Patton Fund Management, Inc. is a Registered Investment Advisor (RIA) with the U.S. Securities and Exchange Commission (SEC).

IMPORTANT NOTICE: INFORMATION ABOUT PAST PERFORMANCE

Not indicative of future returns. Past performance is not indicative of future returns, which may vary. Accordingly, future returns are not guaranteed and there can be no assurance that any Patton Fund, Strategy, or Portfolio (“Patton Investments”) will achieve comparable investment results or its investment objective. You may lose money on your investment in a Patton Investment.

Strategy Developed based on Back-testing. The investment strategy used by the Manager was developed, in part, by back-testing its investment program against past market conditions.  In other words, the strategy was designed to succeed based on knowledge of events that occurred in the past.  One limitation of such a strategy is that it is inherently focused on the past, and cannot necessarily take account of market conditions that may arise in the future.  If future market conditions are different from past market conditions, and if investors behave differently from past investors, the Manager’s investment strategy may not work as anticipated and the Fund may lose money.

Fees and Distributions. The performance information shown reflects the deduction of actual expenses of the applicable Patton Investment for periods during which the Patton Investment has been in operation. The performance figures shown reflect the reinvestment of all dividends, interest and other income, and assume that the applicable Patton Investment has not made any distributions to investors.

Portfolio Characteristics. Portfolio characteristics, including specific holdings, contributors to performance, and country, sector and industry exposure, are shown as of the date indicated only, and are subject to change without notice. Portfolio characteristics are designed to illustrate the application of the Patton Investments’ investment style only, and should not be considered a recommendation.

Third Party Information. Information contained herein is based on data obtained from statistical services, company reports or communications, or other sources. The Patton Investments and Patton Fund Management, the Manager, believe these sources to be reliable. However, we have not verified this information, and we make no representations whatsoever as to its accuracy or completeness.

IMPORTANT NOTICE: INFORMATION ABOUT BACK-TESTED PAST PERFORMANCE

Performance results may be presented that pre-dates the commencement of operations of a Patton Investment. Because the Patton Investment was not in operation during certain periods shown, the performance information prior to the date the Patton Investment commenced operations is back-tested performance (sometimes referred to as hypothetical performance).

Patton Investments Inception Dates

• Patton 45: April 2001 (not open to new investors)

• Patton Edge Strategy: February 2010

• Patton Flex Strategy: February 2010

• Super-Diversification: February 2010

• Patton Multiplier Strategy: March 2011 (not open to new investors)

There are several important factors to consider when reviewing back-tested, or hypothetical, performance information:

Back-tested Performance is Hypothetical. The performance information shown for the Patton Investment you selected includes performance information that is hypothetical, and is not real. As such, the back-tested portion of the performance presentation does not represent the investment performance or the actual Patton Investment or any investors in the Patton Investment. The securities in these hypothetical portfolios were selected with the full benefit of hindsight, after their performance over the period shown was known. It is not likely that similar results could be achieved in the future.  The back-tested results may not reflect the impact that any material market or economic factors might have had on the results if the strategy had been used during the period to actually manage client assets. The hypothetical portfolios presented here are purely illustrative, and representative only of a small sample of possible future scenarios.

Back-testing is Subject to Limitations. While it is believed that back-tested performance information presented is relevant to evaluating an investment in the Patton Investment, no representation is or could be made that the information presents what the performance results would have been in the past or are likely to be in the future. There are frequently sharp differences between hypothetical performance results and actual performance results subsequently achieved. One limitation of hypothetical performance is that it is generally prepared with the benefit of hindsight. In addition, no hypothetical track record can completely account for the impact of financial risk in actual trading. For example, back-factors that affect markets in general, the impact of fees and expenses, market liquidity and other factors may all of affected actual performance.

