INTERNATIONAL ADR WRAP STRATEGY

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1 Capturing Value Worldwide STRATEGY FACTS Discipline Process AUM UMA Strategy Assets Bottom-up/ Active Management Fundamental $255 Million $153 Million $408 Million Inception 10/1/2000 Portfolio Management Team Thomas S. White, Jr. Jinwen Zhang, Ph.D., CFA Douglas M. Jackman, CFA Wei Li, Ph.D., CFA John Wu, Ph.D., CFA Ramkumar Venkatramani, CFA Rex Mathew, CFA, CMA Minimum Initial Investment $100,000 Asset Class Non-U.S. Equity ADR Capitalization Large-to-Mid Cap Style Core/Value Benchmarks MSCI All Country World ex U.S. (net) MSCI (net) INTERNATIONAL ADR WRAP STRATEGY The Thomas White International ADR Equity Strategy is designed to benefit from opportunities for future economic growth in developed countries outside the United States, as well as the world s emerging market countries. Portfolio holdings are principally in depository receipts issued by large companies located in non-u.s. markets, or whose businesses are closely associated with overseas markets. The investment portfolio may also include securities issued by smaller companies. AVERAGE ANNUAL RETURNS AS OF MARCH 31, ST QTR YTD 1Yr 3Yrs 5Yrs 10Yrs International ADR Wrap Composite (gross) -0.78% -0.78% 17.06% 5.24% 5.61% 3.29% International ADR Wrap Composite (net) -1.04% -1.04% 15.89% 4.18% 4.53% 2.21% MSCI AC World ex U.S. (net) % -1.18% 16.53% 6.18% 5.89% 2.70% MSCI (net) % -1.53% 14.80% 5.55% 6.50% 2.74% Past performance should not be construed as a guarantee of future performance. Performance includes the reinvestment of all income. The presentations above and below are shown as additional/supplemental information only and complement the Composite Disclosure on Page 6. Performance is preliminary and subject to change. TOP TEN COUNTRIES Country Weight Japan 16.9% United Kingdom 11.5% China 8.2% France 5.6% Canada 5.0% Australia 4.4% India 3.9% Sweden 3.7% Germany 3.5% Russia 3.0% Total Weight: 65.7% TOP TEN HOLDINGS Company Country GICS Sector Weight Itau Unibanco Hldg S.A. ADR Brazil Financials 2.9% Alibaba Group Hldg Ltd. ADR China Info Tech 2.7% BHP Billiton Ltd Sponsored ADR Australia Materials 2.6% Taiwan Semiconductor ADR Taiwan Info Tech 2.6% Royal Dutch Shell plc ADR United Kingdom Energy 2.3% Hoya Corp. Sponsored ADR Japan Health Care 2.2% LVMH Moet Hennessy ADR France Cons Disc 2.2% Sberbank Russia OJSC ADR Russia Financials 2.0% Infosys Limited Sponsored ADR India Info Tech 2.0% ING Groep NV Sponsored ADR Netherlands Financials 2.0% Total Number of Holdings: 66 Top 10 Holdings Weight: 23.5% REGIONAL ALLOCATION REGIONAL ALLOCATION VS. AC WORLD ex U.S. INDEX CONTACT Gabriel J. McNerney, CFA Director of Fund/SMA Relationships gmcnerney@thomaswhite.com AC World ex U.S. Developed Markets 63% 74% 100% Europe & ME 33% 43% 64% Japan 17% 17% 24% Pacific Ex-Japan 8% 8% 12% North America 5% 6% - Emerging Markets 35% 26% 0% Asia 22% 19% - Latin America 8% 3% - EMEA 5% 4% - Cash 2% - - EM Latin America EM Asia EM EMEA Japan Pacific Ex-Japan North America Dev Europe & ME Percent Under/Overweight (312)

2 SECTOR ALLOCATION SECTOR ALLOCATION VS. AC WORLD ex U.S. INDEX The Thomas White International ADR strategy is managed by the firm s seven-member Investment Committee, headed by Thomas S. White, Jr. The ethnically and culturally diverse Investment Committee averages 21 years of experience and 17 years together at the firm. AC World ex U.S. Financials 26% 23% 21% Cons Disc 17% 13% 15% Industrials 15% 11% 13% Info Tech 11% 12% 6% Materials 10% 8% 8% Energy 8% 6% 5% Health Care 6% 7% 10% Telecom 3% 4% 4% Cons Staples 2% 9% 11% Real Estate - 3% 4% Utilities - 4% 3% Cash 2% - - Cons Disc Industrials Financials Materials Energy Info Tech Telecom Health Care Real Estate Utilities Cons Staples Percent Under/Overweight MARKET CAP EXPOSURE Large Cap ( > $15 B) Mid Cap ($2 - $15 B) Small Cap ( < $2 B) Data Source: FactSet 88% 78% 12% 22% 0% 0% PORTFOLIO Characteristics AC World ex U.S. P/E (Excluding Neg. Earnings) 14.6x 15.9x 15.6x P/E FY1 Est 13.7x 14.0x 13.6x Price/Book 2.0x 1.6x 1.7x Dividend Yield 2.3% 3.1% 2.9% 3yr Earning Growth 14.9% 10.2% 11.6% PEG Ratio 1.0x 1.6x 1.3x Wtd Avg Mkt Cap $72B $61B $70B Wtd Median Mkt Cap $45B $39B $36B No. of Holdings ,864 Turnover (1 year) 34% - - The securities mentioned herein are intended to be representative of recent holdings in American Depository Receipt (ADR) portfolios managed by Thomas White International, Ltd. The composition of each individual portfolio is unique and the securities mentioned here may not be included in all accounts. Please consult your investment advisor to discuss the details of your portfolio. This publication is not a solicitation to buy or sell securities. Past performance should not be construed as a guarantee of future performance. Information shown with regards to top ten countries and holdings, regional/sector allocations and weightings, market cap exposure and other portfolio characteristic information, is based on the model portfolio managed by the firm. 1 The MSCI All Country World Ex U.S. is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of both developed and emerging markets. The MSCI is a free float-adjusted market capitalizationweighted index that is designed to measure the equity market performance of developed markets in Europe, Australasia and the Far East, excluding the U.S. and Canada. Both indices are unmanaged and returns assume the reinvestment of dividends. It is not possible to invest directly in an index. (312) Page 2

