Securities Portfolio Performance as of March 31, 2013

As of March 31, 2013, M1’s securities portfolio was valued at $1,041,926, approximately 21.46% of total assets. The portfolio is comprised of real estate investment trusts allocating 21% in residential, 11% in office and industrial, 2% in healthcare, 26% in mortgage, 30% in retail, 7% in student housing, and 3% in Vanguard REIT.  Our three largest holdings were in the following REITs:  Realty Income, National Retail Properties, Inc. and American Capital Agency Corp.  During the 1Q13, we added to our positions in American Campus Communities, American Capital Agency, Boston Properties, Home Properties, National Retail Properties, and Realty Income.  We reduced our holdings in KB Homes.  We initiated new positions in Crexus (CXS), Healthcare REIT (HCN), Hovnanian (HOV), Newcastle (NCT), Pulte Homes (PHM), PennyMac (PMT), and Two Harbors (TWO). We eliminated our positions in Kimco, Washington REIT, and DR Horton. Our securities portfolio performance during the first quarter was 10.85%; since inception our securities portfolio has returned 23.16%.