Weekly Review. August 16, Weekly Market Review. Chart of the Week. Weekly Highlights. Talking Points. August 16, 2013

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1 Weekly Review Weekly Market Review Chart of the Week Talking Points Among equities, large-caps outperformed small-caps, while growth stocks and value-oriented issues generated similar results. Domestic stocks underperformed international equities. Emerging markets outperformed developed market stocks. Treasury prices were materially lower this week. The yield on the 10-year T-note gained 25bps to finish at 2.83%. Weekly Highlights Domestic stock prices traded lower this week. Equity markets declined again for the week amid continued investor uncertainty regarding the Fed and the health of the broader economy. Commodity prices were up on the week. Silver and Gold led the way with most other commodities advancing. The dollar was roughly flat against a basket of currencies. Global markets were mixed on the week. World equity markets recorded varied performance this week. Asian stocks were a bright spot for the week with gains across many of the markets. Treasury prices spiked this week. The yield on the benchmark 10-year U.S. Treasury moved meaningfully higher, reaching the highest levels in two years. Commodity indices were generally higher on the week. In particular precious metals experienced a strong week, while still remaining meaningfully below all-time highs.

2 Weekly Market Review MARKET DASHBOARD Last Price Change % Chg. YTD % Last Price Change % Chg. YTD % S&P 500 1, % 16.4% Russell Global EM 2, % -7.0% Dow Industrials 15, % 15.2% 10-Year US Treas bps NM 11 bps Nasdaq 3, % 19.4% DJ UBS Comm. Idx % -6.8% Russell , % 20.7% Gold $1, $ % -18.0% Euro Stoxx % 9.5% Crude Oil $ $ % 14.9% Shanghai Composite 2, % -8.8% Dollar % 1.9% Russell Global 1, % 10.5% VIX % -20.4% S&P 500 : Trailing 180 Days /19 3/5 3/19 4/2 4/16 4/30 5/14 5/28 6/11 6/25 7/9 7/23 8/6 L S One Week YTD Value Growth Value Growth -1.91% -1.90% -1.89% 17.90% 15.62% 13.31% -2.36% -2.46% -2.55% 18.70% 19.14% 19.45% -2.31% -2.20% -2.08% 17.46% 20.73% 24.17% Sector Performance: S&P/GICS Sectors % Wgt in S&P 500 Week % Chg. YTD % Chg. Consumer Discretionary % 22.5% Consumer Staples % 14.9% Energy % 11.5% Financials % 21.9% Health Care % 23.6% Industrials % 18.2% Information Technology % 10.5% Materials % 8.0% Telecom Services % 3.7% Utilities % 6.9% VIX : Trailing 180 Days 10 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Wealth Growth of $1: Trailing 24 Months S&P 500 Dow Industrials Small Cap EAFE Emerging Mkts. 0.7 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 2

3 S&P/Case-Shiller Home Price -Trailing 12 Mos Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Thousands % $ Billions % Increase/Decrease % Weekly Market Review THIS WEEK IN THE ECONOMY AND MARKETS ISM Non-Manufacturing - Trailing 12 Mos U.S. Trade Balance of Payments - Trailing 12 Mos. Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun Mortgage (Weekly % Chg)-Trailing 12 Wks /17-2 5/31 6/14 6/28 7/12 7/ Initial Jobless Claims-Trailing 12 Wks /17 5/31 6/14 6/28 7/12 7/26 China Consumer Price -Trailing 12 Mos Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Germany Industrial Production - Trailing 12 Mos Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun

4 % % % % Weekly Market Review EUROZONE CRISIS SELECTED EUROPEAN SOVEREIGN YIELD PERFORMANCE Last Change % Chg. YTD % Last Change % Chg. YTD % Germany 10-Yr. Govt bps NM NM France 10-Yr. Govt bps NM NM Greece 10-Yr. Govt bps NM NM Ireland 10-Yr. Govt bps NM NM Italy 10-Yr. Govt bps NM NM Portugal 10-Yr. Govt bps NM NM Spain 10-Yr. Govt bps NM NM Netherlands 10-Yr. Govt bps NM NM Belgium 10-Yr. Govt bps NM NM U.K. 10-Yr. Govt bps NM NM Germany 10-Year Government Bond Yield Spain 10-Year Government Bond Yield Italy 10-Year Government Bond Yield Greece 10-Year Government Bond Yield

