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7Customer SpotlightChuck Martin, Chief Investment Officer, FFCM, LLCChuck Martin and his partners at FFCM have always sought to employ disciplined, rules-based investment strategies based on well-researched approaches that would stand the test of time. When they saw a unique opportunity to provide investors with rules-based strategies designed to have improved transparency and enhanced liquidity, they jumped at the chance. The idea was to create ETFs constructed around the rules-based approaches on which they had always relied. The basis for the funds would be market- and sector-neutral indexes that tracked their strategies.In mid-2011, Chuck founded FFCM, LLC, along with Bill DeRoche and Kishore Karunakaran. In September of that year, FFCM licensed the seven indexes that Dow Jones Indexes had built to track its strategies to serve as the basis of ETFs. Collectively, the indexes were named the Dow Jones U.S. Thematic Market Neutral IndexesSM. "We worked with Dow Jones Indexes to have them develop the index series-with the end goal of FFCM offering ETFs that allow investors to access these familiar strategies through a rules-based approach in a more transparent, liquid and cost-effective manner," he explains. "My partners and I had used similar strategies and methods throughout our careers, in particular market-neutral investing. Because they are rules-based, there is no guesswork to these strategies. The opportunity to license indexes based on these successful strategies made a ton of sense."The indexes in this series are designed to reflect the performance of long/short strategies. They are intended to be both market and sector neutral in order to minimize the effects of the market and industries, revealing the essential themes on which the strategies are based-value, small size, quality, momentum and beta."Indexes like these appeal to us because they provide a means for us to measure these sophisticated strategies in a clear, transparent and easy-to-understand manner," Chuck said.Intelligent indexesChuck says that amid turbulent markets, his clients have one overriding concern: risk. They want buffers against "the twists and turns" that the market offers up with increasing frequency. "The beauty of these indexes is that they are designed to measure performance of strategies that are uncorrelated to the market," he continues. "An index such as the Dow Jones U.S. Thematic Market Neutral Value Index may reflect performance that is different from the greater market. You're attempting to sever the connection between the market and index performance."When asked about FFCM's relationship with Dow Jones Indexes, Chuck responds: "They're very collaborative. I think that might be a reason that we like working with Dow Jones Indexes so much. They're open to our ideas and their construction is really second to none. And their size and reputation were really key in our decision to work with them."Chuck thinks that investors are coming to appreciate that indexes such as those in this series provide an "intelligent" means of tracking sophisticated investment strategies. For more information on the Dow Jones U.S. Thematic Market Neutral IndexSM, visit: >> MartinChief Investment Officer FFCM, LLC

8Ralph Vince and Richard Wilkie are a team. That is abundantly clear to anyone who listens to them speak or make a presentation. They defer to each other and finish one another's sentences. And they both feel that they have developed an investment philosophy that could change the way people look at asset management.Ralph is president and Richard is secretary and treasurer of LSP Partners LLC. Their innovative leveraged space portfolio (LSP) is a unique strategy designed to maximize the probability of equity portfolio profitability by using a risk-control-based design. Though they view it as a "conservative" method, it differs from a traditional buy-and-hold approach in that it seeks to earn more consistent returns with a corresponding lower risk. It uses cash to support the strategy when the stock market is going up, and to hedge when the market is going down.The author of five books with titles that include The Mathematics of Money Management and Portfolio Management Formulas, Ralph has spent his life trying to figure out ways to enhance investment returns using math. Richard sought him out after using Ralph's model to great success in his own portfolio.LSP Partners recently teamed up with Dow Jones Indexes to develop the Dow Jones LSP Position Sizing Indexes, which are designed to be a rules-based application of their LSP strategy. The first index in the series launched in January. Ralph and Richard have been traveling the country ever since, meeting with portfolio managers and exchange traded fund (ETF) providers, explaining the benefits of a rules-based approach to investing. They recently came to visit Dow Jones Indexes in Princeton, N.J., to give a presentation to its employees. In between meetings, they sat down to discuss the strategy behind the indexes.Ralph: I'm a math guy at heart. I've worked with many, many types of people who are interested in risk, from Wall Street traders to professional gamblers. The one thing that I tell everyone is: The only factor you can control in a situation like the stock market is quantity; in other words, the amount that you're willing to put in. Each investor controls how much of his money is being invested and how much isn't. That's what lies at the heart of LSP and is the model that forms the basis of the new Dow Jones LSP Position Sizing Indexes.Richard: We always have to explain to people that we're not traders. LSP is a rules-based sizing overlay. There's no prediction involved, and we don't do timing. It's probability theory. It's an attempt to improve the probability that we'll get a better return than by stock picking or random sampling. Ralph: What makes our LSP strategy different is how funds are moved from cash to equities. We initially use less than 50% of cash in stock positions. The rest is in cash. This way, we have additional cash available should equities become more attractive.Partner ProfileLSP Partners LLCRalph VincePresident, LSP Partners LLCRichard WilkieSecretary and Treasurer, LSP Partners LLC