DIVIDEND GROWTH. Portfolio Update: Second Quarter Contributors and Detractors

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1 DIVIDEND GROWTH Portfolio Update: Second Quarter 2016 The Dividend Growth Portfolio (the Portfolio ) increased +2.5% gross of fees (+2.4% net of fees) in the second quarter of 2016, about in line with the S&P 500 Index, which increased +2.5% for the same period. Year-to-date the Portfolio increased +7.0% gross of fees (+6.7% net of fees), nicely ahead of the S&P 500, which increased +3.8%. For most of the second quarter, the market provided a very slow and steady uptrend before being hit with a large bout of volatility towards the end of June on the news that voters in the United Kingdom had voted to depart the European Union (the so-called Brexit ). After a substantial two-day selloff, the U.S. market largely recovered back to its pre-brexit level and continued trading higher in the early part of the third quarter. We think this increased volatility could be here to stay with us for the next several months as global macroeconomic and political concerns remain forefront on many shorterterm investors minds. With this backdrop, we think the Fed is more likely to stay on the sidelines from its plans to slowly increase interest rates, which is reflected in the falling yield on the 10-year Treasury, currently hovering around 1.6%. Outside the U.S., many countries yields have fallen even further with a number of government debt actually sporting negative yields. While we do not believe that a near-term recession in the U.S. is likely, the probability that one could begin in the next 12 months has gone up from where we were three months ago. We think the more likely scenario is that the U.S. economy continues to grind out about 2% GDP growth and year-over-year corporate earnings growth turns modestly positive in the second half of the year. As we write this letter, second quarter earnings reports are about to begin, and we expect the pervasive message to be that of a very uncertain demand outlook across multiple sectors. From an earnings translation point, the U.S. dollar was just about to start becoming a year over-year tailwind until the dollar rallied hard on the Brexit news. Taking all of this together, we will likely continue to be in a challenging market environment with no strong direction and heightened volatility. As always, we remain focused on bottom-up stock selection and less on the macro backdrop, continuing to manage a portfolio of high-quality individual companies that we believe can grow their earnings and dividend payments for years into the future. While our concentrated strategy may deviate from the benchmark during various parts of the market cycle, we strongly believe the strategy positions us to outperform over the long run without taking undue risk. Contributors and Detractors 2016 Second Quarter Contributors Ranked by Basis Point Contribution TOP 5 Basis Point Contribution Total Return 2016 Second Quarter Contributors Ranked by Basis Point Contribution BOTTOM 5 Basis Point Contribution Total Return American Tower (AMT) % Macy s (M) % Becton Dickinson (BDX) % L Brands (LB) % Marsh & McLennan (MMC) % Apple (AAPL) % Bristol Myers Squibb (BMY) % CVS Health (CVS) % Union Pacific (UNP) % Accenture (ACN) % Past performance is not indicative of future performance, and there is a possibility of loss. The above does not represent all holdings in the Portfolio. To obtain a copy of RMB s calculation methodology and a list of all holdings with contribution analysis, please contact your service team. The data provided is supplemental. Please see important disclosures at the end of this document. The Portfolio s largest contributor in the second quarter was American Tower as it had a solid first quarter earnings report. The stock also saw multiple expansion as it benefits from a flight-to-safety during uncertain economic times while its business model is relatively immune to the economy. While the stock is not cheap, we continue to like the

