Patton Fund Management, Inc. is a Registered Investment Advisor (RIA) with the U.S. Securities and Exchange Commission (SEC).

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IMPORTANT NOTICE: INFORMATION ABOUT PAST PERFORMANCE

Not indicative of future returns. Past performance is not indicative of future returns, which may vary. Accordingly, future returns are not guaranteed and there can be no assurance that any Patton Fund, Strategy, or Portfolio (“Patton Investments”) will achieve comparable investment results or its investment objective. You may lose money on your investment in a Patton Investment.

Strategy Developed based on Back-testing. The investment strategies used by the Manager were developed, in part, by back-testing its investment program against past market and economic conditions.  In other words, the strategies were designed to succeed based on knowledge of events that occurred in the past.  One limitation of such a strategy is that it is inherently focused on the past, and cannot necessarily take account of market and economic conditions that may arise in the future.  If future market and economic conditions are different from past market and economic conditions, and if investors behave differently from past investors, the Manager’s investment strategies may not work as anticipated and the Strategy, Fund, or any Patton Investments, may lose money.

Fees and Distributions. The performance information shown reflects the deduction of actual expenses of the applicable Patton Investment for periods during which the Patton Investment has been in operation (see below). The performance figures shown reflect the reinvestment of all dividends, interest and other income, and assume that the applicable Patton Investment has not made any distributions to investors.  Estimated fees and expenses including brokerage commissions, borrowing costs, and advisory fees, have been deducted from all back-tested performance.

Portfolio Characteristics. Portfolio characteristics, including specific holdings, contributors to performance, and country, sector and industry exposure, are shown as of the date indicated only, and are subject to change without notice. Portfolio characteristics are designed to illustrate the application of the Patton Investments’ investment style only, and should not be considered a recommendation.

Third Party Information. Information contained herein is based on data obtained from statistical services, company reports or communications, or other sources. Patton Fund Management believes these sources to be reliable. However, we have not verified this information, and we make no representations whatsoever as to its accuracy or completeness.

IMPORTANT NOTICE: INFORMATION ABOUT BACK-TESTED PAST PERFORMANCE

Performance results may be presented that pre-dates the commencement of operations of a Patton Investment Strategy. Because the Patton Investment Strategy was not in operation during certain periods shown, the performance information prior to the date the Patton Investment Strategy commenced operations is back-tested performance (sometimes referred to as hypothetical performance).

Patton Investment Strategies Inception Dates (first full month)

• Patton 45: April 2001 (not open to new investors)
• Patton Edge Strategy: February 2010
• Patton Flex Strategy: February 2010
• Audacity Strategy: April 2020

There are several important factors to consider when reviewing back-tested, or hypothetical, performance information:

Back-tested Performance is Hypothetical. The performance information shown for the Patton Investment Strategy you select includes performance information that is hypothetical, and is not real. As such, the back-tested portion of the performance presentation does not represent the investment performance or the actual Patton Investment or any investors in the Patton Investment. The securities in these hypothetical portfolios were selected with the full benefit of hindsight, after their performance over the period shown was known. It is not likely that similar results could be achieved in the future.  The back-tested results may not reflect the impact that any material market or economic factors might have had on the results if the strategy had been used during the period to actually manage client assets. The hypothetical portfolios presented here are purely illustrative, and representative only of a small sample of possible future scenarios.

Back-testing is Subject to Limitations. While it is believed that back-tested performance information presented is relevant to evaluating an investment in the Patton Investment Strategy, no representation is or could be made that the information presents what the performance results would have been in the past or are likely to be in the future. There are frequently sharp differences between hypothetical performance results and actual performance results subsequently achieved. One limitation of hypothetical performance is that it is generally prepared with the benefit of hindsight. In addition, no hypothetical track record can completely account for the impact of financial risk in actual trading. For example, back-factors that affect markets in general, the impact of fees and expenses, market liquidity and other factors may all have affected actual performance.

