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JANNEY CAPITAL MANAGEMENT STRATEGY GUIDE

PREPARED EXCLUSIVELY FOR: JANNEY MONTGOMERY SCOTT

Helping individuals, corporations, and institutions accumulate, enhance, and protect assets and wealth through fee-based portfolio management services

This presentation and its contents are intended to be used for advertising purposes and is not considered to be a one-on-one presentation.

FIRM OVERVIEW

• Janney Capital Management, is a professional investment manager that offers discretionary, fee-based separately managed account solutions.

– Subsidiary of Janney Montgomery Scott – Founded in 1994 – Offices in Pittsburgh and Philadelphia – Over $2 billion in Assets Under Management

• Separately Managed Accounts • ETF Advantage • Keystone

– Account Composition • 70% Individuals

– High Net Worth Individuals – Taxable Accounts – Trusts – Retirement/Qualified (IRAs, Keoghs)

• 30% Institutional – Nonprofit/Foundations – Defined Contribution and Defined Benefit Plans – Corporations – Municipalities


INVESTMENT PHILOSOPHY

• Our success in establishing excellent, long-standing client relationships begins with our client’s understanding of, and appreciation for, our investment philosophy.

– We adhere to a conservative, value-oriented approach to investment management. – We seek to deliver competitive investment results through all market conditions while managing risk appropriately.

• We responsibly apply the basic principles of asset management: – Asset Allocation

• We work with you and your Financial Advisor to establish an appropriate proportion of stocks, bonds, cash and other investments in your portfolio.

• We avoid market timing. – Diversification

• To reduce risk in the portfolio, we diversify your assets. – In the equity market, we diversify by sector, capitalization and geography. – In the fixed income market, we diversify by issuer, maturity and sector, as we recognize that fixed income is not a riskless asset class.

• Based on our experience, we add value by overweighting or underweighting different market components within the context of the current economic environment.

– Fundamental Analysis • We use quantitative and qualitative techniques to evaluate equity and fixed income securities. • Securities are purchased for their investment merits within the context of an asymmetrical return versus

risk expectation.


JANNEY CAPITAL MANAGEMENT: FLEXIBILITY

• We offer clients an opportunity to select a highly customized investment solution. Our strength is flexibility: – Customizable Asset Allocation

• Spanning 100% Fixed Income to 100% Equity • Security, Social and Cash Restrictions • Manage Unique Tax Situations

– Multiple Equity Products • Individual Stocks, Mutual Funds and Exchange Traded Funds

– Multiple Fixed Income Products • Individual Bonds as well as Exchange-Traded Funds • Taxable Income and Tax-Free Income, State-specific when applicable

– Easily Change Any Aspect of the Account


JANNEY CAPITAL MANAGEMENT: TRADITIONAL INVESTMENT STRATEGIES

• Equity Strategies

Strategy Description

Intermediate Government/Credit

Individual Treasury, Agency, Corporate or Taxable Municipal Bonds and Certificates of Deposit with intermediate-term duration and diversified by issuer.

Tax-Exempt Municipal Individual Tax-Exempt Municipal Bonds diversified by issuer. State-specific purchasing is available.

Active Index Strategy Fixed Income

Diversified basket of taxable fixed income Exchange-Traded Funds (ETFs), Exchange-Traded Notes (ETNs) and/or Open- and Closed-end funds. Provides liquidity and taxable income.

Active Index Strategy Municipal Diversified basket of tax-exempt fixed income Exchange-Traded Funds (ETFs), Exchange-Traded Notes (ETNs) and/or Open- and Closed-end funds. Provides liquidity and tax-exempt income.


All Cap Core Individual stocks diversified by sector, capitalization (large, mid and small); style (growth and value), and geography (domestic and international). Oriented to cash flow, quality, and value.

Equity Income Individual stocks with above average dividends diversified by sector, capitalization (large, mid and small); style (growth and value), and geography (domestic and international). Oriented to cash flow, quality, and value.

Active Index Strategy Exchange-Traded Funds (ETFs), Exchange-Traded Notes (ETNs), and Open- or Closed-end Funds diversified by sector, capitalization (large, mid, small), style (growth and value), and geography (domestic and international). An election can be made to include individual sector ETFs.

• Fixed Income Strategies


JANNEY CAPITAL MANAGEMENT: ALTERNATIVE INVESTMENT STRATEGIES


Dynamic Asset Strategy

The Dynamic Asset Strategy uses Exchange Traded Products (ETPs), including Exchange Traded Funds, Exchange Traded Notes and Closed-end Funds to invest tactically across asset classes and market categories. The strategy has no predetermined asset class mix, and instead seeks to allocate capital to investments that appear to offer the most compelling opportunities, or at times the most protection, in a given economic climate.

Dynamic Income Strategy

The Dynamic Income Strategy uses Exchange Traded Products (ETPs), including Exchange Traded Funds, Exchange Traded Notes and Closed-End Funds to invest tactically across asset classes and market categories. The strategy attempts to identify opportunities that offer a compelling level of income relative to what is available within the current macroeconomic environment.

• Dynamic Strategies

ETPS and ETFs are subject to risks similar to those of stocks and may not be suitable for all investors. Shares can be bought and sold through a broker, and the selling shareholder may have to pay brokerage commissions in connection with the sale. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than original cost. Shares may only be redeemed directly from the fund by Authorized Participants via Creation Units. There can be no assurance that an active trading market for the shares will develop or be maintained, and shares may trade at, above or below their NAV.


