#RetireFit Retirement Readiness Bootcamp 2017im.mstar.com/im/newhomepage/retirefitpicks.pdf · 2019. 7. 1. · Retirement Readiness Bootcamp 2017 March 11, 2017 ... 20.0 Historical

Retirement Readiness Bootcamp 2017

March 11, 2017

#RetireFit

Data through February 28, 2017 FINRA members: For internal or institutional use only.

Berwyn TickerBERWX

Yield0.0%

Total Assets$125 mil

Mstar CategorySmall Blend

Benchmark 1: Russell 2000 TR USDBenchmark 2: S&P 500 TR USD

Morningstar Analyst Rating 12-15-16

´Morningstar Pillars

Process ∞ PositivePerformance ∞ PositivePeople ∞ PositiveParent ∞ PositivePrice § Negative

Morningstar Analyst RatingMorningstar evaluates mutual funds based on five key pillars, which itsanalysts believe lead to funds that are more likely to outperform over thelong term on a risk-adjusted basis.

Analyst Rating Spectrum

Œ „ ´ ‰ Á

Pillar Spectrum

∞ Positive § Negative ¶ Neutral

10.0

15.0

20.0

Historical ProfileReturnRiskRating

Below AvgAverageQQBelow Avg

6 6 6 3 6 3 6 6 Investment StyleEquity

Growth of $10,000

Investment Values ofFundInvestment Values ofBenchmark 1

* & ( ( & & ( ) ) & ) Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History24.42 17.78 22.66 28.28 28.76 32.02 39.68 31.79 26.63 30.84 29.80 NAV-3.68 -27.09 27.71 24.82 3.45 18.67 35.58 -4.62 -14.41 29.39 -3.37 Total Return %-2.12 6.70 0.54 -2.04 7.63 2.32 -3.25 -9.52 -9.99 8.08 -5.70 +/- Bmark 1-9.18 9.91 1.25 9.75 1.34 2.67 3.19 -18.31 -15.79 17.43 -9.31 +/- Bmark 20.22 0.10 0.27 0.02 0.00 0.21 0.00 0.00 0.00 0.00 0.00 Income Return %

-3.90 -27.19 27.44 24.80 3.45 18.46 35.58 -4.62 -14.41 29.39 -3.37 Capital Return %35 19 59 66 2 18 68 96 96 4 99 Total Rtn % Rank Cat

0.06 0.03 0.05 0.00 0.00 0.06 0.00 0.00 0.00 0.00 0.00 Income $3.28 0.00 0.00 0.00 0.50 2.01 3.73 6.12 0.59 3.64 0.00 Capital Gains $1.27 1.29 1.31 1.25 1.21 1.19 1.18 1.16 1.22 1.33 . Expense Ratio %0.22 0.10 0.25 0.01 -0.02 0.20 -0.23 -0.33 -0.44 -0.39 . Income Ratio %

40 38 37 44 30 30 29 17 11 13 . Turnover Rate %119 118 138 189 227 302 518 348 169 132 125 Net Assets $mil

Performance 02-28-171st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total

2012 14.64 -7.89 7.94 4.12 18.672013 9.62 4.70 8.44 8.94 35.582014 0.35 -0.58 -6.34 2.06 -4.622015 1.38 -2.95 -11.83 -1.34 -14.412016 2.40 3.52 6.62 14.48 29.39

Trailing TotalReturn%

+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 0.62 -4.58 -7.42 99 10,0626 Mo 11.92 -0.69 1.90 55 11,1921 Yr 30.72 -5.39 5.75 57 13,0723 Yr Avg 0.87 -6.06 -9.76 94 10,2645 Yr Avg 8.37 -4.52 -5.64 92 14,94610 Yr Avg 6.24 -0.98 -1.38 64 18,31415 Yr Avg 9.36 0.43 2.01 31 38,268

Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat3 Yr (estimated) -1.55 93 2.40 755 Yr (estimated) 6.07 89 2.12 7510 Yr (estimated) 4.80 69 1.35 68

Potential Capital Gain Exposure: 14% of assets

Rating and RiskTimePeriod

Load-AdjReturn %

MorningstarRtn vs Cat

MorningstarRisk vs Cat

MorningstarRisk-Adj Rating

1 Yr 30.723 Yr 0.87 Low Avg Q5 Yr 8.37 Low Avg Q10 Yr 6.24 Avg Avg QQIncept 9.76

Other Measures Standard Index Best Fit Index

Alpha -7.8 -6.2Beta 0.91 0.88R-Squared 40 82

Standard Deviation 14.87Mean 0.87Sharpe Ratio 0.12

Portfolio Analysis 10-31-16Total Stocks: 40Share change since 07-31-16 Sector YTD Ret % % AssetsRFidelity Inst Govt Portfo — — 14.95YHallmark Financial Servic Finan Svcs -5.25 4.19YHallador Energy Co Basic Mat -7.37 4.00YNavigant Consulting Inc Industrl -11.00 3.59YKMG Chemicals Inc Basic Mat -5.48 3.53YVonage Holdings Corp Comm Svcs -12.12 3.37YMercury Systems Inc Technology 23.63 3.11YRudolph Technologies Inc Technology -7.92 3.03YLandec Corp Cnsmr Def -8.70 2.96YACCO Brands Corp Industrl 2.68 2.71YGraham Corp Industrl -0.59 2.67YGranite Construction Inc Industrl -3.62 2.67YStillwater Mining Co Basic Mat 5.90 2.61YHooker Furniture Corp Cnsmr Cyc -13.04 2.60YDeltic Timber Corp Basic Mat -3.57 2.34TScanSource Inc Technology -0.25 2.34TAshford Hospitality Trust Real Est -15.34 2.31YSpartan Motors Inc Industrl -28.11 2.31YDime Community Bancshares Finan Svcs 7.66 2.27YPlexus Corp Technology 3.76 2.24

Current Investment Style

LargeM

idSm

all

Value Blend Growth Market Cap %Giant 0.0Large 0.0Mid 0.0Small 18.9Micro 81.1Avg $mil:602

Value Measures Rel Category

Price/Earnings 18.15 0.93Price/Book 1.21 0.60Price/Sales 0.72 0.63Price/Cash Flow 4.54 0.57Dividend Yield % 0.98 0.63

Growth Measures % Rel Category

Long-Term Erngs 8.20 0.72Book Value 3.05 0.91Sales 2.23 2.70Cash Flow 26.55 4.44Historical Erngs 7.93 1.58

Profitability %

Return on Equity 5.73Return on Assets 2.81Net Margin 3.12

SectorWeightings

% ofStocks

RelBmark 1

h Cyclical 42.37 0.93r BasicMat 14.69 2.38t CnsmrCyc 13.69 1.17y FinanSvcs 8.84 0.47u Real Est 5.15 0.58

j Sensitive 51.82 1.48i CommSrvs 3.96 3.74o Energy 4.67 1.57p Industrl 24.39 1.74a Technlgy 18.80 1.11

k Defensive 5.79 0.30s CnsmrDef 3.48 1.00d Hlthcare 2.31 0.19f Utilities 0.00 0.00

Composition - Net

Cash 15.0Stocks 85.0Bonds 0.0Other 0.1Foreign 3.2(% of Stock)

Morningstar's Take by Kevin McDevitt, CFA 12-15-16The sale of its advisor could help, but at this moment,Berwyn's declining assets are starting to hurt. With ahigher expense ratio and limited resources, we'vedowngraded the fund's Morningstar Analyst Rating toBronze from Silver.

Chartwell Investment Partners bought this fund’sadvisor, The Killen Group, in April 2016. The sale providedan exit for founder Bob Killen and locked comanager LeeGrout into a three-year employment contract. Moreimportantly, the Killen team retains its autonomy withinChartwell while also freeing them from operational duties.

Chartwell could provide some stability as the fundfeels the pinch from a shrinking asset base. Largelybecause of $350 million in estimated outflows during thepast three years, the fund's assets have dropped to just$140 million from a peak of $518 million in December2013. Partly as a result, the fund's expense ratio rose 6basis points in 2015 to 1.22%, 3 basis points greater thanthe small-cap no-load group median. However, even ifassets continue to decline, Chartwell added a fee waiverthat will keep the expense ratio capped at its current levelthrough April 2018.

This provides some solace, but the drop in assetsleaves Grout, who became the lead manager in January,somewhat resource-constrained. Although Killen alsosigned a three-year contract, he has stepped back fromthis fund, keeping his focus on sibling BerwynCornerstone BERCX. The rest of the team, includingcomanagers George Cipolloni and Mark Saylor, as well asanalyst Peter Toscani, is focused on $1.7 billion siblingBerwyn Income BERIX. Grout is on his own, but he iscertainly a capable investor and has the experience tolead the fund. He has been a comanager here for nearly14 years and joined the team nearly 20 years ago. Still,he would benefit from additional research support. Thebest hope for this would be asset growth. A top-decileyear-to-date return doesn't hurt, and Chartwell'sdistribution could cultivate inflows. In the meantime, thefund has a good manager at the helm.

Address: INVESTMENT MANAGERS SERIES TRUST Minimum Purchase: $1000 Add: $100 IRA: $1000Milwaukee, DE 53233 Min Auto Inv Plan: $1000 Add: $100888-995-5505 Sales Fees: No-load, 1.00%R

Web Address: http://www.lsthetafund.com/ Management Fee: 1.00% mx./0.90% mn.Inception: 05-04-84 Actual Fees: Mgt:1.00% Dist:—Advisor: Chartwell Investment Partners, LLC Expense Projections: 3Yr:$395 5Yr:— 10Yr:—Subadvisor: None Income Distribution: Annually

©2017 Morningstar. All Rights Reserved. The data and analyses herein does not constitute investment advice; is provided solely for informationalpurposes; is not an offer to buy/sell a security; and is not warranted to be correct, complete or accurate. Morningstar is not responsible for any tradingdecisions, damages or losses resulting from, or related to, the data and analyses or their use.

