First Quarter 2013

Investment Management
Dear Clients & Friends; Despite the economic and geopolitical challenges facing investors in the first quarter, the U.S. equity market performed extremely well gaining 10% this period. International equity markets, in aggregate, posted more modest, albeit positive low-single digit gains. Domestic fixed income markets were little changed in the quarter. Commodities were a drag on performance this period primarily due to mid-single digit declines in both agriculture and metals positions. Overall, we continue to believe that well-diversified, low-cost investment strategies will continue to produce favorable results over time. The first quarter was also a busy one for us at Wisco. We completed our office move to the U.S. Bank Building at 402 Gammon Place (on the corner of Gammon Road and Mineral Point Road) in January. We are pleased with our new accommodations and have been delighted to meet some of our new neighbors, many of which operate smalland-mid-sized financial services businesses similar to ours. If you are ever in the neighborhood please feel free to stop by our office for a visit. We completed our semi-annual rebalancing of client portfolios in January. In early February, we thought it was a good time to add discretionary management capabilities to our advisory services. We mailed out our new investment advisory contract (IAC) and spoke with many of you regarding the new option. We appreciate everyones willingness to work with us as we completed the majority of our new advisory contracts in the first quarter. We would like to thank all of our new clients who joined us during the quarter. We appreciate your business and look forward to serving you in the future. We invite you to join us at our next investment seminar on Wednesday May 1st at 6 p.m. at Blackhawk Country Club. Our seminars are open to anyone interested in attending so feel free to invite guests that may benefit from our services. If you ever have questions about your investment portfolios or would like to schedule a visit please call anytime. We appreciate your business and thank you for your referrals! 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. Our model portfolio asset class allocations are as follows: Wisco Model Portfolios Domestic Equity International Equity Domestic Fixed Income Commodities Domestic Real Estate Money Market Total Target Volatility*
Conservative Balanced Balanced Growth Growth Aggressive

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

First Quarter 2013 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 1Q13

12% 12% 6% 0%

10%

the DJIA reaching a new high mid-quarter and the S&P 500 closing the quarter at an all-time high. Going forward, investors will likely be focused on economic headwinds the U.S. economy may face from sequestration (Federal budget cuts in excess of $100 billion per year) that went into effect March 1st. Outside of politics, 4Q12 corporate earnings increased 7% y/y and 4Q12 GDP grew 0.4% suggesting we could be entering a Goldilocks economy where not too hot economic growth could keep monetary policy easy resulting in not too cold earnings growth. At Wisco, we continue to have a positive view on U.S. equities. Many traders are increasing their equity investments after seeing strong returns yet the market still appears reasonably priced with the S&P 500 trading at a P/E of approximately 14.5x 2013 consensus earnings.

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

2013 started with a bang in the domestic stock market as the major averages rallied over 2% in the first trading day of the year. Investors were relieved our government was able to reach a fiscal cliff compromise and this sparked a rally that resulted in

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% 11% 6% 6% 2%

Domestic Fixed Income Returns

3% 2% 2% 2% 1% 0% 0% -1%
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13

4% 2% 1% 0% 0%

3% 2% 1% 0% -1%

-7% -16% -24%

2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13

-2% -3%

Source: MSCI ACWI ex USA and Wisco.

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

The international equity market posted much more subdued returns than the U.S. market gaining 2% in 1Q13. Japans Nikkei 225 once again was a star performer posting a 19% return, as its governments pro-growth, easy money policy continues to gain momentum. On the negative side, emerging markets posted weak results. Brazils IBOVESPA declined 8% as high inflation hurt equity returns. Despite Cyprus headline grabbing move taking depositors assets to bailout troubled banks, European markets appeared to shrug off the news as the Euro STOXX 600 Index increased 5%. In China, officials tightened lending to prevent the further expansion of what some consider a property bubble, this tighter policy resulted in a mediocre return for the Shanghai Composite Index which declined 1% in the quarter. Wisco believes international equities are an important part of a well diversified portfolio. European stocks appear inexpensive in our opinion with the STOXX Europe 600 trading at just 12.6x forward earnings. Despite recent underperformance, we also have a positive long-term view of investing in emerging market equities, given their attractive demographics and strong growth rates.

Domestic Fixed Income returns were once again flat this quarter as investors favored riskier assets more than lower risk assets. Besides Equities outperforming Fixed Income, within the Fixed Income asset class, High Yield Bonds (up 2%) outperformed Treasury Inflation-Protected Securities i.e. TIPS (down 1%). We feel the reason for this dichotomy is that inflation concerns have not yet materialized in the domestic economy. Despite low rates, Wisco believes Fixed Income should continue to produce acceptable returns in the shortterm for three reasons. First, the Federal Reserve has publicly stated they intend to keep rates low for an extended period of time. Second, sequestration which went into effect March 1st should result in more fiscal austerity, not less, a positive for the fixed income market. Finally, we believe modest economic growth will keep inflation at bay. Wisco sold most of our clients TIPS positions at the start of the year in favor of Corporate Bonds and we continue to feel Corporate Bonds should outperform Government Bonds in the near-term.

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% 7% 2%

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

10%

10% 5%

10%

-2% -7%

0% -5% -10% -15% -20%

-5% -5%

-8%

-15%
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13

Source: Dow Jones-UBS Commodity Index and Wisco.

Commodities, as measured by the Dow-Jones Commodity Index declined 2% in the quarter. Softer demand out of China and other emerging markets, combined with a stronger dollar, hurt commodities prices. Despite recent weakness, Wisco feels we could be nearing an attractive entry point for select commodities. Furthermore, we feel tight agricultural inventories along with strong demand leave little room for error should this years harvest disappoint. Therefore, we continue to recommend investing in agricultural commodities.

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

1Q13

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 7% return this quarter. We continue to feel REITs are a good investment for our clients given that REITs have better yield characteristics than most equity investments and better appreciation potential than most fixed income investments. Therefore, Wisco has REIT positions in all of our model 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.