Wakefield Asset Management Large Cap Equity Quarterly Commentary Q as of 12/31/2017

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1 Wakefield Asset Management Large Cap Equity Quarterly Commentary Q as of 12/31/2017 Gross Performance S&P 500 Q Year 3 Years 5 Years 10 Years Since Incep on Quarter In Review For the first me ever, the S&P 500 ended every single month of the year with a gain, finishing just below all me highs. The 6.64% gain for the S&P 500 for the quarter was the largest quarterly advance in two years. The quarter capped off a year of unprecedented low vola lity. The S&P 500 saw only eight 1% daily changes and had no pullbacks of more than 3%. The CBOE Vola lity Index (VIX) also had its lowest average in history. Corporate earnings growth con nued to accelerate into quarter end. According to data from FactSet, S&P 500 earnings grew by 9.7% while sales rose 6.2% in 2017, the strongest levels since Economic data released during the quarter indicated that the U.S. economy con nues to show steady signs of growth with third quarter GDP revised higher. The labor market also remains strong with unemployment reaching a 17 year low during the month of December. Investors watched closely as Congress finally passed business friendly tax reform just before year end, permanently lowering the corporate tax rate to 21% and providing tax relief to small business owners. Consensus es mates for S&P earnings increased by 2.2% in just the first three weeks following passing of the tax legisla on. Companies in the Financial, Energy and Industrial sectors saw the largest upward revisions to their earnings es mates for Fourth Quarter Performance Review The Por olio returned 9.74% for the quarter, well ahead of the S&P 500 return of 6.64%. Holdings in the Informa on Technology (up 10.28% versus 9.01% for the S&P 500), Consumer Discre onary (up 9.76% versus 9.85% for the S&P 500) and Materials (up 23.17% versus 6.94% for the S&P 500) sectors contributed the most to returns. Freeport McMoRan was the best performing posi on in the por olio during the fourth quarter, despite being purchased on November 8. Shares in the mining company gained 27.59% as oil and precious and industrial metals rallied in December on an improved outlook for global demand. NetApp was the standout in the Informa on Technology sector, advancing 26.98% for the quarter a er the company reported earnings of $.81 versus an es mate $.69. The stock was up nearly 16% on that day alone. United Rentals had an impressive year, gaining 23.91% during the fourth quarter. In addi on to strong demand for equipment rentals in residen al and commercial construc on, a pickup in oil and gas drilling resulted in a significant number of posi ve revisions to future earnings es mates. Holdings in the U li es sector were nega ve for the quarter, finishing down 7.97% versus up.20% for the S&P 500. Edison Interna onal was responsible for all of the underperformance, declining, 17.28% as wildfires spread throughout its service area in California and investors worried that the company may have to slash its dividend. During the quarter, the por olio held 33 companies that reported earnings. 31 of those companies exceeded Wall Street es mates, while only two missed expecta ons. The por olio s earnings beat rate of 93.94% was well ahead of the 77.53% beat rate for all companies in the S&P 500. Freeport McMoRan Inc^ NetApp Inc United Rentals Inc Align Technology Inc Total System Services Inc The Estee Lauder Companies Inc Avery Dennison Corp The Home Depot Inc Michael Kors Holdings Ltd^ Comerica Inc * Sold During the Quarter ^ Bought During the Quarter Top 10 Performers Symbol FCX NTAP URI ALGN TSS EL AVY HD KORS CMA Return Contribu on Edison Interna onal Cenovus Energy Inc* Intui ve Surgical Inc^ Union Pacific Corp* Edwards Lifesciences Corp* Dollar Tree Inc^ Applied Materials Inc L3 Technologies Inc* Hasbro Inc* Eastman Chemical Co* Bo om 10 Performers Symbol Return EIX CVE ISRG UNP EW DLTR AMAT LLL HAS EMN Contribu on