ß® Mutual Funds A


Baird Short-Term Bond Inst TickerBSBIX

Yield1.6%

SEC Yield1.66%

Total Assets$4,267 mil

Mstar CategoryShort-Term Bond

Benchmark 1: BBgBarc US Govt/Credit 1-5 Yr TR USDBenchmark 2: BBgBarc US Agg Bond TR USD


„Morningstar Pillars

Process ∞ PositivePerformance ∞ PositivePeople ∞ PositiveParent ∞ PositivePrice ∞ Positive



Œ „ ´ ‰ Á

Pillar Spectrum


10.0

11.0

12.0

13.0

14.0


Above AvgAverageQQQQAbove Avg

2 2 2 2 2 2 2 2 Investment StyleFixed Income

Growth of $10,000


& * ( * * * & & & * ( Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History9.91 9.24 9.57 9.68 9.59 9.75 9.69 9.67 9.60 9.66 9.68 NAV6.08 -1.79 8.14 4.39 2.08 4.16 1.33 1.49 0.89 2.25 0.44 Total Return %

-1.19 -6.91 3.53 0.31 -1.05 1.92 1.04 0.07 -0.09 0.68 -0.06 +/- Bmark 1-0.89 -7.03 2.21 -2.15 -5.76 -0.06 3.35 -4.47 0.34 -0.40 -0.43 +/- Bmark 25.02 5.17 4.48 3.03 2.44 2.32 1.76 1.65 1.58 1.62 0.24 Income Return %1.06 -6.96 3.67 1.37 -0.35 1.83 -0.43 -0.16 -0.69 0.63 0.21 Capital Return %

11 47 54 36 29 38 17 24 10 33 61 Total Rtn % Rank Cat0.48 0.50 0.41 0.29 0.23 0.22 0.17 0.16 0.15 0.15 0.02 Income $0.00 0.00 0.00 0.02 0.06 0.01 0.02 0.01 0.00 0.00 0.00 Capital Gains $0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 0.30 . . Expense Ratio %5.00 5.01 4.28 2.92 2.40 2.23 1.71 1.56 1.30 . . Income Ratio %

37 99 56 59 61 40 45 51 38 . . Turnover Rate %199 215 605 919 1,022 1,288 1,989 2,641 2,974 3,764 4,157 Net Assets $mil


2012 1.58 0.48 1.39 0.64 4.162013 0.52 -0.36 0.60 0.56 1.332014 0.59 0.72 -0.02 0.20 1.492015 0.79 0.08 0.26 -0.24 0.892016 1.21 1.12 0.27 -0.36 2.25


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 0.55 -0.01 -0.46 59 10,0556 Mo 0.21 0.61 2.40 49 10,0211 Yr 2.25 1.27 0.83 42 10,2253 Yr Avg 1.47 0.21 -1.18 24 10,4475 Yr Avg 1.84 0.57 -0.39 22 10,95610 Yr Avg 2.80 -0.18 -1.48 34 13,18615 Yr Avg — — — — —

Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat3 Yr (estimated) 0.76 14 0.70 595 Yr (estimated) 1.09 16 0.74 6410 Yr (estimated) 1.71 37 1.06 71



Load-AdjReturn %




1 Yr 2.253 Yr 1.47 +Avg Avg QQQQ5 Yr 1.84 +Avg -Avg QQQQ10 Yr 2.80 Avg Avg QQQIncept 2.86


Alpha 0.7 0.6Beta 0.25 0.77R-Squared 70 81


Portfolio Analysis 12-31-16

Total Fixed Income: 538Date of

Maturity Amount 000Value$000

%Assets

US Treasury Note 2.625% 08-15-20 258,775 267,569 6.99US Treasury Note 1.375% 08-31-20 255,000 252,350 6.60US Treasury Note 2% 08-31-21 67,000 67,267 1.76FNMA CMO 1.513% 12-25-17 24,271 24,306 0.64FNMA CMO 1.626% 02-25-18 24,171 24,228 0.63California Rep Auto Rec 11-15-19 20,500 20,534 0.54Cf Inds 6.875% 05-01-18 19,412 20,434 0.53Kubota Cr Owner Tr 2015 03-15-19 20,225 20,252 0.53CIBC 1.6% 09-06-19 20,000 19,810 0.52Erac Usa Fin Company 14 10-15-19 19,000 18,983 0.50Diamond 1 Fin Corp/Diam 06-01-19 18,535 18,921 0.49Discover Card Exe Tr 20 03-15-22 19,075 18,857 0.49Merc-Benz Auto Lease Tr 08-15-19 18,800 18,749 0.49Banque Fed Du Cred Mutu 04-12-19 18,600 18,524 0.48Keysight Tech 3.3% 10-30-19 18,125 18,405 0.48Ford Cr Auto Own Tr 201 11-15-25 17,894 18,047 0.47Keb Hana Bk 144A 1.75% 10-18-19 18,000 17,797 0.47Dollar Gen Corp New 4.1 07-15-17 17,321 17,572 0.46Ing U S 2.9% 02-15-18 17,494 17,711 0.46Protective Life Global 09-13-19 18,000 17,725 0.46


QualityHigh

Med

Low

DurationLtd Mod Ext

1 figure provided byfund

Avg Eff Duration1 1.9 YrsAvg Eff Maturity 2.0 YrsAvg Credit Quality AAvg Wtd Coupon 2.81%Avg Wtd Price 101.44% of par

Coupon Range % of Bonds

0% PIK 0.00% to 4% 82.24% to 6% 8.66% to 8% 6.38% to 10% 2.9More than 10% 0.0

Credit Analysis % bonds 12-31-16

AAA 32 BB 1AA 12 B 0A 27 Below B 0BBB 28 Not Rated 0

Sector Breakdown % Assets

Government 15Government Related 0Corporate 57Agency MBS 3Non-Agency Residential MBS 1Commercial MBS 2Covered Bond 0Asset Backed 12Municipal 3Cash & Equivalents 7Other 0

Composition - Net

Cash 7.1 Bonds 92.9Stocks 0.0 Other 0.0

Special Securities

Restricted/Illiquid Secs 23Emerging-Markets Secs 1Options/Futures/Warrants 0

Morningstar's Take by Emory Zink 03-09-16While Baird Short-Term Bond inhabits a well-troddeninvestment-grade landscape, management’s experienceand low fees have given the fund an edge, deliveringconsistent return to investors and earning this fund aMorningstar Analyst Rating of Silver.

Mary Ellen Stanek helms a team of six named co-portfolio managers who average 32 years of experiencein the industry and have contributed to this strategy fromits inception in 2004. The team is rounded out with fiveadditional senior portfolio managers and four analysts.Although this is fewer in number than many larger firmswith comparable funds, Stanek and her support counterthis by sticking to sectors and investments that they canthoroughly research with the fund’s given resources.

It is not only the firm’s leadership that has remainedstalwart--the process is consistent as well. Similar tomany of its short-term bond Morningstar Category peers,the team invests in a mix of corporates, mortgages, andTreasuries, and it benchmarks itself against the BarclaysU.S. Government/Credit 1-3 Year Index. Emphasis is onhigher-quality holdings, and the fund tends to have ahigher allocation to A and BBB rated securities, as well

as a lower allocation to non-investment-grade ornonrated securities than its average category peer.

Management tends to take a duration-neutral stancerelative to its bogy but makes active bets on sector, yieldcurve, and individual security selection. Over the life ofthe strategy, the fund has maintained a persistentoverweighting to credit and underweighting to Treasuriesand government-related securities. As of early 2016, thecredit allocation occupied 68% of the portfolio--aroundthe middle of its historical allocation range.

The fund’s historical performance is solid. Over thetrailing five years ended February 2016, the portfoliogenerated 2% of annualized return, ahead of the indexand better than 80% of its category peers. Low volatilityand rock-bottom fees further contribute to this fund’sconsistent performance and risk-conscious appeal.

Address: Baird Funds Inc Minimum Purchase: $25000 Add: — IRA: $25000Milwaukee, WI 53202 Min Auto Inv Plan: $25000 Add: —866-442-2473 Sales Fees: No-load

Web Address: www.bairdfunds.com Management Fee: 0.25%, 0.05%AInception: 08-31-04 Actual Fees: Mgt:0.25% Dist:—Advisor: Robert W. Baird & Co. Incorporated Expense Projections: 3Yr:$97 5Yr:$169 10Yr:$381Subadvisor: None Income Distribution: Monthly


ß® Mutual Funds D


American Funds Capital Income Bldr A TickerCAIBX

Yield3.4%


Mstar CategoryWorld Allocation

Benchmark 1: Morningstar Gbl Allocation TR USDBenchmark 2: Morningstar Mod Tgt Risk TR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0

8.0




Growth of $10,000


* * ( ( & * * & * * ( Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History62.56 41.53 47.89 49.91 49.22 52.77 58.55 59.58 55.85 57.64 59.66 NAV10.68 -30.06 20.63 8.66 2.86 11.81 14.90 6.61 -2.92 6.90 3.50 Total Return %0.02 -6.00 -3.00 -3.46 5.25 -0.43 1.72 2.95 -0.94 -0.10 -0.52 +/- Bmark 12.04 -7.86 -1.14 -3.67 2.27 -0.23 0.60 1.72 -1.13 -1.67 -0.17 +/- Bmark 24.25 4.16 4.79 4.26 4.24 4.54 3.78 4.84 3.43 3.68 0.00 Income Return %6.43 -34.22 15.84 4.40 -1.38 7.27 11.12 1.77 -6.36 3.22 3.50 Capital Return %

30 44 66 73 8 40 36 6 47 27 52 Total Rtn % Rank Cat2.56 2.56 1.96 2.01 2.09 2.20 1.97 2.79 2.02 2.03 0.00 Income $2.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Capital Gains $0.58 0.58 0.66 0.62 0.61 0.63 0.61 0.62 0.59 0.60 . Expense Ratio %3.97 4.03 4.40 3.74 3.73 3.68 3.35 4.44 3.31 3.34 . Income Ratio %

24 30 43 42 47 68 69 55 63 47 . Turnover Rate %81,641 53,677 58,325 58,576 55,027 58,079 66,354 69,897 68,027 68,574 69,953 Net Assets $mil


2012 5.27 0.60 4.28 1.24 11.812013 5.40 -0.30 4.03 5.12 14.902014 1.95 4.94 -1.65 1.32 6.612015 0.63 -0.54 -5.43 2.55 -2.922016 3.90 3.10 1.10 -1.29 6.90


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 5.87 0.48 0.84 18 10,5876 Mo 2.58 -0.63 -1.88 65 10,2581 Yr 12.50 -1.92 -3.19 52 11,2503 Yr Avg 4.26 0.65 -0.22 9 11,3335 Yr Avg 7.12 1.09 0.40 10 14,10210 Yr Avg 4.39 -0.52 -1.13 37 15,36215 Yr Avg 7.18 — 0.36 23 28,302




Load-AdjReturn %




1 Yr 6.033 Yr 2.22 High Avg QQQQQ5 Yr 5.86 High Avg QQQQQ10 Yr 3.77 Avg Avg QQQIncept 9.03




Portfolio Analysis 12-31-16Total Stocks: 228Share change since 09-30-16 Sector Country % AssetsYPhilip Morris Internation Cnsmr Def United States 3.56YVerizon Communications In Comm Svcs United States 2.96YAbbVie Inc Hlth Care United States 2.13YAltria Group Inc Cnsmr Def United States 2.13YNational Grid PLC Utilities United Kingdom 1.61YCoca-Cola Co Cnsmr Def United States 1.60TCrown Castle Internationa Comm Svcs United States 1.57TImperial Brands PLC Cnsmr Def United Kingdom 1.54YAT&T Inc Comm Svcs United States 1.52TExxon Mobil Corp Energy United States 1.49YSSE PLC Utilities United Kingdom 1.45TNovartis AG Hlth Care Switzerland 1.43TSampo Oyj A Finan Svcs Finland 1.43YAmgen Inc Hlth Care United States 1.40

Lockheed Martin Corp Industrl United States 1.34TRoyal Dutch Shell PLC B Energy United Kingdom 1.34TReynolds American Inc Cnsmr Def United States 1.27YChevron Corp Energy United States 1.19YDominion Resources Inc Utilities United States 1.12

Singapore Telecommunicati Comm Svcs Singapore 1.01


LargeM

idSm

all

Value Blend Growth Market Cap %Giant 62.0Large 28.3Mid 8.8Small 0.7Micro 0.2Avg $mil:56,783




Long-Term Erngs 7.04 0.80Book Value 1.37 1.04Sales -3.17 0.44Cash Flow -0.83 1.12Historical Erngs -4.07 0.35

Composition - Net


Foreign (% of Stock) 47.4

SectorWeightings

% ofStocks

RelBmark 1




Regional Exposure % Stock

UK/W. Europe 33 N. America 58Japan 1 Latn America 0Asia X Japan 7 Other 0

Country Exposure % Stock

United States 59UK 15Canada 5

Switzerland 3Finland 2

Morningstar's Take by Alec Lucas 07-08-16Looking across asset classes and throughout the globe,American Funds Capital Income Builder has consistentlymet its aim of delivering an above-average and risingincome stream, while not neglecting total return.Because it's done this without taking undue risk, the fundhas a Morningstar Analyst Rating of Silver.

