September Economic Report. Month ending September 30, McGladrey LLP. All Rights Reserved McGladrey LLP. All Rights Reserved.

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1 September Economic Report Month ending September 30, 2015

2 MARKET DASHBOARD /6 4/20 5/4 5/18 6/1 6/15 6/29 7/13 7/27 8/10 8/24 9/7 9/21 S&P 500 : Trailing 180 Days Last Price Change % Chg. YTD % Last Price Change % Chg. YTD % S&P 500 1, % -5.2% Russell Global EM 2, % -16.2% Dow Industrials 16, % -7.6% 10-Year US Treas bps NM NM Nasdaq 4, % -0.6% DJ UBS Comm. Idx % -15.8% Russell , % -7.5% Gold $1, $ % -3.9% Euro Stoxx % 1.6% Crude Oil $ $ % -22.4% Shanghai Composite 3, % -5.6% Dollar % 6.2% Russell Global 1, % -7.9% VIX % 9.1% ; % change is based on price. L S Value One Week 1.36% 1.13% 0.92% 0.58% 0.29% 0.00% Growth -0.65% -0.77% -0.90% Value % YTD -7.52% Growth -9.91% -4.93% 0.10% -7.84% -5.50% -3.27% -4.26% Sector Performance: S&P/Global Industry Classification Sectors (GICS) % Wgt in S&P 500 Week % Chg. YTD % Chg. Consumer Discretionary % 5.1% Consumer Staples % -1.7% Energy % -19.9% Financials % -8.3% Health Care % -0.4% Industrials % -10.4% Information Technology % -2.7% Materials % -14.9% Telecom Services % -8.0% Utilities % -8.4% VIX : Trailing 180 Days 10 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep Wealth Growth of $1: Trailing 24 Months Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 S&P 500 Dow Industrials Small Cap EAFE Emerging Mkts. 1

3 THE ECONOMY AND MARKETS A Macro View September Monthly Recap Domestic equity markets continued to decline during the month, as investors reacted to the ongoing losses in Chinese equities and the Federal Reserve s decision not to raise interest rates at its recent meeting. Stocks also are confronting negative seasonal headwinds, as September and early October are historically two of the most disappointing periods for stocks. Chinese equity markets remain mired in a downward spiral that began earlier this summer. With China s slowing growth, policymakers devalued the Chinese currency in order to boost exports. Investors perceived the devaluation as confirmation that authorities were concerned about future growth prospects. The Fed s decision not to initiate the so-called lift-off also caused investor consternation, as many had anticipated that the Fed would finally begin to normalize rates. In its statement, the Fed mentioned global growth concerns and the recent financial market distress as reasons it would refrain from moving at that particular time. However, many analysts continue to believe the Fed will vote to raise rates sometime before the end of the year. Within this landscape, stocks gave up ground once again in September. The S&P 500 fell by -2.5% for the month, and is down -5.3% year-to-date. The Dow Jones Industrials (DJIA) posted a more modest decline of 1.4% for the month. The techheavy Nasdaq Composite slumped -3.2% in September. Continuing a recent trend, the Russell 2000 of small cap stocks underperformed the Russell 1000 of large cap stocks, with returns of 4.9% and -2.7%, respectively. Growth stocks again underperformed value stocks during the month. In terms of sector performance, the top performers in the month were utilities, consumer staples and consumer discretionary, with returns of +2.9%, +0.5% and -0.6%, respectively. Materials and energy were the poorest performers, with returns of -7.4% and -6.7%, respectively. Commodities also posted another month of dismal performance, declining -3.4%. REITs bucked the trend, and advanced +3.4%. International equity markets also fared poorly in September, dropping more than U.S. markets. Consumer prices fell during the month, marking the first time that occurred since the European Central Bank (ECB) instituted its asset-purchase program earlier in the year. Investors feared that further declines would create a deflationary spiral, and are urging the ECB to step up its stimulus. The MSCI World ex-u.s. declined -5.0% for the month, and is now down -6.2% year-to-date. Emerging markets were also hit hard, being negatively affected by the ongoing deterioration in commodities prices. The MSCI Emerging Markets fell by -3.0% for the month, and the MSCI EAFE, which measures developed markets performance, was down -5.0%. Regionally, Asia generated the best relative performance, but still dropped -1.5%. Latin America was the poorest performer, plummeting -7.7% during the month. Fixed-income markets fared somewhat better than equity markets during September, with every major segment except for high yield delivering modestly positive returns. Given the disruption and volatility in equities, along with the Fed s decision to delay a rate hike, Treasury prices gained ground during the month. Within this environment, the 10-year U.S. Treasury yield ended the month at 2.06%, down 14 basis points from the 2.20% level of August 31st. Broad-based fixed-income indices were higher in September, with the Barclays U.S. Aggregate Bond advancing +0.7% for the month. Global fixed-income markets posted a second consecutive monthly gain of +0.4%. Intermediate-term corporate bonds were modestly higher, as the Barclays U.S. Corporate 5-10 Year edged up by +1.00%. The Barclays U.S. Corporate High Yield declined by -2.6%, and are down -4.9% over the past three months. Municipals fared well again, advancing +0.7% for September. Brandon Thomas Chief Investment Officer, Envestnet PMC Envestnet PMC and McGladrey Wealth Management LLC are not affiliated and there is no ownership interest between the two firms. 2