ALL CAP CORE EQUITY: INVESTMENT OVERVIEW

• Objective – Construct a diversified portfolio designed to deliver superior absolute and relative returns

– Deliver an all-weather solution

• Investment Style – Relative Value – Seek stocks that are undervalued within their peer group and the market

– Multi-Cap – Diversify across market capitalization

– Geographical Diversification – International exposure on both a revenue and company headquarters basis

– Avoid Market Timing – Cash is a byproduct of our buy decisions, but no greater than 20%

– Rebalance – Monitor portfolio holdings for overweight positions

– Long-term Focus – Target annual portfolio turnover of less than 35%

– Total Return Focus – We focus on the total return of the portfolio after-tax, where appropriate

• Process – Adhere to current macroeconomic viewpoint

– Use quantitative screen to narrow an overall market universe (both domestic and international) of securities and provide high level buy or sell intelligence

– Use fundamental analysis to evaluate a limited universe of opportunities

– Buy or sell individual securities within our strategic framework


ALL CAP CORE EQUITY: CHARACTERISTICS

Portfolio Statistics (9/28/2012)**

Number of Stocks 43

Equity Turnover* (1Year Trailing) 17.6

Standard Deviation (5 year) 21.0

5-Year Beta** 0.9

Portfolio Yield*** (Weighted Average) 2.2

Upside Capture vs. S&P 500**** (5 Year) 98.4

Downside Capture vs. S&P 500**** (5 Year) 98.0 *Turnover is based on a model composite. **Beta formula is covariance (Portfolio: Benchmark)/Variance (Benchmark). Beta is a measure of volatility, or systemic risk, of a security or portfolio in comparison to the market as a whole. ***Portfolio yield is based on model data. **** Upside and downside capture ratios are 5 year. They are calculated using the geometric mean of monthly returns for the S&P 500 for up or down periods.

Portfolio Strategy

The All Cap Core Equity Strategy is designed to achieve competitive investment results while managing risk by investing in most major subdivisions of the equity markets. This includes large, mid and small capitalizations; growth and value and international. Exposure to subdivisions is actively managed and the weightings will be adjusted accordingly, endeavoring to create a portfolio that protects principal while outperforming benchmarks over time. Investment decisions are executed through the Investment Committee which uses a combination of internal research, reputable external research, proprietary quantitative and qualitative screening and fundamental analysis. Over time, the portfolio may hold cash as an investment.

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Performance (9/28/2012)** Period Returns QTD YTD 1 Yr. 3 Yr. 5 Yr. 10-Year

All Cap Core (Pure Gross of Fees**) 7.0 12.6 25.2 12.6 1.1 9.8

All Cap Core (Net of Fees) 6.2 10.1 21.5 9.3 (1.9) 6.5

S&P 500 Index 6.4 16.4 30.2 13.2 1.1 8.0

Calendar Returns 2011 2010 2009 2008 2007 2006

All Cap Core (Pure Gross of Fees**) 2.6 17.1 27.6 (37.3) 10.2 18.2

All Cap Core (Net of Fees) (0.4) 13.7 23.9 (39.1) 7.0 14.7

S&P 500 Index 2.1 15.1 26.5 (37.0) 5.5 15.8

*Please see important disclosures at the end of presentation. Net of fee performance is calculated using the maximum fee of 3% from the Janney Montgomery Scott fee schedule. Individual fees may vary. **Portfolio statistics, GICS sector weights, and pure gross of fee performance is shown as supplemental information. GICS sector weights are based on model data. Pure gross of fee returns are calculated before the deduction of trading expenses and fees.

GICS Sector Weights**(9/28/2012)


EQUITY INCOME: INVESTMENT OVERVIEW

• Objective – Designed as an income-oriented equity strategy with an emphasis on dividends

• Targets dividend yield twice that of the S&P 500

• Investment Style – The Equity Income Strategy is designed to achieve competitive investment results while managing risk by investing in most

major subdivisions of the equity market.

– Weightings in each of these components of the market will vary over time as the economic environment changes.

– The strategy seeks to generate an overall yield that is substantially higher than that of the S&P 500 Index.

– The goal is to provide a well-diversified portfolio with a reasonable risk/reward profile.

• Process – Investment decisions are based on a combination of our own fundamental analysis, proprietary quantitative screens and

third party research.

– We avoid market timing, as we believe this strategy doesn’t deliver desirable results over time.


EQUITY INCOME: CHARACTERISTICS


Number of Stocks 39

Equity Turnover* (1Year Trailing) 28.5


5-Year Beta** 0.8




Portfolio Strategy

The Equity Income Strategy is designed to achieve competitive investment results while managing risk by investing in most major subdivisions of the equity market. This includes large, mid and small capitalizations; growth and value and international. Exposure to subdivisions is actively managed and the weightings will be adjusted accordingly, endeavoring to create a portfolio that protects principal while outperforming benchmarks over time. The strategy seeks to generate an overall yield that is substantially higher than that of the S&P 500 Index. Investment decisions are executed through the Investment Committee which uses a combination of internal research, reputable external research, proprietary quantitative and qualitative screening and fundamental analysis. Over time, the portfolio may hold cash as an investment.

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GICS Sector Weights**(9/28/2012)

Performance (9/28/2012)* Period Returns QTD YTD 1 Yr. 3 Yr. 5 Yr. 7 Yr.

Equity Income (Pure Gross of Fees**) 5.5 10.1 22.0 11.5 2.8 5.3

Equity Income (Net of Fees) 4.7 7.6 18.4 8.2 (0.2) 2.2

S&P 500 Index 6.4 16.4 30.2 13.2 1.1 0.8


Equity Income (Pure Gross of Fees**) 4.7 14.0 22.0 (27.6) 7.0 17.3

Equity Income (Net of Fees) 1.6 10.6 18.4 (29.7) 3.8 13.8

S&P 500 Index 2.1 15.1 26.5 (37.0) 5.5 4.9

*Please see important disclosures at the end of presentation. Net of fee performance is calculated using the maximum fee of 3% from the Janney Montgomery Scott fee schedule. Individual fees may vary. **Portfolio statistics, GICS sector weights, and pure gross of fee performance is shown as supplemental information. GICS sector weights are based on model data. Pure gross of fee returns are calculated before the deduction of trading expenses and fees.