2 long-term prospects for secular growth and an increasing dividend from AMT as it benefits from the strong growth in cellular data consumption. Telecommunication providers in AMT s territories will need to continue to invest in their networks to meet this demand, which should result in more need for equipment on AMT s cellular towers. Becton Dickinson was the Portfolio s second-best performer as it too had a solid first quarter earnings report and continues to see substantial cost and revenue synergies from its acquisition of CareFusion. We continue to like the outlook for Becton to produce steady revenue and earnings growth over the next several quarters. On the negative side of the performance ledger, we had a few names whose prices underperformed the market in the quarter, adversely affecting the Portfolio return. Our two worst performers both came out of the retail industry which struggled in the quarter. Macy s (our strongest performer in the first quarter) gave back all of its gains as its first quarter earnings report and outlook for the year came in below Wall Street estimates. Same-store sales continued to struggle as consumers shifted their spending elsewhere, and Macy s management has not come up with a credible plan to monetize their real estate portfolio, other than to announce that they won t be spinning it off into a large real estate investment trust. We believe the stock is oversold and undervalued here, but we have concerns about the longer-term growth potential of the brick and mortar business against ongoing secular pressures. An announcement of some type of real monetization could improve shareholder value and be our catalyst to exit the name. L Brands (a recent purchase) got off to a rough start as it too saw weak same-store sales during the quarter. We will discuss this name more below. Portfolio Activity During the first quarter, we purchased one new security, L Brands (LB), and exited one, Aflac (AFL), a large Japanese and U.S. supplemental life and health insurer. Aflac was a relatively small position in the Portfolio, and over time our confidence that the company could resume a meaningful level of earnings and dividend growth in the intermediate future had eroded. Our patience in this longtime holding had worn thin, and we used the recent uptick in the stock to exit the name at a reasonable price and reallocated the proceeds to other higher-conviction ideas. L Brands is the parent company to specialty retailers Victoria Secret, Bath & Body Works, and LaSenza, which focus on women s intimate apparel, personal care, and beauty categories. It sells merchandise through company-owned stores in the U.S., Canada, and the U.K., which are primarily mall-based, through websites, international franchise, license and wholesale partners. L Brands has built a strong economic moat where it is the dominant specialty player in its niche categories. Nearly all of its merchandise is from brands that it owns and controls, which provide better economics than retailers that sell non-proprietary merchandise. While clearly not an early life cycle, fast-growing retailer, we think L Brands still has decent secular growth prospects. It has a proven track record of execution over many years. L Brands can strategically deploy capital to grow while also returning much of the free cash flow that it generates to shareholders in the form of dividends and stock buybacks. The company has a long history of growing its regular dividend (now yielding 3.6%) and periodically also paying out sizeable special dividends. The opportunity in the stock for investors with a longer-term horizon was created by recent P/E multiple contraction as comparable store sales have been disappointing in recent months, and worries persist that some reorganization moves will be disruptive to the business leading to worsening sales trends in coming months. We do believe that 2016 will be a major investment year as they accelerate remodeling of Bath & Body Works stores, create some product line changeovers at Victoria Secret, largely discontinue mailing catalogs, accelerate franchise-led international growth, and pay more for a greater full-time employee mix. We will continue to closely watch the impact from all this short-term movement on the business this year, with the hope that fundamentals could look meaningfully better by this time in Long term, L Brands should be able to return to its objective of low single- to mid-single digit SSS growth and operating profit dollar growth greater than 10%.

