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T H E H I G H E S T S T A N D A R D O F S U C C E S S I N F I N A N C I A L R E L AT I O N S H I P S

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The spring and summer months are often the time when we celebrate with friends and family for graduations, weddings, and other events. These times often bring multiple generations of family together to acknowledge major milestones and accomplishments.

It can sometimes be difficult to see the value of a long-term financial plan until you reach such a moment—a major life event or milestone—when you can look back at the journey it took to get there. Dependent upon when you may have started your plan and the attention paid to it, that road may have been twisted with unexpected turns, or it may have been a straighter, more direct path.

It is true that you cannot always predict or plan certain life events, but you can talk to your Janney advisor about your goals or what you expect to happen, and discuss various “what if” scenarios to help plan for the unexpected: What if I retire early? What if my child gets into a more expensive school than we’ve planned for? What if I, or my spouse, gets sick? Considering these “what ifs” with your advisor, in addition to planning for what you expect to happen, allows you to be better prepared for whatever life brings to you and your family.

The Economy and MarketsJune will mark the conclusion to the eighth consecutive year of positive growth—the third longest stretch without a recession since 1850. Consumer spending continues to lead the way, making up 70% of our country’s Gross Domestic Product.

Janney’s Chief Investment Strategist, Mark Luschini, has been bullish on the consumer for some time and remains so. Mark comments that “job gains have pushed the unemployment rate well below 5% and drawn those marginally attached into becoming more fully engaged in the work force. Further, the number of jobs that are unfilled is elevated, suggesting employers will have to compete for qualified candidates—an impetus for further wage gains. All in all, the likelihood that consumer spending will persist, or even accelerate, is high given the aforementioned attributes.”

Read more about the impact on yields, interest rates, and what exogenous risks could affect our economy in the next few months in the Economic Outlook included in this edition of Janney Update.

President’s Message to Clients Regulatory Changes The Department of Labor (DOL) fiduciary rule for retirement accounts went into partial effect on June 9, 2017, with full implementation scheduled for January 1, 2018.

As a reminder, the DOL Fiduciary Rule applies a best interest standard, otherwise known as a fiduciary standard, on all professionals who provide advice to individual owners and trustees of retirement accounts.

Janney has years of experience in offering fiduciary relationships to clients; Janney has for quite some time offered a range of account types and service offerings in furtherance of this including access to fiduciary accounts. Because of this long-standing practice, we have been able to efficiently implement the necessary steps to ensure our compliance with the new regulatory requirements that will affect retirement accounts. We are working closely with clients to ensure they understand the changes, if any, that may need to occur within their particular account in order to allow us to continue providing advice and service to them. Our financial advisors are well equipped to discuss and review the retirement account options at Janney to be sure that not only regulatory obligations are being met, but that we continue to align any solution to the unique needs and goals of each of our clients.

Regardless of the regulations we operate under, or what those rules dictate, our commitment to clients has always been based on placing their best interests above all else. Clients choose to work with us based on the high level of trust they have in us, their financial advisors, and the firm’s other professionals. While change in our business and in the regulations that govern us may be unavoidable, what never changes is our ongoing commitment and dedication to helping clients achieve their long-term retirement and financial goals. Please reach out to your advisor if you have any questions about this new rule.

Improving the Client ExperienceContinually improving our ability to provide advice to clients when and how they need it is a strategic goal for Janney. Clients need customized advice on a wide range of finance-related topics beyond investing, and we are prepared to address these concerns whenever they arise.

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(Continued from page 1)Janney recently invested in a new financial planning platform to provide a range of planning services to clients from comprehensive financial plans to quick, modular, goal-based assessments for important issues and life events.

This state-of-the-art planning platform provides clients with a more interactive experience, promoting discussion and the ability to model scenarios during planning conversations with their advisor. The result is a more goals-focused, collaborative, and customized plan.

Talk to your financial advisor today to learn about how using our enhanced planning capability can further address your long-term financial goals.

How Janney Can Help: Expert Financial InsightsOur team of experts provides advice and industry insights to our advisors and clients every day. These experts in investments, portfolio management, and financial planning are always accessible to you and provide educational material and commentary on a wide range of topics through our Expert Financial Insights series. To help you stay informed of solutions that might benefit your portfolio, retirement savings, or other goals, we’ve highlighted some recent topics that can be found on the personal finance section of our website:

• Retirement Readiness: Underestimating your retirement cash flow can have severe consequences. People preparing for retirement often think that

investment returns are the biggest factor in retirement success. Returns are an important factor, but cash flow is the #1 driver of a retirement plan’s success. If you are approaching retirement, it’s important to learn about steps you can take to understand the risks of underestimating your retirement expenses.

• The Importance of “What If” Planning. There is a basic rule that applies to personal finance: plan ahead. But “what if” planning can provide security and preparedness when the unexpected occurs. It is not always possible to plan or predict life events, but in many cases, you can explore the “what ifs” and the impact a life event could have on your assets and family.

To read more articles, visit http://personalfinance.janney.com/, our Investor Education section of Online Access, or request topics from your advisor.

As always, thank you for your business and the continued trust you place in us each day.