Actual Investor Experience Varies. The back-tested results are not indicative of the skill of the Manager. For example, each Patton Investment Strategy began trading on the date indicated above. Back-tested performance shown for each Patton Investment Strategies reflects hypothetical performance determined using the current investment strategy of the applicable Patton Investment Strategy. However, the Manger has been managing money using quantitative strategies since 2001.  During this period the Manager has experienced periods of poor performance and the Manager has closed other Patton Investment Strategies that it has managed as a result of poor performance.  Investors in some of the Manager’s closed funds and investment strategies have lost money.

Back-testing Period.  During the back-tested period, Patton was either not providing investment advice or was not providing investment advice according to the Strategy used to calculate the back-tested results.

Indices. The historical performance of various indices, such as the S&P 500 Index, may be included. An index is an unmanaged, broad-based market index and investing in any Patton Investment Strategy is not similar to investing in an index. An index is not available for direct investment, and the securities in an index will not match the Strategy's holdings. In addition, unlike an index, the Strategy's performance will be affected by fees and expenses.

Forward-looking Statements. Any forward-looking statements represent the subjective views of Patton and their validity may be affected by events and conditions not now contemplated and by other factors, many of which may be beyond the Manager's control. Actual results may vary and such variations may be material, and no representation or warranty is made regarding any forward-looking information contained herein.

Patton Edge Strategy Actual Results. Performance results for February 2010 forward represents a dollar-weighted average of all accounts utilizing this strategy.  The net return is the gross return reduced by 1/12 of 2.0% monthly.

Patton Edge Performance Statistics.

2010/01/312010/12/31 8.39 8.66 8.86 2 4 1352057 0.272010/12/312011/12/31 8.75 9.80 9.53 3 8 1692849 1.052011/12/312012/12/31 9.54 11.39 11.26 5 8 1683360 1.842012/12/312013/12/31 25.07 29.10 27.11 6 11 2236018 4.032013/12/312014/12/31 10.09 13.35 11.93 8 14 1188751 3.262014/12/312015/12/31 5.24 7.69 5.29 13 19 1656695 2.452015/12/312016/12/31-10.44 -6.88 -8.24 15 28 2558861 3.552016/12/312017/12/31 13.12 18.83 16.64 23 31 2675077 5.702017/12/312018/12/31 -6.11 -3.65 -4.77 14 18 994749 2.472018/12/312019/12/31 12.75 16.12 15.30 14 14 841753 3.372019/12/312020/12/31 -3.20 6.32 -0.88 12 12 573402 9.52

Patton Flex Strategy Actual Results. Performance results for February 2010 forward represents a dollar-weighted average of all accounts utilizing this strategy.  The net return is the gross return reduced by 1/12 of 1.5% monthly.  A performance-based fee structure is charged to some investors utilizing the Patton Flex Strategy that could result in higher fees than 1/12 of 1.5% annually.

Patton Flex Performance Statistics.

2010/01/312010/12/31 13.85 13.85 13.85 1 1 1142400 0.002010/12/312011/12/31 22.48 22.48 22.48 1 1 1739954 0.002011/12/312012/12/31 34.24 34.24 34.24 1 1 3114146 0.002012/12/312013/12/31 68.92 68.92 68.92 1 1 5074023 0.002013/12/312014/12/31 22.43 22.43 22.43 1 1 11795198 0.002014/12/312015/12/31 25.79 25.79 25.79 1 1 24493849 0.002015/12/312016/12/31 -7.79 -7.79 -7.66 1 6 31760857 0.002016/12/312017/12/31 35.61 40.30 40.16 4 16 54716935 4.692017/12/312018/12/31-17.05-13.56-13.95 15 42 61359349 3.492018/12/312019/12/31 11.82 18.16 17.73 29 45 79211769 6.342019/12/312020/12/31 -7.39 -1.89 -2.69 36 47 74874709 5.50

"n/a" - Not statistically meaningful due to insufficient number of months.