3 First Quarter 2018 Commentary The Thomas White International ADR Wrap strategy returned -1.04%, net of fees, for the first quarter of 2018, while its benchmarks, the MSCI (net) and the MSCI AC World ex U.S. (net) returned -1.53% and -1.18%, respectively. For the trailing one-year, the strategy returned %, net of fees, against % for the MSCI (net). We believe the collective efforts of the managers at the companies we invest in may help reduce the downside risks to the long-term value of the portfolio. Thomas S. White, Jr., Chief Investment Officer International equity markets turned more volatile and saw a moderate correction during the second half of the review period, giving up all the gains from the strong start at the beginning of this year. While global economic growth signals remain healthy, investors have become more fearful of tighter monetary policies in the developed countries, especially the U.S. There are also growing fears about the potential increase in market volatility, triggered by the unwinding of quantitative stimulus measures implemented over the last several years. On the positive side, most major economies continue to expand at a robust pace. Corporate earnings are growing, especially in the U.S. where the recently implemented tax cuts should provide an additional short-term boost. Emerging markets ended the quarter with moderate gains as their economic growth outlook continued to improve, supported in part by higher energy and industrial commodity prices when compared to recent years. Portfolio Review Positive stock selection in the financials, technology, materials and healthcare sectors helped the portfolio s relative performance against the benchmark during the period. Gains from the portfolio s lower exposure to consumer staples was offset by the negative allocation effect from being overweight financials. The relatively higher exposure to industrials also hurt as investors turned less optimistic about demand for capital equipment, especially in the export markets. At the regional level, stock selection was positive in the developed Asia-Pacific markets as well as most emerging markets except Africa. The allocation effect was positive across most regions during the period. When compared to its benchmark, the portfolio retains a higher exposure to sectors that could benefit from positive global economic trends. We believe economic conditions and policies in large countries remain favorable for stable aggregate growth. Short to medium term demand outlook for industrial commodities remain healthy. Elevated price levels as well as cost savings from efficiency gains achieved in recent years should boost cash flows for large energy and materials producers. The portfolio is also overweight the financials sector in most regions. Banks that are well-capitalized should see gradual improvement in net interest margins as rates trend higher and credit demand solidifies. Several of these banks are also able to reduce their operating costs by shifting their consumer interfaces and service delivery to online platforms. The portfolio s higher exposure to emerging markets 34.2% average weight for the quarter compared to the benchmark s 25.4% has contributed positively to relative returns for the past several quarters. We believe the economic growth cycle in emerging countries is well behind the developed markets, especially the U.S. Several of these economies, Brazil, Russia and South Africa in particular, are recovering from recent declines and have more room to accelerate. Governments in emerging countries are also likely to spend more, when compared to the developed economies, as their tax revenues are boosted by higher energy and commodity prices. We believe equity valuations in emerging markets are also inexpensive, relative to the developed markets, and shareholder payouts in the form of higher dividends and share buybacks could increase. Brazilian lender Itau Unibanco Holdings contributed the most to returns during the quarter on expectations of political stability and a business-friendly government in the country after elections scheduled for later this year. Momo, which provides online video streaming services in China, gained as the industry continues to see strong growth in user base. Daikin Industries, the world s leading manufacturer of heating and cooling systems, contributed to returns after it paid a large stock dividend. Taiwan Semiconductor Manufacturing, the leading manufacturer of chipsets used in cellular phones and other devices, advanced on expectations of sustained demand growth and higher earnings. Russian lender Sberbank outperformed as it continued to report higher than expected earnings, helped by the recovering domestic economy. PT Telekomunikasi Indonesia, the leading telecom services provider in Indonesia detracted the most from portfolio returns for the quarter on concerns about lower margins as aggressive competitors reduced prices. European apparel retailer Hennes & Mauritz, was hurt after the company lowered (312) Page 3

