Fourth Quarter 2012

Investment Management
Dear Clients & Friends; The fourth quarter was an eventful period for the financial markets. The presidential elections took center stage during the first half of the quarter followed by an intense focus on fiscal cliff negotiations in the back half. Despite the uncertainties, the U.S. equity and fixed-income markets were little changed in the quarter. International equity markets, in aggregate, outpaced the U.S. market with relatively strong mid-single digit gains this period. Overall, we continue to believe that well-diversified, low-cost investment strategies will continue to produce favorable results over time. As you may recall, our policy is to rebalance our model portfolios on a semi-annual basis. We do this in order to realign our portfolios with our current market expectations. To that end, we recently completed our year-end model portfolio adjustments and plan to be in touch with you over the next few weeks to discuss rebalancing your portfolio. As always, please feel free to contact us anytime to discuss your portfolios performance and targeted risk level, as well as any other potential life changes that may be relevant to how your portfolio is invested. As we approach our second anniversary, we also wanted you to be aware of a couple exciting events for us. First, we are pleased to announce that Stephen Share, CFA, has joined our firm as a portfolio manager. Stephen is a graduate of the University of Wisconsins Applied Securities Analysis Program and has sixteen years of investment experience. Second, we are in the midst of relocating our office to the U.S. Bank Building at 402 Gammon Place, Suite 380 (on the corner of Gammon Road and Mineral Point Road). Please feel free to stop by for a visit if you are in the neighborhood. On the marketing front, we will be hosting an investment seminar at Blackhawk Country Club on Thursday January 31st. We plan to discuss our investment approach as well as our capital market expectations for 2013. Please email us if you would like to attend. Also, if you know of anyone who might benefit from attending one of our seminars, please feel free to invite them as your guest. We always appreciate your referrals! We would like to thank you for providing us with the opportunity to work with you as your investment adviser. We appreciate your business! Sincerely,

Wisco

The Wisco Team

Stephen Share
sshare@wiscoinvest.com

Chas Janisch
cjanisch@wiscoinvest.com

Greg Schroeder
gschroeder@wiscoinvest.com

Office: 608.442.5507 Fax: 608.237.2206

402 Gammon Place, Suite 380 Madison, WI 53719

Wisco Investment Management

The Wisco model portfolios are constructed using six different asset classes; Domestic Equity, International Equity, Domestic Fixed Income, Commodities, Domestic Real Estate and Money Market. As of January 1, 2013, our model portfolio asset class allocations are as follows: Wisco Model Portfolios
as of January 1, 2013 Conservative Balanced Balanced Growth Growth Aggressive

Domestic Equity International Equity Domestic Fixed Income Commodities Domestic Real Estate Money Market Total Target Volatility*

26% 5% 49% 5% 5% 10% 100% 6%

35% 10% 40% 5% 5% 5% 100% 8%

40% 15% 30% 5% 5% 5% 100% 10%

47% 20% 21% 5% 5% 2% 100% 12%

56% 30% 0% 6% 6% 2% 100% 15%

*Target Volatility is our estimate for the annual standard deviation of portfolio returns. Source: Wisco Investment Management LLC

Fourth Quarter 2012 Market Review

Domestic Equity
20% 15% 10% 5% 0% -5% -10% -15% -20% 1Q10

Domestic Equity Returns

12% 11% 6% 6% 0% -3% -11% -16%
2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12

12% 12% 6% 0%

controlling the Presidency and Senate and Republicans controlling the House. Post election, the stock market traded down as investors focused on the challenges this split government may have in dealing with the fiscal cliff (i.e. a combination of tax increases and spending cuts that could reduce GDP 4% annually). Outside of politics, 3Q12 corporate earnings increased 2% y/y and 3Q12 GDP grew 3% suggesting the domestic economy continues to be in good not great shape. At Wisco, we continue to have a positive view on U.S. equities. We think the government could reach a longer term agreement on spending cuts and tax increases in the first half of 2013, which should result in more certainty for corporations. Furthermore, the S&P 500 trades at an attractive PE of 13.2x 2013 consensus earnings.

Source: Dow Jones U.S. Broad Stock Market Index and Wisco.