2 Earnings Surprise Beat Comparison Holdings Repor ng Earnings in Q4 Earnings Beats Earnings Misses Earnings Met Earnings Beat % S&P % % Full Year Performance Review The por olio ended the year up 31.37% versus 21.83% for the S&P 500. Technology (up 45.42% versus 38.69% for the S&P 500), Financials (up 33.92% versus 22.2% for the S&P 500) and Consumer Discre onary (up 29.5% versus 23.05% for the S&P 500) sectors contributed the most to overall returns. Despite an alloca on of nearly 4% less to the Informa on Technology in the Wakefield Large Cap por olio, the stocks owned in the sector managed to provide almost the same overall contribu on to returns as the benchmark. Applied Materials (up 59.85%), NetApp (up 59.93%), Broadcom (up 48.20%) and Facebook (up 53.58%) all exceeded the Informa on Technology benchmark return of 38.69%. Time Period: 10/1/2017 to 12/31/2017 Cons. Discre onary Cons. Staples Sector Return Rela ve to S&P Rela ve to the S&P 500, the Materials sector led by Avery Dennison (up 66.72%), Health Care sector led by Align Technology (up 60.25%) and Baxter (up 47.29%) and Industrials sector led by United Rentals (up 62.82%) contributed the most to the por olio s outperformance during Energy 0.4 For the year, Energy was the only sector with a nega ve return (down 5.91% versus down 0.92% for the S&P 500). Despite posi ve returns from Energy during the 4 quarter, losses early in the year from Newfield Explora on (down 37.51%) were not overcome. Financials 0.1 Market Outlook Health Care 0.7 There are three main components that drive equity returns changes in valua on, growth through fundamentals and dividends. The source of 1/3 of those gains during the bull market which began in March of 2009 has been an expansion of equity prices rela ve to earnings. Since February 2016, mul ple expansion has accounted for more than half the returns according to Goldman Sachs. Given the current valua ons as we head into 2018, we believe fundamental earnings growth will have to be a primary driver for the market to achieve posi ve returns in 2018 as there is li le room le for mul ple expansion. Con nued growth in the economy driven by the impact of business friendly tax reform may ul mately provide the earnings growth needed to take the market higher. Industrials Info Technology Materials We believe tempered expecta ons for equity market returns are warranted for 2018, but there is s ll opportunity for further upside. We also expect higher vola lity in the coming year. Real Estate 0.1 Analyst Earnings Es mates Comparison Telecom Services 0.1 U li es Past performance is not indica ve of future results. Holdings presented here represent a par al list of holdings in the Large Cap Equity model por olio during the me period indicated. Trades executed in actual accounts may differ from the model depending upon the size of the account, investment objec ves and restric ons, capital contribu ons and withdrawals, the amount of transac on and related costs, the incep on date of the account and other factors. It should not be assumed that investments in the securi es iden fied were or will be profitable or that recommenda ons made in the future will be profitable or will equal the performance of the securi es presented here. A complete list of securi es purchased and sold in the last 12 months in the Large Cap Equity por olio is available upon request. Top & Bo om performances are gross returns, with contribu on calculated on a asset weighted basis. Please send informa on requests to investorrela ons@wakefieldinc.com. This report is provided as general informa on only and should not be taken as investment advice. This report shall not be construed as a recommenda on to buy or sell any security or financial instrument, or to par cipate in any par cular trading or investment strategy. Some informa on in this report was generated based on informa on from a third party and is believed to be reliable. Wakefield makes no representa on as to the accuracy or completeness of the third party informa on provided in this report. Please refer to the a ached performance presenta on for net of fee composite returns, disclosures and further informa on about Wakefield Asset Management and our Large Cap Equity strategy. Forms ADV part 1 and 2 are available upon request. Data source: Morningstar Direct, Bloomberg.

