Compass EMP U.S. Discovery 500 Enhanced Volatility Weighted Index ETF A U.S. Small Cap Stock Fund with Downside Hedging Abilities As of June 30, 2014 CSF Redefining Indexing Investment Philosophy Compass EMP believes combining a fundamental criteria with individual security risk control through volatility weighting and downside hedging can improve the investor’s ability to outperform both traditional indexes as well as active investment portfolios over the long-term. Overview >> The Fund is designed to track the performance of the CEMP U.S. Small Cap 500 Long/Cash Volatility Weighted Index before expenses >> The Index represents the broad U.S. Small Cap stock market, and is designed to hedge downside risk potential Investment Strategy 1. The Index universe begins with all publicly traded stocks domiciled in the United States that have a market capitalization of less than $3 Billion then screens for all companies with consistent net positive earnings for four consecutive quarters. Index Sector Weightings* Financials 24.3% Industrials 19.4% Information Technology 15.4% Consumer Discretionary 15.1% Health Care 7.4% Materials 5.8% Utilities 5.1% Energy 3.5% Consumer Staples 3.3% Telecom Services 0.8% *Source: Global Industry Classification Standard Percentages are rounded up to the nearest tenth of a percent. 2. The Index identifies up to the 500 largest U.S. stocks below $3 Billion in market capitalization. Index Characteristics* 3. The remaining 500 stocks are weighted based on their daily standard deviation (volatility) over the last 180 trading days compared to the aggregate mean. The Index is reconstituted every March and September. Number of Holdings 497 Average Market Capitalization $1.7B P/E Ratio 19.9 Long/Cash Strategy A. Exit Strategy: Based on the month-end price of the CEMP U.S. Small Cap 500 Volatility Weighted Index, the Index will liquidate 75% of the securities if the Index has declined -10% from its daily highest value (DHV). Gross Dividend Yield 1.51% B. Reinvestment Strategy: Based on the month-end price, if the Index increases back to or above the -10% decline from its DHV, all securities will be reinvested. The Index would then be fully invested. Fund Facts • If the Index declines -20% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 50% invested. • If the Index declines -30% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 75% invested.. • If the Index declines -40% from its DHV, 25% will be reinvested back into the Index. The Index would then be approximately 100% invested. *Only if fully invested. Ticker Symbol CSF CUSIP Number 20452Y 825 Primary Listing NASDAQ Fund Highlights >> May be suitable for investors seeking small cap exposure while hedging downside risk without sacrificing upside return potential. The Fund seeks to achieve higher risk adjusted returns compared to traditional indexes as well as active investment portfolios over the long term. Available dividends will be paid quarterly Management/Advisor >> Compass Efficient Model Portfolios, LLC (Compass EMP) was established in 1996 and is an SEC registered investment advisor. The SEC does not approve or disapprove of any securities. >> Team Managed: Stephen M. Hammers, CIMA®; Daniel S. Banaszak, CFA®; David S. Hallum; David J. Moore, CFP® Compass EMP Funds 866-376-7890 www.CompassEMPETF.com Compass EMP U.S. Discovery 500 Enhanced Volatility Weighted Index ETF A U.S. Small Cap Stock Fund with Downside Hedging Abilities As of June 30, 2014 Redefining Indexing Top 10 Holdings Market Cap. Gross Exp. (est.) 0.84% Net Expenses 0.68% Bottom 10 Holdings Weighting* The advisor has contractually agreed to waive fees and/or reimburse expenses to the net expense cap through 10/31/2015. Market Cap. Weighting* Cleco Corp $3.6B 0.44% Liquidity Services Inc. $0.5B 0.06% Empire District Electric $1.1B 0.42% Natural Grocers $0.5B 0.06% Avista Corp. $2.0B 0.41% Francesca’s Holdings $0.6B 0.07% Capitol Federal Financial $1.7B 0.40% CalAmp Corp. $0.8B 0.07% NorthWestern Corp. $2.0B 0.40% Taser International Inc. $0.7B 0.07% Umpqua Holdings Corp. $3.9B 0.40% Anika Therapeutics Inc. $0.7B 0.08% Fifth Street Finance Corp. $1.4B 0.38% Methode Electronics Inc. $1.4B 0.08% PacWest Bancorp $4.4B 0.37% Weight