True, the fund is hardly risk-free. It's more prone to adownturn in the equity market than it has been in the past.In the course of hunting for income in the post-crisis low-interest-rate environment, the fund has ballooned itsequity portfolio from 60% of assets in early 2009 to around80% since late 2013. Its 80% equity stake, as of May2016, ranks in the world-allocation MorningstarCategory's top decile.

The fund also treads heavily in the more interest-ratesensitive sectors of utilities and telecom. The equitymanagers gravitate toward these high-income areas inorder to meet their pre-expenses yield target of about 4%,roughly double the average payout of U.S. stocks. At19.7% of assets, the current combined utilities andtelecom stake is more than just a handful of category

peers and higher than the MSCI All-Country World HighDividend Yield Index's 13.1%.

The equity managers, however, look for less interest-rate-sensitive dividend growers, too. For example, sinceentering the portfolio in late 2012, current top-five holdingAmgen AMGN has nearly tripled its quarterly dividend to$1 per share. Plus, they’re talented and veteran stock-pickers. American's multimanager system of separatelyrun portfolio sleeves allows them to play to their strengthsand damps volatility. The fund's conservative bondportfolio also helps in that regard. It has largely avoidedjunk bonds in recent years and serves as ballast.

Even as the fund's asset mix between stocks andbonds has shifted considerably during the past decade,outperformance has been consistent. The fund hasbeaten its typical rival in seven of the past 10 calendaryears on its way to a top-quartile 5.5% 10-year returnthrough June 2016. Over the long haul, the fund shouldcontinue to reward investors for its risks.

Address: Capital Income Builder Inc Minimum Purchase: $250 Add: $50 IRA: $25Los Angeles CA 90071 Min Auto Inv Plan: $50 Add: $50800-421-4225 Sales Fees: 5.75%L

Web Address: www.americanfunds.com Management Fee: 0.24% mx./0.11% mn., 0.01%AInception: 07-30-87 Actual Fees: Mgt:0.23% Dist:0.24%Advisor: Capital Research and Management Company Expense Projections: 3Yr:$756 5Yr:$891 10Yr:$1282Subadvisor: None Income Distribution: Quarterly


ß® Mutual Funds A


Dodge & Cox International Stock TickerDODFX

Yield2.1%


Mstar CategoryForeign Large Blend

Benchmark 1: MSCI ACWI Ex USA NR USDBenchmark 2: MSCI ACWI Ex USA NR USD


ŒMorningstar Pillars




Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

8.0

6.0


Above AvgHighQQQQAbove Avg


Growth of $10,000


& ) & & ) & & & ) & & Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History46.02 21.90 31.85 35.71 29.24 34.64 43.04 42.11 36.48 38.10 40.22 NAV11.71 -46.69 47.46 13.69 -15.97 21.03 26.31 0.08 -11.35 8.26 5.56 Total Return %-4.94 -1.16 6.01 2.54 -2.26 4.20 11.03 3.94 -5.69 3.77 0.37 +/- Bmark 1-4.94 -1.16 6.01 2.54 -2.26 4.20 11.03 3.94 -5.69 3.77 0.37 +/- Bmark 22.89 2.04 1.99 1.55 2.13 2.55 2.01 2.25 1.99 2.33 0.00 Income Return %8.82 -48.73 45.47 12.13 -18.10 18.48 24.31 -2.18 -13.35 5.93 5.56 Capital Return %


16 35 21 15 16 10 13 12 18 17 . Turnover Rate %53,426 25,053 36,758 43,406 35,924 40,556 53,616 64,040 57,029 54,187 . Net Assets $mil


2012 12.72 -8.34 7.41 9.06 21.032013 3.64 1.70 11.15 7.82 26.312014 2.76 5.00 -2.71 -4.66 0.082015 4.20 -0.30 -15.38 0.83 -11.352016 -3.76 -1.20 10.15 3.36 8.26


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 8.15 0.27 0.27 12 10,8156 Mo 9.14 3.99 3.99 2 10,9141 Yr 29.88 10.57 10.57 1 12,9883 Yr Avg -0.02 0.17 0.16 32 9,9935 Yr Avg 6.61 3.06 3.06 8 13,77210 Yr Avg 2.45 1.07 1.07 16 12,73315 Yr Avg 8.46 1.97 1.97 6 33,827


Potential Capital Gain Exposure: -4% of assets


Load-AdjReturn %




1 Yr 29.883 Yr -0.02 Avg High QQQ5 Yr 6.61 High High QQQQ10 Yr 2.45 +Avg High QQQQIncept 7.42



Standard Deviation 14.39Mean -0.02Sharpe Ratio 0.06

Portfolio Analysis 12-31-16Total Stocks: 73Share change since 09-30-16 Sector Country % AssetsYSamsung Electronics Co Lt Technology South Korea 4.47TSanofi SA Hlth Care France 3.68YNaspers Ltd Class N Technology South Africa 3.39YSchlumberger Ltd Energy United States 3.16YBarclays PLC Finan Svcs United Kingdom 2.89YBnp Paribas Sa — — 2.88YSchneider Electric SE Industrl France 2.58YICICI Bank Ltd Finan Svcs India 2.52YItau Unibanco Holding SA Finan Svcs Brazil 2.45YStandard Chartered PLC Finan Svcs United Kingdom 2.33YHewlett Packard Enterpris Technology United States 2.28YRoche Holding AG Hlth Care Switzerland 2.18YMitsubishi Electric Corp Technology Japan 2.14TBayer AG Hlth Care Germany 1.99YCredit Suisse Group AG Finan Svcs Switzerland 1.94

Honda Motor Co Ltd Cnsmr Cyc Japan 1.94YSociete Generale SA Finan Svcs France 1.92YPetroleo Brasileiro SA Pe Energy Brazil 1.81

Novartis AG ADR Hlth Care Switzerland 1.78YLafargeHolcim Ltd Basic Mat Switzerland 1.67


LargeM

idSm

all





Long-Term Erngs 7.72 0.87Book Value 0.78 0.27Sales -2.68 0.76Cash Flow -2.98 -1.45Historical Erngs 2.10 -0.61

Composition - Net



SectorWeightings

% ofStocks

RelBmark 1







UK 15Japan 13Switzerland 11

France 10United States 9

Morningstar's Take by Gregg Wolper 12-19-16Dodge & Cox International Stock boasts many strengths,including patience, low costs, and a highly experiencedand deep team of managers and analysts. Thoseattributes, along with a standout performance record,earn the fund a Morningstar Analyst Rating of Gold.

This fund endured an uncharacteristically subpar2015. It's not unusual for the fund to lag during marketdownturns, though it didn't in 2014. The managers buyout-of-favor stocks when their long-term prospectsremain strong, in the managers' view, and it's not unusualfor such controversial stocks to fall hard if marketsweaken. But the extent of 2015's underperformance--thefund lagged the foreign large-blend Morningstar Categoryaverage by nearly 10 percentage points--was unusual. Itslong-standing overweighting in emerging-markets stocksbore much of the blame, as those markets, andcurrencies, had a very rough year. But the managers stuckto their approach. They added to some of the mostbeaten-up positions, such as beleaguered Petrobras PBR,and have reaped the benefits of this year's rebound inthose positions. For the year to date through Nov. 30,

2016, the fund's 5.7% return tops the category averageby 7 percentage points and lands in the third percentile.

Fortunately for shareholders of this closed fund, itsstrong periods have far outweighed the down times.Moves such as buying major drug firms years ago wheninvestors soured on them have frequently paid off. Thatexplains why the fund's 10- and 15-year returns both landwell into the category's top quartile and comfortably beatthose of the MSCI ACWI Ex USA Index. And it's reassuringthat most of the fund's eight managers have been onboard since its 2001 inception, either as managers thewhole time or as analysts who were then promoted.They've used the same low-turnover, contrarian strategythe whole time. (Annual turnover rates are consistentlyin the teens.) The fund's reasonable price is anotherattraction. This fund thus holds much appeal--as long asshareholders understand that its calm, patient approachdoes not protect against a bumpy ride.