Actual Investor Experience Varies. The back-tested results are not indicative of the skill of the Manager. For example, each Patton Investment began trading on the date indicated on the performance presentation. Back-tested performance shown for each Patton Investment reflects hypothetical performance determined using the current investment strategy of the applicable Patton Investment. However, the Manger has been managing money using quantitative strategies since 2001.  During this period the Manager has experienced periods of poor performance and the Manager has closed other Patton Investments that it has managed as a result of poor performance.  Investors in some of the Manager’s closed funds have lost money.

Back-testing Period.  During the back-tested period, Patton was either not providing investment advice or was not providing investment advice according to the strategy used to calculate the back-tested results.

Indices. The historical performance of various indices, such as the S&P 500 Index, may be included. An index is an unmanaged, broad-based market index and investing in the Patton Edge Strategy is not similar to investing in an index. An index is not available for direct investment, and the securities in an index will not match the Strategy's holdings. In addition, unlike an index, the Strategy's performance will be affected by fees and expenses.

Forward-looking Statements. Any forward-looking statements represent the subjective views of Patton and their validity may be affected by events and conditions not now contemplated and by other factors, many of which may be beyond the Manager's control. Actual results may vary and such variations may be material, and no representation or warranty is made regarding any forward-looking information contained herein.

Patton Edge Strategy Actual Results. Performance results for February 2010 forward represents a dollar-weighted average of all accounts utilizing this strategy.  The net return is the gross return reduced by 1/12 of 2.0% monthly.

Patton Edge Performance Statistics.

Patton Flex Strategy Actual Results. Performance results for February 2010 forward represents a dollar-weighted average of all accounts utilizing this strategy.  The net return is the gross return reduced by 1/12 of 1.5% monthly.

Patton Flex Performance Statistics.

"n/a" - Not statistically meaningful due to insufficient number of months.

Dispersion: Performance dispersion is calculated annually.  Portfolios are only included that were in the strategy for the full year.  Disperson is calculated by subtracting the lowest portfolio return from the highest portfolio return.

Benchmark Description: The benchmark is the HFRX Equity Hedge index obtained from www.HedgeFundResearch.com.  This is an investable index of long/short U.S. equity hedge funds.

The above composite performance presentation and the underlying methodology used was independently verified by Ashland Partners for the Patton Edge Strategy only for the period through 12/31/2014.  The above composite performance presentation and the underlying methodology used for the Patton Flex Strategy is identical to that of the Patton Edge Strategy.

Leverage: the Patton Edge Strategy can have up to two times gross exposure; the Patton Flex Strategy can have up to five times gross exposure.

The Patton Flex Fund, L.P., utilizing the Patton Flex Strategy, has a 0% management fee, 12% net annual hurdle, and a 50% incentive fee above the annual hurdle.  See the Fund's Private Placement Memorandum for details.

Super-Diversification Portfolio Performance on our public website is not a representation of the performance of actual client portfolios.  This is the combination of the following performance: the Patton Flex Strategy actual results representing 35% of the portfolio, the actual results of a diverse basket of index funds, reduced by 1/12 of 1.5% monthly for the management fee representing an estimate of the net return for the portfolio.  This assumed portfolio allocation is similar, but not necessarily identical, to that used for Patton clients with a growth-oriented risk profile.  Although the presented performance is not that of actual clients the presented performance is representative of the performance of actual clients with an identical allocation to that illustrated.  Clients with portfolio allocations different than this strategy presented, for example with a lower desired risk profile, could have had performance results meaningfully different than those presented here.

Industry benchmarks presented are believed to be comparable risk portfolios although the holdings are very likely significantly different.  Simulated portfolio benchmarks, such as a "Traditional Portfolio", does have a similar risk profile but is allocated only to traditional asset classes of stocks, bonds, and cash.

Client performance reporting in the password protected areas of our webiste, including our Super-Diversified Portfolio Statements section, does represent the actual performance of an individual client's portfolio.  Returns are shown net of fees, deposits, and withdrawals.  These returns are calculated consistent with industry standards (returns are linked for periods upon a deposit or withdrawal).  Every effort is made to insure correct calculations.  Please notify Patton if you believe your returns do not appear correct.