ACTIVE INDEX STRATEGY: INVESTMENT OVERVIEW

• Investment Objective – The Active Index Strategy (AIS) is designed to achieve investment returns that are greater but less volatile than either

single or multiple passive index funds

• Investment Style – Exchange-Traded Funds (ETF) greatly lower the effects of security-specific risk – ETFs are used to represent different categories of the market

• Capitalization • Style • Geography • Industry Sectors and Select Sub-Sectors • Currency • Commodity • With more to come

• Process – Adhere to current macroeconomic viewpoint

– Use fundamental analysis to evaluate a limited universe of opportunities based on ETF-specific factors

– Build a portfolio overweighting favored areas while underweighting those less attractive

– Avoid market timing

Asset Class Risk

Market Risk

Sector Risk

Security Risk


ACTIVE INDEX STRATEGY(WITH SECTORS): CHARACTERISTICS


Number of ETF Holdings 24

Equity Turnover* (1 Year Trailing) 34.3


5-Year Beta** 0.9




Portfolio Strategy

The Active Index Strategy is designed to achieve competitive investment results that are higher and less volatile than either single or multiple passive index funds. Active management occurs by overweighting or underweighting various ETFs across and within industry sector, style, capitalization and geography based on our market outlook. Individual security risk is greatly reduced because ETFs hold large numbers of securities that represent exposure to their respective asset classes, indexes or industries. Over time, the portfolio may hold cash as an investment.


Active Index Strategy (Pure Gross of Fees**) 5.7 12.5 22.9 11.3 1.6 5.3

Active Index Strategy (Net of Fees) 4.9 10.0 19.3 8.0 (1.4) 2.2

S&P 500 Index 6.4 16.4 30.2 13.2 1.1 0.8


Active Index Strategy (Pure Gross of Fees**) (1.2) 17.6 31.2 (36.1) 10.4 16.3

Active Index Strategy (Net of Fees) (4.1) 14.1 27.3 (38.0) 7.1 12.8

S&P 500 Index 2.1 15.1 26.5 (37.0) 5.5 15.8

Large Cap 59%

Mid Cap 4%

Small Cap 5%

Growth 9%

International 5%

Emerging Market 8%

Commodity 6% Cash 1% REITS 3%

Portfolio Allocation**(9/28/2012)

*Please see important disclosures at the end of presentation. Net of fee performance is calculated using the maximum fee of 3% from the Janney Montgomery Scott fee schedule. Individual fees may vary. **Portfolio statistics, GICS sector weights, and pure gross of fee performance is shown as supplemental information. GICS sector weights are based on model data. Pure gross of fee returns are calculated before the deduction of trading expenses and fees. .


INTERMEDIATE GOVERNMENT CREDIT (TAXABLE FIXED INCOME): INVESTMENT OVERVIEW

• Objective – Seek predictable returns and stable values

• The fixed income market is not a risk-free environment

– Protect principal while focusing on income generation

• Current yield historically represents 90% of the return from bonds

– Seek highest yield adjusted for taxes

• Investment Style – Focus on high grade securities

– Take advantage of unusual situations in spread-based products

• Corporate bonds in 2009; Government agencies and taxable municipal bonds in 2010

– Actively manage duration

– Apply proprietary security analysis

– Wholesale vs. retail pricing

• Process – Use economic analysis to identify opportunities

– Establish duration targets

– Seek diversification by issuer and geography

– Buy or sell individual securities based on strategic framework defined above


INTERMEDIATE GOVERNMENT CREDIT (TAXABLE FIXED INCOME): CHARACTERISTICS


Weighted Average Maturity (Years) 4.7

Weighted Average Duration (Years) 3.3

Weighted Average Coupon 5.3

Quality Breakdown (9/28/2012)**

AAA 2.5

AA 12.9

A 30.6

BBB 39.6

BB 0.0

B 0.0

Not Rated 14.2

Portfolio Strategy

The Intermediate Government Credit Fixed Income Strategy is designed to provide income by investing in high quality taxable bonds. The strategy does not include asset- backed or mortgage-backed securities. Diversified by sector, maturity and issuer, we invest in a combination of Treasuries, agencies, and corporate bonds. Individual security selection is a reflection of an individual’s risk tolerance and investment policy. Economic analysis is used to establish an interest rate outlook, identify sector and yield curve opportunities and establish maturity targets. Credit quality and liquidity are given special consideration.


IGC Fixed Income (Pure Gross of Fees**) 2.0 5.4 6.1 6.1 6.3 5.0

IGC Fixed Income (Net of Fees) 1.5 3.8 4.0 4.0 4.2 2.9

Barclays Intermediate Government/Credit Index 1.4 3.5 4.4 5.2 5.7 4.8


IGC Fixed Income (Pure Gross of Fees**) 5.6 6.4 9.5 3.2 5.6 4.9

IGC Fixed Income (Net of Fees) 3.5 4.3 7.4 1.2 3.5 2.8

Barclays Intermediate Government /Credit Index 5.8 5.9 5.2 5.1 7.4 4.1

* Please see important disclosures at the end of presentation. Net of fee performance is calculated using the maximum fee of 2% from the Janney Montgomery Scott fee schedule. Individual fees may vary. **Portfolio statistics, quality breakdown, portfolio allocation, and pure gross of fee performance is shown as supplemental information. Pure gross of fee returns are calculated before the deduction of trading expenses and fees.