3 While the overall market is efficient, pockets of inefficiency do exist. Wakefield Asset Management offers a unique investment strategy which we believe stands apart from the mainstream investment community. Focusing on proprietary investment techniques that not only iden fy market inefficiencies, but capture those inefficiencies over me. Wakefield uses a highly disciplined and technologically advanced process for research, security selec on, implementa on, and monitoring. The resul ng por olios exhibit a unique combina on of characteris cs with posi ve near term expecta ons that, in our view, will be rewarded by the market in the period ahead regardless of market direc on. In our management and research, our goals are Focus, Crea vity, Intellectual Honesty, and Con nuous Improvement. Returns (Gross of Fee) Return 32.5% % 27.5% 25.0% 22.5% % % % 12.5% % % % 2.5% 0.0% Q Year 3 Years 5 Years 10 Years Since Incep on The informa on on this page is supplemental to the GIPS compliant disclosure presenta on on page 4 which also shows net performance returns. Page 1

4 Performance Rela ve to Peer Group Peer Group (5 95%): Separate Accounts/CITs U.S. Large Blend Calcula on Benchmark: Top Quar le 2nd Quar le 3rd Quar le Bo om Quar le Return 32.0% 30.0% 28.0% 26.0% 24.0% 22.0% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 1 Year 3 Years 5 Years 10 Years 15 Years Top Holdings GICS Sector Weigh ngs Freeport McMoRan Inc Comerica Inc Wynn Resorts Ltd Michael Kors Holdings Ltd Total System Services Inc Helmerich & Payne Inc United Rentals Inc McDonald's Corp Moody's Corpora on Symbol Weight % FCX 3.6 CMA 3.4 WYNN 3.3 KORS 3.3 TSS 3.3 HP 3.2 URI 3.2 MCD 3.2 MCO 3.2 Energy Materials Industrials Consumer Discre onary Consumer Staples Healthcare Financials Informa on Technology Telecom Services U li es Real Estate 3.0% 0.0% 2.1% 0.0% 4.6% 2.9% 2.9% 6.1% 6.7% 9.5% 8.8% 8.2% 8.3% 9.4% 10.3% 12.2% 13.8% 15.5% 14.8% 17.6% 18.7% 23.8% Boeing Co BA 3.2 Large Cap Equity Holdings as of December 31, Holdings are subject to change at any me. Posi ons, and posi on size, may vary from account to account. A full lis ng of investment decisions made in the past year is available upon request. It should not be assumed that recommenda ons made in the future will be profitable or will equal the preformance of the securi es presented here. This holdings list should not be considered a recommenda on to buy or sell any security. The informa on on this page is supplemental to the GIPS compliant disclosure presenta on on page 4 Page 2

5 Wakefield Large Cap Por olio Characteris cs # of Stock Holdings Wakefield LCE S&P 500 TR Average Market Cap 59,708 47,402 Median Market Cap (mil) 27,446 21,553 P/E Ra o (TTM) P/B Ra o (TTM) % Giant 18.4 Large 42.4 Mid 39.2 Small 0.0 % Giant 50.3 Large 36.2 Mid 13.5 Small 0.1 Dividend Yield Ac ve Share Informa on Sta s cs - 5 Year Alpha Beta Sharpe Ra o R Squared Capture Ra o - 5 Year Calcula on Benchmark: 130.0% 120.0% 110.0% 100.0% Informa on Ra o Tracking Error Standard Devia on Up Capture Ra o 90.0% 80.0% 70.0% 70.0% 80.0% 90.0% 100.0% 110.0% 120.0% 130.0% Ba ng Average Down Capture Ra o Investment Growth Time Period: 5/1/1997 to 12/31/2017 1, The informa on on this page is supplemental to the GIPS compliant disclosure presenta on on page 4 which also shows net performance returns. Returns Above Benchmark Excess Return Year 3 Years 5 Years 10 Years Since Incep on Page 3

6 Wakefield Asset Management claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared this report in compliance with the GIPS standards. Wakefield Asset Management has been independently verified for the periods July 1, 2003 through June 30, Verifica on assesses whether (1) the firm has complied with all the composite construc on 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 composite has been examined for the periods July 1, 2003 through June 30, The verifica on and performance examina on reports are available upon request. Page 4