DAL Investment Company NoLoad FundX FundX Upgrader Funds Janet Brown

1. DAL Investment Company NoLoad FundX FundX Upgrader Funds Janet Brown

2. DAL Investment Company • Money Management since 1969 – $2 million minimum$1.3 Billion aggregate assets under management. • NoLoad FundX Newsletter since 1976 – 13,000 subscribers • Manager of FundX Upgrader Funds since 2001 – $850 million DAL’s proprietary newsletter composed of hypothetical portfolios of investments chosen using the Upgrading strategy. While the funds are no-load, management fees and other expenses still apply. Please refer to the prospectus for further details.

3. Agenda • 40 Years of Following Market Leadership • What has happened in the market and our firm • The Upgrading Strategy Applied • How we build portfolios and manage risk • Relative performance and observations • New Tools and How to Use Them • Why we built them • What we’re working on • Q&A

4. History of Upgrading

5. Accolades

6. What is Upgrading ? • Why Upgrading Works • Current Performance is Key • Many Ways to Upgrade • Common Objections

7. Upgrading An effective, disciplined response to changing market conditions.

8. 15.2% Upgrading Stocks Average Equity Investor Inflation As measured by the S&P 500 Index1 20 Year Performance (Average Annual Returns 1987 – July 2008) Source of chart data: Dalbar, Inc. Quantitative Analysis of Investor Behavior, July 2008 update. QAIB calculates investor returns as the change in assets, after excluding sales, edemptions and exchanges Upgrading ‘s performance per the Hulbert Financial Digest.

9. How Upgrading Works

10. Stay with the Winners • Invest in the funds currently leading the market. • Stay with the winners and Upgrade the laggards.

11. 10 Year Performance

12. Why Upgrading Works Managers Don’t Change. Markets Do. Most managers have a particular investment strategy that performs well in some but not all market environments.

13. Rotation of Market Leadership • Value and Growth investment styles • Small cap and Large cap • International and Domestic

14. Upgrading vs Market Indices

15. International & Domestic

16. Upgrading & Market Changes

17. Upgrading & Market Changes

18. Upgrading Fundamentals • Don’t Forecast. Accept the market’s trends whether or not we understand the reasons for these trends. • Realize the market will change. Stay alert in order to recognize changes in the market environment. • Move incrementally. Rotation generally occurs in fits and starts, and often fails to endure.

22. Monthly Upgrader Portfolio • Core of Class 3 funds • Limited exposure to more volatile funds • Holds funds a minimum of 90 days, often longer • Usually lower turnover

23. Yearly Performance Record

24. Upgrading vs Buy and Hold 2000 through 2008

25. Managing Volatility

26. Flexible Income Strategy ?

28. Setting Expectations • Upgrading only outperforms 55% of the time • Class 3 funds are typically fully invested • The beta (risk) of Upgraded portfolios changes over time • Many individual trades do not add value • Upgrading usually lags in transitions • Upgrading has consistently outperformed through market cycles for long term investors!

29. Market transitions

30. 27+ Year Performance

31. Tax Efficiency of the MUP

32. 2008: Life on the Left Tail Calendar Year Stock Returns (1825-2008) Source: Robert Shiller, FMRCo (MARE) as of 12/31/2008.

33. Recovery Times

34. Basic Choices Assets Stocks Commodities Real Estate Debt Bonds Preferred Stocks Cash

35. Average Annual Return Ending Value S&P 500 9.6% $2,023.72 Bonds 5.5% $83.81 Cash 3.7% $20.50 U.S. Inflation 3.1% $12.17 Investing in Cash Not A Compelling Long-Term Strategy Value of $1 Invested (1925-2008) 2008 Source: Ibbotson, FMRCo (MARE) as of 11/30/2008. Figures assume reinvestment of capital gains and dividends, but does not reflect sales charges or taxes, which would lower these figures. Past performance is no guarantee of future results. You cannot invest directly in an index. See footnotes for important index definitions. Cash – Ibbotson Associates SBBI 30 Day TBill Total Return Index; Inflation – Ibbotson Associates SBBI U.S. Inflation; Bonds – MARE Custom Bond Index (see footnotes page for details.)

36. What We Know • Limited Investment Options • Current Yields of Bonds and Cash • Recent Stock Market Returns • Current Stock Valuations

37. 2009: S&P500 Index YTD

38. What We Don’t Know • Future Inflation • When Interest Rates will Go Up • Will the Stock Market Bottom? • - When and at What Level

39. 3 Year Investment (1925-2008)

40. 10 Year Investment (1925-2008)

41. 20 Year Investment (1925-2008)

43. Allocation Changes Over Time Years 1-2 Years 3-7 Years 8-12 Years 13-17 Years 18-25 Year 1 Year 25 Cash Bonds Stocks

44. Allocation Changes Over Time 2032-2034 2024 2014 2009 2034 2034 2034 2030 2034 50% 30% 20% 8% 24% 68% 10% 30% 60% 20% 42% 38% 100% 0% 0% Cash Bonds Stocks

45. Risk Classification and Portfolio Construction /Management Current High Ranking Funds Portfolio Weight

46. Risk Spectrum (Mutual Funds) Concentrated and Leveraged Funds Aggressive Growth Funds Risk Growth Funds Balanced Funds Fixed Income Money Market Expected Return

47. Risk Spectrum (NoLoad Fund*X) Class 1 Class 2 Risk MUP Class 3 Class 4 MFIP Class 5 Money Market Expected Return

48. Risk Spectrum (Upgrader Funds) STOCX HOTFX/UNBOX TACTX FUNDX/REMIX Risk RELAX INCMX Expected Return

49. Upgrading Applied to ETFs

50. Decisions Tempting, but most investors lack the tools, discipline and knowledge Often leads to disappointment… many “timers” are really “avoiders”