4 its revenue growth guidance on intensified competition from online retailers. WPP, the world s largest advertising group, declined after it said margins could weaken as marketing spends on traditional media platforms decline. ICICI Bank, one of the largest banks in India, was negatively affected by fears of higher loan losses after the detection of fraudulent lending in another bank that led a consortium. RELX NV, which provides analytics services, underperformed on concerns that revenue growth and margin expansion could slow in the future. The portfolio s holdings in European financials were restructured by replacing reinsurer Munich Re as well as Swedish lender Nordea with Swiss financial services group Credit Suisse. Bank Rakyat, an Indonesian bank that is the market leader in small ticket lending, that was also purchased should benefit from expanding credit demand in that country. TOP FIVE CONTRIBUTORS* TO PORTFOLIO PERFORMANCE DURING Q Security Average Weight % Contribution to Return % Itau Unibanco Holding Momo Inc Daikin Industries, Ltd Taiwan Semiconductor Sberbank Russia OJSC BOTTOM FIVE DETRACTORS* TO PORTFOLIO PERFORMANCE DURING Q Security Average Weight % Contribution to Return % PT Telekomunikasi RELX NV Hennes & Mauritz AB ICICI Bank Limited WPP plc New purchases during the quarter included DBS Group Holdings, the leading bank in Singapore, which should benefit from operational improvements through higher investments in technology platforms. Automakers BMW AG and Volvo AB were purchased to gains exposure to the volume growth in luxury SUVs and commercial vehicles, respectively, across the world. The portfolio s holdings in European financials were restructured by replacing reinsurer Munich Re as well as Swedish lender Nordea with Swiss financial services group Credit Suisse. Bank Rakyat, an Indonesian bank that is the market leader in small ticket lending, that was also purchased should benefit from expanding credit demand in that country. Gold and copper miner Newcrest Mining of Australia was sold after a dam wall collapse at one of its facilities forced a suspension of production. Japanese insurer Tokio Marine was also sold during the quarter as we expect margins to come down following its decision to reduce auto insurance rates. Outlook The Eurozone and Japan are expected to see modest declines in economic growth rates for this year, when compared to Though domestic demand remains healthy in the Eurozone, last year s currency gains are likely to limit export growth. External trade is likely to slow further if trade frictions with the U.S. escalate as currently expected. However, central bank policies in the Eurozone and Japan remain expansionary as inflation remains well below targets. Further, the political environment has stabilized and broad consensus on economic policy could help address the long-term structural problems in these countries. Among the other developed markets, resource exporting countries such as Canada and Australia continue to benefit from higher energy and commodity prices. The U.K. economy has slowed down but has performed better than expected amid the continuing uncertainties about the country s exit from the European Union. Compared to 2017, the emerging economies are expected to see faster growth this year as well as in 2019, even as the pace of expansion in the developed economies is likely to remain relatively unchanged. The International Monetary Fund estimates that growth in the emerging and developing economies will average close to 5% over the next two years. While the incremental (312) Page 4

5 The Chinese government has set a target of 6.5% annual growth for the next few years, and current trends indicate that this is likely to be achieved. After absorbing the negative effects of disruptive structural and tax regime changes, India s economy is likely to accelerate. growth is likely to come from resource exporting countries such as Brazil that are recovering from deep recessions, Asia is expected to remain the primary engine of growth. The Chinese government has set a target of 6.5% annual growth for the next few years, and current trends indicate that this is likely to be achieved. After absorbing the negative effects of disruptive structural and tax regime changes, India s economy is likely to accelerate. Similarly, the South East Asian economies are also seeing healthy growth trends and the region should be able to sustain growth exceeding 5% annually in the near term. * The holdings identified do not represent all of the securities purchased, sold or recommended for advisory clients. Please contact us at info@thomaswhite.com to obtain a discussion of the methodology used to calculate and construct this table and a list showing every holding s contribution to the overall representative account performance during the measurement period. (312) Page 5