5 Weekly Market Review EQUITIES WORLD MARKET PERFORMANCE Last Change % Chg. YTD % Last Change % Chg. YTD % S&P 500 1, % 16.37% Swiss Market 7, % 16.69% Dow Industrials 15, % 15.22% CAC 40 (France) 4, % 13.26% Nasdaq Composite 3, % 19.42% DAX (Germany) 8, % 10.24% Russell Global 1, % 10.5% Irish Overall 4, % 23.07% Russell Global EM 2, % -7.0% Nikkei , % 31.31% S&P/TSX (Canada) 12, % 2.57% Hang Seng 22, % -0.61% Mexico IPC 42, % -3.90% Shanghai Composite 2, % -8.84% Brazil Bovespa 51, % % Kospi (S. Korea) 1, % -3.85% Euro Stoxx % 9.54% Taiwan Taiex 7, % 2.93% FTSE 100 6, % 10.21% Tel Aviv 25 1, % 1.63% IBEX 35 (Spain) 8, % 8.00% MICEX (Russia) 1, % -6.26% Dow Jones Industrial Average -Trailing 90 Days 15,800 15,600 15,400 15,200 15,000 14,800 14,600 14,400 14,200 14,000 5/17 5/31 6/14 6/28 7/12 7/26 8/9 Nasdaq Composite-Trailing 90 Days 3,800 3,700 3,600 3,500 3,400 3,300 3,200 3,100 5/17 5/31 6/14 6/28 7/12 7/26 8/9 2,400 Shanghai Composite -Trailing 90 Days 320 Euro Stoxx -Trailing 90 Days 2, , , , , , ,700 5/17 5/31 6/14 6/28 7/12 7/26 8/ /17 5/31 6/14 6/28 7/12 7/26 8/9 5

6 Weekly Market Review EQUITIES EMERGING AND FRONTIER MARKETS EMERGING AND FRONTIER MARKET PERFORMANCE Last Change % Chg. YTD % Last Change % Chg. YTD % Mexico IPC 42, % -3.9% Hang Seng 22, % -0.6% Brazil (Bovespa ) 51, % -15.6% India (Sensex 30) 18, % -4.3% MICEX (Russia) 1, % -6.3% Malaysia (KLCI ) 1, % 5.9% Czech Republic (Prague) % -5.5% Singapore (Straits Times ) 3, % 1.0% Turkey (Istanbul) 74, % -5.0% Thailand (SET ) 1, % 3.9% Egypt (Hermes ) % 2.6% Indonesia (Jakarta) 4, % 5.8% Kenya (Nairobi 20 ) 4, % 17.2% Pakistan (Karachi KSE 100) 23, % 40.0% Saudi Arabia (TASI ) 8, % 19.6% Vietnam (Ho Chi Minh) % 22.7% Lebanon (Beirut BLOM ) 1, % -2.0% Sri Lanka (Colombo) 6, % 10.5% Palestine % 2.5% Cambodia (Laos) 1, % 12.6% 58,000 Brazil (Bovespa )-Trailing 90 Days 20,500 India (Sensex )-Trailing 90 Days 56,000 20,000 54,000 52,000 19,500 50,000 48,000 46,000 44,000 42,000 5/17 5/31 6/14 6/28 7/12 7/26 8/9 19,000 18,500 18,000 17,500 5/17 5/31 6/14 6/28 7/12 7/26 8/9 600 Egypt (Hermes )-Trailing 90 Days 3,500 Singapore (Straits Times )-Trailing 90 Days , , ,200 3, , , /19 6/2 6/16 6/30 7/14 7/28 8/11 2,800 5/17 5/31 6/14 6/28 7/12 7/26 8/9 6

