Consumer Discretionary % of S&P 500 Neutral - favorable towards Media, Homebuilders and Home Improvement, Restaurants and Value Retailers.

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1 Yield Credit Rating Notes November 1, 2017 The following table summarizes the Sector Strategy Spotlight stocks that are discussed in detail in separate sector-specific materials prepared by Janney's Investment Strategy Group. The listed securities are intended to reflect long-term investment themes of Janney's Investment Strategy Group utilizing industry leading companies that could potentially represent a well diversified portfolio. All sectors now have representative sub-industry and sector ETFs. We are Overweight Financials, Industrials, Energy and Health Care. We are Underweight Consumer Staples and Utilities. We are favorably Neutral on Technology. Added HON and removed GE for this month's update. Yield Credit Rating Notes Coverage Consumer Discretionary % of 500 Neutral - favorable towards Media, Homebuilders and Home Improvement, Restaurants and Value Retailers. WALT DISNEY CO/THE DIS A+ Strong management with diversified global operations. /CS COSTCO WHOLESALE CORP COST A+ Solid top-line growth and successfully growing internationally. /CS WAL-MART STORES INC WMT AA Dominant market share, price leadership, strong cash flow. /CS HOME DEPOT INC HD A World s largest home improvement retailer. /CS LAS VEGAS SANDS CORP LVS BBB- Operates casinos in Las Vegas, Macau, Singapore, and Bethlehem, PA. /CS/J MARRIOTT INTERNATIONAL -CL A MAR BBB Benefitting from strong fundamentals and significant US exposure. DARDEN RESTAURANTS INC DRI BBB U.S. focused restaurant chains with significant dividend. /CS CONSUMER DISCRETIONARY SELT XLY Broad exposure to 88 Consumer Discretionary stocks. ISHARES U.S. HOME CONSTRUCTI ITB Broad exposure to 46 home construction stocks. Consumer Staples - 8.4% of 500 Underweight - favorable towards Drug Retailers, Household Products and Beverages. CVS HEALTH CORP CVS BBB+ Largest pharmacy health care provider in U.S. /CS WALGREENS BOOTS ALLIANCE INC WBA BBB Largest U.S. retail drug chain based on revenues. /CS COLGATE-PALMOLIVE CO CL AA- Solid play on growing emerging market middle class. /CS PROCTER & GAMBLE CO/THE PG AA- Expectations are low while stock has dividend support. /CS ALTRIA GROUP INC MO A- Largest U.S. tobacco company is leading industry price increases. PHILIP MORRIS INTERNATIONAL PM A Largest publicly traded tobacco company with very solid capital returns. /CS COCA-COLA CO/THE KO AA- World s largest soft drink company. /CS PEPSICO INC PEP A+ Major global producer of branded beverage and snack food products. /CS CONSUMER STAPLES SPDR XLP Significant exposure to all of the above themes and companies. Energy - 5.6% of 500 Overweight - favor Oil Services, select Integrateds, select Exploration & Production, and select MLPs. EXXON MOBIL CORP XOM AA+ World s largest publicly-owned integrated oil company. VALERO ENERGY CORP VLO BBB World s largest refiner well positioned for shale oil.

2 Energy (continued) EQT CORP CONOCOPHILLIPS EOG RESOURCES INC HALLIBURTON CO SCHLUMBERGER LTD VANGUARD ENERGY ETF SPDR OIL & GAS EXP & PR ISHARES U.S. OIL EQUIPMENT & ETRACS ALERIAN INFRASTRUCTUR Yield Credit Rating EQT BBB Marcellus shale play levered to natural gas prices. COP A- One of the largest independent E&P companies in the world. EOG (14.76) 0.66 BBB+ Large independent E&P company with Bakken Shale oil growth exposure. HAL BBB+ Leading global oil services company. /CS SLB AA- Bellwether of oil services group, and hence, premium valuation. /CS VDE Cap-weighted basket of 131 companies across entire Energy sector XOP Equal-weighted basket of 63 E&P companies. IEZ Cap-weighted basket of 39 oil & gas equipment and services companies. MLPI ETN that tracks performance of Alerian MLP Infrastructure Index. Notes Coverage Financials % of 500 Overweight - favor Banks, Capital Markets, Insurance and Consumer Finance. PNC FINANCIAL SERVICES GROUP PNC A- Major regional bank with focus on Pennsylvania and Ohio. /CS AMERICAN EXPRESS CO AXP BBB+ Leading global payments and travel and expense services company. /CS DISCOVER FINANCIAL SERVICES DFS BBB- Solid balance sheet, gaining share, and promising growth initiatives. /CS ALLSTATE CORP ALL A- Second largest U.S. personal lines property-casualty insurer. /CS/J METLIFE INC MET A- Largest U.S. life insurer. Well positioned in growing retirement and savings market. /J JPMORGAN CHASE & CO JPM A- Best-in-class financial services firm with operations in over 50 countries. /CS GOLDMAN SACHS GROUP INC GS BBB+ Leading position in investment banking, securities, and wealth management. /CS FINANCIAL SELECT SECTOR SPDR XLF Includes 66 stocks for broad-based financial sector exposure. SPDR REGIONAL BANKING KRE Includes 100 equally weighted regional bank stocks. ISHARES U.S. INSURANCE ETF IAK Includes 63 U.S. insurance provider stocks. ISHARES U.S. BROKER-DEALERS IAI Includes 29 U.S. investment services stocks with GS and MS largest holdings. Health Care % of 500 Overweight - favor Medical Devices, Large-cap Biotech and Pharma. MEDTRONIC PLC MDT A Very diverse product line, strong cash flow, valuation and dividend support. UNITEDHEALTH GROUP INC UNH A+ Leading market position with product diversity. /CS HCA HEALTHCARE INC HCA BB Leading U.S. health care services provider. JOHNSON & JOHNSON JNJ AAA AAA rated blue chip with valuation and dividend support. /CS MERCK & CO. INC. MRK AA Full product pipeline with valuation and dividend support. /CS GILEAD SCIENCES INC GILD A Strong franchises, valuation support and returning capital to shareholders. /CS VANGUARD HEALTH CARE ETF VHT Broad exposure from cap-weighted basket of 355 companies. ISHARES U.S. MEDICAL DEVICES IHI Cap-weighted basket of 52 manufacturers and distributors. ISHARES U.S. HEALTHCARE PROV IHF Broad-based exposure to 47 U.S. health care providers. ISHARES NASDAQ BIOTECHNOLOGY IBB Broad exposure to Biotech firms and weighted toward large-cap. ISHARES US PHARMACEUTICALS E IHE Cap-weighted basket of 42 pharmaceutical companies.

