Since Inception (Annualized) Dividend Growth Strategy +3.61% +1.35% % +9.62% % +7.61% +7.22% 3 Months YTD 1 Year 3 Years 5 Years 10 Years

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1 Portfolio Update: Second Quarter 2018 The Dividend Growth Portfolio (the Portfolio ) increased +3.61% gross of fees (+3.49% net of fees) in the second quarter of 2018, slightly ahead of the S&P 500 Index which was up +3.43% for the quarter. As we mentioned in last quarter s letter, we think it is important to compare the Portfolio s performance against a more style pure index as well. The Portfolio s relative performance was better versus this benchmark, as the Morningstar U.S. Dividend Growth Index returned +1.70% for the second quarter. Year-to-date. the Portfolio has increased +1.35% gross of fees (+1.11% net of fees) versus a +2.65% gain for the S&P500 and a -0.20% decline for the Morningstar Index. 3 Months YTD 1 Year 3 Years 5 Years 10 Years Since Inception (Annualized) Dividend Growth Strategy +3.61% +1.35% % +9.62% % +7.61% +7.22% S&P 500 Index +3.43% +2.65% % % % % +8.75% Morningstar US Dividend Growth Index +1.70% -0.20% % % % % +9.43% Inception date: April 1, Performance is presented net of RMB Asset Management s maximum management fee and transaction costs. Performance is not net of RMB s Wealth Management advisory fee (if applicable). Please see important disclosures at the end of this document. Past performance is not indicative of future results, and there is a risk of loss of all or part of your investment. After a fairly volatile first quarter, the second quarter saw less volatility and the market ground higher with a modest sell off toward quarter end. When we penned you last quarter, we opined that a much choppier market environment could be with us for a while and we still think this could be the case going forward. On the domestic front, the dominating storyline of the second quarter was an escalating trade war between the U.S. and many of its key trading partners, most notably China. While the stock market was fairly dismissive of the initial rhetoric and first couple rounds of tariff announcements, it became much more concerned with the potential damage to global economic growth as tensions ratcheted higher and the initial tariffs went into effect. The 10-year Treasury yield pulled back from its recent peak of just over 3% to end the quarter at 2.86% and the yield curve has become flatter, which echoes the stock market s concern that a trade war will dampen growth or even tip us into a recession. This is a marked change from the potential for a sustained period of accelerated growth following the tax reform bill. Thus far, the Fed has remained hawkish with a bias toward more rate hikes through 2019 than previously expected. This could change if trade issues start to show they are having a real economic impact, which we have yet to see. In fact, most near-term U.S. economic indicators have remained quite robust. First quarter 2018 earnings reported in the second quarter continued to be strong, with accelerating year-over-year growth and an obvious tailwind from lower corporate tax rates. We believe that second quarter earnings, which soon to be reported, will continue to show strong growth and the outlook for 2018 will likely remain quite positive. However, we will watch closely for a change in management s tone towards fundamentals as the tariffs could have direct and indirect repercussions on many companies. Despite this new cloud overhanging the market, domestic growth accelerated the past several months, and U.S. GDP growth may still hit the 3% mark if trade does not derail the momentum. Labor markets, housing, and consumer and business confidence all remain quite healthy. Outside the U.S., the upturn in growth in most major economies around the world seems to have lost some momentum recently, downplaying the goldilocks scenario of a synchronized global economy. Protectionist trade policies are clearly not positive for global growth in the short or long run. Our message about equity valuations remains consistent with what we wrote about the last few quarters as valuations still appear fairly full today, although by no means outlandish especially given rising earnings estimates. We have a hard time seeing meaningful price-to-earnings (P/E) multiple expansion from current levels given where we are in the economic and market cycle, such that earnings growth will have to be the dominant driver of additional stock appreciation going forward. As always, macro market predictions are very difficult to make, and we remain focused on bottom-up stock selection, continuing to manage a concentrated yet diversified portfolio of high-quality individual companies that can grow their earnings and 1