7 Yield % Weekly Market Review INTEREST RATES SELECTED INTEREST RATES Last Change % Chg. YTD % Last Change % Chg. YTD % 2-Yr. U.S. Treasury 0.34% -1 bps NM NM Prime Rate 3.25% 0.00 NM NM 5-Yr. U.S. Treasury 1.57% 21 bps NM NM Fed Funds Rate 0.25% 0.00 NM NM 10-Yr. U.S. Treasury 2.83% 25 bps NM NM Discount Rate 0.75% 0.00 NM NM 30-Yr. U.S. Treasury 3.86% 22 bps NM NM LIBOR (3 Mo.) 0.26% 0 bps NM NM German 10-Yr. Govt. 1.88% -18 bps NM NM Bond Buyer 40 Muni 5.60% 16 bps NM NM France 10-Yr. 2.40% -14 bps NM NM Bond Buyer 40 G.O. 4.80% NA NM NM Italy 10-Yr. 4.18% 0 bps NM NM Bond Buyer 40 Rev. 5.18% NA NM NM Fed 5-Yr Fwd BE Inf. 2.74% 3 bps NM NM YIELD CURVES 4.00 US Treasury Actives Curve US Treasury Actives Curve USD US Industrial (B) BFV Curv USD Composite (BBB) BFV Curve M 1Y 3Y 5Y 8Y 10Y 15Y 20Y 30Y Year Treasury Yield - Trailing 180 Days 1.90 BBB/Baa- 10-Yr Treas. Spread Rising Line = Risk Aversion /19 3/19 4/19 5/19 6/19 7/ /19 3/19 4/19 5/19 6/19 7/19 7

8 Weekly Market Review CURRENCIES SELECTED CURRENCY PERFORMANCE Last Change % Chg. YTD % Last Change % Chg. YTD % Dollar % 1.89% Chinese Yuan % 1.90% Euro % 1.08% Swiss Franc % -1.17% Japanese Yen % % New Zealand Dollar % -2.24% British Pound % -3.86% Brazilian Real % % Canadian Dollar % -4.03% Mexican Peso % -0.58% U.S. Dollar - Trailing Six Months /18 3/18 4/18 5/18 6/18 7/18 Euro - U.S. Dollars per Euro /18 3/18 4/18 5/18 6/18 7/ Chinese yuan - yuan per U.S. Dollar Japanese yen - Yen per U.S. Dollar /18 3/18 4/18 5/18 6/18 7/ /18 3/18 4/18 5/18 6/18 7/18 8

9 $ per bushel $ per barrel $ per ounce Weekly Market Review COMMODITIES SELECTED COMMODITY MARKET PERFORMANCE Last Change % Chg. YTD % Last Change % Chg. YTD % DJ UBS Comm. Idx % -6.81% Platinum Spot $1, $ % -0.92% Rogers Int. Comm. Idx % -0.93% Corn % % Crude Oil $ $ % 14.90% Wheat % % Natural Gas $3.37 $ % -6.45% Soybeans 1, % -3.34% Gasoline ($/Gal.) $3.54 -$ % 7.56% Sugar % % Heating Oil % 3.16% Orange Juice % 6.67% Gold Spot $1, $ % % Aluminum 1, % -7.96% Silver Spot $23.19 $ % % Copper 7, % -7.84% 110 Crude Oil - Light Crude ($ per barrel) 1,700 Gold - Spot gold price ($ per ounce) 105 1, , , , , /19 3/19 4/19 5/19 6/19 7/19 1,100 2/18 3/18 4/18 5/18 6/18 7/18 8,500 Copper 600 Corn - Active Contract 580 8, , , , ,000 2/18 3/18 4/18 5/18 6/18 7/ /19 3/19 4/19 5/19 6/19 7/19 9

