US Style ERC Portfolio Hedged

Description

Performance vs. Benchmark1 Month

Portfolio 1,99%Benchmark 2,76%

As of

Risk & Performance Measures compared to Benchmark

Correlation (1 year*):Beta (1 year*):Information Ratio (1 year*):Treynor Ratio+ (1 year*):

* 1 year: 260 business days; + risk free rate: 0,25% As of

Portfolio Risk

iShares S&P 500 Growth ETF 16,81%iShares S&P 500 Value ETF 16,59%iShares S&P MidCap 400 Growth ETF 16,78%iShares S&P MidCap 400 Value ETF 16,46%iShares S&P SmallCap 600 Growth ETF 16,93%iShares S&P SmallCap 600 Value ETF 16,43%

As of

6,77%

ERC PORTFOLIO

April 29, 2011

Build a portfolio of ETFs on the Value and Growth Indices of the S&P 500, S&P MidCap 400, S&P SmallCap 600, whileevery ETF contributes the same amount of risk to the portfolio volatility and hedge that portfolio with an investment involatility instruments. Over a mid-term to long-term horizon that basket outperformed the SPDR DJ Total Market ETF on anabsolute as well as on a risk adjusted basis.

6 Months* Ytd 1 Year* 3 Years*(p.a.)

since08/10/01

ITD(p.a.)

20,95% 7,15% 15,10% 8,95% 43,21%

Volatility (1 year*): 15,37% 18,34% 0,9484

17,39% 8,94% 16,08% 3,94% 22,52% 3,60%

15,93% -0,16

04/29/2011

Portfolio Benchmark Portfolio

04/29/2011

Disclaimer: This report is for information purposes only. ERC Portfolio UG is not soliciting any subscriber to buy or sell any security. Nothing herein should be construed as an offer to buy or sell securities or to giveindividual advice on investing. Before buying or selling any mutual fund, exchange-traded fund, security, or investment, read the prospectus carefully. For securities held in brokerage accounts, read the broker's specificterms and conditions which apply to trading of the securities. ERC Portfolio UG cannot and does not give any assurance that the present or future model portfolio changes will be profitable. Past performance is not aguarantee for future results. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. ERC Portfolio UG is not responsible for any errors or omissions. ERC PortfolioUG does not accept any liability whatsoever for such use and no claims for any loss or damage arising from the reliance on the information by any party shall be entertained. ERC Portfolio UG neither is associated withnor receives any compensation from any of the mutual fund companies, brokers or entities connected with the exchange-traded funds mentioned in the report. This document speaks only as of the date hereof and issubject to change without notice. This report is being furnished for informational purposes only and on the condition that it will not form the primary form of any investment decision. Each investor must make their owndetermination of the appropriateness of any investment in any security referred herein based on legal, tax and accounting considerations applicable to such investor and investment strategy. By virtue of this report, noemployee or director of ERC Portfolio UGshall be responsible for any investment decision. 2011 ERC Portfolio UG(haftungsbeschrnkt), all rights reserved. This document must not be copied (in whole or in part), distributed (electronicaly or otherwise), printed or otherwise used without ERC Portfolio's priorwritten consent other than for internal use. S&P and Standard and Poor's Indexnames are trademarks of Standard & Poor's, a division of The McGraw-Hill Companies, Inc. iShares is a registered trademark of BlackRockInstitutional Trust Company, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

ERC Portfolio UG (haftungsbeschrnkt) - Geisfelder Strasse 16 - 96050 Bamberg - Germany - info@erc-portfolio.com - www.erc-portfolio.com

* 6 months: 130 business days (bd), 1 year: 260 bd; 3 years: 780bd; From 12/20/05 - 01/28/09: S&P 500 VIX Mid-Term Futures Index TR and from 01/29/09 onwards: iPath S&P 500 VIX Mid-Term Futures ETN

Sharpe Ratio+ (1 year*) : 0,97 0,86 0,1304/29/2011

RiskContribution

Value at Risk (99% / 260 days): -2,37% -3,09% 1,1269Maximum Drawdown (1 year*): 12,46%

40

70

100

130

160

40

70

100

130

160

Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10

US Style ERC Portfolio HedgedSPDR DJ Total Market 2%

4%

6%

8%

18% 21% 24% 27%

Ret

urn

(p.a

.)

Volatility (p.a)

US Style ERC Portfolio HedgedSPDR DJ Total Market