2 dividends for years into the future. No matter what happens with the current market cycle, we strongly believe the strategy positions us to outperform over the long run without taking undue risk. Contributors and Detractors The Portfolio s largest contributor to performance in the second quarter was Becton Dickinson, a provider of medical devices, diagnostics and consumables. The stock moved higher as earnings estimates have been ratcheted higher and the integration of the large CR Bard acquisition appears to be going well. Lowe s, the large home improvement retailer, was the second-best performer this quarter as a new CEO was appointed. While Lowe s financial performance over the last few years has been quite good relative to the overall retail industry, it has trailed its chief rival Home Depot (HD). The market had become increasingly frustrated at the underperformance and viewed the new CEO, an ex-home Depot executive, quite favorably. We think a fresh management team could go a long way in helping Lowe s improve same store sales, margins and return on invested capital, all of which would be good for the share price. Lowe s remains a large position at quarter-end. On the negative side of the performance ledger we had a few names whose prices underperformed the market in the second quarter, adversely affecting the Portfolio s overall return. Morgan Stanley was our biggest detractor, falling in-line with the underperformance of large cap banks in the second quarter as the yield curve flattened and created a potential headwind to near-term earnings power. We still like Morgan Stanley s long- term growth prospects in its Wealth Management business, as well as their ability to continue to grow dividends and think the stock is undervalued here. We used the pullback in the stock to add modestly to the position size. Starbucks was our second worst performer as second quarter sales trends were disappointing. We think our long-term ownership thesis for the stock remains valid and, despite our respect for long time CEO Howard Schultz, we think the transition to new leadership is appropriate. We also like Starbucks increasing capital return program, which we feel is the right thing to do for shareholders given maturing long-term growth and an underleveraged balance sheet. We added modestly to our position size although it remains on the lower end of the Portfolio, reflecting that our conviction is not quite as high relative to other current holdings. Portfolio Activity Dividend Growth SECOND QUARTER 2018 CONTRIBUTION REPORT Ranked by Basis Point Contribution Top Contributors Basis Point Contribution Return Becton Dickinson (BDX) % Lowe s (LOW) % Apple (AAPL) % United Health Group (UNH) % Chevron (CVX) % Bottom Detractors Morgan Stanley (MS) % Starbucks (SBUX) % Illinois Tool Works (ITW) % TE Connectivity (TEL) % American Tower (AMT) % Past performance is not indicative of future performance, and there is a risk of loss of all or part of your investment. The above does not represent all holdings in the Portfolio. To obtain a copy of RMB s calculation methodology and a list of all holdings with contribution analysis, please contact your service team. The data provided is supplemental. Please see important disclosures at the end of this document. During the second quarter of 2018 we purchased one new security, CDW Corp (CDW), and exited one name, Hasbro (HAS), to make room for the purchase. CDW is an IT (information technology) solutions provider to companies and institutions with a mission to have customers view it as a trusted advisor and an extension of their IT resources. It helps customers navigate complex IT decisions, such as which workloads should be run in the cloud or on-premise and helps with implementation of solutions. Vendors work with CDW because they provide a cost-effective route to customers they may not have access to directly, while also receiving customer feedback, effective distribution, and marketing programs from CDW that help to generate end-user demand. 2

3 We view CDW as a "sleep well at night" technology holding for the Portfolio because of its impressive long-term track record, strong competitive moat in a highly fragmented IT re-seller marketplace, and highly variable cost structure. CDW is two times the size of its next largest competitor and has consistently taken market share over the years. It has successfully executed on its long-standing target to outgrow industry IT spending by 2-3 percentage points and achieved over 4 points of outperformance in CDW's revenue cyclicality is dampened by the fact that its account managers pay is directly tied to gross profits brought into the business. We take comfort that in 2009, during the depths of the U.S. recession, revenues fell by just 11% and margins barely budged. What makes CDW particularly compelling for the Portfolio is the company's objective to materially increase its dividend. CDW expects to increase its dividend payout ratio to 30% by the end of 2019, up from 18% in With our expectation for average normalized EPS growth in the 10-13% range over the next few years and windfall from its tax rate of approximately 10 points as a result of tax reform, we believe the dividend could more than double over the next two years. So although the initial 1.2% yield at our time of purchase was relatively low, growth in the dividend should make the yield much more attractive, holding the share price constant. CDW has also lowered its debt load over the past several years, such that using free cash flow to repay debt is no longer a priority. Apart from the dividend and balance sheet considerations, we believe the shares carry an attractive risk/reward relative to a likely range of profitable outcomes. Outlook TOP 10 HOLDINGS AS OF 06/30/18 Company % of Assets Becton, Dickinson and Company +6.00% American Tower Corporation +5.99% Lowe's Companies, Inc % Microsoft Corporation +5.18% Microchip Technology Incorporated +5.01% Union Pacific Corporation +4.94% Snap-on Incorporated +4.84% Morgan Stanley +4.74% Amgen Inc % CME Group