Quarterly Commentary 2q14

Risk Paradigm Group seeks to defend capital through our ETF tactical strategies both domestically and in the Emerging Markets based upon the F-Squared AlphaSector ® Premium methodology. The below quarterly commentary is related to the RPg AlphaSector ® Core Domestic Equity and the RPg Premium FT portfolios available as separately managed accounts.

Overview

Before the second quarter of 2014, it had been sixteen years since the S&P 500 was up more than five quarters in a row. Back in the 1990s, it was up fourteen straight quarters from Q1 1995 to Q2 1998. And although recent experience has a few similarities to those days, including all-time highs in market indexes and a wave of expensive-looking IPOs, few market observers old enough to remember the era of irrational exuberance are likely to confuse then and now.

Nonetheless, and in spite of grave sounding headlines including a rapidly deteriorating situation in the Middle East and a U.S. economy that contracted at an annual rate of 2.9% in the first quarter, capital markets scored consistent and broad gains. Not only were the S&P 500, the MSCI World ex-US, and the Barclays U.S. Aggregate Bond Index (“the Aggregate”) all up in the second quarter, all were up in each of the three months of the quarter.

The AlphaSector Premium Index (“the Index”) began the second quarter fully allocated to equity, but in a relatively defensive posture, with five of nine sectors included in the Index, and four excluded: industrials, consumer staples, consumer discretionary, and utilities. This situation persisted throughout April and May. Then in early and mid-June, as volatility receded and price trends improved, the Index turned on three of the four sectors that had been off, leaving just consumer discretionary excluded.

Ending the quarter with allocations to eight of nine sectors returned the Index to the bullish state in which it began the year. However, the excluded sector, consumer discretionary rather than utilities, was different.

Outlook

Subjective forecasts of market outlook do not have a role in the AlphaSector quantitative methodology. As a result, it is not appropriate to make formal projections about the direction of the market and offer no opinion on the near or long-term future of the equity markets.

The Index ended the quarter with allocations to eight of a possible nine sectors in the quantitative model. This more bullish stance is similar to how the Index ended 2013, where it also had eight of nine sectors turned on. By design, these model scores can change abruptly, and it is conceivable that some or all of the sectors now scoring positively could score negatively and be removed from the portfolio in the near future. Whether the portfolio takes on a more defensive or aggressive posture in the coming months remains to be seen.

Commentary Disclosure

Past performance is not indicative of future results. It is not possible to invest directly in an index. This material has been prepared solely for informative purposes. The information contained herein includes information that has been obtained from third party sources and has not been independently verified. It is made available on an "as is" basis without warranty. Any projections, market outlooks, or estimates n this presentation are forward-looking statements and are based upon certain assumptions and should not be construed as indicative of actual events that will occur. The information provided herein does not constitute investment advice and is not a solicitation to buy or sell securities.

Risk Paradigm Group, LLC. d/b/a RPg Asset Management is a registered investment advisor with U.S. Securities and Exchange Commission (“SEC”). Additional information regarding Risk Paradigm Group, LLC can be found on our website at www.rpgassetmanagement.com.

“AlphaSector ®” is a registered trademark of F-Squared Investments, Inc. and is used with permission. This material is proprietary and may not be reproduced, transferred or distributed in any form without prior written permission from Risk Paradigm Group, LLC and F-Squared Investment Management, LLC or one of its subsidiaries (collectively, “F-Squared Investments” or “F-Squared”). F-Squared reserves the right at any time and without notice to change, amend, or cease publication of the information.

Investment products that may be based on AlphaSector Indexes are not sponsored by F-Squared, and F-Squared does not make any representation regarding the advisability of investing in them. F-Squared serves as the model provider to RPg Asset Management. There is no guarantee that an investor’s account will achieve its objectives or avoid losses. Inclusion of a mutual fund or an exchange traded fund in an index does not in any way reflect an opinion of F-Squared regarding the investment merits of such a fund, nor should it be interpreted as an offer of such a fund’s securities. None of the mutual funds or exchange traded funds included in an index has given any real or implied endorsement or support to F-Squared or to this index.

All AlphaSector Indexes represented in this material do not reflect the actual trading of any client account. No representation is being made that any client will or is likely to achieve results similar to those presented herein. F-Squared Investment Management, LLC or one of its subsidiaries is the source and the owner of all AlphaSector Indexes, and their performance information.

The AlphaSector U.S. Equity Index (“U.S. Equity”) is designed to provide exposure to the U.S. Equity market, and is constructed as an “asset allocation” overlay onto Exchange Traded Funds (“ETFs”) representing major sectors of the U.S. economy. F-Squared defines the inception date for U.S. Equity, the Premium AlphaSector Index and the AlphaSector Rotation Index as October 1, 2008.

No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment.

References to Non-AlphaSector Indexes

The S&P 500 Index is a broad-based unmanaged index of 500 stocks, which is widely recognized as a representative of the equity market in general.

For more information including risks of investing in our strategies, visit our website at www.rpgassetmanagement.com

For more information on F-Squared and the AlphaSector Indexes, please visit www.f-squaredinvestments.com