Address: Dodge & Cox Funds Minimum Purchase: $2500 Add: $100 IRA: $1000San Francisco, CA 94104 Min Auto Inv Plan: — Add: $100800-621-3979 Sales Fees: No-load

Web Address: www.dodgeandcox.com Management Fee: 0.60%Inception: 05-01-01 Actual Fees: Mgt:0.60% Dist:—Advisor: Dodge & Cox Expense Projections: 3Yr:$205 5Yr:$357 10Yr:$798Subadvisor: None Income Distribution: Annually


ß® Mutual Funds A


Fidelity® Conservative Income Bond Instl TickerFCNVX

Yield1.0%

SEC Yield0.97%


Mstar CategoryUltrashort Bond

Benchmark 1: BBgBarc Govt/Corp 1 Yr Duration TR USDBenchmark 2: BBgBarc US Agg Bond TR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

10.5


AverageLowQQQNeutral

3 2 2 2 2 1 1 Investment StyleFixed Income

Growth of $10,000


( & ( & ( ( Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History. . . . 9.97 10.03 10.04 10.03 10.02 10.03 10.04 NAV. . . . . 1.48 0.72 0.31 0.45 1.05 0.27 Total Return %. . . . . 0.89 0.37 -0.03 0.11 0.24 0.06 +/- Bmark 1. . . . . -2.74 2.74 -5.66 -0.10 -1.60 -0.60 +/- Bmark 2. . . . . 0.84 0.59 0.39 0.54 0.93 0.18 Income Return %. . . . . 0.64 0.13 -0.08 -0.09 0.12 0.10 Capital Return %. . . . . 53 25 56 22 69 51 Total Rtn % Rank Cat. . . . 0.04 0.08 0.06 0.04 0.05 0.09 0.02 Income $. . . . . 0.00 0.00 0.00 0.00 0.00 0.00 Capital Gains $. . . . 0.30 0.35 0.35 0.35 0.35 0.35 . Expense Ratio %. . . . 0.44 0.82 0.67 0.41 0.44 0.83 . Income Ratio %. . . . 18 31 47 66 44 54 . Turnover Rate %. . . . 304 1,272 1,889 2,491 2,695 4,314 4,559 Net Assets $mil


2012 0.62 0.32 0.41 0.13 1.482013 0.28 0.05 0.23 0.15 0.722014 0.10 0.09 0.10 0.02 0.312015 0.10 0.12 0.04 0.19 0.452016 0.22 0.32 0.23 0.28 1.05


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 0.37 0.11 -0.65 46 10,0376 Mo 0.63 0.38 2.82 44 10,0631 Yr 1.29 0.59 -0.13 62 10,1293 Yr Avg 0.67 0.14 -1.97 53 10,2025 Yr Avg 0.77 0.27 -1.47 52 10,38910 Yr Avg — — — — —15 Yr Avg — — — — —

Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat3 Yr (estimated) 0.38 41 0.29 355 Yr (estimated) 0.48 43 0.28 3810 Yr (estimated) — — — —



Load-AdjReturn %




1 Yr 1.293 Yr 0.67 Avg Low QQQ5 Yr 0.77 Avg Low QQQ10 Yr — — — —Incept 0.73







%Assets

St James Parish La Rev 11-01-40 97,100 97,100 1.64Bp Cap Mkts 1.846% 05-05-17 81,672 81,848 1.39US Treasury Note 0.75% 02-28-18 79,500 79,307 1.34Credit Suisse New York 05-26-17 72,585 72,641 1.23Shell Intl Fin Bv FRN 05-10-17 67,654 67,692 1.15Ubs Ag Stamford Brh FRN 03-26-18 65,450 65,668 1.11Wells Fargo Co Mtn Be 2 05-08-17 62,761 62,938 1.07B.A.T. Int Fin 144A FRN 06-15-18 56,200 56,211 0.95Ing Bk Nv 144A FRN 03-16-18 55,047 55,139 0.93Metropolitan Life Globa 09-14-18 51,200 51,265 0.87Citigroup FRN 06-07-19 50,000 50,388 0.85US Treasury Note 0.52% 10-31-18 50,000 50,037 0.85Bb&T Corp Sr Medium Ter 06-15-18 44,025 44,269 0.75Wells Fargo Bk Natl Ass 09-07-17 44,500 44,590 0.75Bnp Paribas / Bnp Parib 05-07-17 43,950 43,982 0.74Commonwealth Bk Austral 11-02-18 42,850 43,134 0.73Cisco Sys 1.4% 02-28-18 40,000 40,064 0.68Bk Tokyo-Mitsubishi Ltd 03-05-18 38,400 38,356 0.65Shell Intl Fin Bv FRN 11-10-18 37,271 37,524 0.64Massmutual Glbl Fdg Ii 04-05-17 37,209 37,300 0.63


QualityHigh

Med

Low

DurationLtd Mod Ext


Avg Eff Duration1 0.2 YrsAvg Eff Maturity —Avg Credit Quality AAAvg Wtd Coupon 1.45%Avg Wtd Price 100.26% of par







Composition - Net


Special Securities


Morningstar's Take by Emory Zink 01-25-17Fidelity Conservative Income's investment framework isinformed from the lessons that the firm learned followingthe 2008 financial crisis. A focus on high-quality bondsand vigilant risk management combined with low feesand an experienced team translate to a MorningstarAnalyst Rating of Bronze.

This fund fills an investment niche. With thegovernment instituting reforms to regulate what moneymarkets can hold and the pace at which investors mayexit money market funds, some investors seek a moreflexible option for cash management. This particularultrashort-bond fund aims to provide that alternative. Likemoney market funds, this portfolio's average credit qualityis kept quite high. Unlike money market funds, though,this one also looks to municipals and investment-gradecorporate bonds in addition to government bills and bondsfor generating yield greater than that of money markets.

Since its March 2011 inception through the end of2016, the fund generated an annualized 0.71%--outpacing its Bloomberg Barclays U.S. 3-6 MonthTreasury Bill Index benchmark and the median of a distinctgroup of similarly benchmarked three- to six-month

ultrashort peers. Leading up to the formal implementationof money market reform in October 2016, co-portfoliomanagers Robert Galusza and Robert Chan made use offluid communication between Fidelity’s money marketdesk and the limited-term bond team, anticipatingopportunities in the evolving space and positioning thefund accordingly. Galusza is a seasoned manager, guidingSilver-rated Fidelity Short-Term Bond FSHBX and Silver-rated Fidelity Intermediate Bond FTHRX, while Chan waspreviously a corporate-bond research analyst with a focuson financials, a significant sector component of this fund'sinvestment menu.

While the fund delivers a high-quality alternative,ultrashort-bond funds are not a replacement for moneymarket funds. Though monitored and managed,investment in the fund is accompanied by theMorningstar Category's commensurate risks--interest-rate sensitivity, credit quality, and exposure to more-volatile sectors.

Address: Fidelity Fixed Income Trust Minimum Purchase: $1000000 Add: — IRA: —Boston, MA 02109 Min Auto Inv Plan: — Add: —800-544-8544 Sales Fees: No-load

Web Address: advisor.fidelity.com Management Fee: 0.30%Inception: 03-03-11 Actual Fees: Mgt:0.30% Dist:—Advisor: Fidelity Management & Research Company Expense Projections: 3Yr:$101 5Yr:$185 10Yr:$432Subadvisor: FMR Investment Management (U.K.) Limited Income Distribution: Monthly


ß® Mutual Funds D


Fidelity® Floating Rate High Income TickerFFRHX

Yield3.9%

SEC Yield2.98%


Mstar CategoryBank Loan

Benchmark 1: S&P/LSTA Leveraged Loan TRBenchmark 2: BBgBarc US Agg Bond TR USD



Process ¶ NeutralPerformance ¶ NeutralPeople ∞ PositiveParent ∞ PositivePrice ∞ Positive



Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0

8.0


AverageBelow AvgQQQQAbove Avg

3 3 Investment StyleFixed Income

Growth of $10,000


& & ) ) * ) ) ( * * ( Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History9.57 7.58 9.41 9.79 9.64 9.92 9.96 9.62 9.13 9.64 9.67 NAV2.64 -16.47 28.86 7.81 1.73 6.80 3.92 0.41 -1.17 9.93 0.90 Total Return %0.56 12.63 -22.76 -2.32 0.20 -2.85 -1.37 -1.19 -0.48 -0.23 -0.16 +/- Bmark 1

-4.33 -21.71 22.93 1.27 -6.11 2.59 5.95 -5.56 -1.72 7.28 0.03 +/- Bmark 26.64 4.98 3.81 3.71 3.28 3.36 3.15 3.51 4.09 4.22 0.60 Income Return %

-4.00 -21.46 25.05 4.10 -1.55 3.44 0.77 -3.10 -5.26 5.71 0.30 Capital Return %5 1 87 85 40 94 93 58 48 39 54 Total Rtn % Rank Cat

0.64 0.47 0.28 0.34 0.32 0.32 0.31 0.34 0.39 0.38 0.06 Income $0.00 0.00 0.05 0.00 0.00 0.05 0.04 0.04 0.00 0.00 0.00 Capital Gains $0.73 0.73 0.75 0.73 0.71 0.71 0.70 0.69 0.70 0.71 . Expense Ratio %6.58 5.46 4.39 4.41 3.53 3.75 3.39 3.45 4.14 3.86 . Income Ratio %



2012 2.57 0.59 2.39 1.10 6.802013 1.51 -0.28 1.08 1.57 3.922014 0.92 1.05 -0.73 -0.81 0.412015 2.00 0.51 -1.74 -1.90 -1.172016 1.48 2.95 3.27 1.89 9.93


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 1.94 -0.29 0.93 54 10,1946 Mo 3.58 -0.66 5.77 52 10,3581 Yr 12.39 -0.27 10.97 40 11,2393 Yr Avg 3.00 -0.66 0.36 47 10,9275 Yr Avg 3.64 -1.08 1.40 73 11,95710 Yr Avg 3.85 -0.74 -0.43 17 14,59315 Yr Avg — — — — —




Load-AdjReturn %




1 Yr 12.393 Yr 3.00 Avg Avg QQQ5 Yr 3.64 -Avg Avg QQ10 Yr 3.85 +Avg Low QQQQQIncept 4.39


Alpha 2.7 -0.9Beta 0.05 1.06R-Squared 0 96





%Assets

Albertsons Term B-4 08/ 08-25-21 180,438 181,716 1.89Caesars Growth Term 1ln 05-08-21 161,126 160,857 1.68Laureate Education Term 03-17-21 118,274 117,239 1.22Intelsat Jackson Term B 06-30-19 113,055 107,980 1.13Caesars Prop Tm B 1ln 1 10-11-20 101,087 101,592 1.06Community Health Term H 01-27-21 98,426 92,840 0.97Jc Penney Term B 06/23/ 06-23-23 90,550 91,071 0.95First Data Term B Usd 7 07-10-22 85,000 85,585 0.89Murray Energy Trm B-2 5 04-16-20 90,349 82,584 0.86Prime Sec Srv Term B-1 05-02-22 77,720 78,261 0.82Berry Plastics Tm D Inc 02-08-20 75,350 75,433 0.79Charter Comm Term F 01/ 01-03-21 75,591 75,685 0.79Scientific Games Trm B 10-18-20 73,665 74,057 0.77Aercap Term B 04/30/20 04-30-20 66,390 66,788 0.70Energy Future Trm 1ln D 06-30-17 65,924 66,295 0.69Valeant Pharm Int Trm B 04-01-22 66,430 66,181 0.69Calpine Constr Tm B-1 5 05-03-20 61,182 60,723 0.63Hca Term B-6 03/18/2023 03-18-23 60,232 60,842 0.63Sears Term Abl 06/30/18 06-30-18 58,540 57,252 0.60Transdigm Term C 2/28/2 02-28-20 56,625 56,537 0.59


QualityHigh

Med

Low

DurationLtd Mod Ext


Avg Eff Duration1 —Avg Eff Maturity —Avg Credit Quality BAvg Wtd Coupon 4.94%Avg Wtd Price —







Composition - Net


Special Securities


Morningstar's Take by Eric Jacobson 03-11-16Fidelity Floating Rate High Income is among the mostcautious funds in the bank-loan Morningstar Category,which includes several holding high-yield bonds andstocks, distinguishing this one even more. So despite arecord that looks comparatively modest, this fund's lowcosts, higher-quality bent, focus on liquidity, andcompetent management help it earn a MorningstarAnalyst Rating of Bronze.

