BPU. Invested in Your Interests

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1 BPU. Invested in Your Interests ONE OXFORD CENTRE 301 GRANT ST. SUITE 3300 PITTSBURGH, PA Dear Clients: Early in November, you received a post card from us titled, Game Changer Ahead, because Progress Never Stops at BPU. Well, Ahead is Here! For over a year, BPU s executive and management teams diligently worked to review our relationships with key service providers the companies that provide services to us so we can serve you. The review was exhaustive. We looked at everything from accounting software to clearing and custody firms, including Pershing, Fidelity, Schwab, LPL, TD Ameritrade, Raymond James, A.G. Edwards, Stiefel, Ameriprise and RBC Capital Markets (RBC). Our only intent was to find ways to improve your experience with BPU. By the way, a clearing firm processes brokerage transactions on all of the major exchanges and a custody firm holds a client s assets, segregating and protecting them from BPU s assets. Many of you have assets on two or three of those aforementioned platforms through BPU in addition to other relationships you may have away from us. Getting a clear picture of all of your holdings is probably a bit cumbersome. Recognizing this, our review focused on finding a service partner who could provide the following: 1. A seamless, unified platform that would allow you to consolidate all of your assets in one place for ease of management; 2. A platform with Best in Class client-facing technology, including aggregation of held away assets; 3. Easy to read and easy to understand statements; 4. Best in Class wealth management and banking products and services; 5. The capital, resources and commitment to stay best in class; and, 6. The vision, mission, values and culture that align with both yours and ours After a year of flights, company visits, webinars, telephone calls, meetings, information exchange and purposeful debate, we found what we were looking for in RBC Capital Markets. The folks at RBC, based in Minneapolis, MN, are as sophisticated in wealth management, trading, banking, operations and technology as any we have met over the years. Most significantly, they value the philosophy, processes and people of BPU and our approach to meeting your needs.

2 RBC Capital Markets is a division of Royal Bank of Canada (NYSE:RY). In addition to being the 5th largest bank in North America and the 15th largest bank in the world, RBC Capital Markets is also one of the world s largest securities firms. You can learn more about RBC by visiting and clicking on the slide titled Meet the Newest Member of our Family. If you have brokerage assets held at Pershing, you will soon receive a package from RBC and BPU explaining how, on Friday, January 26, 2018, your assets will transfer from Pershing to RBC. If you have an IRA, a margin account or an options account, there will be a few forms to sign and return. Otherwise, your account(s) will transfer automatically. All of your investment positions will stay the same, except for your money market. If you have managed assets at Fidelity or Schwab, you will receive a package from us in February to transfer your assets to RBC. In either case, you may want to look at assets you have elsewhere and consider further simplification and consolidation. Your adviser can help. We anticipate that you will have some questions; so, we plan to connect with you by phone or in person between now and January 26. Certainly, and as always, feel free to call your advisor and discuss any aspect of this exciting transition. Have that conversation with your advisor and see how BPU and RBC can help you consolidate and simplify your financial life, freeing you to focus exclusively on what is most important to you in life. All the best for a wonderful holiday season, Paul J. Brahim Rob Unkovic Bill Berkowitz Paul J. Brahim, CFP, AIFA Chairman and CEO Robert A. Unkovic President and Treasurer William Berkowitz Founder Securities and advisory services are offered by BPU Investment Management, Inc., member FINRA/SIPC and an SEC registered investment advisor BPU Investment Management, Inc.