3 TOP 10 HOLDINGS AS OF 6/30/16 PORTFOLIO VALUATION % of Assets ROE 6/30/16 2 Yr. Fwd. EPS Growth 2016 P/E 2017 P/E American Tower (AMT) 6.3% RMB Dividend Growth 17.4% 10.9% CME Group (CME) 5.3% S&P % 4.9% Lowe s Companies (LOW) 5.3% Past performance is not indicative of future performance, and there is a possibility of loss. The data provided is supplemental. Please see important disclosures at the end Becton Dickinson (BDX) 5.3% of this document. Schlumberger (SLB) 5.1% Union Pacific (UNP) 5.0% Microchip Technology (MCHP) 4.8% Marsh & McLennan (MMC) 4.7% Watsco (WSO) 4.4% CVS Health Corporation (CVS) 4.3% Outlook The stock market volatility that had died down from first quarter levels returned with a vengeance in late June, and we doubt it will go away in the second half of the year. The level of economic uncertainty will likely remain high, and the 2016 Presidential and Congressional election outcomes will have an impact on future economic, tax, and social policy in the U.S., all of which impacts market psychology. Despite this uncertain backdrop, the U.S. economy appears to be capable of grinding out 2% GDP growth. Employment growth continues to be respectable as the June jobs report was very strong after a weak May. We are starting to see some levels of real wage growth, which should help buoy the U.S. consumer but also potentially hurt corporate profit margins. We are believers in a continued slow and steady housing market recovery that could have years left to it. Oil prices have rebounded substantially off of their lows but remain quite low compared to recent and long-term price levels. Rock-bottom interest rates look like they will stay fairly low in the intermediate term as the Federal Reserve is not as likely to be very aggressive with interest rate policy in such an uncertain environment. When we look outside of the U.S., the uncertain picture looks worse. Emerging markets and China have seen economic growth decelerate rapidly, and a handful of countries remain in recession. Europe was actually seeing modest signs of improvement and hope for better growth until the Brexit announcement put a giant question mark over the entire region. Overall U.S. corporate earnings growth will be tough to come by in this environment, although year-over-year comparisons do get easier in the second half of 2016 and current estimates are for a moderate resumption of year-over -year growth. Now more than ever, companies that can show secular growth will continue to be rewarded when the cyclical growth environment is challenged. The Portfolio focuses on owning these types of growth companies that have strong economic moats, underleveraged balance sheets, and superior management teams. Today, stock valuations are on the expensive side, however, relative to low bond yields and other expensive asset classes, they do not look unreasonably high. We do find pockets of the market, particularly in some very defensive, economically insensitive areas, such as utilities and consumer staples, which feel overpriced as investors appear to be overpaying for safety and absolute dividend yield. We will continue to stick with our disciplined investment process that keeps us focused on individual company fundamentals and less on the overall market. Thank you for the continued trust you place in us to manage your assets. If you have any questions, please do not hesitate to contact us.

4 Past performance is Past performance is not indicative of future performance, and there is a possibility of loss. The opinions and analyses expressed in this newsletter are based on RMB Capital Management, LLC s ( RMB Capital ) research and professional experience, and are expressed as of the date of our mailing of this newsletter. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future performance, nor is it intended to speak to any future time periods. RMB Capital makes no warranty or representation, express or implied, nor does RMB Capital accept any liability, with respect to the information and data set forth herein, and RMB Capital specifically disclaims any duty to update any of the information and data contained in this newsletter. The information and data in this newsletter does not constitute legal, tax, accounting, investment, or other professional advice. The information provided in this newsletter should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in the Portfolio at the time you receive this newsletter or that securities sold have not been repurchased. The securities discussed do not represent the entire Portfolio and in the aggregate may represent only a small percentage of their holdings. It should not be assumed that any securities transaction or holding discussed was or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein. A complete list of security recommendations made during the past 12 months is available upon request. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. It includes approximately 2000 of the smallest U.S. equity securities in the Russell 3000 Index, based on a combination of market capitalization and current index membership. The Russell 2000 Index represents approximately 10% of the total market capitalization of the Russell 3000 Index. The S&P 500 is widely regarded as the best single gauge of the United States equity market. It includes 500 leading companies in leading industries of the U.S. economy. The S&P 500 focuses on the large-cap segment of the market and covers approximately 75% of U.S. equities.