Eric Mollenhauer has run the fund a tad moreaggressively than his predecessor since taking over inApril 2013. He bumped up its B rated exposure (to 37.5%in January 2016, from 33%), trimmed its cash stake (9.3%versus 14% in April 2013), and sprinkled in more-aggressive names. A key goal was to lessen the drag onreturns from holding such large cash stakes.

The fund remains on the tamer side, though, givenits peers' typically larger nonloan stakes. This one'sholdings rated BB or higher typically run near 50% (inaddition to its cash stash), and those rated B or lowerusually come in 8 to 10 percentage points lighter thanaverage. Liquidity comparisons are difficult, but Fidelity

has long focused this fund in larger, more-liquid loans thanmany rivals, as well.

That profile has kept a damper on the fund's returnsrelative to its distinct peers, even since Mollenhauer'sarrival. It placed well into the group's bottom half duringthat period and has looked less impressive during periodsof rising yields that typically favor junkier funds. Some ofthis weakness does trace to missteps, including 2014-15exposures to oil and gas overall, and in individual namesin the sector such as Fieldwood Energy and ChesapeakeEnergy, as well as coal producers Walter Energy andMurray Energy.

Crucially, those setbacks haven't triggered largefund-level damage; its overall conservatism has served itwell during periods of credit-market stress. That includedthe fourth-quarter 2011 sell-off, during which Greece-focused panic circled the globe; the fund placed in thebest third among its distinct peers. The fund may be alittle more aggressive under Mollenhauer, but it appearslikely to remain a more cautious choice than most.

Address: Fidelity Advisor Series I Minimum Purchase: $2500 Add: — IRA: $2500Boston, MA 02109 Min Auto Inv Plan: — Add: —800-544-8544 Sales Fees: No-load, 1.00%R

Web Address: www.advisor.fidelity.com Management Fee: 0.45%Inception: 09-19-02 Actual Fees: Mgt:0.56% Dist:—Advisor: Fidelity Management & Research Company Expense Projections: 3Yr:$227 5Yr:$395 10Yr:$883Subadvisor: FMR Investment Management (U.K.) Limited Income Distribution: Monthly


ß® Mutual Funds D


Fidelity® Municipal Income TickerFHIGX

Yield3.3%

SEC Yield2.40%


Mstar CategoryMuni National Long

Benchmark 1: BBgBarc Municipal 20 Yr 17-22 TR USDBenchmark 2: BBgBarc Municipal TR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0


AverageAverageQQQNeutral


Growth of $10,000


& & ) & * ( & ( * ( * Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History12.58 11.49 12.46 12.27 13.03 13.57 12.68 13.53 13.44 12.86 12.91 NAV3.10 -4.61 13.14 2.58 10.65 7.91 -2.94 10.59 3.31 -0.01 1.10 Total Return %0.81 3.03 -5.39 1.26 -3.32 -2.10 1.48 -2.44 -0.62 -0.49 -0.10 +/- Bmark 1

-0.26 -2.14 0.22 0.20 -0.05 1.13 -0.39 1.54 0.01 -0.26 -0.26 +/- Bmark 24.10 4.16 4.59 4.22 4.28 3.74 3.58 3.82 3.47 3.30 0.52 Income Return %

-1.00 -8.78 8.55 -1.64 6.38 4.17 -6.52 6.77 -0.16 -3.31 0.58 Capital Return %9 22 78 23 50 68 7 51 35 56 44 Total Rtn % Rank Cat




2012 2.30 1.90 2.56 0.94 7.912013 0.30 -3.31 -0.31 0.39 -2.942014 3.69 3.08 1.66 1.78 10.592015 1.22 -1.28 1.63 1.74 3.312016 1.66 3.27 -0.30 -4.46 -0.01


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 2.02 -0.90 -0.53 44 10,2026 Mo -3.86 0.16 -1.07 73 9,6141 Yr -0.13 -0.53 -0.38 65 9,9873 Yr Avg 3.77 -0.96 0.24 49 11,1745 Yr Avg 3.37 -0.54 0.30 41 11,80110 Yr Avg 4.23 -0.60 -0.05 26 15,13415 Yr Avg 4.63 -0.72 0.06 17 19,713




Load-AdjReturn %




1 Yr -0.133 Yr 3.77 Avg +Avg QQQ5 Yr 3.37 Avg Avg QQQ10 Yr 4.23 Avg -Avg QQQIncept 6.29







%Assets

New Jersey Econ Dev Aut 03-01-27 69,700 71,831 1.36Grand Parkway Transn Co 10-01-51 53,600 60,520 1.15New York N Y City Mun W 06-15-43 42,080 47,506 0.90South Carolina St Pub S 12-01-53 34,335 38,317 0.73Illinois Fin Auth 5% 08-15-44 30,850 31,999 0.61Metropolitan Transn Aut 11-15-25 25,900 29,848 0.57Illinois Fin Auth 5.625 01-01-37 27,960 29,137 0.55Indiana St Fin Auth 5% 10-01-45 25,600 28,432 0.54Philadelphia Pa Sch Dis 09-01-29 26,200 28,310 0.54Collier Cnty Fla Indl D 10-01-39 24,450 27,730 0.53Illinois Fin Auth 5.375 05-15-25 25,230 27,829 0.53Northampton Cnty Pa Gen 08-15-46 24,875 26,566 0.50Austin Tex Arpt Sys Rev 11-15-44 23,455 25,566 0.48Illinois Dev Fin Auth 07-15-23 29,680 25,512 0.48Illinois Fin Auth 5% 09-01-38 23,950 24,629 0.47


QualityHigh

Med

Low

DurationLtd Mod Ext Avg Eff Duration1 7.1 Yrs

Avg Eff Maturity —Avg Credit Quality AAvg Wtd Coupon 4.99%Avg Wtd Price 106.95% of par1 figure provided by fund



Top 5 States % bonds

IL 17.3FL 13.5CA 11.3

TX 10.6NY 7.7

Composition - Net


Special Securities


Sector Weightings % of Bonds

General Obligation 13.0Advance Refunded 7.3Tobacco 0.1Education 20.0Health 20.3Housing 0.0Industrial 4.8Transportation 23.3Utilities 5.4Water & Sewer 5.0Miscellaneous Revenue 0.0

Morningstar's Take by Elizabeth Foos 05-02-16On April 11, 2016, Fidelity announced that veteran munimanager Jamie Pagliocco would step down from thefirm's muni funds to take a position heading the firm'sfixed-income trading group, effective May 2, 2016.Pagliocco served as the head of the firm's three-personmuni portfolio management team and as the leadmanager for this fund and Fidelity Advisor MunicipalIncome FAMUX, and several single-state muni funds,including Fidelity California Municipal Income FCTFX.Because the firm takes a team-based approach whenmanaging its muni funds, we don’t expect thedevelopment to cause significant disruption to the teamor its process. The fund's combination of a solid long-termrecord, a strong team and analytic tools, and lowexpenses earns it a Morningstar Analyst Rating of Gold.

Pagliocco's current comanagers, Mark Sommer andKevin Ramundo, who have managed muni funds at thefirm since 2002 and 2010, respectively, will be namedmanagers on the firm's entire suite of muni offeringsmoving forward, including this fund. Joining the duo as anew portfolio manager is Cormac Cullen, a 15-yearFidelity veteran. Cullen has served as a senior member of

the firm’s muni research team since 2008, focusing onvarious revenue sectors, including healthcare andtransportation. Previously, he served as a senior legalcounsel at Fidelity and as a bond attorney for Mintz, Levinin Boston. With Pagliocco's departure, Cullen will assumethe lead role here.

This fund takes a cautious tack that offers downsideprotection in rocky muni-bond markets. The team steersclear of leveraged structures and the market's rockiestsectors such as tobacco and troubled names like PuertoRico. With that, the fund might not reach the heights ofmore-aggressive peers--it finished near the middle of thepack in 2014 as munis staged a nice recovery--but holdsup well when muni markets head south. Over the longerhaul, this fund has served investors well. Its trailing 10-year annualized return of 4.9% tops nearly 75% ofMorningstar Category rivals.

Address: Fidelity Municipal Trust Minimum Purchase: $10000 Add: — IRA: —Boston, MA 02109 Min Auto Inv Plan: — Add: —800-544-8544 Sales Fees: No-load



ß® Mutual Funds D


FPA Crescent TickerFPACX

Yield0.8%


Mstar CategoryAllocation--50% to 70%Equity

Benchmark 1: Morningstar Mod Tgt Risk TR USDBenchmark 2: Morningstar Mod Tgt Risk TR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.5

15.0

17.5

20.0


HighAverageQQQQQHighest


Growth of $10,000


* & & * & ) & * ( & & Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History25.29 19.59 24.82 26.79 26.78 29.29 32.96 33.74 31.06 32.61 33.93 NAV6.84 -20.55 28.37 12.04 3.02 10.33 21.95 6.64 -2.06 10.25 4.05 Total Return %

-1.80 1.64 6.60 -0.30 2.43 -1.72 7.64 1.75 -0.27 1.68 0.37 +/- Bmark 1-1.80 1.64 6.60 -0.30 2.43 -1.72 7.64 1.75 -0.27 1.68 0.37 +/- Bmark 22.88 1.47 1.56 1.30 1.16 0.45 0.74 0.94 0.87 0.94 0.00 Income Return %3.96 -22.03 26.81 10.74 1.86 9.88 21.21 5.70 -2.93 9.31 4.05 Capital Return %


29 29 32 32 32 26 22 31 48 . . Turnover Rate %1,318 1,191 2,659 4,813 7,479 9,917 15,904 19,984 18,120 16,556 17,386 Net Assets $mil


2012 6.65 -2.91 4.55 1.91 10.332013 7.22 2.95 3.78 6.46 21.952014 2.03 2.94 -0.96 2.51 6.642015 0.15 -0.15 -4.73 2.80 -2.062016 -0.19 0.39 5.29 4.51 10.25


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 5.27 0.24 0.24 27 10,5276 Mo 8.57 4.11 4.11 4 10,8571 Yr 21.03 5.34 5.34 8 12,1033 Yr Avg 5.80 1.32 1.31 24 11,8415 Yr Avg 8.85 2.13 2.13 18 15,28110 Yr Avg 7.27 1.76 1.75 4 20,16515 Yr Avg 8.87 2.05 2.05 2 35,776




Load-AdjReturn %




1 Yr 21.033 Yr 5.80 +Avg +Avg QQQQ5 Yr 8.85 +Avg +Avg QQQQ10 Yr 7.27 High -Avg QQQQQIncept 10.49




Portfolio Analysis 12-31-16Total Stocks: 39Share change since 09-30-16 Sector YTD Ret % % Assets