Dispersion: Performance dispersion is calculated annually.  Portfolios are only included that were in the strategy for the full year.  Disperson is calculated by subtracting the lowest portfolio return from the highest portfolio return.

Benchmark Description: The benchmark is the HFRX Equity Hedge index obtained from www.HedgeFundResearch.com.  This is an investable index of long/short U.S. equity hedge funds.  Its composition of securities and risk profile could be meaningfully different than the Patton Investment Strategy.

The above composite performance presentation for the Patton Edge Strategy and the underlying methodology used was independently verified by Ashland Partners only for the period through 12/31/2014.  The above composite performance presentation for the Patton Flex Strategy and the underlying methodology used is identical to that of the Patton Edge Strategy.

Leverage: the Patton Edge Strategy can have up to two times gross exposure; the Patton Flex Strategy can have up to five times gross exposure; the Auadcity Strategy can have up to eight times gross exposure.

The Patton Flex Fund, L.P., utilizing the Patton Flex Strategy, has a 0% management fee, 12% net annual hurdle, and a 50% incentive fee above the annual hurdle.  See the Fund's Private Placement Memorandum for details.  This fee structure can result in a meaningfully different net performance for investors.

Audacity Strategy Back-tested Performance: all performance is shown net of a 2.0% annual management fee and a 20% annual performance fee on all gains above 0%.  The Strategy is also being offered with a 4.0% annual management fee and no performance fee which, based upon research, is expected to be the less costly of the two fee structures.

"Patton Clients (Super-Diversification Flex Growth Strategy)" Performance: This is the actual NET performance of our clients utilizing our Super-Diversification Flex Growth Strategy totaling approximately $107.3 million of assets. This is our most utilized strategy (most number of clients). Our Strategy and process has remained consistent over the entire period. Not all Patton Clients with the same strategy experienced the same performance possibly due primarly to generally minor differences in allocations and differences in fees. A very limited number of Patton Clients pay fees from money outside of their portfolio resulting in a higher return. Performance includes the reinvestment of dividends and other earnings. Investors may lose money, and are expected to lose money during significant market declines and other market conditions, in this strategy. The asset allocation of the strategy has been different than the ARC Private Client Index, resulting in differing performance, although the risk profiles of both have been generally similar.  During the period being reported the market has been in an upward trend that have been stronger historic averages.  No assurance can be made that this type of trend will persist or how we would perform if it did.  All other representations of Super-Diversification performance is back-tested simulated results.

"ARC Private Client Index" Performance: The ARC Private Client Index is an index created by and maintained by the ARC Group. These indexes consist of more than 250,000 actual investor portfolio returns that are managed by 117 investment managers (as of June 2021) including some of the largest in the world. These 117 managers only represent a sample of the 10,000's of investment managers and other such service providers (financial planners, traditional brokers, etc.). There are 4 Private Client Indexes each with a different risk profile. We have selected the ARC Private Client Index with the most comparable risk profile, Steady Growth (allocation approximately 60.41% equities, 21.34% Fixed Income, 3.23% Cash, and 15.02% Other), to our Patton Clients performance. For more information about these indexes, visit the ARC Group's website here.

Industry benchmarks presented for comparison to Super-Diversified Portfolios are believed to be comparable risk portfolios although the holdings are very likely significantly different.  Simulated portfolio benchmarks, such as a "Traditional Portfolio", does have a similar risk profile but is allocated only to traditional asset classes of stocks, bonds, and cash.