Corporate Bonds 66%

Municipal Bonds (Taxable) 26%

Municipal Bonds (Non-Taxable) 5%

Certificates of Deposit 3%

Portfolio Allocation**(9/28/2012)


ACTIVE INDEX FIXED INCOME STRATEGY OVERVIEW

• Objective – Seek predictable returns and stable values

• The fixed income market is not a risk-free environment

– Seek highest yield adjusted for taxes

• Investment Style – Diversified basket of taxable fixed income Exchange-Traded Funds (ETFs), Exchange-Traded Notes (ETNs) and/or Open- and

Closed-end funds. – Provides liquidity and taxable income

• Process – Use economic analysis to identify opportunities

– Establish duration targets

– Seek diversification by issuer and geography

– Buy or sell individual securities based on strategic framework defined above


ACTIVE INDEX FIXED INCOME STRATEGY: CHARACTERISTICS

Portfolio Strategy

The Active Index Fixed Income Strategy is designed to achieve competitive investment results that are higher and less volatile than either single or multiple passive index funds. Active management occurs by overweighting or underweighting various Exchange-Traded Funds (ETFs) across and within various fixed income classes. Individual security risk is greatly reduced, because ETFs hold large numbers of securities that represent exposure to their respective asset classes, indexes or industries. Over time, the portfolio may hold cash as an investment.


Active Index Fixed (Pure Gross of Fees**) 2.5 4.5 6.2 5.4 3.9 3.7

Active Index Fixed (Net of Fees) 2.0 3.0 4.1 3.3 1.9 1.7

Barclays Aggregate Index 1.6 4.0 5.2 6.2 6.5 5.9


Active Index Fixed (Pure Gross of Fees**) 5.9 5.0 4.7 (2.5) 6.0 2.6

Active Index Fixed (Net of Fees) 3.8 2.9 2.7 (4.5) 3.9 0.6

Barclays Aggregate Index 7.8 6.5 5.9 5.2 7.0 4.3

* Please see important disclosures at the end of presentation. Net of fee performance is calculated using the maximum fee of 2% from the Janney Montgomery Scott fee schedule. Individual fees may vary. **Portfolio holdings, portfolio allocation and pure gross of fee performance is shown as supplemental information. Pure gross of fee returns are calculated before the deduction of trading expenses and fees.

Portfolio Strategy** (9/28/2012)

PIMCO Total Return ETF

(BOND) 41%

iShares Barclays 1-3 Year Credit

(CSJ) 36%

PowersharesHigh Yield Corporate

(PHB) 11%

iShares Barclays TIPS

ETF (TIP) 11%

Cash 2%

Quality Breakdown (%) (9/28/2012)**

AAA 19.1 BB 10.2

AA 24.4 B 4.5

A 18.1 Not Rated 9.7

BBB 11.3


DYNAMIC ASSET STRATEGY: INVESTMENT OVERVIEW

• Objective – Attempts to deliver strong absolute and relative returns by creating a dynamic portfolio that differs from traditional

policy portfolios

• Investment Style – Uses Exchange-Traded Products (ETPs), which may include:

• Domestic and international stocks

• Domestic and international bonds

• Real Estate Investment Trusts

• Commodities

• Alternative Investments

• Cash

– Portfolios are allocated among stocks, bonds and cash, but the allocation may change based on market conditions

– No predetermined asset mix

– No single position greater than 25% of portfolio

– Portfolio protector designed to offer downside protection

• Process – Focus on valuations, expected returns and correlation when developing an asset allocation that best fits within our

current global macroeconomic viewpoint

– Define opportunities across asset class, capitalization, style, geography and industry sector


DYNAMIC ASSET STRATEGY CHARACTERISTICS

Performance (9/28/2012)* QTD YTD 1 Yr. Inception

Dynamic Asset Strategy (Pure Gross of Fees**) 4.2 8.8 12.6 3.1

Dynamic Asset Strategy (Net of Fees) 3.5 6.4 9.3 0.1

MSCI World 6.7 13.0 21.6 9.8

Barclays Aggregate Index 1.6 4.0 5.2 5.5

Salomon 90 Day Index 0.0 0.0 0.1 0.1

Portfolio Allocation (9/28/2012) ** Portfolio Description

The Dynamic Asset Strategy seeks competitive total returns in combination with low-to- moderate volatility relative to the overall capital markets. The strategy has no predetermined asset allocation mix and instead seeks to allocate capital to investments that appear to offer the most compelling opportunities, or at times the most protection in a given economic climate. The strategy uses Exchange-Traded Products (ETPs), including Exchange-Traded Funds, Exchange-Traded Notes and Closed-end Funds to invest tactically across asset classes and market categories.



Equity Turnover (1 Year Trailing) 92.6

Standard Deviation (Since Inception-9/30/2010)

11.2

Beta (Since Inception-9/30/2010) 0.6

Portfolio Yield*** (Weighted Average) 1.6 *Turnover is based on a model composite. **Beta formula is covariance (Portfolio: Benchmark)/Variance (Benchmark). Beta is a measure of volatility, or systemic risk, of a security or portfolio in comparison to the market as a whole. Beta is calculated using the S&P 500 Index. ***Portfolio yield is based on model data.

*Please see important disclosures at the end of presentation. Net of fee performance is calculated using the maximum fee of 3% from the Janney Montgomery Scott fee schedule. Individual fees may vary. **Portfolio statistics, portfolio allocation, and pure gross of fee performance is shown as supplemental information. GICS sector weights are based on model data. Pure gross of fee returns are calculated before the deduction of trading expenses and fees. The MSCI World Index is a price only return calculation and does not include the reinvestment of dividends.

