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Confident Guidance For All Your Investing Needs

Managed Account Returns & Comparisons


Updated through 9/30/13
CG 08/2013

CFD Portfolio & Investment Strategy 2013 YTD Returns


Creative Financial Designs, Inc. (CFD) is a Registered Investment Adviser with the SEC and primarily works with its trusted advisers to provide investment management services for all of your hard earned investments. Every client has an individual risk tolerance, time horizon, and investment goal. Our investment management team understands that each one of your investment goals may need to be invested dierently. That's why we oer you so many choices. Talk to your adviser today on which platforms and strategies may be right for you. There's always reason for delay, but it's time to start investing smarter today.

As of 09/30/13

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Inte r na l Rat Exp. io

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Brokerage
Mutual Funds Only

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2.37% 3.27% 4.67% 3.85% 2.01% 3.07%

0.65% 1.65% 0.17% -

0.54% 0.48% 0.84% 0.94% 0.33% 0.93%

6.58% 5.63% 7.48% 6.97% 3.69% 6.07%

4.43% 6.06% -

0.63% 0.56% 0.85% 0.94% 0.32% 1.05%

10.49% 9.71% 11.16% 11.01% 7.60% 10.87%

7.75% 6.64% 8.71% 7.67% Income

0.75% 0.68% 0.94% 1.06% 0.37% 1.35%

14.89% 12.77% 13.15% 12.38% 11.83% 14.94%

11.64% 8.21% 11.70% 9.38% 9.57%


Growth

0.88% 0.71% 0.96% 1.13% 0.36% 1.42%

17.50% 14.73% 16.00% 14.61% 14.52% 17.18%

12.01% 8.56% -

A gg

1.00% 0.79% 0.99% 1.13% 0.37% 1.47%

Combination RBC NTF NFS NTF ETF Faith Values

Variable Annuity Management


ING Jackson National Life Prudential Lincoln Benet Life US Allianz Nationwide Pacic Life Genworth Guardian Hartford AXA Jeerson National Transamerica Security Benet WRL

Conservative Income

Conservative Growth

Aggressive Growth

1.74% 4.25% 2.26% 1.63% 1.88% 0.90% 3.00% 0.55% Lite -

6.32% 6.52% 6.34% 2.87% 6.11% 4.28% 1.74% 6.00% Core -0.67% 1..07%

9.24% 11.72% 9.64% 10.55% 10.31% 9.07% 8.55% 10.36% 9.20% 13.27% 8.75% 9.79% 11.13% Plus -1.80% -1.64%

11.86% 16.14% 15.21% 15.00% 8.07% 12.71% 13.29% 13.37% 12.62% 16.09% 13.69% 15.58% 11.75% -

14.17% 18.85% 15.00% 18.26% 9.91% 14.81% Internal Exp. Ratio 0.96% 0.85%

Tactical Management
Medallion Brokerage Nationwide Market Flex

Returns of CFD managed accounts above are net of all expenses: internal investment expenses, management fees, custodial fees, rider fees, ticket charges, etc. Average returns above are from actual managed accounts, excluding accounts that contributed or took distributions in current year. Please see page two for descriptions of the platforms, strategies, investment objectives, etc. of the preceding information. Creative Financial Designs, Inc. provides many investment and strategy options for you and your clients. CFD can even help you market your preferences to the group you want to work with. Check out the RIA Virtual Oce for more information or call Kregg Rooze at 800.745.7776.

Conservative Income

CFD Historical Managed Account Returns & Portfolio Information


Income Conservative Growth Growth

Aggressive Growth

10% Cash 70% Bonds 15% Domestic Equities 5% International Equities Avg. 1993-2012 = 5.09% Standard Deviation = 6.16 Highest Year-1995 = 18.20% Lowest Year-2008 = -11.15% Years Positive = 17 Years with a Loss = 3

10% Cash 45% Bonds 35% Domestic Equities 10% International Equities Avg. 1993-2012 = 5.52% Standard Deviation = 9.32 Highest Year-1995 = 20.87% Lowest Year-2008 = -20.53% Years Positive = 16 Years with a Loss = 4