3 Monthly Security List November 1, 2017 Yield Credit Rating Notes Coverage Industrials - 9.7% of 500 Overweight - favor Defense and high quality companies with dividend support. HONEYWELL INTERNATIONAL INC HON A Diversified portfolio of profitable businesses with growth opportunities. /CS 3M CO MMM AA- Strong balance sheet (AA-) and history of earnings and dividend growth. /CS EMERSON ELECTRIC CO EMR A aristocrat with diversified global businesses. /CS INGERSOLL-RAND PLC IR BBB 66% of revenue from North America. Participating in housing recovery. /CS GENERAL DYNAMICS CORP GD A+ Fourth largest military contractor and major manufacturer of corporate jets. /CS FEDEX CORP FDX BBB Strong balance sheet, healthy cash flow and earnings growth. /CS UNION PACIFIC CORP UNP A Largest U.S. railroad with oligopoly-like industry to support profit growth. /CS INDUSTRIAL SELECT SECT SPDR XLI Broad exposure to 68 U.S. based industrials. GE is largest holding. ISHARES TRANSPORTATION AVERA IYT FDX and UNP are largest holdings of this Dow Jones Transport ETF. Technology % of 500 Favorably Neutral - favor Software, Semiconductors and Communication Equipment. MICROSOFT CORP MSFT AAA Fortress balance sheet with valuation support and new products. CS/ ORACLE CORP ORCL AA- Strong balance sheet, free cash flow and valuation support. INTEL CORP INTC A+ Strong balance sheet. Valuation and dividend support. /CS TEXAS INSTRUMENTS INC TXN A+ Diverse product line with exposure to many end markets and customers. /CS CISCO SYSTEMS INC CSCO AA- Fortress balance sheet and valuation support. Dominant market position. QUALCOMM INC QCOM A Solid position in high growth industry with strong cash flow. APPLE INC AAPL AA+ Leading technology innovator with favorable growth and value. ALPHABET INC-CL A GOOGL AA+ World's largest Internet firm with further secular growth opportunities. /CS VISA INC-CLASS A SHARES V A+ World s largest retail electronics payment network. /CS VANGUARD INFO TECH ETF VGT Cap-weighted basket of 360 info tech stocks. ISHARES NORTH AMERICAN TECH- IGV Cap-weighted basket of 57 U.S.-traded software companies. VANECK VECTORS SEMICONDUCTOR SMH Cap-weighted basket of 26 U.S.-traded semiconductor companies. ISHARES NORTH AMERICAN TECH- IGN Cap-weighted basket of 27 U.S.-traded multimedia networking companies. Materials - 2.9% of 500 Neutral - favor Diversified Chemicals, and Packaging. VANECK VECTORS GOLD MINERS E GDX Liquid and diversified proxy for global gold stocks. DOWDUPONT INC DWDP Diversified and generating lots of free cash flow to support dividend. /CS PPG INDUSTRIES INC PPG A- Solid exposure to fast growing markets and shareholder friendly. /CS SEALED AIR CORP SEE BB+ Leading global manufacturer of a wide range of packaging materials. /CS ISHARES MSCI GLOBAL AGRICULT VEGI holdings provide broad-based agricultural exposure. SPDR METALS & MINING ETF XME U.S. based holdings that provide broad-based metals & mining exposure. MATERIALS SELECT SECTOR SPDR XLB holdings provide exposure to Materials Select Sector Index.