After posting strong returns in three of the last four quarters, the United States stock market was flat in 4Q12. The November election resulted in very little change in the political environment with Democrats

International Equity
28% 21% 14% 7% 0% -7% -14% -21% -28% 1Q10

Domestic Fixed Income

5% 4%

International Equity Returns

17% 8% 2% 3% 1% -7% -16% -24%
2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12

Domestic Fixed Income Returns

3% 2% 2% 2% 1% 0% 0% -1%
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12

4% 2% 1%

7%

11% 6% 6%

3% 2% 1% 0% -1% -2% -3%

0%

Source: MSCI ACWI ex USA and Wisco.

Source: Barclays Capital U.S. Aggregate Bond Index and Wisco.

The international equity market posted another strong quarter in 4Q12 with a 6% return. Japans Nikkei 225 was among the strongest markets in the world increasing nearly 14%. Investors viewed the election of Shinzo Abe as Prime Minster a positive given Abes pro-growth platform and likely easing by the Bank of Japan. European markets generally moved higher in the quarter recovering some of its earlier losses in 2012. Finally, both China and Brazil led emerging markets to a positive quarter. Wisco continues to believe international equities are an important part of a well diversified portfolio. Furthermore, European stocks look attractive with the Stoxx Europe 600 trading at just 11.5x 2013 consensus earnings and developing market countries offering some of the best growth prospects in the world. Therefore, we now have exposure to international stocks in all of our portfolios. Our more conservative portfolios hold a broad based world fund, while our aggressive models have an emerging market fund as well as the broad based world fund.

Domestic Fixed Income returns flattened out in 4Q12. Despite long-term concerns that high deficit spending will ultimately lead to higher interest rates and hence lower fixed income returns, in 2012 those concerns were trumped by the U.S. dollars status as a global safe haven which continues to attract capital. In addition, inflation concerns have yet to be realized as a soft economy holds back growth. Despite low rates, Wisco feels Fixed Income should continue to produce acceptable returns for the next six months for three reasons. First, the Federal Reserve has publicly stated they intend to keep rates low for an extended period of time. Second, the upcoming debt ceiling debate in Congress may result in more austerity not less which should be a positive for the fixed income market. Finally, sluggish economic growth should hold down inflation. Therefore, we have fixed income securities in all but our most aggressive portfolio with an emphasis on U.S. Aggregate bonds in the more conservative portfolios and Corporate Bonds in the more aggressive portfolios.

Commodities
20% 15% 10% 5% 0% -5% -10% -15% -20% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Domestic Real Estate

Commodities
16%
20% 15%

Domestic REITs
13% 7% 7% 4% 15% 11% 4% 0% -4% 2%

12% 4% 2% 0% -5% -11%

10%

10% 5% 0%

10%

-5% -5%

-8%

-7%

-5% -10% -15% -20%

-15%
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12

Source: Dow Jones-UBS Commodity Index and Wisco.

Commodities gave back a significant portion of their 3Q12 increase as the Dow-Jones Commodity Index declined 7% in the quarter. Agricultural commodities posted double digit declines, while gold (down 6%) and crude oil (down 2%) were also weak in the quarter. Wisco feels this quarters decline could represent a good entry point for commodities so we are taking a position in commodities in all of our model portfolios. Furthermore, we favor agricultural commodities to precious metals or oil given low inventory levels and high demand for most grains.

Disclaimer: Wisco Investment Management LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities product, service, or investment strategy. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser, tax professional, or attorney before implementing any strategy or recommendation discussed herein.

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

Source: Dow Jones U.S. Select REIT Index and Wisco.

Real Estate, as measured by the Dow Jones U.S. Select REIT Index, posted a modest 2% return this quarter. Wisco removed real estate from our portfolios mid-year. But after two quarters of mediocre returns we have decided to take a 6% position in a U.S. REIT fund in our most aggressive fund and a 5% position in a U.S. REIT fund in our other portfolios. Money Market Wisco keeps a modest money market allocation in all of our model portfolios. The current yield of the Schwab Money Market is 0.01%. Low Federal Funds rates have held down short term yields. We think short term rates will remain low for an extended period of time.