Cash 10% Domestic

Equity 53%

International Equity 12%

Emerging Market Equity

5%

Portfolio Protector

20%


DYNAMIC INCOME STRATEGY INVESTMENT OVERVIEW

• Objective – Attempts to deliver strong absolute and relative returns by creating a dynamic portfolio that differs from traditional

policy portfolios

– Seeks a high level of income with a goal of generating a yield that exceeds the Consumer Price Index (CPI) by 2%

• Investment Style – Uses Exchange-Traded Products (ETPs), which may include:

• Domestic and international stocks

• Domestic and international bonds

• Real Estate Investment Trusts

• Commodities

• Alternatives

• Cash

– Portfolios are allocated among stocks, bonds and cash, but the allocation may change based on market conditions

– No predetermined asset mix

– At least 50% of portfolio invested in fixed income

– No single position greater than 25% of portfolio

• Process – Focus on valuations, expected returns and correlation when developing an asset allocation that best fits within our

current global macroeconomic viewpoint

– Define opportunities across asset class, capitalization, style, geography and industry sector


DYNAMIC INCOME STRATEGY: CHARACTERISTICS Portfolio Description

The Dynamic Income Strategy uses Exchange-Traded Products (ETPs), including Exchange- Traded Funds, Exchange-Traded Notes and Closed-end Funds to invest tactically across asset classes and market categories. The strategy attempts to identify opportunities that offer a compelling level of income relative to what is available within the current macroeconomic environment. Our charter within the Dynamic Income Strategy is focused on an aggressive income stream that outperforms inflation over time; with no more than 50% in equity positions.

Portfolio Allocation (9/28/2012)**

Performance (9/28/2012)* QTD YTD 1 Yr. Inception

Dynamic Income Strategy (Pure Gross of Fees**) 5.5 12.1 18.7 7.2

Dynamic Income Strategy (Net of Fees) 4.7 9.6 15.2 4.0

MSCI World 6.7 13.0 21.6 9.8

Barclays Aggregate Index 1.6 4.0 5.2 5.5

Salomon 90 Day Index 0.0 0.0 0.1 0.1

Inception 9/30/2010

Closed End Funds

8% Domestic Debt 8%

Emerging Market Debt

5%

Floating Rate Income

7%

High Yield Bonds

7% Preferreds 6% Domestic

Stocks 23%

Emerging Market Stocks

5%

International Stocks

14%

MLPs 5%

Global TIPS 6%

International Debt 3%

Cash 3%

* Please see important disclosures at the end of presentation.. Net of fee performance is calculated using the maximum fee of 3% from the Janney Montgomery Scott fee schedule. Individual fees may vary. **Portfolio statistics, portfolio allocation, and pure gross of fee performance is shown as supplemental information. Pure gross of fee returns are calculated before the deduction of trading expenses and fees. The MSCI World Index is a price only return calculation and does not include the reinvestment of dividends.



Equity Turnover (1 Year Trailing) 54.1

Standard Deviation (Since Inception-9/30/2010) 11.9

Beta (Since Inception-9/30/2010)** 0.6

Portfolio Yield*** (Weighted Average) 4.9 *Turnover is based on a model composite. **Beta formula is covariance (Portfolio: Benchmark)/Variance (Benchmark). Beta is a measure of volatility, or systemic risk, of a security or portfolio in comparison to the market as a whole. Beta is calculated using the S&P 500 Index. ***Portfolio yield is based on model data.


GIPS DISCLOSURES The All Cap Core Equity Composite includes wrap portfolios that may invest in large, mid and small capitalization equities as well as growth and value equities. Portfolios may also seek international exposure through ETFs and ADRs. For comparison purposes, the All Cap Core Composite is measured against the S&P 500 Index. The S&P 500 Index is an unmanaged market capitalization weighted price index composed of 500 widely held common stocks.. The U.S. Dollar is the currency used to express performance. The minimum account size for inclusion is currently $60,000. Through March 31, 2006, the minimum portfolio size for inclusion was $110,000. Through March 31, 2006, the composite includes only non-taxable accounts. Prior to December 31, 2012, Janney Capital Management was known as Parker/Hunter Asset Management, LLC (“Parker/Hunter”). Janney Capital Management is held out to clients as a distinct operating group associated with Janney and has been referred to as a “division of”, and now a “subsidiary of”, Janney. The All Cap Core Composite was created on January 1, 1999. Janney Capital Management claims compliance with the Global Investment Performance Standards (GIPS®). Janney Capital Management has been verified for the period beginning January 1, 1999 through December 31, 2011 by Ashland Partners & Company LLP. The verification and performance examination reports are available upon request.

Equity Income Composite includes wrap portfolios that may invest in large, mid and small capitalization equities as well as growth and value equities. Portfolios may also seek international exposure through ETFs and ADRs. For comparison purposes, the Equity Income Composite is measured against the S&P 500 Index. The S&P 500 Index is an unmanaged market capitalization weighted price index composed of 500 widely held common stocks. The U.S. Dollar is the currency used to express performance. The U.S. Dollar is the currency used to express performance. The minimum account size for inclusion is currently $60,000. Prior to December 31, 2012, Janney Capital Management was known as Parker/Hunter Asset Management, LLC (“Parker/Hunter”). Janney Capital Management is held out to clients as a distinct operating group associated with Janney and has been referred to as a “division of”, and now a “subsidiary of”, Janney. The Equity Income Composite was created March 31, 2003. Janney Capital Management claims compliance with the Global Investment Performance Standards (GIPS®). Janney Capital Management has been verified for the period beginning January 1, 1999 through December 31, 2011 by Ashland Partners & Company LLP. The verification and performance examination reports are available upon request.

Active Index Strategy - With Sectors Composite includes wrap portfolios that may invest in equity ETFs and closed end funds. The strategy can invest in securities across various asset classes including but not limited to; large, mid, and small capitalization, domestic, international, real estate, commodities, and currencies. Sector and sub-sector securities are used for tactical allocation purposes. Allocation to a particular asset class, sector, or sub-sector will vary over time. For comparison purposes, the Active Index Strategy – with sectors Composite is measured against the S&P 500 Index. The S&P 500 Index is an unmanaged market capitalization weighted price index composed of 500 widely held common stocks. The U.S. Dollar is the currency used to express performance. The minimum account size for inclusion is currently $15,000 (portfolios with market values as low as $10,000 are included). Prior to December 31, 2012, Janney Capital Management was known as Parker/Hunter Asset Management, LLC (“Parker/Hunter”). Janney Capital Management is held out to clients as a distinct operating group associated with Janney and has been referred to as a “division of”, and now a “subsidiary of”, Janney. The Active Index Strategy - with sector Composite was created June 30, 2001. Janney Capital Management claims compliance with the Global Investment Performance Standards (GIPS®). Janney Capital Management has been verified for the period beginning January 1, 1999 through December 31, 2011 by Ashland Partners & Company LLP. The verification and performance examination reports are available upon request.