Inc. Class A +4.63% Holdings are subject to change. Portfolio characteristics are intended to provide a general view of the entire portfolio, or Index, at a certain point in time. Characteristics are calculated using information obtained from various data sources. Past performance is not indicative of future results, and there is a risk of loss of all or part of your investment. The data provided is supplemental. Please see disclosures at the end of this document. From when we last wrote you three months ago, market conditions have not significantly changed as the low volatility and complacency of 2017 has been replaced by somewhat higher volatility and greater macro sensitivity in The upcoming corporate earnings report season will once again refocus the market back on individual company fundamentals but expect questions around tariffs and trade to be highly prevalent on quarterly conference calls. We are also likely to hear about some inflationary pressures that may start perking up with a tightening of the labor market and an increase in transportation and energy prices. From a revenue growth perspective, near-term U.S. economic data points have remained quite positive, which should create a solid demand environment. The U.S. employment market continues to be quite healthy with unemployment hitting 18-year lows and pockets of scarcity for skilled labor becoming more evident. Real wage growth may be positive for consumer spending, particularly for consumers with lower income levels, but presents a challenge for corporate margins which are already operating at peak levels. Business and consumer confidence remain at very high levels and we have seen some early signs that real capital investment is starting to pick up after several years of stagnant spending. The housing market recovery appears to be steadily on track and we think demand for housing should have room for growth, unless interest rates were to spike meaningfully. The benefits of tax reform lowering both individual and corporate rates should continue to filter into the U.S. economy as well. The wildcard amongst all this good economic news is the escalating trade war, which could undermine all of this positive momentum. Economic cycles do not typically die of old age, rather it is usually an unforeseen shock that tips the scales and a full-on trade war or accelerating inflation are areas of concern to keep an eye on. Overall, we continue to be quite constructive on the momentum in U.S. corporate earnings growth, which is the biggest longterm driver of stock prices. However, much of this seems to be priced into the market already, such that we do not see much margin of safety should earnings disappoint. Earnings growth in 2019, mathematically, will slow dramatically as the lower 3

4 corporate tax rate anniversaries are reached, but could still be above long-term average growth if the economic cycle cooperates. Wall Street earnings estimates more than a year out are often too optimistic and never catch major inflection points, but the market seems to understand this phenomenon. The overall market multiple is currently sitting slightly above its long-term average. As always, we may opine on our view of the market, but we do not pretend to have any competitive advantage in predicting where the market is heading in the short- or intermediate-term. We continue to focus the Portfolio s efforts on owning companies with good secular growth prospects, strong economic moats, underleveraged balance sheets, and superior management teams. These are companies we believe can compound value for shareholders for years into the future. While the opportunities to find high-quality dividend growth companies selling at reasonable valuations are not abundant, we continue our bottom-up search to optimize the Portfolio. Our disciplined investment process focuses more on individual company fundamentals and less on the overall market. We also believe that a strategy focused on high quality companies can distinguish itself in a more volatile market environment. Thank you for the continued trust you place in us to manage your assets. If you have any questions, please do not hesitate to contact us. Past performance is not indicative of future results, and there is a risk of loss of all or part of your investment. The opinions and analyses expressed in this letter are based on RMB Capital Management, LLC s ( RMB Capital ) research and professional experience and are expressed as of the date of our mailing of this letter. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future performance, nor is it intended to speak to any future time periods. RMB Capital makes no warranty or representation, express or implied, nor does RMB Capital accept any liability, with respect to the information and data set forth herein, and RMB Capital specifically disclaims any duty to update any of the information and data contained in this letter. The information and data in this letter does not constitute legal, tax, accounting, investment, or other professional advice. The information provided in this letter should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in the Portfolio at the time you receive this letter or that securities sold have not been repurchased. The securities discussed do not represent the entire Portfolio and, in the aggregate, may represent only a small percentage of their holdings. It should not be assumed