Peritus HYLD ETF-BUY

HYLDETF HYLD is actively managed value oriented high yield ETF-avoids LBO originated debt Employs risk management strategy Less focus on credit ratings-either AAA or D Disciplined investment process-does business provide a service, generate free cash flow, etc. Managed by Tim Gramatovich CFA and Ron Heller

Income-buys on secondary market at discount to par providing potential capital appreciation Coupon-investing in non-investment grade has higher coupon cash flow yield Issuers-more focused and concentrated than industry norm Duration/Maturity Profile-low duration (3.2 years vs index) HYLD attributes

HYLD NYSE Arca Inception Date 11/30/2010 CUSIP 00768Y503 Current price $51.25 AUM $210,072, Premium/Discount.02 Net Expense Ratio 1.35% FUND BASICS

YTD ETF price

Blackrock Liquidity Temp Fund 3.16% Accrued Income 2.72% Rotech Healthcare $100.50, % Dyncorp Int’l $99.75, % Air Canada $ % Exide Technologies $ % Arch Coal $ % Kinetic Concepts $ % Affinion Group $ % Energy Solutions $ % TOP 10 HOLDINGSas of 3/27/13

Possible Bond Bubble? Bond Outflow, Equity Inflow? High Yield Market still 700bp spread Steady demand for new issuance Leveraged loan market overheated-no covenants, low coupon, etc. Fixed Income Trends

HYLD vs Ten Year Treasury

Strengths Low Yield Environment Strong Corporate Balance Sheets Lower Default Rates Short Duration Greater Liquidity Weaknesses Later in cycle (less potential for returns in mid teens) Management Fee Opportunities Heavy Demand for Issuance $3 trillion in pent up PE demand Threats Disorderly rate increase Recession produces defaults SWOT Analysis

Current low yield environment demands allocation to high yield debt. Active/value style unlocks value in the $1.4 trillion high yield market. Buy 200 shares at market price. Investment Thesis