Summary

-The Standard Program & the Standard Program-Higher Leveraged (formerly called the Higher Leveraged Program) both trade the same portfolio of “Futures Interests” (as described below). The programs differ only with respect to position sizes. The Standard Program - Higher Leveraged trades larger position sizes, currently averaging approximately 20% larger than those of the Standard Program. (Such percentage is subject to change and certain individual positions, from time to time, may be up to 100% larger.) Therefore, the Standard Program-Higher Leveraged entails a greater degree of risk than the Standard Program. ETC began managing accounts according to the Standard Program in August 1991 and the Standard Program-Higher Leveraged in October 1991. For these programs, ETC primarily engages in trading financial and commodity futures contracts on U.S. and non-U.S. exchanges. Currently the market groups or contracts traded by ETC in the Standard Program and Standard Program-Higher Leveraged include, but are not limited to, U.S. and international interest rates, stock indices, currencies and cross-rates, metals, energy products, grains and soft markets. ETC may add or delete markets and/or exchanges at its discretion. The Global Financial Program has traded a portfolio of financial futures since its inception in November 1997; beginning mid-July 2005, the program became eligible to receive new trading signals in U.S. energy markets. The Global Financial Program is based on the same trading approach and position sizing utilized for the Standard Program. The difference between the two programs is in the markets traded. The Global Financial Program trades the financial, and a subset of energy markets, currently traded for the Standard Program and also trades a few financial markets not included in the Standard Program. Markets traded include but not limited to, U.S. Canadian, and other international interest rates, currencies and cross-rates, stock indices, and energy contracts. The Global Financial Program-Higher Leveraged, which began trading in April 2008, is accepting managed accounts but is not currently trading. This program differs from the Global Financial Program only with respect to position sizes. The Global Financial Program-Higher Leveraged trades larger position sizes, which are currently averaging approximately 50% larger than those of the Global Financial Program. (Such percentage is subject to change and certain individual positions, from time to time, may be up to 100% larger.) Therefore, the Global Financial Program-Higher Leveraged entails a greater degree of risk than the Global Financial Program.