1. ETF Panel Discussion Introduction July 23, 2009 July 23, 2009By John A. Twele, CFA, President & CEO Twele Capital Management, Inc.

2. 5/15/2015 Twele Capital Management, Inc. 2 Our Company Twele Capital Management, Inc. is a Minnesota-based, SEC Registered Investment Advisor (RIA), founded in 2004, providing specialized portfolio management services to individuals, charities, foundations, Taft-Hartley funds and institutional clients. The company is a fee-based advisor specializing in Exchange Traded Fund asset allocation strategies. Our mission is to help clients accumulate assets utilizing well- proven financial practices that emphasize diversification, risk controls and low costs/expenses.

3. Twele Capital Management, Inc. Assets Under Management (AUM) *as of 6/30/09 3 employees - home offices. Client service and referral agreement with Professional Connections, LLC. 34 clients, 4 institutional. Typical portfolios contain 12 – 15 ETF’s. No individual securities – ETF- only. Maximum equity weight: 75%. Fees: 40 to 80 bps. Detailed IPS – required. Turnover: ~5% - 8% annual. 5/15/2015 Twele Capital Management, Inc. 3

4. 5 year performance record. Three composites: Moderate Income, Moderate Growth and Aggressive Growth. $500,000 Minimum. Charles Schwab Custodian for all accounts. Strategic asset allocation, no tactical allocations or market timing. Rebalancing after significant market events, or to invest income and cash flows. Maintain approved ranges for all asset classes. 5/15/2015 Twele Capital Management, Inc. 4 Composite Total (Gross) Return Period ended 6.30.2009 Composite YTD1Year 3 Year*5 Year* Moderate Income6.35%-16.79%-11.04%6.33% Moderate Growth4.06%-16.59%-9.65%9.83% Aggressive Growth9.62%-20.84%-8.22% N/A S&P 5003.17%-26.21%-22.68%-10.72% * Time-Weighted Total Returns, not annualized. Note: See disclaimer and composite descriptions on final page of this presentation.

5. 5/15/2015 Twele Capital Management, Inc. 5 ETF’s & The Prudent Investor Act “ETFs are dream vehicles for fiduciary investors. Certain funds tend to be extraordinarily well-diversified within the particular asset class each represents. Moreover, the range of ETF asset classes facilitates that dimension of diversification as well. The large variety of ETFs allows a trustee or other investor to tailor asset allocation to the needs of each account with exceptional precision. ETFs have been particularly important in facilitating the internationalization of fiduciary portfolios. Other advantages of ETFs include their tax efficiency, pricing transparency, their greater variety, and the economies of scale that can inhere in their greater size. Moreover, the expense ratios of ETFs have clustered at the low end by comparison with many competing types of investments. That’s a fairly impressive set of achievements for fiduciary investors”. “ETFs are dream vehicles for fiduciary investors. Certain funds tend to be extraordinarily well-diversified within the particular asset class each represents. Moreover, the range of ETF asset classes facilitates that dimension of diversification as well. The large variety of ETFs allows a trustee or other investor to tailor asset allocation to the needs of each account with exceptional precision. ETFs have been particularly important in facilitating the internationalization of fiduciary portfolios. Other advantages of ETFs include their tax efficiency, pricing transparency, their greater variety, and the economies of scale that can inhere in their greater size. Moreover, the expense ratios of ETFs have clustered at the low end by comparison with many competing types of investments. That’s a fairly impressive set of achievements for fiduciary investors”. John Langbien, Sterling Professor of Law at Yale University, principal drafter of the Uniform Prudent Investor Act of 1994. Article: Inside the Prudent Investor Act. Source: BGI John Langbien, Sterling Professor of Law at Yale University, principal drafter of the Uniform Prudent Investor Act of 1994. Article: Inside the Prudent Investor Act. Source: BGI

6. ETF’s offer very efficient access to capital markets 5/15/2015 Twele Capital Management, Inc. 6  ETFs are the most efficient, predictable and safest way for fiduciaries to discharge their responsibilities.  Carefully constructed asset allocations using ETFs that are “actively” rebalanced achieve “alpha-like” results.  No Fiduciary has ever been sued over assets held in index funds.  ETFs are priced continuously and are completely transparent – index mutual funds are opaque, realize costly capital gains distributions and receive end-of day pricing.  Index ETFs have no 12b-1 fees, hidden expenses or conflicts of interest and can be bought using limit orders – we choose the price we pay.

7. Other Benefits of ETF Portfolios… 5/15/2015 Twele Capital Management, Inc. 7  Complete transparency: no stale prices and no need to externally verify asset values.  Eliminates the need for costly proxy voting services.  Dramatically reduces annual audit expenses – a dozen ETFs versus thousands of securities and manager transactions.  Simplified reporting: no need for multiple custodians or slow, cumbersome third party reports, such as mutual fund statements.  Top quartile performance against active managers – in recent years, top decile performance.

8. Disclaimer and Notes Notes: Twele Capital Management, Inc., has suspended its claim of compliance with the Global Investment Performance Standards (GIPS®) as of September 30, 2008. Twele Capital Management, Inc., is an independent investment management firm incorporated in Minnesota and established in 2004. Twele Capital Management manages a variety of low-cost, well-diversified portfolios primarily utilizing Exchange Traded Funds (ETF’s) for institutional and individual clients. Additional information regarding the firm's policies and procedures for calculating and reporting performance returns is available upon request. Results are calculated in U.S. dollars on a cash basis. All returns include dividends, interest, unrealized and realized capital gains - total return approach. Current annual investment advisory fees are as follows: Assets less than $5.0 million, 0.80%; assets greater than $5.0 million, but less than $10.0 million, 0.60%; and assets above $10.0 million, 0.50%. Fees are calculated in arrears and deducted quarterly. Fees are negotiable. Composite Construction Rules: Composites include all accounts after the completion of their first full quarter, as follows: At least 60% of the equity assets are invested as per the client's Investment Policy Statement (IPS) for the full period. The account does not include non-model, non-discretionary equity investments exceeding 5% of initial portfolio assets at the time of account inception. Institutional accounts with quarter-end inception dates are allowed a grace period of 5 business days to comply with the 60% equity invested rule. Composite inclusion is based upon the percentage of assets allocated to equities as follows: Moderate Income Accounts = less than 60% equities (compare to the Conservative Benchmark) Moderate Growth Accounts = 60% or more equities, but less than 70% (Compare to the Moderate Benchmark). Aggressive Growth Accounts = 70% or more equities (Compare to the Aggressive Benchmark). Separate Intervals are calculated to account for significant cash flows comprising 10% or more of a portfolio. Reference Benchmarks do not include fees of any kind and represent simple reference index portfolios, as follows: Conservative Simple Benchmark = 30% Dow Jones Total Market Index, 10% MSCI EAFE Index, 45% Lehman Aggregate Bond Index and 15% Goldman Sachs Corp. Bond Index. Moderate Simple Benchmark = 50% Dow Jones Total Market Index, 10% MSCI EAFE Index, 30% Lehman Aggregate Bond Index and 10% Goldman Sachs Corp. Bond Index Aggressive Simple Benchmark = 50% Dow Jones Total Market Index, 5% MSCI EAFE Index, 5% MSCI Emerging Market Index, 20% Russell 3000 Growth Index, 10% Lehman Aggregate Bond Index and 10% Goldman Sachs Corp. Bond Index. Please note: you could lose money with this investment. Past performance is no guarantee of future results. Indexes are not available for investment. Individual account performance may be greater than or less than the performance of the composite. 5/15/2015 Twele Capital Management, Inc. 8