Oracle Corp Technology 11.16 3.70Tencent Holdings Ltd Technology — 3.53

YUnited Technologies Corp Industrl 3.27 3.22YAmerican International Gr Finan Svcs -2.13 3.19YCitigroup Inc Finan Svcs 0.91 2.98TNaspers Ltd Class N Technology — 2.91YCIT Group Inc Finan Svcs 0.87 2.89

Aon PLC Finan Svcs 3.99 2.81YBank of America Corporati Finan Svcs 11.67 2.70



%Assets

US Treasury Note 1.875% 10-31-17 291,000 293,384 1.77US Treasury Note 0.875% 11-15-17 290,000 289,970 1.75US Treasury Note 0.875% 10-15-17 280,000 280,042 1.69US Treasury Note 0.75% 01-31-18 275,000 274,388 1.66US Treasury Note 0.875% 04-15-17 275,000 275,180 1.66US Treasury Note 0.625% 09-30-17 274,000 273,576 1.65US Treasury Note 1% 09-15-17 270,000 270,375 1.63US Treasury Note 3.5% 02-15-18 260,000 267,116 1.61US Treasury Note 0.875% 01-15-18 259,000 258,803 1.56

Equity StyleStyle: BlendSize: Large-Cap

Fixed-Income StyleDuration: —Quality: —

Value Measures Rel CategoryPrice/Earnings 16.12 0.90Price/Book 1.52 0.65Price/Sales 2.01 1.19Price/Cash Flow 4.60 0.51Dividend Yield % 1.74 0.69Growth Measures % Rel Category

Long-Term Erngs 8.60 0.93Book Value 3.28 2.26Sales 0.77 -0.32Cash Flow 9.67 12.73Historical Erngs 14.92 -2.01Market Cap %Giant 47.2 Small 7.1Large 27.2 Micro 1.7Mid 16.9 Avg $mil: 42,865

Composition - Net


Avg Eff Duration1 —Avg Eff Maturity —Avg Credit Quality —Avg Wtd Coupon 2.25%1 figure provided by fund as of 12-31-16

SectorWeightings

% ofStocks

RelBmark 1




Morningstar's Take by Dan Culloton 05-31-16Despite its still above-average fees and large size, FPACrescent has the experience and discipline to retain itsMorningstar Analyst Rating of Gold.

Few allocation funds beat this fund's track record, butit's not the same fund it was when it began its impressive,23-year run. With nearly $20.7 billion under managementhere and in similar strategies, its management team'sability to invest in the small- and mid-cap stocks thathelped it years ago is limited. There also are more peopleinvolved: Manager Steve Romick now has twocomanagers and six analysts contributing.

More hands on deck is a good thing here, though.Many of the team members have been with FPA for fewerthan five years, but Mark Landecker and Brian Selmo,comanagers since 2013, are committed to andcomfortable with the fund's contrarian style, whichinvolves studying, watching, and waiting for the rightprice and place to deploy capital. They and the team'sanalysts help Romick cover more territory in greater depthand fill the fund's reservoir of ideas.

Size has not blunted the fund's edge, which remainsits patience and its strict value standards. There are few

signs it is loosening its criteria to put its larger asset baseto work or its willingness or ability to do so whenopportunity arises. The fund tapped some of its big cashstake in the latter half of 2015 and early 2016, buying thehigh-yield bonds of energy and basic-materialscompanies. The fund's high-yield stake increased fromabout 1% to 5% by the end of March 2016. Romick andteam also added to financial stocks, increasing the fund'soverall financials stake to nearly 20%. Although its roughly36% cash stake at the end of 2016's first quarter remainedabove its since-inception average, the fund showed it canstill move decisively.

Fees remain a drawback. The expense ratio droppedto 1.09% from 1.18%--not counting short sale expenses--but still remains above the 0.70% average for theMorningstar Category of allocation--50% to 70% equity.Romick has cleared higher fee hurdles in the past, though.

Address: FPA Funds Trust Minimum Purchase: $1500 Add: $100 IRA: $100Los Angeles, CA 90064 Min Auto Inv Plan: $100 Add: $100800-982-4372 Sales Fees: No-load, 2.00%R

Web Address: www.fpafunds.com Management Fee: 1.00%, 0.01%AInception: 06-02-93 Actual Fees: Mgt:1.00% Dist:—Advisor: First Pacific Advisors, LLC Expense Projections: 3Yr:$353 5Yr:$612 10Yr:$1352Subadvisor: None Income Distribution: Semi-Annually


ß® Mutual Funds A


Fidelity® Total Bond TickerFTBFX

Yield2.8%

SEC Yield2.56%


Mstar CategoryIntermediate-TermBond

Benchmark 1: BBgBarc US Agg Bond TR USDBenchmark 2: BBgBarc US Agg Bond TR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0


Above AvgAbove AvgQQQQAbove Avg


Growth of $10,000


( ( & * & ( * * ( & & Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History10.33 9.20 10.47 10.72 10.92 10.95 10.44 10.68 10.26 10.52 10.61 NAV4.13 -5.56 19.80 8.55 7.40 6.51 -0.92 5.54 -0.42 5.86 1.29 Total Return %

-2.83 -10.80 13.87 2.01 -0.44 2.30 1.10 -0.42 -0.97 3.21 0.42 +/- Bmark 1-2.83 -10.80 13.87 2.01 -0.44 2.30 1.10 -0.42 -0.97 3.21 0.42 +/- Bmark 25.07 5.03 5.34 4.15 3.82 2.97 2.78 2.92 3.05 3.06 0.44 Income Return %

-0.94 -10.59 14.46 4.41 3.58 3.54 -3.71 2.62 -3.47 2.79 0.85 Capital Return %73 57 15 29 18 53 28 46 64 4 22 Total Rtn % Rank Cat

0.52 0.51 0.48 0.42 0.40 0.32 0.30 0.30 0.32 0.31 0.05 Income $0.03 0.07 0.03 0.21 0.18 0.36 0.11 0.03 0.06 0.03 0.00 Capital Gains $0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 . Expense Ratio %5.25 5.12 5.52 4.37 3.89 3.29 2.75 3.07 2.99 3.25 . Income Ratio %116 122 104 130 168 155 201 108 140 134 . Turnover Rate %

9,221 8,280 11,443 10,956 11,937 12,894 11,611 15,933 17,600 20,709 21,516 Net Assets $mil


2012 1.26 2.20 2.33 0.58 6.512013 0.30 -2.50 0.84 0.47 -0.922014 2.17 2.12 -0.06 1.22 5.542015 1.93 -1.44 -0.12 -0.76 -0.422016 3.23 2.91 1.79 -2.11 5.86


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 1.85 0.84 0.83 16 10,1856 Mo -0.63 1.56 1.56 15 9,9371 Yr 6.05 4.63 4.63 8 10,6053 Yr Avg 3.31 0.67 0.66 8 11,0255 Yr Avg 3.19 0.95 0.95 18 11,70010 Yr Avg 4.88 0.60 0.60 18 16,10715 Yr Avg — — — — —




Load-AdjReturn %




1 Yr 6.053 Yr 3.31 High +Avg QQQQQ5 Yr 3.19 +Avg +Avg QQQQ10 Yr 4.88 +Avg +Avg QQQQIncept 5.06







%Assets

US Treasury Note 1.25% 03-31-21 1,180,775 1,152,504 5.02US Treasury Note 2.25% 12-31-23 837,091 836,453 3.64US Treasury Note 1.25% 10-31-21 707,204 685,085 2.98Fannie Mae 3% 30 Year — 622,541 619,687 2.70US Treasury Note 1.75% 12-31-20 600,000 599,320 2.61US Treasury Bond 2.875% 11-15-46 610,049 587,535 2.56Fannie Mae 3.5% 30 Year — 471,805 485,475 2.11US Treasury Note 1.375% 04-30-21 484,800 475,153 2.07Fannie Mae 4% 30 Year — 420,912 444,277 1.93US Treasury Note 07-15-25 396,692 402,296 1.75US Treasury Note 1.5% 08-15-26 426,868 391,967 1.71Freddie Mac 3.5% 30 Yea — 320,726 330,014 1.44GNMA 3.5% — 274,841 286,742 1.25Freddie Mac 3% 30 Year — 263,332 262,044 1.14FHLB 4% — 233,423 246,186 1.07US Treasury Bond 02-15-45 225,000 217,627 0.95Ginnie Mae 3% 30 Year — 205,920 208,615 0.91US Treasury Bond 3% 11-15-45 207,323 204,010 0.89US Treasury Note 01-15-26 200,000 205,320 0.89US Treasury Note 07-15-26 192,100 187,399 0.82


QualityHigh

Med

Low

DurationLtd Mod Ext


Avg Eff Duration1 5.7 YrsAvg Eff Maturity —Avg Credit Quality BBBAvg Wtd Coupon 3.34%Avg Wtd Price 101.22% of par







Composition - Net


Special Securities


Morningstar's Take by Emory Zink 01-23-17Fidelity Total Bond earns a Morningstar Analyst Rating ofGold by thoughtfully exercising flexibility across a broadfixed-income opportunity set and generating compellinglonger-term performance at a reasonable price.

In the competitive intermediate-term bondMorningstar Category, this fund stands out for making themost of its wide mandate. In addition to investing ininvestment-grade U.S. bonds like its bogy, the BloombergBarclays U.S. Aggregate Bond Index, manager Ford O'Neilhas the flexibility to venture into high-yield, emerging-markets, and international bonds. He uses Fidelity's 100-plus-person fixed-income department and looks forundervalued securities and sectors that will providestrong risk-adjusted returns.

Since its 2002 inception through December 2016,the fund gained 5.0% annualized, outpacing its averageintermediate-term bond peer, its benchmark, and theBloomberg Barclays U.S. Universal Index--which includesa menu of "plus" sectors similar to those in this fund. Still,the fund carries risk. Its weightings in lower-quality bondsand emerging markets make it more susceptible to losses

and have burned it before, such as during the 2008financial crisis.

Management is typically duration-neutral relative toits bogy but makes active bets on sector, yield-curve, andindividual security selection. As of December 2016, it wasoverweight corporate, emerging-markets, and high-yielddebt and underweight in Treasuries and mortgage-backed securities. O'Neil and his team often take acontrarian approach and aim for longer-term risk-conscious results above all else. Following the 2008crisis, the fund had a nearly 20% stake in emerging-markets and high-yield bonds because the managersthought they were oversold.

With around 80% of assets currently dedicated toinvestment-grade bonds, the fund maintains a high-quality core that emboldens management to seekopportunities across high-yield, emerging-markets, andinternational bonds--exercising the "plus" portion of itsmandate with discipline and experience.