4 EUROZONE 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 Basis points (bps) % Germany 10-Year Government Bond Yield Spain 10-Year Government Bond Yield % 2.5 Italy 10-Year Government Bond Yield 20.0 Greece 10-Year Government Bond Yield % %

5 EQUITIES WORLD MARKET PERFORMANCE Last Change % Chg. YTD % Last Change % Chg. YTD % S&P 500 1, % -5.22% Swiss Market 8, % -5.21% Dow Industrials 16, % -7.58% CAC 40 (France) 4, % 4.36% Nasdaq Composite 4, % -0.60% DAX (Germany) 9, % -2.57% Russell Global 1, % -7.9% Irish Overall 6, % 16.59% Russell Global EM 2, % -16.2% Nikkei , % 1.57% S&P/TSX (Canada) 13, % -8.83% Hang Seng 21, % -8.89% Mexico IPC 42, % -0.95% Shanghai Composite 3, % -5.62% Brazil Bovespa 47, % -5.95% Kospi (S. Korea) 1, % 2.82% Euro Stoxx % 1.55% Taiwan Taiex 8, % % FTSE 100 6, % -6.64% Tel Aviv 25 1, % 1.61% IBEX 35 (Spain) 9, % -6.58% MICEX (Russia) 1, % 15.46% ; % change is based on price. Dow Jones Industrial Average -Trailing 90 Days 18,500 18,000 17,500 17,000 16,500 16,000 15,500 15,000 14,500 14,000 Nasdaq Composite-Trailing 90 Days 5,400 5,200 5,000 4,800 4,600 4,400 4,200 4,000 4,500 Shanghai Composite -Trailing 90 Days 420 Euro Stoxx -Trailing 90 Days 4, , , , ,

6 INTEREST RATES SELECTED INTEREST RATES Last Change % Chg. YTD % Last Change % Chg. YTD % 2-Yr. U.S. Treasury 0.58% 2 bps NM NM Prime Rate 3.25% 0.00 NM NM 5-Yr. U.S. Treasury 1.29% -19 bps NM NM Fed Funds Rate 0.25% 0.00 NM NM 10-Yr. U.S. Treasury 1.99% -18 bps NM NM Discount Rate 0.75% 0.00 NM NM 30-Yr. U.S. Treasury 2.83% -13 bps NM NM LIBOR (3 Mo.) 0.32% 0 bps NM NM German 10-Yr. Govt. 0.51% 13 bps NM NM Bond Buyer 40 Muni 4.00% -8 bps NM NM France 10-Yr. 0.89% 15 bps NM NM Bond Buyer 40 G.O. 3.67% NA NM NM Italy 10-Yr. 1.63% 14 bps NM NM Bond Buyer 40 Rev. 4.06% NA NM NM Fed 5-Yr Fwd BE Inf. 1.65% -8 bps NM NM YIELD CURVES US Treasury Actives Curve US Treasury Actives Curve USD US Industrial (BB) BFV Cur USD Composite (BBB) BFV Curve M 1Y 3Y 5Y 8Y 10Y 15Y 20Y 30Y Year Treasury Yield - Trailing 180 Days 2.20 BBB/Baa- 10-Yr Treas. Spread Rising Line = Risk Aversion Yield %

7 CURRENCIES SELECTED CURRENCY PERFORMANCE Last Change % Chg. YTD % Last Change % Chg. YTD % Dollar % 6.24% Chinese Yuan % -2.38% Euro % -7.28% Swiss Franc % 2.34% Japanese Yen % -0.14% New Zealand Dollar % % British Pound % -2.58% Brazilian Real % % Canadian Dollar % % Mexican Peso % % 100 U.S. Dollar - Trailing Six Months 1.20 Euro - U.S. Dollars per Euro Chinese yuan - yuan per U.S. Dollar Japanese yen - Yen per U.S. Dollar /7 5/7 6/7 7/7 8/7 9/