3 Page 1 of 2 About RBC Banking Services in Canada, the Caribbean, Cayman Islands and Jersey in the 2014 Euromoney Private Banking and Wealth Management Survey. RBC (TSX, NYSE: RY), the master brand name of Royal Bank of Canada and its subsidiaries, is one of North America s and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services worldwide. RBC employs approximately 78,000 people who serve more than 16 million personal, business, public sector and institutional clients worldwide. RBC s core values and culture of integrity have earned it a worldwide Named the 2014 Global Retail Bank of the Year by Retail Banker International. Recognized among the world s corporate leaders for the 15th consecutive year (2015 Dow Jones Sustainability World Index). Key facts RBC is Canada s largest bank as measured by assets and market capitalization, and is among the largest banks in the world, based on market capitalization. RBC maintains strong capital ratios ( All-in Common Equity Tier 1 ratio of 9.9%) and credit ratings (Moody s Aa3, Standard & Poor s AA- and Fitch AA). RBC s vision, Always earning the RBC has paid continuous dividends to its shareholders since supported by its strong stewardship RBC supports a broad range of community initiatives through donations, sponsorships and employee volunteer activities. In 2014, RBC contributed more than C$100 million to causes worldwide to support community activities and organizations. sense of duty to clients, employees, the environment and the communities in which it operates. Royal Bank of Canada Capital Markets Wealth Management Personal & Commercial banking Investor & Treasury services Insurance Global Markets Canadian Wealth Management Personal and Business RBC Investor services Canadian insurance U.S. Wealth Management Cards and Payment solutions International and other insurance Wealth Management International Caribbean Banking Corporate and Investment banking Global Asset Management U.S. Banking institutions Treasury services

4 Page 2 of 2 About RBC, continued Wealth management serve clients globally with a full suite of investment, trust and other wealth management solutions. Separately managed geographic wealth management businesses in the U.S., Canada, the U.K. and emerging markets operate under the brand name RBC Wealth total of more than US$641 billion in assets under administration, advisors, private bankers and In the U.S., RBC Wealth Management operates as a division of RBC Capital Markets, LLC, with approximately over 200 locations in 41 states. two other divisions of RBC Capital Markets, LLC: RBC Correspondent Services, which provides clearing, custody and execution services for independent broker-dealers, and RBC Advisor Services, which provides custody and brokerage services for independent registered investment advisors. or Personal & commercial banking personal banking operations and certain retail investment businesses in Canada, the Caribbean and the U.S., as well as commercial and corporate banking operations in Canada and services. In the U.S., RBC s cross-border banking business serves the needs of Canadian clients as well as U.S. Wealth Management clients. Capital markets Global banking businesses that provide wholesale products and services to corporate, public sector and institutional clients worldwide comprise businesses raise capital, access markets, mitigate risk, and acquire or dispose of assets in over 100 countries. According to Bloomberg and Dealogic, RBC Capital Markets is consistently ranked among the largest global investment banks. Investor & treasury services RBC Investor & Treasury Services is a specialist provider of asset servicing, custody, payments and treasury services investors worldwide. Active in 18 markets globally, this segment provides services to safeguard clients assets, maximize liquidity and manage risk in multiple jurisdictions. RBC Investor & Treasury Services is ranked among the world s top 10 global custodians, with US$3.2 trillion in client assets under administration. Insurance Insurance provides a full range of insurance services to more than four million individuals and businesses in North America and to select international markets. It is one of the largest Canadian bank-owned insurance group of companies, and among the fastest-growing insurance organizations of life and non-life insurance products. Outside North America, it operates as a reinsurance business. RBC Global Asset Management is a North American-based asset manager with global scope and industry-leading management Management group of companies manages approximately US$311 billion in assets worldwide. RBC Wealth Management, RBC Capital Markets, RBC Bank (Georgia) and RBC Insurance are registered trademarks of Royal Bank of Canada and operate under the brand name RBC as separate businesses. RBC Capital Markets, LLC, is a wholly owned subsidiary of, and separate legal entity from, Royal Bank of Canada. Royal Bank of Canada does not guarantee any debts or obligations of RBC Capital Markets, LLC. RBC Correspondent Services and/or RBC Advisor Services, divisions of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC provides clearing and execution 0195-CAS (05/16)