5% Cash 35% Bonds 50% Domestic Equities 10% International Equities Avg. 1993-2012 = 5.81% Standard Deviation = 12.76 Highest Year-1991 = 25.23% Lowest Year-2008 = -27.95% Years Positive = 14 Years with a Loss = 6

0% Cash 25% Bonds 60% Domestic Equities 15% International Equities Avg. 1993-2012 = 7.02% Standard Deviation = 17.05 Highest Year-1999 = 35.63% Lowest Year-2008 = -35.22 Years Positive = 14 Years with a Loss = 6

0% Cash 5% Bonds 75% Domestic Equities 20% International Equities Avg. 1993-2012 = 5.69% Standard Deviation = 18.50 Highest Year- 2009 - 33.22% Lowest Year-2008 = -40.85% Years Positive = 14 Years with a Loss = 6

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Three Management Platforms For All Your Investment Needs

BrokerageManagement
The Brokerage Management platform allows your brokerage account to be managed by the Creative Financial Designs investment team. Not only will you and your adviser discuss and determine your appropriate risk tolerance, but you will have the option to determine which type of investment vehicles and clearing rm you would like to use. This platform oers a lot of options for your managed brokerage account and your nancial adviser will be with you all the way.

Self-Directed Retirement
The Self-Directed Retirement Advisory platform oers the services of professional investment management for all clients with 401(k)s, 403(b)s, 457, and other self-directed company retirement plans. The Creative Financial Designs management team will research, allocate, and monitor your current retirement plan within the available investment choices so you can relax and focus on your needs and passions.

3rd-Party Variable Annuity

Creative Financial Designs has partnered with multiple variable annuity companies to oer professional investment management using the available investment products and services. The 3rd Party Variable Annuity Creative Financial Designs has partnered with multiple variable annuity companies to oer professional platform allows you and your adviser to select the company that best ts investment management using the available investment products and services. The 3rd Party Variable Annuity your needs. The CFD management team will manage your investment platform allows you and your adviser to select the company that best ts your needs. Our team will manage your choices to help you reach your investment goals. investment choices to help you reach your investment goals.

The third quarter of 2013 proved to be a protable quarter across most equities as the vast majority of indices gained ground. For the quarter the S&P 500 Index was up 5.24%, pushing its gains up to 19.7% year to date. The strong push for 2013 continued as a result of fundamental economic strength and the decisions by the Federal Reserve to not yet taper the quantitative easing (QE) strategy. It was not all good news as broad market bonds continued their weak showing in 2013, however, some did post gains for this 3rd quarter. For the year the Barclays US Aggregate Bond Index is still negative at -1.89%. Looking at the broad market indices and investment categories, bonds continue to be our chief area of concern. The Federal Reserve announcements of QE reduction or elimination could continue to create short-term losses in certain bond areas. Other concerns that immediately loom are the potential for a government shutdown over the debt ceiling limits. We do expect volatility to increase as a result of these issues for the 4th quarter and probably into the 1st quarter of 2014; however, market fundamentals currently appear to be strong.

From the CFD Team: Quick Look Back in 2013

Year to Date Indices Returns


As of 9/30/13

DJIA 17.64% S&P 500 S&P 500/Value S&P 500/Growth Russell Mid Cap Russell 2000 BarCap US Agg Bond BarCap US Corp. High Yield MSCI World Ex US NASDAQ Composite Tamarack Prime MM (30 day ave.) 19.79% 18.00% 17.82% 24.34% 27.69% -1.89% 3.79% 14.66% 24.90% 0.07%

*The indices returns do not take into consideration any fees associated with purchasing or holding market securities inside a brokerage or VA contract. Fees would exist if purchasing and would in hand bring down the respective returns. These indices are a point of reference and may not be suitable for your portfolio or even as a comparison to your risk tolerance.

Disclosures for Creative Financial Designs, Inc.