Client performance reporting, illustrated as the "Family", in the password protected areas of our webiste, including our Super-Diversified Portfolio Statements section, does represent the actual performance of an individual client's portfolio.  Returns are shown net of fees, deposits, and withdrawals.  These returns are calculated consistent with industry standards (returns are linked for periods upon a deposit or withdrawal).  Every effort is made to insure correct calculations.  Please notify Patton if you believe your returns do not appear correct.  For clients with an investment in a Patton hedge fund / L.P., all current date valuations and daily returns for hedge fund investments are an estimate. These estimates are based on your most recent actual month-end balance, if applicable, and incremented by the estimated daily percent change. Month-end market valuations are actual once the hedge fund statement has been posted to the website.

IMPORTANT NOTICE: INFORMATION ABOUT MODEL PORTFOLIO PERFORMANCE

Unless otherwise noted, the performance of all portfolios ("Model Portfolios") are simulations of various combinations of asset classes used to simulate the performance of various types of portfolios with various risk profiles. All Model Portfolios for all time periods are back-tested hypothetical simulated results.

Model Portfolios have been developed based on historical performance of the described indexes for the relevant time period using our proprietary process and do not represent the results of actual trading of investor assets. Model performance has inherent limitations.  Since these are simulated portfolios (hypothetical) and do not reflect any investor's actual experience with owning, trading or managing an actual investment account, there can be no assurance that an investor would have achieved similar rates of return over the time frame.  Thus, the performance shown does not reflect the impact that material economic and market factors had or might have had on decision making if actual investor money had been managed. In addition, since the time period in question is a historical one, there can be no assurance that future results achieved by investors will in any way resemble those represented by the Model Portfolios. Model Portfolios are rebalanced monthly. All performance data is total returns which includes interest and dividends. The calculations are net of the estimated management and/or performance fees, trading costs, and fund expense ratios (see below table for estimated expense ratios by Asset Class) if applicable.  Performance does not reflect the deduction of other fees or expenses, including but not limited to brokerage account fees, custodial fees, and fees and expenses charged by mutual funds, exchange traded funds, and other investment companies that may be in addition to the expense ratio (these additional expenses tend to be extremely low).

Model Portfolios presented on our website are portfolios blended from various indexes.  The blended asset allocation of every Model Portfolio is readily available within the website.  The benchmark index(es) used to represent each asset class is disclosed elsewhere in this disclosure.  We do adjust the performance of the benchmark indexes for fees of an applicable fund available to invest in that index or asset class.

When a Model Portfolio's performance is compared to a single benchmark index, such as the S&P 500, the index has not been selected to represent an appropriate benchmark to compare an investor's performance, but rather are disclosed to allow for comparison of the investor's performance to that of certain well-known and widely recognized indices.  Indices are typically not available for direct investment, are unmanaged, and do not incur fees or expenses.

The performance calculations of all Model Portfolios have not been audited by any third party.  Actual performance of client portfolios may differ materially due to the timing related to additional client deposits or withdrawals and the actual deployment and investment of a client portfolio, the length of time various positions are held, the client’s objectives and restrictions, and fees and expenses incurred by any specific individual portfolio.

Any presentation of two portfolios for comparison is intended to have a similar risk profile.  Some Model Portfolios are more diversified than others such as Patton's Super-Diversified Portfolios generally including more asset classes than more traditional portfolios.  Generally the purpose of such presentations is to demonstrate the value of added diversification.

Although we have done our best to present this information fairly, hypothetical performance is still potentially misleading. Hypothetical data does not represent actual performance and should not be interpreted as an indication of actual performance. This data is based on transactions that were not made. Instead, the trades were simulated, based on knowledge that was available only after the fact and thus with the benefit of hindsight. Results do not include the impact of taxes, if any. Past performance is not indicative of future performance.

This website content is subject to change without notice and, due to the rapidly changing nature of the security markets, may quickly become outdated. All materials presented are compiled by Patton from sources believed to be reliable and current, but accuracy cannot be guaranteed. This information is distributed for education purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, product, or service.  Content is prohibited from being reproduced.

Diversification does not ensure a profit or protect against a loss in a declining market.

Investments involve risk and unless otherwise state, are not guaranteed.  Consider the investment objectives, risks, and expenses carefully before investing.