4 Yield Credit Rating Notes Coverage Real Estate - 2.8% of 500 Neutral - favor Diversified, Health Care, and Residential. EQUITY RESIDENTIAL EQR A- Well-positioned with high quality portfolio in attractive markets. J/ DIGITAL REALTY TRUST INC DLR BBB Focused on providing data center and colocation solutions. VENTAS INC VTR BBB+ Health Care exposure with large, diversified portfolio that provides steady income. VANGUARD REIT ETF VNQ Includes 153 U.S. REITs for broad-based REIT exposure. Telecommunications - 1.8% of 500 Neutral - favor Traditional Carriers. AT&T INC T BBB+ *- Strong balance sheet and has full ownership of its wireless business VERIZON COMMUNICATIONS INC VZ BBB+ Well-positioned for wireless growth with high-quality network. VODAFONE GROUP PLC-SP ADR VOD BBB+ Leading global provider of international wireless telecom services. /CS AMERICAN TOWER CORP AMT BBB- Largest independent portfolio of wireless towers in North America. ISHARES US TELECOMMUNICATION IYZ Broad exposure to 23 Telecom Industry firms. Utilities - 3.0% of 500 Underweight - favor Integrated Electric Utilities. NEXTERA ENERGY INC NEE A- and dividend expected to grow faster than peer group. PPL CORP PPL (0.10) 4.23 A- & valuation should support stock until power markets recover. DOMINION ENERGY INC D BBB+ Balanced earnings regulated gas & electric distribution and pipelines. /CS UTILITIES SELECT SECTOR SPDR XLU Broad exposure to 29 Utilities Sector Index companies. Definitions: - Current stock price divided by EPS consensus estimate for the next four quarters. Estimate - Mean broker estimate of the compounded annual growth rate of the operating eps over the company's next full business cycle (typically 3-5 years). Yield - Trailing 12 month dividend per share divided by share price Credit Rating - Rating assigned by Standard & Poor's to the long term obligations of the issuer if repaid in the local currency of the issuer.

5 Important Disclosures The Sector Strategy Security List is being provided solely for informational and illustrative purposes, is not an offer to sell or a solicitation of an offer to buy the securities highlighted in the list, and does not constitute investment advice by Janney Montgomery Scott LLC or its affiliates. The Sector Strategy Security List does not refer, and should not be taken as referring, to an actual fund, portfolio or account, and should not be deemed as a model investment portfolio. Decisions to buy or sell a stock should be based on an investor s investment objectives and risk tolerance and this material should not be relied upon in substitution of independent judgment. This material does not take into account individual client circumstances, objectives or needs and is not intended as recommendations of particular securities, financial instruments or strategies to particular clients. The information provided in the list has been obtained or derived from sources believed by Janney Montgomery Scott LLC to be reliable. Janney Montgomery Scott LLC, however, does not represent that this information is accurate or complete. Any opinions or estimates contained in this report represent the judgment of the Investment Strategy Group of Janney Montgomery Scott LLC at this time and are subject to change without notice. The opinions and estimates do not necessarily represent the viewpoint of Janney Montgomery Scott LLC, its Research Department or any other group or employee associated with Janney Montgomery Scott LLC or its affiliates, and may differ from opinions or estimates of Janney Montgomery Scott LLC, including its Research Department, and its affiliates. Janney Montgomery Scott LLC or its affiliates may have issued, and may in the future issue, other communications that are inconsistent with, and reach different conclusions from, the information presented in this material. Janney Montgomery Scott LLC, its officers, directors, employees, or members of their families may have positions in the securities mentioned and may make purchases or sales of such securities from time to time in the open market or otherwise and may sell to or buy from customers such securities on a principal basis. This list includes only companies that receive research analyst coverage from either Janney Montgomery Scott LLC s Research Department or a research provider whose research is available to Janney Montgomery Scott LLC Financial Advisors and that also currently pay a dividend to shareholders. Thus, the universe of potential companies that could be included in this representative list is narrower than the total universe of public companies. information is as of 10/31/2017. The opinions and estimates with respect to the overweight, neutral or underweight exposure of particular economic or market sectors represent the viewpoint of the Investment Strategy Group of Janney Montgomery Scott LLC and does not necessarily represent the viewpoint of Janney Montgomery Scott LLC or any other group or employee associated with Janney Montgomery Scott LLC or its affiliates, and may differ from opinions or estimates of Janney Montgomery Scott LLC and its affiliates. The Overweight/Neutral/Underweight referenced in this report is intended to be used as a guide for sector rankings relative to the sector make-up of the 500 Index. Currently, the 500 Index includes securities grouped into 10 economic sectors. Overweight generally refers to the Investment Strategy Group s expectation that the sector s fundamentals and/or valuation is likely to be favorable over the next 12 months. Neutral generally refers to the Investment Strategy Group s expectation that the sector s fundamentals and/or valuation is likely to be neutral over the next 12 months. Underweight generally refers to the Investment Strategy Group s expectation that the sector s fundamental and/or valuation is likely to be cautious over the next 12 months. Past performance is no guarantee of future performance and future returns are not guaranteed. There are risks associated with investing in stocks such as a loss of original capital or a decrease in the value of your investment. A company may also decide to decrease or cancel a dividend payment at any time without notice. For additional information or questions, please consult with your Financial Advisor.