Sincerely,

Timothy C. Scheve President and Chief Executive Officer

Janney Outlook: Mid-Year Update

This month, our top investment strategists will provide their outlooks on the markets and economy for 2017. The Mid-Year Update compares original expectations to mid-year market conditions, and offers helpful commentary to investors for the remainder of 2017.

Before you approach your exit, take the Janney Retirement Test Drive. It provides a picture of your spending, income, and assets projected throughout retirement—so you can understand how investment and spending decisions you make today can impact your tomorrow.

CONTACT YOUR FINANCIAL ADVISOR FOR A RETIREMENT TEST DRIVE TODAY!

Fewer than 50% of Americans have calculated how much they need to save for retirement.

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JANNEY ONLINE ACCESS: FEATURES & MORE FEATURES!

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1. Add your outside financial accounts into My Net Worth, Janney’s easy-to-use account aggregation tool.

2. See a more comprehensive picture of your financial life.

3. Review your complete picture with your advisor.

Register or log on to Janney Online Access today at www.myjanney.com.

Understanding More About Your Complete Financial Picture is as Simple as…

Invoice and Annual Fee Timing: IRAs and Qualified PlansThe annual fee will be charged in December to IRAs and qualified Plans for which Janney serves as custodian (if applicable). Accounts opened between January and September will be charged in December 2017. For accounts opened after the last business day of September, the annual fee will be charged the following calendar year in December. Clients will be notified of the annual fee assessment in the third quarter of 2017. Please contact your Financial Advisor if you have any questions.

Annual Disclosure Statement Regarding Partially Called BondsJanney is providing this disclosure to inform you of the basic processing applied by Janney regarding the impartial lottery process for callable bonds. When you purchase bonds that are callable in part (i.e., less than the full amount of outstanding bonds may be called), per FINRA Rule 4340 (Securities Callable in Part), Janney is required to run an impartial lottery that calls bonds from client accounts on a randomly selected basis, and holds them until the applicable redemption date. The process by which client accounts are randomly selected can be found on the Janney website at:

http://www.janney.com/individuals--families/resources--education/investment-disclosure/partially-called-bond-lottery-process

For more information on partially called bonds, there are several websites with valuable information, including:

• Financial Industry Regulatory Authority: www.finra.org

• FINRA Rule 4340: www.finra.org/industry/regulation/notices/2014/p443192

• U.S. Securities and Exchange Commission: www.sec.gov/answers/callablebonds.htm

FINRA Rule 2267 Investor Education and ProtectionBrokerCheck provides investors with the ability to research the professional backgrounds, business practices, and conduct of FINRA-registered brokerage firms and brokers. In connection with this program, investors may call the BrokerCheck Hotline at (800) 289-9999, and visit the FINRA website at http://brokercheck.finra.org/. An investor brochure that includes information describing the FINRA BrokerCheck Program is available from either of these sources.

Payment for Order FlowJanney receives compensation or other consideration for directing customer orders to various market centers or broker-dealers. Janney monitors these orders for best execution. The source and nature of any compensation received in connection with a particular transaction will be furnished upon written request. Further information is available at www.janney.com.

Account Information VerificationFinancial Industry Regulatory Authority (FINRA) and other securities regulators require that broker-dealers maintain certain information about their clients and verify this information periodically. At the time your account was established, and perhaps on additional occasions since that time, you provided Janney with account information such as your name, address, investment objective, and other data. This information is being confirmed on the last pages of your June 2017 client statement. Please examine the last pages carefully. Promptly contact your Financial Advisor if anything is incorrect, or if you have any questions regarding what is stated on this confirmation. If your information is correct, no action is required.

This valuable tool offers: enhanced security, the ability to share and store most common digital file types, easy-to-use email functionality to securely send and receive messages to and from your advisor, option to create and name new folders to organize and store your digital financial documents, and up to 100MB of free storage.

Document VAULT is an online feature that lets you store and share important documents in Janney Online Access.

+ JANNEY INVESTMENTS

+ OUTSIDE INVESTMENTS

+ BANK ACCOUNTS

– CREDIT CARD DEBT

– DEBIT CARD SPENDING

= MY NET WORTH You even have the option to go paperless with Janney eDelivery! Enroll today to begin receiving documents such as account statements, transfer confirmations, and shareholder communications on Janney Online Access via personal email notifications. For more information or to enroll, log in to your Online Access Account via Janney.com.

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Janney Montgomery Scott LLC1717 Arch Street, Philadelphia, PA 19103 1.800.JANNEYSwww.janney.com

This is for informative purposes only and in no event should be construed as a representation by us or as an offer to sell or solicitation of an offer to buy any securities. Neither Janney Montgomery Scott LLC nor its Financial Advisors are tax advisors. Please consult your tax advisor before implementing any tax-related strategies mentioned in this publication. The information given herein is taken from sources that we believe to be reliable, but is not guaranteed by us as to accuracy or completeness. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation, or needs of individual investors.