8 COMMODITIES SELECTED COMMODITY MARKET PERFORMANCE Last Change % Chg. YTD % Last Change % Chg. YTD % DJ UBS Comm. Idx % % Platinum Spot $ $ % % Rogers Int. Comm. Idx % % Corn % -7.54% Crude Oil $ $ % % Wheat % % Natural Gas $2.47 -$ % % Soybeans % % Gasoline ($/Gal.) $2.29 $ % 2.41% Sugar % % Heating Oil % % Orange Juice % % Gold Spot $1, $ % -3.86% Aluminum 1, % % Silver Spot $15.24 $ % -3.05% Copper 5, % % ; % change is based on price. 70 Crude Oil - Light Crude ($ per barrel) 1,250 Gold - Spot gold price ($ per ounce) 60 1, $ per barrel $ per ounce 1,150 1,100 1, ,000 7,000 Copper 500 Corn - Active Contract 6, , ,000 3,000 2,000 1, /7 5/7 6/6 7/6 8/5 9/4 $ per bushel

9 ALTERNATIVE INVESTMENTS SELECTED ALTERNATIVE INVESTMENT INDEX PERFORMANCE Last Change % Chg. YTD % Last Change % Chg. YTD % HFRX Global Hedge Fund % -3.05% HFRX Distressed % -4.74% HFRX Equity Market Neutral % 4.54% HFRX Merger Arbitrage % 5.03% HFRX Equity Hedge % -3.13% HFRX Convertible Arbitrage % 1.34% HFRX Event-Driven % -6.37% HFRX Macro CTA % -1.56% HFRX Absolute Return % 2.63% IQ Fixed Income Beta Arb % 0.31% ; % change is based on price. HFRX Global Hedge Fund - Trailing 90 Days 1,260 HFRX Equity Hedge - Trailing 90 Days 1,240 1,240 1,220 1,200 1,220 1,180 1,200 1,160 1,180 1,140 1,120 1,160 1,100 1,140 1,080 1,040 HFRX Equity Market Neutral - Trailing 90 Days 1,390 IQ Fixed Income Beta Arb - Trailing 90 Days 1,030 1,385 1,020 1,380 1,010 1, ,375 1,370 1,365 1, , , ,345 8

10 PORTFOLIO CONSTRUCTION S&P 500/MSCI EAFE - Trailing 180 Days S&P 500/MSCI EM - Trailing 180 Days MSCI EAFE/MSCI EM - Trailing 180 Days Large Cap/Small Cap - Trailing 180 Days Growth/Value - Trailing 180 Days

11 PORTFOLIO CONSTRUCTION (cont d.) Info Tech/S&P Trailing 180 Days Inv. Grade Bonds/Int. Govt. Bonds - Trailing 180 Days 1.70 High Yield Bonds/Int. Govt. Bonds - Trailing 180 Days High Yield/Inv. Grade Bonds - Trailing 180 Days

12 This report is for illustrative purposes only. Past performance is not indicative of future results. The performance numbers displayed herein may have been adversely or favorably impacted by events and economic conditions that will not prevail in the future. The indices discussed are unmanaged and do not incur management fees, transaction costs or other expenses associated with investable products. It is not possible to directly invest in an index. This information is not meant as a guide to investing, or as a source of specific investment recommendations, and McGladrey Wealth Management LLC makes no implied or express recommendations concerning the manner in which any client s accounts should or would be handled, as appropriate investment decisions depend upon the client s investment objectives. The information is general in nature and is not intended to be, and should not be construed as, legal or tax advice. In addition, the information is subject to change and, although based upon the information that McGladrey Wealth Management LLC believes to be reliable, is not guaranteed as to accuracy or completeness. McGladrey Wealth Management LLC makes no warranties with regard to the information or results obtained by its use and disclaims any liability arising out of your use of, or reliance on, the information. McGladrey LLP Tax and accounting services are provided by McGladrey LLP, a registered CPA firm. Investment advisory, financial planning and other wealth management services are provided by McGladrey Wealth Management LLC, an SEC-registered investment advisor. McGladrey LLP is an Iowa limited liability partnership and the U.S. member firm of RSM International, a global network of independent accounting, tax and consulting firms. The member firms of RSM International collaborate to provide services to global clients, but are separate and distinct legal entities that cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party. McGladrey, the McGladrey logo, the McGladrey Classic logo, The power of being understood, Power comes from being understood, and Experience the power of being understood are registered trademarks of McGladrey LLP.