Address: Fidelity Income Fund Minimum Purchase: $2500 Add: — IRA: $2500Boston, MA 02109 Min Auto Inv Plan: — Add: —800-544-8544 Sales Fees: No-load



ß® Mutual Funds D


Harbor International Institutional TickerHAINX

Yield1.9%


Mstar CategoryForeign Large Blend

Benchmark 1: MSCI ACWI Ex USA NR USDBenchmark 2: MSCI ACWI Ex USA NR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

8.0

6.0


AverageAbove AvgQQQNeutral


Growth of $10,000


& * & * & & ( ) ) ( * Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History71.36 40.12 54.87 60.55 52.45 62.12 71.01 64.78 59.43 58.41 61.13 NAV21.82 -42.66 38.57 11.98 -11.13 20.87 16.84 -6.81 -3.82 0.25 4.66 Total Return %5.16 2.87 -2.88 0.83 2.58 4.04 1.55 -2.94 1.84 -4.25 -0.54 +/- Bmark 15.16 2.87 -2.88 0.83 2.58 4.04 1.55 -2.94 1.84 -4.25 -0.54 +/- Bmark 21.70 1.09 1.76 1.59 2.17 2.40 2.41 2.00 1.67 1.96 0.00 Income Return %

20.11 -43.75 36.81 10.39 -13.30 18.47 14.43 -8.80 -5.49 -1.71 4.66 Capital Return %3 49 17 31 17 17 75 78 77 58 47 Total Rtn % Rank Cat




2012 14.41 -7.17 5.56 7.79 20.872013 2.09 -1.69 11.11 4.76 16.842014 1.03 3.37 -7.00 -4.05 -6.812015 5.77 1.58 -12.97 2.86 -3.822016 0.50 -1.64 5.96 -4.29 0.25


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 5.48 -2.40 -2.40 92 10,5486 Mo 1.68 -3.47 -3.47 81 10,1681 Yr 11.74 -7.57 -7.57 84 11,1743 Yr Avg -2.21 -2.02 -2.02 79 9,3515 Yr Avg 2.96 -0.59 -0.59 83 11,56810 Yr Avg 2.52 1.14 1.14 15 12,82015 Yr Avg 7.99 1.50 1.50 8 31,682




Load-AdjReturn %




1 Yr 11.743 Yr -2.21 -Avg +Avg QQ5 Yr 2.96 -Avg Avg QQ10 Yr 2.52 +Avg High QQQQIncept 10.53



Standard Deviation 12.59Mean -2.21Sharpe Ratio -0.13

Portfolio Analysis 12-31-16Total Stocks: 66Share change since 09-30-16 Sector Country % AssetsYLas Vegas Sands Corp Cnsmr Cyc United States 5.68TSchlumberger Ltd Energy United States 4.17YShire PLC Hlth Care United States 2.94YNovartis AG Hlth Care Switzerland 2.63YWynn Resorts Ltd Cnsmr Cyc United States 2.63YTokio Marine Holdings Inc Finan Svcs Japan 2.56YEssilor International SA Hlth Care France 2.53YNovo Nordisk A/S B Hlth Care Denmark 2.51TBayer AG Hlth Care Germany 2.41TAnheuser-Busch InBev SA/N Cnsmr Def Belgium 2.31YUnibail-Rodamco SE Real Est France 2.30THeineken NV Cnsmr Def Netherlands 2.29YCie Generale des Etabliss Cnsmr Cyc France 2.18YNestle SA Cnsmr Def Switzerland 2.15YAlibaba Group Holding Ltd Cnsmr Cyc China 2.10YPernod Ricard SA Cnsmr Def France 2.09YAtlas Copco AB A Industrl Sweden 2.07YL'Oreal SA Cnsmr Def France 2.05YLinde AG Basic Mat Germany 2.03YStandard Chartered PLC Finan Svcs United Kingdom 2.00


LargeM

idSm

all





Long-Term Erngs 7.50 0.85Book Value 5.20 1.77Sales -2.53 0.72Cash Flow -2.07 -1.01Historical Erngs -3.68 1.07

Composition - Net



SectorWeightings

% ofStocks

RelBmark 1







France 18United States 16UK 14

Switzerland 10Germany 10

Morningstar's Take by Kevin McDevitt, CFA 11-28-16Harbor International's results have been below itshistorical standard, but it is still a formidable competitor.The fund retains its Morningstar Analyst Rating of Gold.

This fund is experiencing the most severewithdrawals in its history, but they haven't been terriblydisruptive. Amid volatility and mediocre results, investorshave pulled an estimated $9.5 billion since September2014, representing nearly 18% of the fund's beginningassets. But, even though the fund typically keeps just 3%or so of assets in cash, it has easily met redemptions,given that the bulk of its holdings are highly liquid large-cap companies. The portfolio's $45.9 billion averagemarket cap is nearly $20 billion greater than that of theMSCI ACWI Ex-USA Index's.

Fleeing investors may be reacting to the fund'ssubpar 4.2% annualized five-year return, which trails itstypical foreign large-blend Morningstar Category peer by0.46 percentage points through October 2016, althoughthe fund beat its index by 0.59 percentage points duringthat stretch. It may also reflect lingering concern aboutthe current team since founding manager HakanCastegren's death in October 2010.

The fund owned the best long-term foreign-stockrecord during Castegren's tenure (1987-2010), but itshould be noted that all three of the current managerscontributed to those results. Jim LaTorre became hisdirector of research in 1993. Howard Appleby and Jean-Francois Ducrest had both worked with Castegren foryears as sell-side analysts before joining Northern Crossin 2002.

Plus, the fund has outperformed during the currentteam's tenure, albeit by smaller margins than in the past.Since Castegren's passing in early October 2010, the fundhas edged its average peer and the index through October2016, gaining 3.62% annualized versus 3.47% for thecategory average and the benchmark’s 2.72%. The fundhas also beaten both bogies since the three currentmanagers were named in February 2009, returning 9.3%versus 8.5% for the index and 8.2% for the categoryaverage.

Overall, this team is holding its own.

Address: Harbor Funds Minimum Purchase: $50000 Add: — IRA: $50000Chicago, IL 60606-4302 Min Auto Inv Plan: — Add: —800-422-1050 Sales Fees: No-load

Web Address: www.harborfunds.com Management Fee: 0.75% mx./0.65% mn.Inception: 12-29-87 Actual Fees: Mgt:0.68% Dist:—Advisor: Harbor Capital Advisors Inc Expense Projections: 3Yr:$254 5Yr:$443 10Yr:$989Subadvisor: Northern Cross, LLC Income Distribution: Annually


ß® Mutual Funds A


LKCM Equity Instl TickerLKEQX

Yield0.8%


Mstar CategoryLarge Growth

Benchmark 1: Russell 1000 Growth TR USDBenchmark 2: S&P 500 TR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

15.0

20.0


AverageBelow AvgQQQNeutral


Growth of $10,000


& & * & & * ) ) ) & ) Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History15.38 10.33 13.02 15.18 15.34 17.62 22.44 22.81 21.40 22.42 23.56 NAV10.96 -31.80 27.01 17.77 3.30 15.69 30.74 6.40 -3.54 11.66 5.08 Total Return %-0.85 6.63 -10.19 1.06 0.66 0.44 -2.74 -6.65 -9.21 4.59 -2.58 +/- Bmark 15.46 5.20 0.55 2.70 1.19 -0.31 -1.65 -7.29 -4.93 -0.30 -0.86 +/- Bmark 21.11 1.02 0.98 0.59 0.64 0.75 0.69 0.73 0.88 0.92 0.00 Income Return %9.85 -32.82 26.03 17.18 2.66 14.94 30.05 5.66 -4.42 10.75 5.08 Capital Return %


26 31 26 23 20 12 17 14 13 . . Turnover Rate %54 37 49 72 102 161 324 334 281 284 308 Net Assets $mil


2012 11.99 -4.71 7.64 0.72 15.692013 10.84 1.43 6.06 9.64 30.742014 1.60 3.55 -1.40 2.56 6.402015 0.39 0.09 -9.51 6.08 -3.542016 0.75 4.36 3.78 2.34 11.66


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 6.49 -2.51 -1.54 86 10,6496 Mo 7.45 -1.70 -2.56 58 10,7451 Yr 23.95 1.80 -1.03 16 12,3953 Yr Avg 6.03 -4.44 -4.60 74 11,9205 Yr Avg 10.94 -2.85 -3.07 76 16,80210 Yr Avg 7.65 -1.42 0.04 54 20,90715 Yr Avg 7.35 -0.02 0.00 31 28,961




Load-AdjReturn %




1 Yr 23.953 Yr 6.03 -Avg Avg QQ5 Yr 10.94 -Avg -Avg QQ10 Yr 7.65 Avg Low QQQIncept 8.26




Portfolio Analysis 12-31-16Total Stocks: 62Share change since 09-30-16 Sector YTD Ret % % AssetsRInvesco Shrt-Trm Inv Gov& — — 3.34TJPMorgan Chase & Co Finan Svcs 5.57 3.10TComerica Inc Finan Svcs 4.65 3.02TBank of America Corporati Finan Svcs 8.14 2.99

FMC Corp Basic Mat 1.87 2.59Honeywell International I Industrl 8.04 2.45The Home Depot Inc Cnsmr Cyc 8.08 2.36

TEOG Resources Inc Energy -3.90 2.31TOccidental Petroleum Corp Energy -7.97 2.26

Valmont Industries Inc Industrl 11.60 2.23Microsoft Corp Technology 3.59 2.19Akamai Technologies Inc Technology -6.12 2.11

TAmazon.com Inc Cnsmr Cyc 12.69 2.11Amgen Inc Hlth Care 21.52 2.06Danaher Corp Industrl 9.90 2.05PepsiCo Inc Cnsmr Def 5.50 2.03Cullen/Frost Bankers Inc Finan Svcs 5.42 2.02

YThermo Fisher Scientific Hlth Care 11.75 1.99Newell Brands Inc Cnsmr Def 10.24 1.93Ball Corp Cnsmr Cyc -1.88 1.85


LargeM

idSm

all





Long-Term Erngs 9.75 0.82Book Value 2.95 0.45Sales 1.59 0.25Cash Flow -2.06 -0.20Historical Erngs 6.54 0.60

Profitability %


SectorWeightings

% ofStocks

RelBmark 1




Composition - Net


Morningstar's Take by Christopher Franz 01-09-17LKCM Equity retains a Morningstar Analyst Rating ofSilver because it’s shown the ability to bounce back.Following the fund’s disappointing 2015, 2016’s resultwas a welcome relief. While the fund’s 11.7% returnnarrowly lagged the 12.0% gain of the S&P 500 in 2016,it trounced the 3.2% gain of its average large-growthpeer. This result was driven largely by positioning inindustrials, where the fund has historically beenoverweight its index, and in financials, despite beingunderweight the benchmark’s weighting.

Longtime lead manager Luther King doesn’t mindlooking different from his peers and benchmark, which attimes can hurt the fund’s short-term performance. Thefund’s loss in 2015, which lagged the S&P 500 by 5percentage points and finished in the large-growthMorningstar Category’s bottom decile, was driven by anoverweighting in industrials and materials stocks and asecond-half move into battered energy names. Similarsector biases also hurt in 2014, but over a full marketcycle they’ve helped the fund post a competitive record.Its 7.3% annualized 10-year gain through December 2016edges past the benchmark and large-growth category, as

well as the large-blend category, where the fund wasprior to May 2012.