6 International ADR Wrap Performance Disclosure The International ADR Wrap Composite contains fully discretionary international ADR accounts managed through sponsored broker/dealer programs. Performance presented prior to January 1, 2005 represents that of the International ADR Composite with commission-based accounts. For comparison purposes the composite is measured against the MSCI All-Country World x US (net) and MSCI (net). Prior to December 31, 2011, the composite was also measured against the Bank of New York ADR Total Return. The BNY ADR is not widely used and was replaced as a benchmark with the MSCI (net). The MSCI AC World x US (net) is used to represent the international exposure of the strategy in certain regions, and the MSCI (net) is used as a general market indicator for international strategies. The MSCI AC World x US (net) and the MSCI (net) indices use withholding tax ranges applicable to Luxembourg based holding companies. Thomas White International, Ltd. claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. Thomas White International, Ltd. has been independently verified for the periods July 1, 1992 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 International ADR Wrap Composite has been examined for the periods January 1, 2005 through December 31, The verification and performance examination reports are available upon request. Thomas White International, Ltd. is an independent registered investment adviser. The firm maintains a complete list and description of composites, which is available upon request. The International ADR Wrap Composite was created January 1, Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Non-fee-paying accounts are not included in this composite. Leverage is not used in this composite. Past performance is not indicative of future results. The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all income. All dividends are included in performance calculations as net dividends. Foreign withholding taxes on ADR holdings may be deducted from either income or principal cash depending on the policy of the applicable custodian. Beginning January 1, 2005, gross returns are shown as supplemental information and are stated gross of all fees and transaction costs; net returns are reduced by all fees and transaction costs incurred. Other than brokerage commissions this fee includes investment management, portfolio monitoring, consulting services, and in some cases, custodial services. Composite assets and performance shown prior to January 1, 2005 represents the International ADR Composite with only commission-based accounts. Net of fee performance was calculated using actual management fees on a cash basis. Net performance shown for this period is shown based on actual net fee returns and would be approximately 1.0 to 1.5% lower per annum under a sponsored program. These additional costs would typically include investment management, portfolio monitoring and consulting services typically provided by a sponsor. Beginning January 1, 2005 net of fee performance was calculated using actual management fees on a cash basis for the vast majority of accounts. Certain accounts may not have a management fee applied by the wrap sponsor. In these cases, net of fee performance for eligible accounts has been determined by applying the highest management fee paid for any account in the same wrap program. The annual composite dispersion is an asset-weighted standard deviation calculated for the accounts in the composite the entire years. The three-year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. The standard deviation is not presented for 2000 through 2010 because it is not required for periods prior to Additional information regarding policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. The investment management fee schedule for the composite is as follows: 1.00% on the first $5 million; 0.90% on the next $5 million; 0.75% on the next $15 million; 0.70% on the next $25 million; 0.60% on the next $25 million; 0.55% on the next $25 million; and 0.50% on amounts over $100 million. Actual investment advisory fees incurred by clients may vary. For the period October 1, 2000 to December 31, 2004, represents the ADR Composite. The underlying portfolios were managed in a similar fashion but differentiated by the type of client relationship only. The ADR Composite does not include sponsored broker/dealer accounts. Since January 1, 2005, the International ADR Wrap Composite is comprised of 100% wrap fee -paying accounts. Year End USD Millions Total Firm Assets (millions) % of Firm Assets Accounts at year End Pure Gross 1 1 Pure gross-of-fees returns do not reflect the deduction of any expenses, including trading costs, and are supplemental to net returns. 2 Composite dispersion is not shown for periods where there are an insufficient number of portfolios in the composite for the entire year. 3 The three-year annualized ex-post standard deviation is not required to be presented for periods prior to January 1, 2011 Net Annual Std. Deviation 2 3-Year Std. Deviation 3 MSCI ACWI ex US (net) 3-Year Std. Deviation (index) 3 MSCI (net) ,592 10% % 25.34% % 27.19% 11.87% 25.03% 11.83% ,937 9% % -2.62% % 4.50% 12.51% 1.00% 12.47% ,130 12% % -2.75% % -5.66% 12.13% -0.81% 12.46% ,320 12% % -4.79% % -3.87% 12.81% -4.90% 13.03% ,277 15% % 16.45% % 15.29% 16.23% 22.78% 16.25% ,962 14% % 18.48% % 16.83% 19.26% 17.32% 19.37% ,426 18% % % % % 22.72% % 22.43% ,435 18% % 9.77% % % ,083 16% % 31.35% % % % % % % % ,010 14% % 15.22% % % % % 29.99% % % % % 19.93% % % % % 18.76% % % % % 34.53% % % % % % % % % % % % % % 7 3-Year Std. Deviation (index) 3 (312) Thomas White International Ltd, 2018 Page 6