active modification of the portfolio based upon weakening fundamentals of any mutual fund.

For more information about our AlphaCycle Indexes and their performance advantages, please see one or more of the following presentations:

AlphaCycle OverviewAlphaCycle Suite of Indexes Year End 2009 Performance

The tracking portfolios that F-Squared constructs for these Indexes do not invest directly into the underlying mutual funds, but instead invest in a portfolio of stocks, bonds, and ETFs that are constructed using F-Squared's proprietary Portfolio Replication Technology (PoRT™).

For more information about PoRT, please refer to the following presentation:

PoRT Overview.pdf

Legal:

Copyright © F-Squared Investments, Inc. All rights reserved. “AlphaCycle” and “AlphaSector” are service marks of F-Squared Investments, Inc. This material is proprietary and may not be reproduced, transferred or distributed in any form without prior written permission from F-Squared Investments, Inc. or Active Index Solutions, LLC (“AIS”). The firms reserve the right at any time and without notice to change, amend, or cease publication of the information. This material has been prepared solely for informative purposes. The information contained herein has been obtained from sources that we believe to be reliable, but its accuracy and completeness are not guaranteed. It is made available on an "as is" basis without warranty. Investment products that may be based on AlphaCycle or AlphaSector Indexes are not necessarily sponsored by AIS or F-Squared Investments, Inc. and neither firm makes any representation regarding the advisability of investing in them. Inclusion of a mutual fund or exchange traded fund in an index does not in any way reflect an opinion of Active Index Solutions or F-Squared Investments regarding the investment merits of such a fund. None of the funds included in the index have given any real or implied endorsement or support to Active Index Solutions or to this index. One cannot invest directly in an index. Returns represent past performance, and are not guarantees of future results or indicative of any specific investment.

Although AlphaSector Indexes do not short securities nor utilize leverage or derivatives, the ETFs that AlphaSector tracks may make use of such financial instruments or strategies.

Some of the returns presented reflect hypothetical performance an investor would have obtained had it invested in the manner shown and does not represent returns that an investor actually attained. Hypothetical backtested performance has many inherent limitations. The hypothetical performance is adjusted to reflect the reinvestment of dividends. The fee schedule and anticipated expenses are included in the client agreement. F-Squared’s fees are available upon request and also may be found in Part II of its Form ADV. Past performance is no guarantee of future results. AlphaSector Rotation Index is the exclusive property of F-Squared Investments, Inc. and AIS. AIS has contracted with The NASDAQ OMX Group, Inc. (collectively, with its subsidiaries and affiliates, “NASDAQ OMX”) to calculate and maintain the AlphaSector Rotation Index. NASDAQ OMX shall have no liability for any errors or omissions in calculating the AlphaSector Rotation Index.

AlphaSector Premium Index is the exclusive property of F-Squared Investments, Inc. and AIS. AIS calculates and publishes the value of the index on a monthly basis. Sources: Morningstar Direct.