5 RMB Capital Management, LLC Dividend Growth Equity // Annual Disclosure Presentation Organization RMB Capital Management, LLC ( RMB ) is an independent investment advisor registered with the Securities and Exchange Commission under the Investment Advisers Act of RMB was established in RMB claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. RMB has been independently verified for the period April 1, 2005 through December 31, Verification assesses whether: (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis; and (2) the firm s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Core Equity composite has been examined for the period April 1, 2005 through December 31, The verification and performance examination reports are available upon request. RMB maintains a complete list and description of composites, which are also available upon request. Description The Dividend Growth Equity product reflects the performance of fully discretionary dividend growth equity accounts, which have an investment objective of long-term growth using a portfolio of primarily large-cap stocks and, for comparison purposes, is measured against the S&P 500. The Dividend Growth Equity was created on April 1, 2005 and includes all accounts that are managed in accordance with the Dividend Growth Equity investment style, except for portfolios with substantial restrictions. An account is included in the on the first day of the first full month following becoming fully invested. An account is removed from the as of the last day of its last full month. Account performance is based on total assets in the account, including cash and cash equivalents. Results are based on fully discretionary accounts under management, including those accounts no longer managed by RMB. Valuations and returns are computed and stated in U.S. Dollars. ANNUAL PERFORMANCE RELATIVE TO STATED BENCHMARK Year End Total Firm Assets as of 12/31 (M) Assets USD (M) # of Accounts Managed Annual Performance Results Gross-of-Fees Net-of-Fees S&P YR ST DEV (%) S&P YR ST DEV (%) % of Wrap Accts ,248, , % 29.81% 32.39% 12.09% 11.94% 98.33% 0.51% ,585, , % 13.93% 16.00% 14.98% 15.09% 98.76% 0.47% ,218, , % 2.59% 2.11% 18.23% 18.70% 99.04% 0.64% ,881,898 25, % 1.05% 15.06% 20.98% 21.85% 100.0% 0.7% ,613,935 29, % 27.20% 26.46% 19.11% 19.63% 99.3% 1.16% ,113,638 30, % % % N/A N/A 98.9% 0.5% ,420,599 18, % 9.07% 5.49% N/A N/A 100.0% 0.4% ,070,236 10, % 11.91% 15.79% N/A N/A 100.0% 0.5% 2005* 811,946 2, % 6.90% 7.22% *Results shown for the year 2005 represent partial period performance from April 1, 2005 through December 31, Dispersion Calculations of Rate of Returns The rates of return have been prepared in accordance with acceptable industry standard methodologies. These methods include, but are not limited to, the following: The product returns reflect assets-weighted total returns, using beginning-of-period market values and adjusted for time-weighted cash flows Cash flows of greater than or equal to 10% of beginning market value will be valued on the date of the flow Account performance is computed monthly. The market value is computed based on the assets in the account as of the trade date Monthly returns are calculated using the Modified Dietz Method. This methodology has been applied consistently for all periods. Other methods may produce different results Quarterly & annual rates of return for the portfolio are computed geometrically linking the monthly rates of return for the indicated number of months Accrual basis accounting is used to record dividend income Fees Effective January 1, 2011, RMB s management fee schedule is as follows: 0.50% on the first $3.0 million, 0.475% on the next $2.0 million, 0.450% on the next $5.0 million, 0.425% on the next $15.0 million, and 0.400% over $25.0 million. Actual investment advisory fees incurred by clients may vary. performance is presented on a gross-of-fees and net-of-fees basis and includes the reinvestment of all income. Gross-of-fees returns are reduced by the portion of bundled fee that includes trading costs and all fees other than portfolio management. The net returns are reduced by all actual fees and transactions costs incurred. In addition to a management fee, some accounts pay a bundled fee based on the percentage of assets under management. Other than brokerage commissions, this fee covers all charges for trading, custody, and other administrative expenses. Wrap fee schedules are provided by independent wrap sponsors and are available upon request from the respective wrap sponsors. The annual composite dispersion is an asset-weighted standard deviation calculated for the accounts in the the entire year. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Comparison with Market Indices RMB compares its returns to a variety of market indices such as the S&P 500. The index represents unmanaged portfolios whose characteristics differ from the portfolios; however, it tends to represent the investment environment existing during the time period shown. The returns of the index do not include any transaction costs, management fees, or other costs. Other Past performance is no guarantee of future performance. Historical rates of return may not be indicative of future rates of return. Individual client performance returns may be different that the composite returns listed. Total Firm Assets as of 12/31 for the years 2010, 2011, and 2012 have been revised to exclude assets from personal trading accounts that were included in previously reported figures.