IMPORTANT NOTICE: INFORMATION ABOUT MODEL PORTFOLIOS

Model Portfolios are simulations of various combinations of asset classes used to simulate the performance various types of portfolios with various risk profiles. All Patton Model Portfolios for all time periods are back-tested hypothetical simulated results.

Patton Model Portfolios have been developed based on historical performance of the described indexes for the relevant time period using our proprietary process and do not represent the results of actual trading of investor assets. Model performance has inherent limitations.  Since these are simulated portfolios (hypothetical) and do not reflect any investor's actual experience with owning, trading or managing an actual investment account, there can be no assurance that an investor would have achieved similar rates of return over the time frame.  Thus, the performance shown does not reflect the impact that material economic and market factors had or might have had on decision making if actual investor money had been managed. In addition, since the time period in question is a historical one, there can be no assurance that future results achieved by investors will in any way resemble those represented by the Model Portfolios. Model Portfolios are rebalanced monthly. All performance data is total returns which includes interest and dividends. The calculations are net of the estimated fees. Unless otherwise noted, Patton Portfolios (Better Diversified, Super-Diversified, and Patton 401(k) Model Portfolios) assume Patton’s standard advisory fee structure as well as sample trading costs based on Interactive Brokers commissions; non-Patton portfolios ("Traditional" Portfolios) assume a 0.9% advisory fee, plus estimated fund expenses per the below table, plus additional investment expenses of 0.77% representing an estimate of the additional cost of actively managed funds.  Performance does not reflect the deduction of other fees or expenses, including but not limited to brokerage fees, custodial fees and fees and expenses charged by mutual funds and other investment companies the may be in addition to the expense ratio (these additional expenses tend to be extremely low).

Model portfolios presented on our website are portfolios blended from various indexes.  The blended asset allocation of every model portfolio is readily available within the website.  The benchmark index(es) used to represent each asset class is disclosed elsewhere in this disclosure.  We do adjust the performance of the benchmark indexes for fees of an applicable fund available to invest in that index.

When a portfolio's performance is compared to a single benchmark index, such as the S&P 500, the index has not been selected to represent an appropriate benchmark to compare an investor's performance, but rateher are disclosed to allow for comparison of the investor's performance to that of certain well-known and widely recognized indices.  Indices are typically not available for direct investment, are unmanaged, and do not incur fees or expenses.

The performance calculations of all model portfolios have not been audited by any third party.  Actual performance of client portfolios may differ materially due to the timing related to additional client deposits or withdrawals and the actual deployment and investment of a client portfolio, the length of time various positions are held, the client’s objectives and restrictions, and fees and expenses incurred by any specific individual portfolio.

Any presentation of a Patton Portfolio compared to a Traditional Portfolio is intended to have a similar risk profile.  The Traditional Portfolio is only allocated to stocks, bonds, and cash while the Patton Portfolio is more diversified.  Generally the purpose of such presentations is to demonstrate the value of added diversification.

Although we have done our best to present this information fairly, hypothetical performance is still potentially misleading. Hypothetical data does not represent actual performance and should not be interpreted as an indication of actual performance. This data is based on transactions that were not made. Instead, the trades were simulated, based on knowledge that was available only after the fact and thus with the benefit of hindsight. Results do not include the impact of taxes, if any. Past performance is not indicative of future performance.

These materials are subject to change without notice and, due to the rapidly changing nature of the security markets, may quickly become outdated. All materials presented are compiled by Patton from sources believed to be reliable and current, but accuracy cannot be guaranteed. This information is distributed for education purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, product, or service.  Content is prohibited from being reproduced.

Diversification does not ensure a profit or protect against a loss in a declining market.

Investments involve risk and unless otherwise state, are not guaranteed.  Consider the investment objectives, risks, and expenses carefully before investing.

