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

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1 April Economic Report Month ending April 30, 2015

2 MARKET DASHBOARD Last Price Change % Chg. YTD % Last Price Change % Chg. YTD % S&P 500 2, % 1.9% Russell Global EM 3, % 9.5% Dow Industrials 18, % 0.8% 10-Year US Treas bps NM NM Nasdaq 5, % 5.1% DJ UBS Comm. Idx % -1.3% Russell , % 1.6% Gold $1, $ % -1.0% Euro Stoxx % 15.2% Crude Oil $59.23 $ % 5.7% Shanghai Composite 4, % 37.3% Dollar % 5.4% Russell Global 1, % 5.0% VIX % -29.2% ; % change is based on price. S&P 500 : Trailing 180 Days 2150 One Week YTD Value Growth Value Growth 2100 L -0.13% -0.80% -1.43% -0.59% 1.90% 4.36% % -1.64% -1.91% 1.25% 3.17% 4.97% /3 11/17 12/1 12/15 12/29 1/12 1/26 2/9 2/23 3/9 3/23 4/6 4/20 S -2.61% -3.46% -4.26% -0.66% 1.57% 3.79% Sector Performance: S&P/Global Industry Classification Sectors (GICS) % Wgt in S&P 500 Week % Chg. YTD % Chg. Consumer Discretionary % 5.1% Consumer Staples % -0.1% Energy % 2.5% Financials % -1.8% Health Care % 5.9% Industrials % -0.8% Information Technology % 3.2% Materials % 4.9% Telecom Services % 4.6% Utilities % -6.5% VIX : Trailing 180 Days 10 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr Wealth Growth of $1: Trailing 24 Months Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 S&P 500 Dow Industrials Small Cap EAFE Emerging Mkts. 1

3 THE ECONOMY AND MARKETS A Macro View April Monthly Recap Domestic equity markets, on balance, generated positive returns in April, although performance varied by asset class. Whereas economic data has been generally supportive of higher prices in recent prior months, data released in April showed signs of an economic soft patch. The government s first estimate of first quarter real gross domestic product (GDP) came in at an anemic 0.2%, far below expectations and a meaningful decline from the 2.2% and 5.0% growth of the fourth and third quarters of 2014, respectively. Investors also continue to closely watch the next moves of the Federal Reserve (Fed), which is carefully monitoring the economic data to determine the appropriate time to begin to raise interest rates. The Fed took no action at its meeting this week, and acknowledged the economy s recent struggles. However, the Fed believes the slowdown in growth is likely to be temporary, and that the economy should begin to accelerate soon. The consensus among analysts continues to be that the Fed will begin to normalize rates beginning sometime this fall. Against this backdrop, stocks delivered modest gains in April. The S&P 500 gained +1.0% for the month, and is now up +1.9% year-to-date. The Dow Jones Industrials (DJIA) advanced +0.5% for the month. The tech-heavy Nasdaq Composite advanced +0.9% in April. The Russell 2000 of small cap stocks underperformed the Russell 1000 of large cap stocks, with returns of -2.6% and +0.7%, respectively. Value stocks modestly outperformed growth stocks during the month. In terms of sector performance, the top performers in the month were energy, telecom services and materials, with returns of +6.7%, +5.9% and +3.1%, respectively. Health care and consumer were the poorest performers, with returns of -1.3% and -0.8%, respectively. Commodities rallied during the month, jumping +5.7%, but the asset class is still off -25% over the past year. REITs took it on the chin in April, declining - 5.8% in a somewhat difficult month for interest rate-sensitive stocks. International equity markets enjoyed a better month than domestic equity indexes, as markets across the world were generally higher. Developed markets continued to benefit from the European Central Bank s aggressive asset purchase program, and emerging markets were boosted by stronger commodities prices in April. The MSCI World ex-u.s. gained +4.4% for the month, bringing its year-to-date advance to +8.5%. Emerging markets surged in April, as commodities prices staged a significant rally. The MSCI Emerging Markets jumped by +7.7% for the month, and the MSCI EAFE, which measures developed markets performance, was up +4.2%. Regionally, China was a huge winner on both absolute and relative bases, gaining +16.7%. China has advanced almost 44% over the past 12 months. Japan and Europe were among the poorest relative performers, with results of +3.6% and +4.5%, respectively. Fixed-income markets were mixed in April, with selling pressure escalating in the U.S. as investors look for higher yields. Investors are also becoming increasingly acclimated to the fact that the Fed will begin to normalize rates, perhaps sooner rather than later. Within this environment, the 10-year U.S. Treasury yield ended the month at 2.05%, up 12 basis points from the 1.93% level of March 31st. Broad-based fixed-income indices were soft in April, with the Barclays U.S. Aggregate Bond declining -0.4% for the month. Global fixed-income markets finally posted a monthly gain, as the Barclays Global Aggregate ex-u.s. advanced +2.2%. Intermediate-term corporate bonds were slightly lower, as the Barclays U.S. Corporate 5-10 Year edged lower by -0.2%. The Barclays U.S. Corporate High Yield was a strong gainer, advancing by +1.2%. Municipals also had a difficult month, shedding -0.5% in April. 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) 0.45 Germany 10-Year Government Bond Yield 1.8 Spain 10-Year Government Bond Yield % % /26 3/12 3/26 4/9 4/ /2 2/16 3/2 3/16 3/30 4/13 4/27 Italy 10-Year Government Bond Yield /26 3/12 3/26 4/9 4/23 % % Greece 10-Year Government Bond Yield /2 2/16 3/2 3/16 3/30 4/13 4/27 3