10 Weekly Market Review ALTERNATIVE INVESTMENTS SELECTED ALTERNATIVE INVESTMENT INDEX PERFORMANCE Last Change % Chg. YTD % Last Change % Chg. YTD % HFRX Global Hedge Fund % 4.15% HFRX Distressed % 4.00% HFRX Equity Market Neutral % 0.23% HFRX Merger Arbitrage % 2.47% HFRX Equity Hedge % 7.10% HFRX Convertible Arbitrage % 9.92% HFRX Event-Driven % 9.25% HFRX Macro CTA % -1.87% HFRX Absolute Return % 1.95% IQ Fixed Income Beta Arb % 1.98% HFRX Global Hedge Fund - Trailing 90 Days 1,220 1,210 1,200 1,190 1,180 1,170 HFRX Equity Hedge - Trailing 90 Days 1,140 1,130 1,120 1,110 1,100 1,090 1,080 1,070 1,060 1,160 1, HFRX Equity Market Neutral - Trailing 90 Days 1,300 IQ Fixed Income Beta Arb - Trailing 90 Days 948 1, , , , ,250 1,240 1,230 1,220 1,210 1,200 10

11 Weekly Market Review PORTFOLIO CONSTRUCTION S&P 500/MSCI EAFE - Trailing 180 Days /11 3/11 4/11 5/11 6/11 7/11 MSCI EAFE/MSCI EM - Trailing 180 Days /11 3/11 4/11 5/11 6/11 7/11 S&P 500/MSCI EM - Trailing 180 Days /11 3/11 4/11 5/11 6/11 7/11 Large Cap/Small Cap - Trailing 180 Days /12 3/12 4/12 5/12 6/12 7/12 Growth/Value - Trailing 180 Days /11 3/11 4/11 5/11 6/11 7/11 Info Tech/S&P Trailing 180 Days /11 3/11 4/11 5/11 6/11 7/ Inv. Grade Bonds/Int. Govt. Bonds - Trailing 180 Days /11 3/11 4/11 5/11 6/11 7/11 High Yield Bonds/Int. Govt. Bonds - Trailing 180 Days /11 3/11 4/11 5/11 6/11 7/11 High Yield/Inv. Grade Bonds - Trailing 180 Days /12 3/12 4/12 5/12 6/12 7/12 11

12 Weekly Market Review Equity Domestic Equity Int'l. Equity Large Cap (R200) Small Cap (R2000) 5/30 6/6 6/13 6/20 6/27 7/4 7/11 7/18 7/25 8/1 8/8 8/ % -1.84% 0.81% -2.90% 1.40% 0.17% 3.60% 0.81% 0.19% 0.86% -0.49% -2.12% 1.03% -1.51% 1.04% -2.95% 2.02% 1.14% 4.24% 1.65% 0.37% 0.54% -0.98% -2.08% MSCI EAFE -0.64% -3.11% 0.42% -2.37% 0.02% 1.74% 2.85% 1.05% 0.73% -0.13% 1.27% -0.41% MSCI Em. Mkts. WEEKLY ASSET CLASS PERFORMANCE (Prior 12 weeks ending Thursday) -0.96% -3.05% -4.21% -3.72% 1.21% 0.29% 2.25% 1.54% 0.51% -0.85% -0.81% 1.49% Fixed Income BarCap Agg. (AGG) High Yield (JNK) -0.51% -0.34% -0.18% -1.42% -0.01% -0.18% -0.07% 0.29% 0.05% -0.75% 0.55% -0.89% -0.68% -2.00% 0.15% -2.05% 0.34% -0.30% 1.59% 1.50% -1.01% -1.26% 0.00% -0.65% Commodities DJ UBS -0.94% 0.33% -1.27% -1.55% -2.13% 1.18% 1.42% 0.68% -1.32% -1.19% -0.98% 3.61% Alternatives Hedge Funds (HFRX Global) 0.08% -1.00% -0.21% -0.52% 0.19% 0.08% 0.74% 0.51% -0.22% 0.10% -0.02% -0.21% 60/40* -0.16% -1.54% 0.14% -2.30% 0.70% 0.37% 2.10% 0.82% 0.20% -0.08% 0.10% -1.17% Asset Allocation 48/32/20 (w/alts.)** -0.11% -1.43% 0.07% -1.95% 0.60% 0.31% 1.83% 0.76% 0.11% -0.04% 0.07% -0.98% ; *60/40 portfolio = 30% Large Cap/10% Small Cap/15% EAFE/5% Emerging Markets/35% BarCap Agg./5% High Yield. **48/32/20 portfolio = 24% Large Cap/8% Small Cap/12% EAFE/4% Emerging Markets/28% BarCap Agg./4% High Yield/20% HFRX Global. Large Cap Core Large Cap Growth Large Cap Value Mid Cap Core RELATIVE STRENGTH MATRIX (BASED ON 30-DAY RSI) Mid Cap Mid Cap Small Cap Small Cap Small Cap Int'l. Growth Value Core Growth Value Developed Emerging Markets REITs Comm. Int. Bond High Yield Large Cap Core Large Cap Growth Large Cap Value Mid Cap Core Mid Cap Growth Mid Cap Value Small Cap Core Small Cap Growth Small Cap Value Int'l. Developed Emerging Markets REITs Commodities Int. Bond High Yield The Relative Strength Matrix provides an indication of how the various asset classes have performed relative to one another over the past 30 days. A number greater than 1.0 indicates that the asset class in the far left column has outperformed the corresponding asset class in the top row over the past 30 days. A number below 1.0 means the asset class on the left has underperformed the asset class at the top. The green shading indicates outperformance, and the red shading indicates underperformance. 12