Mark Luschini, Chief Investment Strategist

The infamous pop duo known as Sonny & Cher released a song in 1967 that pretty well captures domestic economic conditions in its title—“The Beat Goes On.” The end of June will mark the conclusion to the eighth consecutive year of positive growth, the third longest stretch without a recession since 1850. After a somewhat soft start to this year, activity has picked up of recent with real-time surveys of growth showing an acceleration in the second quarter. Even in the absence of any fiscal stimulus that market participants expected to come from the Trump administration, particularly pertaining to tax cuts, the fundamentals are supportive for this expansion to continue. Any prognostication about the economy has to consider the state of the consumer, as spending by this cohort accounts for approximately 70% our country’s Gross Domestic Product. We have been bullish on the consumer for some time and remain so. Job gains have pushed the unemployment rate well below 5% and drawn those marginally attached into becoming more fully engaged in the work force. Further, the number of jobs that are unfilled is elevated, suggesting employers will have to compete for qualified candidates—an impetus for further wage gains. Finally, rising household assets and low debt service costs have substantially improved household balance sheets, helping to boost confidence levels among consumers. All in all, the likelihood that consumer spending will persist, or even accelerate, is high given the aforementioned attributes. The Federal Reserve, observing the same, is gradually raising interest rates, as monetary officials believe the economic conditions that foster a firm job market and benign levels of inflation are sustainable. While still accommodative, the tightening cycle will probably evolve in a very deliberate fashion, partly to ensure activity isn’t thwarted and partly because few, if any, excesses abound that require tempering. This will lead to higher yields on short-term instruments, such as money market funds and deposit accounts, but we suspect it will have a less visible impact on longer-duration fixed rates or equity securities. After all, rates are still low by historical standards and the non-threatening level of inflation should allow Federal Reserve officials to move gradually. Chief among risks to our upbeat view are exogenous and include China, North Korea, and Italy. While the world’s second largest economy is growing at a meaningful pace, Chinese government officials will be meeting this fall during the 19th Party Congress. There is a non-trivial possibility that serious reforms are implemented by President Xi that could do well to serve the long-term needs of China (open markets to a more capitalistic structure) but inflict short-term pain. If that is the case, risk assets could encounter turbulence. North Korea, led by Kim Jong Un, is a wild card, but the U.S. military’s pivot to the Korean peninsula demonstrates that this is no longer to be viewed as simply a red herring. Lastly, a rising but less than majority portion of Italy’s population believes it would be better off outside of the European Union. Beppe Grillo’s populist Five Star party has won several meaningful but local elections and its Euro-skeptic view could be destabilizing for Europe if Italy’s election for a new Prime Minister is won, especially given the country’s undercapitalized banking system and high debt levels. While we flagged this last risk as a concern for investors next year, there is now some support for an election this fall. Indeed, any of these could obviously distort financial markets in the months ahead even if the actual economic implications would vary or be negligible. Meanwhile, profit growth is accelerating and that favorable picture is shared by other major economies. The Euro zone economy is humming and looks to be repeating last year’s phenomena of posting faster growth than the U.S. for the first time since 2008. The same impulse is also true for Japan and the United Kingdom, although not as robust. The net of our sanguine view, notwithstanding the risks identified, is a complimentary set up for risk assets. The inevitable bouts of volatility should not shake long-term investors from giving proper consideration to owning global equities.

Economic Outlook Upcoming Shortened Settlement CycleThe financial services industry has been working together in a coordinated effort to shorten the U.S. settlement cycle. On September 5th, 2017, the settlement cycle will be shortened from three business days after trade date (“T+3”) to two business days (“T+2”) for most products. The primary benefit will be to reduce risks for individual investors and financial markets as a whole, including credit risk, market risk, and liquidity risk. With the large daily volume of trading in the U.S. financial markets, the change from T+3 to T+2 will increase the safety of our financial system and directly benefit investors and market participants. After the T+2 conversion is complete, certain processes related to trade activity will change. You should expect to receive payment faster following the sale of a security while a more prompt payment will be required from clients for the purchase of a security. Note: Industry testing will conclude in June 2017 and the final approval for a September 2017 rollout will be given in July. For any changes or updates to the ruling, please visit Janney.com.

How SIPC Protects YouThe Securities Investor Protection Corporation (SIPC) is a nonprofit membership organization, funded by its member broker-dealers, and designed to help investors in the event of a brokerage firm failure. By investing with a firm that is a SIPC member, like Janney, a client is protected in the event the firm should ever fail. In the case of a financial failure of a SIPC member firm, SIPC coverage would ensure delivery of the portfolio assets to each eligible account up to $500,000 in value (not more than $250,000 in cash). In addition and as applicable, excess insurance for your account will be obtained through a major insurance company. In the highly unlikely event that our firm should ever fail and should your client assets not be recovered through the firm or under the SIPC protection limits, this additional insurance becomes available to cover your account subject to a limit of $24.5 million per client and up to a firm aggregate loss limit of $100 million. If you maintain more than one account at Janney in separate capacities (i.e., individually, jointly, as a trustee), each account would be protected by SIPC and insurance coverage in excess of SIPC. For more details on your investor rights as they pertain to SIPC, we encourage you to call SIPC at (202) 371-8300, visit www.sipc.org, or request an explanatory brochure from your Janney Financial Advisor.