5 EQUITIES WORLD MARKET PERFORMANCE Last Change % Chg. YTD % Last Change % Chg. YTD % S&P 500 2, % 1.89% Swiss Market 9, % 1.04% Dow Industrials 18, % 0.83% CAC 40 (France) 5, % 18.11% Nasdaq Composite 5, % 5.07% DAX (Germany) 11, % 16.82% Russell Global 1, % 5.0% Irish Overall 6, % 15.94% Russell Global EM 3, % 9.5% Nikkei , % 11.92% S&P/TSX (Canada) 15, % 4.63% Hang Seng 28, % 19.18% Mexico IPC 44, % 3.33% Shanghai Composite 4, % 37.31% Brazil Bovespa 56, % 12.44% Kospi (S. Korea) 2, % 11.05% Euro Stoxx % 15.23% Taiwan Taiex 9, % 5.51% FTSE 100 6, % 6.43% Tel Aviv 25 1, % 12.28% IBEX 35 (Spain) 11, % 10.75% MICEX (Russia) 1, % 20.89% ; % change is based on price. Dow Jones Industrial Average -Trailing 90 Days 18,400 18,200 18,000 17,800 17,600 17,400 17,200 17,000 16,800 16,600 1/30 2/13 2/27 3/13 3/27 4/10 4/24 Nasdaq Composite-Trailing 90 Days 5,200 5,100 5,000 4,900 4,800 4,700 4,600 4,500 4,400 1/30 2/13 2/27 3/13 3/27 4/10 4/24 5,000 Shanghai Composite -Trailing 90 Days 420 Euro Stoxx -Trailing 90 Days 4, , , , , ,000 1/30 2/13 2/27 3/13 3/27 4/10 4/ /30 2/13 2/27 3/13 3/27 4/10 4/24 4

