WCM 1/1/08 thru 9/18/09 Performance

NOTE: All Working Capital model (WCM) results are net of all brokerage fees, commissions, and charges (i.e. all commissions and fees have been deducted). Nearly all figures are also net of Investment Management fees, which are deducted from accounts quarterly, in arrears, for all but a handful of clients. The maximum fee for any of these clients would be 1.1% per year. It is (in my opinion) unlikely that their results, if adjusted, would have a significant impact on the WCM numbers. The footnotes below include important disclosures that you should be aware of. I am certain that there are managers and indices (not reported here) that did better (and worse) than the reported numbers.

The information contained herein has been obtained from sources believed to be reliable but the accuracy of the information cannot be guaranteed.

2008 Index values are determined by subtracting the 2008 loss % from 100. The 2008 index number is multiplied by the 2009 per cent gain through September 18th to arrive at the total figure for 1/1/08 thru 9/18/09.

General Footnotes and Disclosures:

(1) Information for 2008 provided by LMK Wealth Management from Quarterly Performance Reports prepared by Mid Atlantic Capital. WCM Adds/Subs column figures are also from the MACC Reports. Note that Mid Atlantic Capital is the sole Broker Dealer used by Sanco Services and that LMK Wealth Management is the sole independent broker employed by Sanco Services. The reasons that Sanco Services maintains this relationship with LMK in this manner are outlined in the Sanco ADV II, Schedule F. This disclosure document is available to you upon request.

(2) Figures presented are for all Sanco Services accounts active as of December 31, 2008. 2009 figures are unaudited or reviewed and were prepared by of December 31, 2008. Sanco Services personnel. Family accounts and one other were excluded from the data because of questionable data.

(3) WCM accounts normally contain both equity and income securities. Most income securities are held in the form of managed Closed End Funds. The WCM numbers include the performance of taxable and tax free income CEFs.

(4) The separate "Spreadsheet Disclaimers" for the detailed analyses of accounts applies to the information in this spreadsheet as well.

(5) A separate Disclosure & Glossary of terms is available for the MACC Performance Reports but the reports themselves are client specific, confidential, and not provided.

(6) The information contained in this spreadsheet is for information only and there is no intended implication that other funds or managers didn't have better performance during the time period.

(7) Figures for the DJIA and S & P were taken from public sources; figures for the three mutual funds reported are taken from Streetscape and Morningstar historical data.

(8) The funds selected were picked because they are the 2005 thru 2007 winners of the Morningstar "Fund Manager of the Year" designation. ear" designation. The LMVTX fund is included because fund manager Bill Miller received the manager of the of the year award in 2006 for his outstanding value fund performance.

(9) This document is provided for the information only of the individual to whom it was sent. It is not to be redistributed, copied, or disseminated in any way or in any medium under any circumstances.

(10) The figures presented here are provided as an illustration of relative performance for this period of time only. Nothing should be presumed with respect to any past or future time period, overlapping with this one or not.

Clover Capital Rule Disclosures:

(1) Economic and market conditions were among the worst in modern history during 2008. These conditions may have seriously impacted the performance of all market measures and participants presented here. Conditions in both areas improved significantly subsequent to earlt March 2009.

(2) All WCM account are Sanco Services clients, and results are net of all brokerage fees, commissions, and charges Nearly all figures are also net of Investment Management fees, which are deducted from accounts quarterly, in arrears, for all but a handful of clients.

(3) All dividends, interest, capital gains, and capital losses are included in the WCM figures. The WCM methodology requires that only income paying securities are included in client portfolios, and the methodology also emphasizes targeted profit taking. In 2008, market conditions dictated that smaller than normal profits be taken whenever they were available. Major losses taken on bankrupted entities (Lehman, Wash Mutual, Indymac) and to fund client disbursements are also included. The income requirement and profit-taking discipline absolutely enhanced the WCM performance numbers---in my opinion.

(4) As with all investment styles, the WCM approach can produce both profits and losses, dependent on market conditions and other factors that may or may not exist during any reporting period.

(5) The WCM results are "live" presentations of nearly all client accounts under management on both 2008 dates included in this Summary spreadsheet. The 2009 numbers are from the portfolios included in the separate Peak to Peak performance spreadsheet.

(6) The WCM portfolios are mostly "mixed" or "balanced" portfolios with varying percentages of income Closed End Funds.

(7) Mathematically, I believe that excluding the closed end fund figures would have would have improved the performance figures for the 2008 presentation, making them less negative. In 2009 thru September 18th, I'm thinking that their inclusion had no impact them less negative all, in either direction. The indices included in the Summary Table, to my knowledge, include no income CEFs at all.

(6) Sanco Services is the only qualified and approved user of the investment methodology referred to as The Working Capital Model. It was created and developed by the company's principal, Steve Selengut, and has evolved to its present state over the past thirty + years. I do not believe that a similar approach was used by any of theother entities whose numbers are included in the Summary Table. This investment methodology has remained the same in principle and in practice for many years.