Intermediate Government Credit Composite includes tax-free wrap portfolios that invest in government and corporate taxable bonds and may also invest in tax exempt municipal bonds in situations deemed suitable by the investment manager. Portfolios may include fixed income ETFs. Portfolios will not invest in asset backed or mortgage backed securities. For comparison purposes, the Intermediate Government Credit Composite is measured against the Barclays Intermediate Government Credit Index. The Barclays Capital Intermediate Government Credit Index is a broad fixed income index that includes U.S. Treasuries, Government Agency bonds, and investment grade corporate bonds. The U.S. Dollar is the currency used to express performance. The minimum account size for inclusion is currently $60,000. Prior to December 31, 2012, Janney Capital Management was known as Parker/Hunter Asset Management, LLC (“Parker/Hunter”). Janney Capital Management is held out to clients as a distinct operating group associated with Janney and has been referred to as a “division of”, and now a “subsidiary of”, Janney. The Intermediate Government Credit Composite was created January 1, 1999. Janney Capital Management claims compliance with the Global Investment Performance Standards (GIPS®). Janney Capital Management has been verified for the period beginning January 1, 1999 through December 31, 2011 by Ashland Partners & Company LLP. The verification and performance examination reports are available upon request.

Active Index Strategy Fixed Income Composite includes fixed income wrap portfolios that invest in ETFs, closed-end funds and open-ended funds. For comparison purposes, the Active Index Strategy Fixed Income Composite is measured against the Barclays Aggregate Index. The Barclays Aggregate Index provides a measure of the performance of the U.S. investment grade bonds market, which includes investment grade U.S. Government bonds, investment grade corporate bonds, mortgage pass-through securities and asset-backed securities that are publicly offered for sale in the United States. The securities in the Index must have at least 1 year remaining to maturity. In addition, the securities must be denominated in U.S. dollars and must be fixed rate, nonconvertible, and taxable. . The U.S. Dollar is the currency used to express performance. The U.S. Dollar is the currency used to express performance. The minimum account size for inclusion is $10,000. Prior to December 31, 2012, Janney Capital Management was known as Parker/Hunter Asset Management, LLC (“Parker/Hunter”). Janney Capital Management is held out to clients as a distinct operating group associated with Janney and has been referred to as a “division of”, and now a “subsidiary of”, Janney. The Active Index Strategy Fixed Income Composite was created June 30, 2003. Janney Capital Management claims compliance with the Global Investment Performance Standards (GIPS®). Janney Capital Management has been verified for the period beginning January 1, 1999 through December 31, 2011 by Ashland Partners & Company LLP. The verification and performance examination reports are available upon request.


GIPS DISCLOSURES National Municipal Composite includes wrap portfolios that invest in tax exempt municipal bonds. Securities are selected based on the individual client’s tax situation. For comparison purposes, the National Municipal Composite is measured against the Barclays Capital U.S. Municipal Index. The Barclays Capital U.S. Municipal Bond Index covers the U.S. dollar denominated long term tax exempt bond market. The U.S. Dollar is the currency used to express performance. The minimum account size for inclusion is currently $60,000. Prior to December 31, 2012, Janney Capital Management was known as Parker/Hunter Asset Management, LLC (“Parker/Hunter”). Janney Capital Management is held out to clients as a distinct operating group associated with Janney and has been referred to as a “division of”, and now a “subsidiary of”, Janney. The National Municipal Composite was created January 1, 1999. Janney Capital Management claims compliance with the Global Investment Performance Standards (GIPS®). Janney Capital Management has been verified for the period beginning January 1, 1999 through December 31, 2011 by Ashland Partners & Company LLP. The verification and performance examination reports are available upon request.

Dynamic Asset Strategy Composite includes wrap portfolios that may invest in Exchange Traded Products (ETPs), including Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs) and Closed End Funds. The strategy may invest in ETPs of various asset classes including equity (both domestic and international), fixed income (both domestic and international), real estate, commodities and currencies. There is no predetermined asset allocation mix and the allocation may change based on market conditions. For comparison purposes, the Dynamic Asset Strategy is measured against the MSCI World Index, Barclays Aggregate Index and the Salomon Brothers 90 Day Index. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of the following 24 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. The Barclays Aggregate Index The Barclays Aggregate Index provides a measure of the performance of the U.S. investment grade bonds market, which includes investment grade U.S. Government bonds, investment grade corporate bonds, mortgage pass-through securities and asset-backed securities that are publicly offered for sale in the United States. The securities in the Index must have at least 1 year remaining to maturity. The Salomon Brothers 90 Day Index is an un-weighted index which measures the performance of three-month maturity U.S. Treasury Bills. The U.S. Dollar is the currency used to express performance. The minimum account size for inclusion is currently $60,000. Prior to December 31, 2012, Janney Capital Management was known as Parker/Hunter Asset Management, LLC (“Parker/Hunter”). Janney Capital Management is held out to clients as a distinct operating group associated with Janney and has been referred to as a “division of”, and now a “subsidiary of”, Janney. The Dynamic Asset Strategy was created on September 30, 2010. Janney Capital Management claims compliance with the Global Investment Performance Standards (GIPS®). Janney Capital Management has been verified for the period beginning January 1, 1999 through December 31, 2011 by Ashland Partners & Company LLP. The verification and performance examination reports are available upon request.