13 Weekly Market Review INDEX OVERVIEW The S&P 500 is an unmanaged index comprised of 500 widely held securities considered to be representative of the stock market in general. The S&P/Case-Shiller Home Price Indices measure the residential housing market, tracking changes in the value of the residential real estate market in 20 metropolitan regions across the United States. The MSCI EAFE represents 21 developed markets outside of North America. The MSCI EAFE Growth is an unmanaged index considered representative of growth stocks of Europe, Australasia and the Far East. The MSCI EAFE Value is an unmanaged index considered representative of value stocks of Europe, Australasia and the Far East. The MSCI Emerging Markets is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The MSCI Europe is an unmanaged index considered representative of stocks of developed European countries. The Barclays US Credit is an unmanaged index considered representative of publicly issued, SEC-registered US corporate and specified foreign debentures and secured notes. The Barclays US Aggregate Bond is a market capitalization-weighted index of investment-grade, fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year. The Barclays US Corporate High Yield covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as highyield if the middle rating of Moody s, Fitch and S&P is Ba1/BB+/BB+ or below. The index may include emerging market debt. The Barclays Capital Municipal Bond is an unmanaged index comprised of investment-grade, fixed-rate municipal securities representative of the tax-exempt bond market in general. The Barclays US Treasury Total Return is an unmanaged index of public obligations of the US Treasury with a remaining maturity of one year or more. The Citigroup World Government Bond is a market capitalization weighted bond index consisting of the government bond markets of Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Malaysia, Mexico, the Netherlands, Norway, Poland, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The DJ-UBS Commodity Total ReturnSM measures the collateralized returns from a basket of 19 commodity futures contracts representing the energy, precious metals, industrial metals, grains, softs and livestock sectors. The Russell 1000 is a market capitalization-weighted benchmark index made up of the 1000 largest U.S. companies in the Russell The Russell 1000 Growth is an unmanaged index considered representative of large-cap growth stocks. The Russell 1000 Value is an unmanaged index considered representative of large-cap value stocks. The Russell 2000 is an unmanaged index considered representative of small-cap stocks. The Russell 2000 Growth is an unmanaged index considered representative of small-cap growth stocks. The Russell 2000 Growth is an unmanaged index considered representative of small-cap value stocks. The Russell 3000 is an unmanaged index considered representative of the US stock market. The Russell Midcap is a subset of the Russell It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. The Russell Midcap Growth is an unmanaged index considered representative of mid-cap growth stocks. The Russell Midcap Value is an unmanaged index considered representative of mid-cap value stocks. The HFRX Indices are a series of benchmarks of hedge fund industry performance which are engineered to achieve representative performance of a larger universe of hedge fund strategies. Hedge Fund Research, Inc. employs the HFRX Methodology (UCITS compliant), a proprietary and highly quantitative process by which hedge funds are selected as constituents for the HFRX Indices. The Consumer Price (CPI) measures the change in the cost of a fixed basket of products and services. The Gross Domestic Product (GDP) rate is a measurement of the output of goods and services produced by labor and property located in the United States. The information, analysis, and opinions expressed herein are for general and educational purposes only. Nothing contained in this weekly review is intended to constitute legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. All investments carry a certain risk, and there is no assurance that an investment will provide positive performance over any period of time. An investor may experience loss of principal. Investment decisions should always be made based on the investor s specific financial needs and objectives, goals, time horizon, and risk tolerance. The asset classes and/or investment strategies described may not be suitable for all investors and investors should consult with an investment advisor to determine the appropriate investment strategy. Past performance is not indicative of future results. Information obtained from third party sources are believed to be reliable but not guaranteed. makes no representation regarding the accuracy or completeness of information provided herein. All opinions and views constitute our judgments as of the date of writing and are subject to change at any time without notice. Investments in smaller companies carry greater risk than is customarily associated with larger companies for various reasons such as volatility of earnings and prospects, higher failure rates, and limited markets, product lines or financial resources. Investing overseas involves special risks, including the volatility of currency exchange rates and, in some cases, limited geographic focus, political and economic instability, and relatively illiquid markets. Income (bond) securities are subject to interest rate risk, which is the risk that debt securities in a portfolio will decline in value because of increases in market interest rates. Exchange Traded Funds (ETFs) are subject to risks similar to those of stocks, such as market risk. Investing in ETFs may bear indirect fees and expenses charged by ETFs in addition to its direct fees and expenses, as well as indirectly bearing the principal risks of those ETFs. ETFs may trade at a discount to their net asset value and are subject to the market fluctuations of their underlying investments. Investing in commodities can be volatile and can suffer from periods of prolonged decline in value and may not be suitable for all investors. Performance is presented for illustrative purposes only and does not represent the performance of any specific investment product or portfolio. An investment cannot be made directly into an index. 13