6 INTEREST RATES SELECTED INTEREST RATES Last Change % Chg. YTD % Last Change % Chg. YTD % 2-Yr. U.S. Treasury 0.60% 0 bps NM NM Prime Rate 3.25% 0.00 NM NM 5-Yr. U.S. Treasury 1.51% 17 bps NM NM Fed Funds Rate 0.25% 0.00 NM NM 10-Yr. U.S. Treasury 2.12% 18 bps NM NM Discount Rate 0.75% 0.00 NM NM 30-Yr. U.S. Treasury 2.83% 19 bps NM NM LIBOR (3 Mo.) 0.28% 0 bps NM NM German 10-Yr. Govt. 0.36% -20 bps NM NM Bond Buyer 40 Muni 3.93% 16 bps NM NM France 10-Yr. 0.63% -21 bps NM NM Bond Buyer 40 G.O. 3.62% NA NM NM Italy 10-Yr. 1.50% -6 bps NM NM Bond Buyer 40 Rev. 4.31% NA NM NM Fed 5-Yr Fwd BE Inf. 2.01% 3 bps NM NM YIELD CURVES 4.00 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 1.90 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 % 5.41% Chinese Yuan % 0.04% Euro % -7.46% Swiss Franc % 6.46% Japanese Yen % -0.37% New Zealand Dollar % -3.49% British Pound % -2.78% Brazilian Real % % Canadian Dollar % -4.60% Mexican Peso % -5.31% 105 U.S. Dollar - Trailing Six Months 1.30 Euro - U.S. Dollars per Euro Chinese yuan - yuan per U.S. Dollar Japanese yen - Yen per U.S. Dollar

8 COMMODITIES SELECTED COMMODITY MARKET PERFORMANCE Last Change % Chg. YTD % Last Change % Chg. YTD % DJ UBS Comm. Idx % -1.27% Platinum Spot $1, $ % -6.36% Rogers Int. Comm. Idx % -2.44% Corn % % Crude Oil $59.24 $ % 5.70% Wheat % % Natural Gas $2.78 $ % -5.82% Soybeans % -6.80% Gasoline ($/Gal.) $2.60 $ % 15.98% Sugar % % Heating Oil % 8.36% Orange Juice % % Gold Spot $1, $ % -0.99% Aluminum 1, % 3.91% Silver Spot $16.16 $ % 1.94% Copper 6, % 0.56% ; % change is based on price. 85 Crude Oil - Light Crude ($ per barrel) 1,350 Gold - Spot gold price ($ per ounce) , $ per barrel $ per ounce 1,250 1, , ,100 7,000 Copper 440 Corn - Active Contract 6,800 6, , ,200 6,000 5,800 5,600 $ per bushel , ,200 5,000 11/3 12/3 1/2 2/1 3/3 4/

9 ALTERNATIVE INVESTMENTS SELECTED ALTERNATIVE INVESTMENT INDEX PERFORMANCE Last Change % Chg. YTD % Last Change % Chg. YTD % HFRX Global Hedge Fund % 2.53% HFRX Distressed % 1.79% HFRX Equity Market Neutral % 0.36% HFRX Merger Arbitrage % 3.29% HFRX Equity Hedge % 3.74% HFRX Convertible Arbitrage % 3.09% HFRX Event-Driven % 2.03% HFRX Macro CTA % 1.33% HFRX Absolute Return % 1.97% IQ Fixed Income Beta Arb % 0.04% ; % change is based on price. HFRX Global Hedge Fund - Trailing 90 Days 1,270 1,260 1,250 1,240 1,230 1,220 1,210 1,200 1,190 2/2 2/16 3/2 3/16 3/30 4/13 4/27 HFRX Equity Hedge - Trailing 90 Days 1,240 1,230 1,220 1,210 1,200 1,190 1,180 1,170 1,160 1,150 1,140 2/2 2/16 3/2 3/16 3/30 4/13 4/27 1,010 HFRX Equity Market Neutral - Trailing 90 Days 1,410 IQ Fixed Income Beta Arb - Trailing 90 Days 1,005 1,405 1,000 1, ,395 1,390 1,385 1, , , /2 2/16 3/2 3/16 3/30 4/13 4/27 1,365 2/2 2/16 3/2 3/16 3/30 4/13 4/27 8

10 PORTFOLIO CONSTRUCTION 3.50 S&P 500/MSCI EAFE - Trailing 180 Days 6.00 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 1.88 Inv. Grade Bonds/Int. Govt. Bonds - Trailing 180 Days 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.