Dynamic Income Strategy Composite includes wrap portfolios that may invest in Exchange Traded Products (ETPs), including Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs) and Closed End Funds. The strategy may invest in ETPs of various asset classes including equity (both domestic and international), fixed income (both domestic and international), real estate, commodities and currencies. The portfolio will allocate a minimum of 50% to fixed income securities at all times. For comparison purposes, the Dynamic Income Strategy is measured against the MSCI World Index, Barclays Aggregate Index and the Salomon Brothers 90 Day Index. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of the following 24 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. The Barclays Aggregate Index The Barclays Aggregate Index provides a measure of the performance of the U.S. investment grade bonds market, which includes investment grade U.S. Government bonds, investment grade corporate bonds, mortgage pass-through securities and asset-backed securities that are publicly offered for sale in the United States. The securities in the Index must have at least 1 year remaining to maturity. The Salomon Brothers 90 Day Index is an un-weighted index which measures the performance of three-month maturity U.S. Treasury Bills. The U.S. Dollar is the currency used to express performance. The U.S. Dollar is the currency used to express performance. The minimum account size for inclusion is currently $60,000. Prior to December 31, 2012, Janney Capital Management was known as Parker/Hunter Asset Management, LLC (“Parker/Hunter”). Janney Capital Management is held out to clients as a distinct operating group associated with Janney and has been referred to as a “division of”, and now a “subsidiary of”, Janney. The Dynamic Income Strategy was created on September 30, 2010. Janney Capital Management claims compliance with the Global Investment Performance Standards (GIPS®). Janney Capital Management has been verified for the period beginning January 1, 1999 through December 31, 2011 by Ashland Partners & Company LLP. The verification and performance examination reports are available upon request.

PHAM is a division of Janney Montgomery Scott LLC, a registered investment advisor under the Investment Advisers Act of 1940. PHAM is held out to all clients and prospective clients as a distinct division of Janney Montgomery Scott LLC. The requirements of the GIPS standards are applied on a firm-wide basis. The firm maintains a complete list and description of composites, which is available upon request. Requests may be made by calling 412.562.8100. Past performance is not indicative nor a guarantee of future performance. The performance of any individual portfolio may not be considered comparable to the Composite performance.


INVESTMENT COMMITTEE MEMBERS Mark D. Luschini Managing Director Chief Investment Strategist, Janney Montgomery Scott LLC Mark Luschini is responsible for directing the firm’s investment management services and is the Chief Investment Strategist for Janney Montgomery Scott LLC. He chairs the Investment Committee and actively interfaces with both current and prospective clients. Mr. Luschini speaks regularly on topics related to investment planning and asset management at seminars and conferences. His comments and written articles have appeared in numerous publications. He is a Trustee for the firm’s Profit Sharing Plan and serves on the Janney Wealth Management Alternative Investment and Mutual Fund Committees. James M. Egan, Jr. Director James Egan serves on the Investment Committee for Janney Capital Management. Previously, he was head of the Parker /Hunter Fixed Income and Syndicate departments. His responsibilities included buying and selling of capital market instruments and pricing and structuring new issues. Mr. Egan began his career in New York. He is a member of the FIAS and serves on several nonprofit boards. Timothy M. Slevin, CFA Director Tim Slevin is responsible for research and serves on the Investment Committee. Previously, he was the head of technology equity research and was a supervisory analyst for the Parker/Hunter Research Department. Prior to that position, Mr. Slevin was a Managing Director in the Parker/Hunter Investment Banking Department and was involved in public offerings, fairness opinions, acquisitions and valuing securities. Before Parker/Hunter, Mr. Slevin was an Assistant Vice President in the Capital Markets Department of Mellon Bank where he was involved with derivative products such as interest rate swaps, caps and collars, and was a consultant in treasury management to corporate clients. Mr. Slevin serves on the board of the Pittsburgh Youth Symphony Orchestra, is chair of the Finance Committee of Christ Church Fox Chapel, serves on Financial Industry Regulatory Authority (FINRA) Examination Committees, and serves on the Advisory Council for the Don Jones Center for Entrepreneurship at Carnegie Mellon’s Tepper School of Business. Mr. Slevin holds the Chartered Financial Analyst designation and is a member of the CFA Society of Pittsburgh. Timothy H. Williams Director Tim Williams serves on the Investment Committee and oversees the firm’s day-to-day operations, including portfolio compliance, trading, client service, technology and general administration. Mr. Williams began his career as a national lending officer for Wachovia Bank, and subsequently was a principal in a group of different businesses, including consumer services, distribution and natural gas development. For more than 20 years, he served as a board member of the St. Margaret Foundation and the United Way. He currently serves on the United Way Investment Committee and chairs its Health Alliance for Nonprofits.


ALL CAP CORE EQUITY: HOLDINGS

As of 9/28/2012

ACGL Arch Capital Group Ltd. JNJ Johnson & Johnson ACN Accenture PLC LIFE Life Technology Corporation ADP Automatic Data Processing, Inc. MDT Medtronic Inc. AES AES Corporation MET Metlife Inc. BAMXY Bayerische Motoren Werke (BMW Group) MMM 3M Company BAYRY Bayer A G ADR MSFT Microsoft Corporation BK Bank of New York Mellon Corporation MYL Mylan Labs Inc. BTI British American Tobacco ADR NEM Newmont Mining Corporation BX Blackstone Group NKE Nike Inc. COP ConocoPhillips OXY Occidental Pete Corporation COV Covidien PLC PEP Pepsico Inc. CVS CVS Corp PG Procter & Gamble Company CVX Chevron Corp PM Phillip Morris International DHR Danaher Corp QCOM Qualcomm Inc. EMC EMC Corp SDRL Seadrill Limited EMR Emerson Electric Co SHPGY Shire Pharmaceuticals Group GS Goldman Sachs Group Inc T AT&T Inc. HAL Halliburton Co TGT Target Corporation HON Honeywell Intl Inc TWX Time Warner Inc. ICON Iconix Brand Group V Visa Inc Class A INTC Intel Corp VOD Vodafone Group PLC ADR

Portfolio holdings may not be representative of the Composite’s or an individual portfolio’s current or future investments. There is no assurance that any of these stocks will be purchased in the future or are currently held in the portfolio.