5 Page 1 of 2 Protecting your assets partner. RBC Capital Markets, LLC (RBC CM), provides the protection you need. We view the safety and security of the assets in your accounts as a priority equal in importance to the work we do helping you build, enjoy and share your wealth. Key distinction between brokerages and banks 3. Securities Investor Protection Corporation (SIPC) insurance 1; and It is important to understand a 4. An additional insurance policy purchased from Lloyd s of London. assets are treated in a bank account versus that of a brokerage account. its depositors, Federal Deposit Insurance Corporation (FDIC) protects depositors of member banks, up to certain limits. Brokerage account In the brokerage industry, on the other hand, your assets are held in custody using margin, we act as a custodian of your assets holding them on your behalf, but not lending them to others. So your assets should always be available to you. Thorough measures to protect your assets CM have four layers of protection: Compliance with Securities and Exchange Commission (SEC) requirements, RBC CM also fully complies with SEC 2 stewardship Bank account Banks are only required to have a fraction of all deposited money on hand to ensure they can meet minimum cash Capital requirements that you will get your cash and securities back, in the unlikely event that our CM would be available to satisfy any customer claims. believe in taking a more conservative, Third layer of protection: SIPC insurance to accomplishing our business goals. Since RBC CM is a member of SIPC Canada. member securities broker-dealers you are eligible for SIPC insurance protection. Second layer of protection: compliance with SEC requirements Segregation of assets Segregation simply means your assets thus are protected from potential losses rules governing the separation of client your non-margin securities from records of margin securities held in street name in your margin account in the unlikely event we would need to In the rare event that RBC CM would become insolvent and by some unlikely sequence there were securities missing from your account, SIPC reserve funds would be available to satisfy your claims client, including up to $250,000 in cash. All client accounts which are similarly titled are combined for purposes of determining SIPC protection and each separate legal title would be entitled to the full SIPC protection, as long as SIPC does not determine that the accounts are titled that way in order to avoid the SIPC limit. For example, your individual account, your joint tenants account with a spouse and your custodial account for a minor child would each receive separate protection.

6 Page 2 of 2 Protecting your assets, continued Shares of money market funds, although often thought of by investors as cash, are, in fact, securities. If you hold such securities in your account, these shares are protected in the same manner as any other covered security and are not included in the $250,000 cash threshold. Add it all up: layers and layers of protection As stated previously, SEC rules provide for property and possessions of a failed 2. Compliance with SEC requirements, you beyond SIPC s basic coverage. For more information about SIPC coverage, please see the SIPC website at 4. Excess SIPC purchased from Lloyd s Fourth layer of protection: excess SIPC protection Another way clients assets are protected is through an insurance policy purchased by RBC CM from Lloyd s of London that provides coverage in excess of SIPC. which $900,000 may be cash), subject to a total maximum aggregate for RBC CM of $400 million that would be distributed on a pro-rata basis across all losses by clients of RBC CM. In the highly unlikely event you may need them, RBC CM provides four layers of protection for your assets, as previously mentioned: SIPC insurance 1; and and four: the types of asset protection insurance available, the coverage you can expect to receive, and their total value together. Asset protection insurance type Securities and cash coverage SIPC coverage $500,000 (maximum $250,000 cash) Excess SIPC coverage (from Lloyd s of London) $99,500,000 (maximum $900,000 cash) Total coverage $100,000,000 (maximum of $1,150,000 cash) part to the segregation rules and the existence of SIPC coverage, which are to the SIPC website ( no fewer than 99 percent of eligible investors get their investments back from SIPC. Excess SIPC insurance is an additional layer of coverage in place for the statistically small chance that settle claims. 1 Neither SIPC protection, nor protection in excess of that provided by SIPC, covers a decline in the value of your assets due to market loss. 2 Subject to a maximum aggregate of $400 million. RBC Capital Markets, LLC, is a wholly owned subsidiary of, and separate legal entity from, Royal Bank of Canada. Royal Bank of Canada does not guarantee any debts or obligations of RBC Capital Markets, LLC. RBC Correspondent Services and/or RBC Advisor Services, divisions of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC provides clearing and execution 2016 RBC Capital Markets, LLC. All rights reserved CAS (05/16)