Operational overview

During the week of April 3, 2017, Brinker Capital made operational changes to the Destinations program.

Within Destinations qualified portfolios, the Brinker Capital investment team replaced the underlying third party mutual funds with a series of institutional class, sub-advised, multi-manager Destinations Funds. Most of the previous third-party mutual fund managers now serve as sub-advisers in these funds, for which Brinker Capital serves as the investment adviser.

Destinations maintains the same experienced and well-resourced portfolio management team, the same risk-based portfolios, an institutional-quality investment process and a demonstrated 22-year track record.

The new Destinations Funds comprise the same risk-based portfolios and leverage the Brinker Capital investment team’s core capabilities of asset allocation, investment manager/fund research, due diligence and selection. These changes will provide Destinations

Destinationsinvestors with increased multi-asset class investment diversification and lower overall client expenses.

Written notifications of these changes, including new, lower overall client fees, were sent in March. The chang-es will be reflected in April client statements.

Within each of the Destinations portfolios, there is considerable alignment between the previous third party mutual funds and the new sub-advised allocations within the Destinations Funds.

Executive summary

In March, the Brinker Capital asset allocation committee met to discuss the current allocation positioning of our discretionary portfolios. The committee reaffirmed their market views and reached the conclusion that no asset allocations changes are merited at this time. However, the committee will continue to monitor and make changes when necessary as economic events continue to unfold.

Market outlook

Later in the business cycle, still positive on risk assets

We remain positive on risk assets over the intermedi-ate-term, although we acknowledge we are in the later innings of the bull market that began in 2009 and the second half of the business cycle. While our macro outlook is biased in favor of the positives and recession is not our base case, especially considering the potential of reflationary policies from the new administration, the risks must not be ignored.

APRIL 2017

NEWS FLASH

For use in a one-on-one presentation with Brinker Capital Destinations advisors and clients.

In this document Page

Operational overview 1

Executive summary 1

Market outlook 1

Investment themes and risk bias 3

Destinations portfolio management team 3

Brinker Capital’s 30-year commitment 4

1

We find a number of factors supportive of the economy and markets over the near term:

Reflationary fiscal policies: With the new administration and an all-Republican government, we expect fiscal policy expansion in 2017, including tax cuts, repatriation of for-eign sourced profits, increased infrastructure and defense spending, and a more benign regulatory environment.

Global growth improving: U.S. economic growth is ticking higher and there are signs that growth outside of the U.S., in both developed and emerging markets, is improving.

Business confidence has increased: Measures like CEO Confidence and NFIB Small Business Optimism have spiked since the election. This typically leads to additional project spending and hiring, which should boost growth.

Global monetary policy remains accommodative: The Fed-eral Reserve is taking a careful approach to policy normal-ization. ECB and Bank of Japan balance sheets expanded in 2016 and central banks remain supportive of growth.

However, risks facing the economy and markets remain, including:

Administration unknowns: While the upcoming admin-istration’s policies are currently being viewed favorably, uncertainties remain. The market may be too optimistic that all of the pro-growth policies anticipated will come to fruition. We are unsure how Trump’s trade policies will de-velop, and there is the possibility for geopolitical missteps.

Risk of policy mistake: The Federal Reserve has begun to slowly normalize monetary policy, but the future path of rates is still unclear. Should inflation move significantly higher, there is also the risk that the Fed falls behind the curve. The ECB and the Bank of Japan could also disappoint market participants, bringing the credibility of central banks into question.

We have maintained an overweight to risk in our portfolios since mid-2013. All portfolios are overweight to risk but a more sizeable overweight has been expressed in moderate to aggressive strategies as we place a greater emphasis on the risks for more conservative portfolios. During our No-vember reallocation we increased risk across all portfolios in anticipation of pro-growth policies and a more benign regulatory environment under the Trump administration.

Since our November reallocation, portfolios have drifted to a more aggressive posture. Post-election markets rallied in anticipation of pro-growth policies under the Trump administration and business confidence spiked. Expectations are high but uncertainty remains as longer term growth will be contingent on the proposed Trump administration policies coming into fruition.