Model Portfolios Portfolios are allocated pursuant to models determined by Creative Financial Designs, Inc., (Designs) which is solely responsible for the content of each model, and the selection of specific investments within the confines of each asset class and model. Designs has discretion to change the model at any time, and will make changes to the model based on current or anticipated market conditions, as deemed appropriate. Variances Among Accounts Each model is merely a guideline, and there may be some variance between investment holdings, and therefore returns, in any particular account versus the model allocation. Additionally, there may be some differing holdings among customers investing in the same investment model portfolio. Some of these differing holdings are the result of limited investment options, such as would be the case in self-directed company retirement accounts, and/or managed variable annuity accounts. Additional variances could arise due to such things as, without limitation: programmed reallocations by an issuer, pursuant to particular product terms and conditions, or based on special requests by the client, timing issues, i.e. investors purchase a fund that subsequently is no longer available for new purchasers, so later investors invest in a comparable (though not identical) investment, size of an investment account, and the fact that transactional charges may make a reallocation disadvantageous to a particular client, or due to the investment strategy which the client has selected. Reported Returns Actual and Hypothetical Investment returns reported for a model portfolio since 1999 are based on a sampling of actual client account returns. Investment returns reported for a model portfolio prior to 1999 are hypothetical, utilizing indices that represent the appropriate investment categories for diversification purposes. Any aggregate returns are calculated based on actual and hypothetical returns. Since the hypothetical returns are generated by using the diversified portfolio indices performance over the time period, it is believed that all material market and economic conditions are portrayed. Investors cannot invest directly in an index. The numbers reported as actual client returns for a given year are an average of actual returns, net of fees and expenses (Designs management fees and internal fund fees), for managed brokerage accounts, and only such accounts that have been retained throughout the given year (i.e. not opened or closed within the reporting year), and do not have any new deposits or withdrawals among the activity in the account. Certain anomalous accounts may also be omitted in the reported figures. The returns do not include managed self-directed company retirement accounts or managed variable annuity contracts. The returns reflect the reinvestment of dividends and other earnings. Hypothetical returns are based, in part, on historical returns of certain indices for the applicable time periods. The indices chosen for each model portfolio, and the percentages of each index, were designed to reflect the particular model portfolio allocation based on comparable models created by Ibbotson Associates, Inc. a wholly owned subsidiary of Morningstar, Inc. Those returns do not reflect the results that would be expected based on this historical data and the current allocations in the model portfolios. These calculated returns reflect the historical figures, and not actual investment results, and are reduced by hypothetical fees and expenses of 1.5% annually. Certain investments managed by Designs have surrender charges that may be incurred upon withdrawal of funds, or fees which are not consistent with the fees and expenses in managed brokerage accounts. Actual returns for such accounts do not reflect those fees, expenses and charges, which would reduce the returns realized by persons making early withdrawals from such products. Returns do not take tax considerations into effect, which will affect the returns and the level of profitability of an account over time. Designs does not provide legal or tax advice. Reported returns are historical in nature, and past performance is not indicative or future results. Mutual funds, ETFs, and variable annuity products pay management fees to professional investment managers, which fees are separate and in addition to the management fees of Creative Financial Designs, Inc. The professional management fees paid by such investment vehicles are born by investors and reduce the net asset value, and therefore the returns, of the respective fund shares. Affiliation with CFD Investments Designs is owned and controlled by several persons who also have financial interests in cfd Investments, Inc. (CFD), a registered broker/dealer, member FINRA and SIPC. Designs is also co-located with CFD, and several persons associated with CFD are also associated with Designs. When appropriate, assets of clients managed by Designs will be maintained in brokerage accounts established at CFD. Affiliations among CFC Companies The CFC companies are all co-located in the Creative Financial Center in Kokomo, Indiana. Many of the CFC companies have some correlation of ownership, and some may be considered affiliated entities. No CFC company is owned or controlled by another CFC company.

Providing unique and valuable investment management services that you can trust!
www.creativefinancialdesigns.com
Advisory services are provided through Creative Financial Designs, Inc., Registered Investment Adviser. 2704 South Goyer Road, Kokomo, IN 46902 765.453.9600