Securities Portfolio Performance as of June 30, 2013

As of June 30, 2013, M1’s securities portfolio was valued at $984,222, approximately 15.05% of total assets. The portfolio is comprised of real estate investment trusts allocating 15% in residential, 7% in office and industrial, 5% in healthcare, 24% in mortgage, 33% in retail, 6% in student housing, 4% in shopping centers, and 6% in Vanguard REIT.  Our three largest holdings were in the following REITs:  Realty Income, Annaly Capital, and National Retail Properties, Inc.  During 2Q13, we added to our positions in American Capital Agency, Annaly Capital, Taubman Centers, Healthcare, Realty Income and Vanguard REIT.  We reduced our holdings in Hovnanian and Mack-Cli.  We initiated no new positions. We eliminated our positions in Newcastle, Two Harbors, UDR, Crexus, Toll Brothers, and Pulte Homes. Our securities portfolio performance during the second quarter was -9.70%; since inception our securities portfolio has returned 10.09%.