Watchers Intl. $1.1B 0.08% ALLETE Inc. $2.2B 0.37% Krispy Kreme Doughnuts $1.0B 0.08% Amkor Technology Inc. $2.6B 0.36% WageWorks Inc. $1.7B 0.09% *Index Holdings are rounded up to the nearest 100th of a percent as of 6/30/14. (Holdings and sector allocations are subject to change and should not be considered investment advice.) Annualized Rate of Return Compass EMP U.S. Discovery 500 Enhanced Volatility Weighted Index ETF Net Asset Value (NAV) Closing Market Price QTR YTD 1 Yr 5 Yr Inception - - - - - - - - - - - - - - - - - - - - Indexes for Comparison CEMP U.S. Small Cap 500 Long/Cash Volatility Weighted Index Russell 2000 Index The Fund inception is August 1, 2014. Performance figures will be available after 9/30/14. Performance represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate with changing market conditions so that when redeemed, shares may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance to the most recent month-end please call the Fund, toll free at 1-866-376-7890. Investing involves risk including the potential loss of principal. Past performance does not guarantee future results. Strategies intended to hedge risk may be partly or wholly unsuccessful. The ETF has the same risks as the underlying securities traded on the exchange throughout the day. Redemptions are limited and often commissions are charged on each trade, and ETFs may trade at a premium or discount to their net asset value. The ETF may invest, directly or indirectly, in “junk bonds”. Such securities are speculative investments that carry greater risks than higher quality debt securities. In general the price of a fixed income security falls when interest rates rise. Investing in medium cap companies involves additional risks such as limited liquidity and greater volatility than large companies. The ETF is not actively managed and may be affected by a general decline in market segments related to the index. The ETF invests in securities included in, or representative of securities included in, the index, regardless of their investment merits. The performance of the ETF may diverge from that of the Index. Standard Deviation is applied to the annual rate of return of an investment to measure the investment’s volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected volatility. Price-Earnings (P/E) Ratio is a valuation ratio of a company’s current share price compared to its per-share earnings. Dividend Yield is a financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gain, the dividend yield is the return on investment for a stock. 30-Day SEC Yield (standardized yield), developed by the Security and Exchange Commission (SEC), is based on the most recent 30-day period covered by the fund’s filings with the SEC. It reflects the dividends and interest earned during the period, after the deduction of the fund’s expenses. The CEMP U.S. Small Cap 500 Volatility Weighted Index consists of 500 of the largest U.S. small cap stocks $3 Billion or less with consistent positive earnings and with an equal weighting of risk among all 500 stocks. The CEMP U.S. Small Cap 500 Long/Cash Volatility Weighted Index is based on the daily price of CEMP U.S. Small Cap 500 Volatility Weighted Index. If the underlying index declines from its daily highest value, the CEMP U.S. Small Cap 500 Long/Cash Volatility Weighted Index will follow a predefined hedging and dollar cost averaging schedule based on the size of the decline of the underlying index. The Russell 2000 Index is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. Indexes are unmanaged statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.+ Please consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. This and other important information about the Compass EMP Funds can be found in the Fund’s current prospectus, which may be obtained by calling your Financial Advisor or shareholder services at 1-866-376-7890. Please read the prospectus carefully before investing. Compass EMP Funds ETFs are distributed by Quasar Distributors, LLC. Compass Efficient Model Portfolios, LLC is the advisor to the Compass EMP Funds. 9711 7/17/14 Compass EMP Funds 866-376-7890 www.CompassEMPETF.com
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