Readers of the information contained on this website should be aware that any action taken by the viewer/reader based on this information is taken at their own risk. This information does not address individual situations and should not be construed or viewed as any type of individual or group recommendation. Be sure to first consult with a qualified financial adviser, tax professional, and/or legal counsel before implementing any securities, investments, or investment strategies discussed.

Exchange-Traded Funds and Index Mutual Funds (“Index Funds”).  All Index Funds are subject to risk, which may result in the loss of principal. International Index Funds involve additional risks, including currency fluctuations and political uncertainty. Index Fund products that invest in emerging markets are generally more risky than those that invest in developed countries because countries with emerging markets may have relatively unstable and less-established markets and economies. Sector Index Funds are subject to sector risks and non-diversification risks, which may result in performance fluctuations that are more extreme than fluctuations in the overall stock market. In addition, sector Index Funds that sample their target indexes to comply with tax diversification rules may experience a greater degree of tracking error than other Index Funds. Prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks.

Source Data for Analysis

Any analysis relecting daily performance for any Patton Investment Strategy is actual data for the periods available and back-tested data for prior periods.  Daily data for diversified portfolios uses an applicable index fund (see the Asset Classes table in this Disclosure "Index Fund" column) performance less the applicable fees.

Limitations of Retirement Income Analysis

This retirement planning analysis has many limitations. The biggest limitation is Patton’s inability to predict the future and know what return will be earned on various investments.

Retirement income projections are based on a variety of assumptions that are not certain. These uncertain assumptions include but are not limited to: estimated annual income, changes in future income, the rate of inflation, Social Security policies and impact on benefits provided, and more. The assumed returns are based on selected portfolio or specific manually input return. If a portfolio is selected for the assumed return, the portfolio’s average return over multiple decades is assumed for each individual year in the analysis. This assumed return is disclosed in the results. For example, a portfolio may have a return of +18% one year, -2% the next year, etc. that would result in an average of 8%. It is this 8% average that would be used in the analysis for each individual year although ACTUAL annual returns are never exactly, nor often even close to, the average year after year. The asset allocation of the portfolio can be seen in either the “Investment Center” report or the “Portfolio Comparison” report on this website.

Although exact numbers must be used in such an analysis, this retirement income analysis is not meant to be precise. It is intended to simply be a gauge to help investors determine if they are generally on the right path or not and to help them generally understand the various ramifications from various changes such as an increased level of savings.

Portfolio Performance Composites

We have multiple portfolio performance composites. Each portfolio performance composite represents a different portfolio strategy and a different risk profile. Every Patton client portfolio that meets the minimum value, typically $100,000, is included in one of the portfolio performance composites. The result is multiple performance composites consisting of all like-type (strategy and risk profile) Patton client portfolios.

Following are the stratgegies for the portfolio performance composites:

• Super-Diversified with Flex: diversified portfolios including an allocation to the Patton Flex Strategy or Patton Flex Fund, L.P.
• Super-Diversified with Edge: diversified portfolios including an allocation to the Patton Edge Strategy
• Better-Diversified: diversified portfolios without an allocation to the Patton Flex or Patton Edge
• Patton Flex: 100% Patton Flex Strategy or Patton Flex Fund, L.P.
• Patton Edge: 100% Patton Edge Strategy
• Patton 45: 100% Patton 45 Strategy (long-only)
• Miscellaneous: legacy and miscellaneous strategies no longer offered to clients

The three diversified portfolio performance composites are further separated by the the following risk profiles: Conservative, Moderate, and Growth.

All references to "Patton Clients" on our website represents the Super-Diversified with Flex performance composite for the Growth risk profile.

The following table provides details for each portfolio performance composite:

Portfolio Performance Composite Details

The following table shows the Asset Classes that are available throughout the website, the market index that is used to represent each asset class, and the estimated fee that is deducted from the performance of the index.