Readers of the information contained on this website should be aware that any action taken by the viewer/reader based on this information is taken at their own risk. This information does not address individual situations and should not be construed or viewed as any typed of individual or group recommendation. Be sure to first consult with a qualified financial adviser, tax professional, and/or legal counsel before implementing any securities, investments, or investment strategies discussed.

Exchange-Traded Funds and Index Mutual Funds (“Index Funds”). All Index Funds are subject to risk, which may result in the loss of principal. International Index Funds involve additional risks, including currency fluctuations and political uncertainty. Index Fund products that invest in emerging markets are generally more risky than those that invest in developed countries because countries with emerging markets may have relatively unstable and less-established markets and economies. Sector Index Funds are subject to sector risks and non-diversification risks, which may result in performance fluctuations that are more extreme than fluctuations in the overall stock market. In addition, sector Index Funds that sample their target indexes to comply with tax diversification rules may experience a greater degree of tracking error than other Index Funds. Prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks.

Source Data for Analysis

Any analysis relecting daily performance for any Patton strategy is actual data for the periods available and back-tested data for prior periods.  Daily data for diversified portfolios uses an applicable index fund (see the Asset Classes table in this Disclosure "Index Fund" column) performance less the applicable fees.

Limitations of Retirement Income Analysis

This retirement planning analysis has many limitations. The biggest limitation is Patton’s inability to predict the future and know what return will be earned on various investments.

Retirement income projections are based on a variety of assumptions that are not certain. These uncertain assumptions include but are not limited to: estimated annual income, changes in future income, the rate of inflation, Social Security policies and impact on benefits provided, and more. The assumed returns are based on selected portfolio or specific manually input return. If a portfolio is selected for the assumed return, the portfolio’s average return over multiple decades is assumed for each individual year in the analysis. This assumed return is disclosed in the results. For example, a portfolio may have a return of +18% one year, -2% the next year, etc. that would result in an average of 8%. It is this 8% average that would be used in the analysis for each individual year although ACTUAL annual returns are never exactly, nor often even close to, the average year after year. The asset allocation of the portfolio can be seen in either the “Investment Center” report or the “Portfolio Comparison” report on this website.

Although exact numbers must be used in such an analysis, this retirement income analysis is not meant to be precise. It is intended to simply be a gauge to help investors determine if they are generally on the right path or not and to help them generally understand the various ramifications from various changes such as an increased level of savings.

All current date valuations and daily returns for hedge fund investments are an estimate. These estimates are based on your recent actual month-end balance, if applicable, and incremented by the estimated daily percent change. Month-end market valuations are actual once the hedge fund statement has been posted to the website.

Patton has created multiple portfolio performance composites. Each portfolio performance composite represents a different portfolio strategy and a different risk profile. Every Patton client portfolio is included in one of the portfolio performance composites. The result is multiple performance composites consisting of all like-type (strategy and risk profile) Patton client portfolios.

Following are the stratgegies for the portfolio performance composites:

• Super-Diversified with Flex: diversified portfolios including an allocation to the Patton Flex Strategy or Patton Flex Fund, L.P.
• Super-Diversified with Edge: diversified portfolios including an allocation to the Patton Edge Strategy
• Better-Diversified: diversified portfolios without an allocation to the Patton Flex or Patton Edge
• Patton Flex: 100% Patton Flex Strategy or Patton Flex Fund, L.P.
• Patton Edge: 100% Patton Edge Strategy
• Patton 45: 100% Patton 45 Strategy (long-only)
• Miscellaneous: legacy Patton strategy, including Patton Multiplier Fund L.P, and miscellaneous strategies

The three diversified portfolio performance composites are further separated by the the following risk profiles: Conservative, Moderate, and Growth.

All references to "Patton Clients" on our website represents the Super-Diversified with Flex performance composite for the Growth risk profile.

The following table provides details for each portfolio performance composite:

Portfolio Performance Composite Details

The following table shows the Asset Classes that are available throughout the website, the market index that is used to represent each asset class, and the estimated fee that is deducted from the performance of the index.