We believe we are firmly in the second half of the busi-ness cycle but economic data leans positive, suggesting the end of the cycle is not yet imminent. Interest rates are biased higher with a strong possibility of an ad-ditional rate hike in the first half of the year. However, markets have had little reaction to recent hawkish com-ments from the Fed, suggesting the news may already be absorbed. We feel the weight of the evidence leans positive, and therefore we have a positive view on risk assets over the intermediate term and will maintain our current overweight to risk in all discretionary portfolios.

Strategy Overall risk positioning*

Conservative (30/70) +1.23%

Moderately Conservative (40/60) +1.40%

Moderate (60/40) +2.78%

Moderately Aggressive (70/30) +3.55%

Aggressive (80/20) +3.73%

*Over/underweight to equity-oriented strategies versus neutral weighting

For use in a one-on-one presentation with Brinker Capital Destinations advisors and clients.

1800

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12/31 1/31 2/29 3/31 4/30 5/31 6/30 7/31 8/31 9/30 10/31 11/30 12/31 1/31 2/28

Trimmed risk exposure

Moved closer to neutral across

portfolios

2Q16 3Q16 4Q161Q16

Maintainrisk

exposure

Added risk exposure

S&P 500 Index vs. Destinations Reallocations

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Source: Brinker Capital

Theme Primary implementation Rationale

Reflationary policies

Overweight equity

Real assets

Expect fiscal policy expansion from the Trump administration (tax cuts, repatriation, infrastructure spending, more benign regulation), which will serve to boost growth and inflation

The road to interest rate normalization

Shorter duration

Yield cushion

Lower volatility absolute return

Long-term bias is rates to move higher; road to rate normalization will be choppy and protracted

Favor credit risk over interest rate risk

Inefficient and/or undiscovered markets

Event driven

U.S. micro cap

Active management can add significant value in inefficient asset classes

Focus on income

High yield credit

High dividend equity

Investors will place a premium on yield producing assets in a low nominal yield environment

Allocation decision Current bias

Overall risk Overweight in all portfolios

Global equity Underweight international equity

U.S. equity Neutral growth/value; slight overweight to small at the expense of mid cap

Int’l equity Overweight emerging, smaller cap bias

Fixed income Shorter duration with a yield advantage, emphasize MBS, U.S. high yield credit, preferreds, EMD

Absolute return Favor relative value fixed income, event driven

Real assets Global natural resource equities, REITs

Key investment themes:

Our key investment themes remain unchanged. The Policy Reflation, Road to Interest Rate Normalization and Ineffi-cient and/or Undiscovered Markets themes remain intact.

The Our Focus on Income theme is still in place but has declined in prominence with the onset of the Fed rate hike cycle and the recent robust performance of equity income strategies.

For use in a one-on-one presentation with Brinker Capital Destinations advisors and clients.

Jeff Raupp, CFA Director of Investments

Amy Magnotta, CFA Senior Vice President, Head of Discretionary Portfolios

Leigh Lowman Investment Manager

Destinations portfolio management team

20 years industry experienceB.S. University of Delaware M.B.A. Villanova University

11 years industry experienceB.A. Wittenberg University

16 years industry experienceB.S. Lehigh University

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Brinker Capital is proud to celebrate 30 years of helping investors achieve better outcomes.

Destinations embodies Brinker Capital’s 30-year commitment to investment excellence in helping investors achieve better outcomes.

Featuring a range of multi-asset class portfolios, Destinations utilizes a series of subadvised multi-manager mutual funds, for which Brinker Capital serves as the investment adviser.

Meeting the needs of investors over the course of three decades requires innovative methods with an unwavering commitment to an investment philosophy. The newest solution is a series of sub-advised Destinations Funds.

Conservative Moderately Conservative Moderate Aggressive

Moderately Aggressive

Aggressive Equity

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Domestic EquityInternational EquityFixed IncomeAbsolute ReturnReal Assets

Destinations range of risk-based portfolios utilizing Destinations mutual funds

Balanced Income

A 30-year commitment

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Brinker Capital Inc., a registered investment advisor.

For use in a one-on-one presentation with Brinker Capital Destinations advisors and clients. 4

Allocations shown as of March 31, 2017 and are shown for illustrative purposes only. Allocations subject to change.