EQUITY INCOME: HOLDINGS

As of 9/28/2012

ACN Accenture PLC MLPI UBS E-TRACS Alerian MLP Infrastructure ETN AYR Aircastle Limited MMM 3M Company AZN Astrazeneca PLC ADR MSFT Microsoft Corporation BTI British American Tobacco ADR NLY Annaly Capital Management Inc. CA CA Technologies NYB New York Community Bancorp Inc. COP ConocoPhillips PAYX Paychex Inc. CVX Chevron Corporation PEP Pepsico Inc. DELRF De La Rue PG Procter & Gamble Company DUK Duke Energy Company PM Phillip Morris International EMR Emerson Electric Company RDS/B Royal Dutch Shell PLC EXC Exelon Corporation RPM RPM International Inc. FTE France Telecom ADR SDRL Seadrill Limited GOV Government Properties Income Trust SNY Sanofi Spons ADR GSK GlaxoSmithKline PLC T AT&T Inc. HCN Health Care REIT Inc. TOT Total S A ADR HON Honeywell Intl Inc. TSM Taiwan Semiconductor Manufacturer INTC Intel Corp oration VGK Vanguard European ETF JNJ Johnson & Johnson VOD Vodafone Group PLC ADR KMB Kimberly Clark Corporation WBK Westpac Banking Corp. LEG Leggett & Platt Inc.



ACTIVE INDEX: HOLDINGS

EQUITY - As of 9/28/2012

DEM Wisdom Tree Emerging Market Equity ETF FFR First Trust FTSE EN Developed Markets Real Estate ETF GDX Market Vectors Gold Miners ETF GLD SPDR Gold Trust Shares ETF IAK iShares DJ US Insurance ETF IEZ iShares Trust Dow Jones US Oil ETF IGV iShares SP North American Technology ETF IHI iShares DJ US Medical Device ETF IHE iShares Dow Jones U.S. Pharmaceuticals ETF IHF iShares Dow Jones U.S. Healthcare Providers ETF IWF Russell 1000 Growth Index Fd IWM iShares Russell 2000 ETF KRE SPDR S&P Regional Banking ETF MDY SPDR S&P 400 MidCap ETF SPLV Powershares S&P 500 Low Volatility ETF VGK Vanguard European ETF VWO Vanguard Emerging Markets ETF XLE Energy Select Sector SPDR ETF XLF Sector SPDR Financial ETF XLI Sector SPDR Industrial ETF XLK Sector SPDR Technology ETF XLP Sector SPDR Consumer Staples ETF XLU Sector SPDR Utilities ETF XLY Sector SPDR Cyclicals ETF

TAXABLE FIXED INCOME – As of 9/28/2012

BOND PIMCO Total Return ETF CSJ iShares Lehman 1-3 Year Credit Bond ETF PHB Powershares High Yield Corporate Bond ETF TIP iShares Barclays TIPS ETF

TAX-EXEMPT MUNICIPAL FIXED INCOME – As of 9/28/2012

ITM Market Vectors ETM Intermediate Municipal ETF PVI Powershares VRDO Tax-Free ETF PZA Powershares Insured National Municipal ETF SHM SPDR Lehman Short Term Municipal ETF



DYNAMIC ASSET STRATEGY: HOLDINGS

As of 9/28/2012

DEM WisdomTree Emerging Market Equity ETF IHE iShares Dow Jones U.S. Pharmaceuticals ETF EWL iShares MSCI Switzerland ETF IHI iShares DJ US Medical Device ETF EWU iShares MSCI United Kingdom ETF ITB iShares Dow Jones U.S. Home Construction ETF EWG iShares Germany ETF KRE SPDR S&P Regional Banking ETF EWQ iShares France ETF MCHI iShares China ETF GDX Market Vectors Gold Miners ETF PXE PowerShares Dynamic Energy Exploration & Production ETF GLD SPDR Gold Trust Shares ETF REM iShares FTSE NAREIT Mortgage Plus Capped ETF IEF iShares Barclays 7-10 Year Treasury ETF RTH Market Vectors Retail ETF IEZ iShares Trust Dow Jones US Oil ETF SOXX iShares PHLX SOX Semiconductor Sector ETF IGV iShares SP North American Technology ETF UUP Powershares DB US Dollar Bullish ETF



DYNAMIC INCOME STRATEGY: HOLDINGS

As of 9/28/2012

AUNZ WisdomTree Australia & New Zealand Debt ETF ITIP iShares International Inflation-Linked Bond Fund ETF AUSE WisdomTree Australia Dividend ETF JFR Nuveen Floating Rate ETF AXHE iShares MSCI ACWI ex US Healthcare Sector ETF MLPI UBS E-TRACS Alerian MLP Infrastructure ETN BOND PIMCO Total Return ETF PCEF Powershares Closed End Fund Income ETF DEM Wisdom Tree Emerging Market Equity ETF PFF iShares S&P US Preferred Stock ETF DWX SPDR International Dividend ETF PPR ING Prime Rate Trust ELD Wisdom Tree Emerging Markets Debt ETF PSP Powershares Listed Private Equity ETF FDL First Trust Morningstar Dividend Leaders ETF REM iShares NARIET Mortgage REIT ETF FLN First Trust Latin America AlphaDEX ETF SJNK SPDR Barclays Capital Short Term High Yield ETF


Jcm

Economy & Finance

current macroeconomic

active management

minimum account

predetermined

distinct operating

deliver strong

reputable

igc fixed