that any securities transaction or holding discussed was or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein. A complete list of security recommendations made during the past 12 months is available upon request. An investment cannot be made directly in an index. The index data assumes reinvestment of all income and does not account for fees, taxes or transaction costs. The investment strategy and types of securities held by the comparison index may be substantially different from the investment strategy and types of securities held by your account. The Morningstar U.S. Dividend Growth Index is a subset of the Morningstar US Market Index, a broad market index representing 97% of U.S. equity market capitalization. It is a benchmark consisting of securities that: (i) pay qualified dividends. (ii) are screened for a minimum of five years of uninterrupted annual dividend growth. The S&P 500 includes 500 leading companies in leading industries of the U.S. economy. The S&P 500 focuses on the large-cap segment of the market and covers approximately 75% of U.S. equities. 4

5 RMB Capital Management, LLC Dividend Growth Equity Composite // Annual Disclosure Presentation Organization RMB Capital Management, LLC ( RMB ) is an independent investment advisor registered with the Securities and Exchange Commission under the Investment Advisers Act of RMB was established in RMB claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with the GIPS standards. RMB has been independently verified for the period April 1, 2005 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 Dividend Growth Equity composite has been examined for the period April 1, 2005 through December 31, The verification and performance examination reports are available upon request. RMB maintains a complete list and description of composites, which are also available upon request. Description The Dividend Growth Equity Composite product reflects the performance of fully discretionary dividend growth equity accounts, which have an investment objective of long-term growth using a portfolio of primarily large-cap stocks and, for comparison purposes, is measured against the S&P 500, a market proxy. The Dividend Growth Equity Composite was created on April 1, 2005 and includes all accounts that are managed in accordance with the Dividend Growth Equity investment style, except for portfolios with substantial restrictions. An account is included in the Composite on the first day of the first full month following becoming fully invested. An account is removed from the Composite as of the last day of its last full month. Account performance is based on total assets in the account, including cash and cash equivalents. Results are based on fully discretionary accounts under management, including those accounts no longer managed by RMB. Valuations and returns are computed and stated in U.S. Dollars. ANNUAL PERFORMANCE RELATIVE TO STATED BENCHMARK Year End Total Firm Assets as of 12/31 ($M) Composite Assets USD ($M) # of Accounts Managed Annual Performance Results Composite Gross-of-Fees Composite Net-of-Fees S&P 500 Composite 3-YR ST DEV S&P YR ST DEV % Non-Fee Composite Paying Assets Dispersion , , , , , , , , , , N/A N/A , N/A N/A , N/A N/A * *Results shown for the year 2005 represent partial period performance from April 1, 2005 through December 31, Fees Effective January 1, 2011, RMB s management fee schedule is as follows: 0.50% on the first $3.0 million, 0.475% on the next $2.0 million, 0.450% on the next $5.0 million, 0.425% on the next $15.0 million, and 0.400% over $25.0 million. Actual investment advisory fees incurred by clients may vary. Composite performance is presented on a gross-of-fees and net-of-fees basis and includes the reinvestment of all income. Gross-of-fees returns are reduced by the portion of bundled fee that includes trading costs and all fees other than portfolio management. The net returns are reduced by all actual fees and transactions costs incurred. In addition to a management fee, some accounts pay a bundled fee based on the percentage of assets under management. Other than brokerage commissions, this fee covers all charges for trading, custody, and other administrative expenses. The annual composite dispersion is an asset-weighted standard deviation calculated for the accounts in the Composite the entire year. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Minimum Value Threshold The account minimum in the Dividend Growth Equity product is currently $100.0 thousand. Comparison with Market Indices RMB compares its Composite returns to a variety of market indices such as the S&P 500. The index represents unmanaged portfolios whose characteristics differ from the Composite portfolios; however, it tends to represent the investment environment existing during the time period shown. The returns of the index do not include any transaction costs, management fees, or other costs. Benchmark returns presented are not covered by the report of independent verifiers. Other Past performance is no guarantee of future performance. Historical rates of return may not be indicative of future rates of return. Individual client performance returns may be different than the composite returns listed. Total Firm Assets as of 12/31 for the years 2010, 2011, and 2012 have been revised to exclude assets from personal trading accounts that were included in previously reported figures. 5