14 Weekly Market Review Alternative Investments may have complex terms and features that are not easily understood and are not suitable for all investors. You should conduct your own due diligence to ensure you understand the features of the product before investing. Alternative investment strategies may employ a variety of hedging techniques and non-traditional instruments such as inverse and leveraged products. Certain hedging techniques include matched combinations that neutralize or offset individual risks such as merger arbitrage, long/short equity, convertible bond arbitrage and fixed-income arbitrage. Leveraged products are those that employ financial derivatives and debt to try to achieve a multiple (for example two or three times) of the return or inverse return of a stated index or benchmark over the course of a single day. Inverse products utilize short selling, derivatives trading, and other leveraged investment techniques, such as futures trading to achieve their objectives, mainly to track the inverse of their benchmarks. As with all investments, there is no assurance that any investment strategies will achieve their objectives or protect against losses. Neither nor its representatives render tax, accounting or legal advice. Any tax statements contained herein are not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Taxpayers should always seek advice based on their own particular circumstances from an independent tax advisor. Copyright, Inc. All rights reserved ABOUT, Inc. We are a Multi-Client Family Office whose sole mission is to provide wealth sustainability for individuals, families, retirement plans and institutions through the utilization of the Endowment Investment Philosophy. We manage our client s financial wealth to enhance the human capital of their future generations. We work closely with our clients to develop an integrated long-term wealth plan that maximizes the benefit gained by integrating all of our individuals or families wealth producing assets. We are different from many other firms, in the way we build our portfolios on behalf of our clients. For more information on, Inc., please visit 14