Sector biases notwithstanding, lead manager LutherKing and his team build the roughly 60-90 stock portfoliofrom the bottom up. King pays close attention tofundamentals and doesn’t worry about fitting neatly intoany particular section of the Morningstar Style Box. Kingavoids deep-value turnaround plays but keeps valuationsin mind. His experience navigating challenging marketsbreeds confidence.

In the late 1990s, he stuck to his process and largelyavoided overvalued tech firms. While that resulted inthree straight years of underperformance, the fund waswell-positioned for the ensuing dot-com bear market andheld up much better than the benchmark. A repeatperformance is not guaranteed, but the fund’s veteranleadership, sound approach, and reasonable fees make ita worthy long-term option.

Address: Lkcm Funds Minimum Purchase: $2000 Add: $1000 IRA: —Fort Worth TX 76102 Min Auto Inv Plan: $2000 Add: $100800-688-5526 Sales Fees: No-load, 1.00%R

Web Address: www.lkcm.com Management Fee: 0.70%Inception: 01-03-96 Actual Fees: Mgt:0.70% Dist:0.00%Advisor: Luther King Capital Mgmt Corp Expense Projections: 3Yr:$283 5Yr:$502 10Yr:$1131Subadvisor: None Income Distribution: Annually


ß® Mutual Funds A


Matthews Asian Growth & Inc Investor TickerMACSX

Yield2.8%


Mstar CategoryPacific/Asia ex-Japan Stk

Benchmark 1: MSCI AC Far East Ex Japan NR USDBenchmark 2: MSCI ACWI Ex USA NR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.016.018.0

8.0

6.0


AverageLowQQQQAbove Avg


Growth of $10,000


) & ) ( & & & ) & ( ) Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History19.78 11.49 15.77 18.04 15.07 18.61 18.91 18.01 16.03 14.94 15.96 NAV21.54 -32.07 41.44 19.18 -10.62 26.90 4.83 -0.65 -4.50 1.34 6.83 Total Return %

-14.95 18.50 -27.45 -0.27 4.16 4.88 1.07 -3.81 5.01 -4.87 -2.89 +/- Bmark 14.89 13.46 -0.01 8.02 3.09 10.06 -10.46 3.22 1.16 -3.15 1.63 +/- Bmark 24.97 2.13 3.85 3.02 2.65 3.14 2.49 1.84 2.34 2.98 0.00 Income Return %

16.57 -34.20 37.59 16.16 -13.27 23.76 2.34 -2.49 -6.85 -1.64 6.83 Capital Return %92 1 97 60 11 24 25 96 24 64 89 Total Rtn % Rank Cat

0.90 0.41 0.44 0.47 0.47 0.47 0.46 0.35 0.42 0.48 0.00 Income $2.00 1.67 0.00 0.24 0.61 0.00 0.12 0.44 0.76 0.87 0.00 Capital Gains $1.16 1.16 1.18 1.13 1.12 1.11 1.08 1.08 1.09 . . Expense Ratio %2.59 3.19 3.47 2.47 2.71 2.52 2.14 2.03 2.17 . . Income Ratio %

28 25 18 20 17 17 15 17 16 . . Turnover Rate %2,273 1,085 2,545 3,922 2,344 3,206 3,277 3,055 2,053 1,694 1,725 Net Assets $mil


2012 11.02 -1.35 10.37 4.99 26.902013 4.41 -2.52 1.87 1.10 4.832014 0.48 4.41 -1.88 -3.49 -0.652015 2.00 1.43 -10.26 2.86 -4.502016 4.05 2.88 3.23 -8.30 1.34


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 4.64 -2.60 -3.25 88 10,4646 Mo -0.79 -5.75 -5.95 86 9,9211 Yr 12.18 -14.37 -7.13 91 11,2183 Yr Avg 1.09 -2.39 1.28 82 10,3325 Yr Avg 4.43 1.03 0.88 37 12,42010 Yr Avg 5.39 0.51 4.01 53 16,89815 Yr Avg 10.04 0.82 3.55 59 42,004




Load-AdjReturn %




1 Yr 12.183 Yr 1.09 -Avg Low QQ5 Yr 4.43 Avg Low QQQQ10 Yr 5.39 Avg Low QQQQQIncept 9.29




Portfolio Analysis 12-31-16Total Stocks: 52Share change since 09-30-16 Sector Country % AssetsYAIA Group Ltd Finan Svcs Hong Kong 3.23

Samsung Electronics Co Lt Technology South Korea 2.62Taiwan Semiconductor Manu Technology Taiwan 2.57Singapore Telecommunicati Comm Svcs Singapore 2.48Ascendas Real Estate Inve Real Est Singapore 2.22Guangdong Investment Ltd. Utilities Hong Kong 2.17

YUnited Overseas Bank Ltd Finan Svcs Singapore 2.17YChina Mobile Ltd ADR Comm Svcs China 2.16

Techtronic Industries Co Industrl Hong Kong 2.13YHSBC Holdings PLC ADR Finan Svcs United Kingdom 2.06YCK Hutchison Holdings Ltd Industrl Hong Kong 2.04YJardine Matheson Holdings Industrl Hong Kong 2.04

ResMed Inc Hlth Care United States 2.04YVtech Hldgs Technology Hong Kong 2.00YGenting Malaysia Bhd Cnsmr Cyc Malaysia 1.98YSingapore Technologies En Industrl Singapore 1.95YJapan Tobacco Inc Cnsmr Def Japan 1.88TLg Household&Healt Pfd — South Korea 1.88

Kangwon Land Inc Cnsmr Cyc South Korea 1.87Chunghwa Telecom Co Ltd A Comm Svcs Taiwan 1.82


LargeM

idSm

all





Long-Term Erngs 8.10 0.68Book Value 5.24 0.72Sales 1.76 0.43Cash Flow 1.29 0.26Historical Erngs -1.51 -0.46

Composition - Net



SectorWeightings

% ofStocks

RelBmark 1







Hong Kong 22Singapore 15South Korea 11

Japan 8Malaysia 5

Morningstar's Take by William Samuel Rocco 09-26-16Matthews Asian Growth & Income merits a MorningstarAnalyst Rating of Silver because it has several appealingtraits, including an attractive strategy that is quitedistinctive as well as rather conservative.

Co-lead managers Robert Horrocks and KennethLowe invest in dividend-paying common stocks, preferredequities, and convertible and other bonds, whereas all oftheir peers focus exclusively or nearly exclusively oncommon stocks and many of them favor bolder, fast-growing equities. This fund’s geographic range is alsorelatively broad, because the managers regularly investin the region’s developed markets--including Australiaand Japan--while most of their counterparts do not.

But the strategy is not tamer than the Pacific/Asiaex-Japan norm in every respect. The managers readilypile into areas and sectors that are packed with securitiesthat meet their standards, so this fund normally hasseveral sizable country and sector overweightings versusits average peer and its benchmark, the MSCI All CountryAsia ex Japan Index. And the managers normally investin roughly 50 to 60 names, whereas their typical

counterpart holds more than 100 stocks and thebenchmark includes more than 600.

This conservative but distinctive approach hasserved this fund well. Thanks to its reserved traits and themanagers’ execution, the fund has consistently held upwell in downturns, and it has been the least volatilemember of its category by far--and much steadier thanthe index--over time. Although it has lagged in frothierrallies, it has posted solid results in others, so it hasearned competitive total returns and superior risk-adjusted returns over the long run. Finally, Horrocks andLowe have strong credentials as well as a great supportteam. The expense ratios are modest here, andMatthews has delivered good long-term results with allsorts of Asia offerings. As a result, this fund is a terrificAsia vehicle for the long run.

Address: Four Embarcadero Center Minimum Purchase: $2500 Add: $100 IRA: $500San Francisco CA 94111 Min Auto Inv Plan: $2500 Add: —800-789-2742 Sales Fees: No-load

Web Address: www.matthewsasia.com/ Management Fee: 0.75% mx./0.60% mn., 0.14%AInception: 09-12-94 Actual Fees: Mgt:0.66% Dist:0.00%Advisor: Matthews International Cap Mgmt LLc Expense Projections: 3Yr:$347 5Yr:$601 10Yr:$1329Subadvisor: None Income Distribution: Semi-Annually


ß® Mutual Funds A


Metropolitan West Total Return Bd M TickerMWTRX

Yield1.7%

SEC Yield1.80%






Process ∞ PositivePerformance ∞ PositivePeople ∞ PositiveParent ¶ NeutralPrice ∞ Positive



Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0

18.0




Growth of $10,000


& * * & ( & & * ( ( ( Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History9.84 9.01 9.90 10.38 10.37 10.90 10.55 10.91 10.62 10.54 10.60 NAV6.25 -1.47 17.08 11.53 5.19 11.39 0.20 5.83 -0.05 2.32 0.86 Total Return %

-0.71 -6.71 11.15 4.99 -2.65 7.17 2.22 -0.13 -0.60 -0.33 -0.01 +/- Bmark 1-0.71 -6.71 11.15 4.99 -2.65 7.17 2.22 -0.13 -0.60 -0.33 -0.01 +/- Bmark 25.07 5.35 6.80 4.92 4.49 4.04 2.86 2.14 1.56 1.68 0.29 Income Return %1.18 -6.82 10.28 6.61 0.70 7.35 -2.66 3.69 -1.60 0.64 0.57 Capital Return %

23 41 27 4 75 7 11 34 51 73 75 Total Rtn % Rank Cat0.48 0.51 0.59 0.48 0.46 0.41 0.31 0.22 0.17 0.18 0.03 Income $0.00 0.17 0.00 0.17 0.08 0.22 0.06 0.03 0.12 0.15 0.00 Capital Gains $0.66 0.66 0.65 0.72 0.63 0.63 0.61 0.62 0.68 0.66 . Expense Ratio %5.01 4.89 5.74 5.88 4.47 4.33 3.30 2.70 1.79 1.64 . Income Ratio %101 124 220 141 228 156 160 255 246 303 . Turnover Rate %

2,708 3,369 4,232 6,250 8,354 10,124 10,074 14,117 16,048 15,535 15,316 Net Assets $mil


2012 2.69 2.26 4.53 1.47 11.392013 0.89 -2.34 1.16 0.52 0.202014 1.77 2.11 0.34 1.50 5.832015 1.34 -1.49 0.68 -0.55 -0.052016 2.38 1.92 0.68 -2.61 2.32


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 1.01 0.00 0.00 72 10,1016 Mo -1.75 0.44 0.44 65 9,8251 Yr 1.52 0.10 0.11 75 10,1523 Yr Avg 2.34 -0.30 -0.31 56 10,7185 Yr Avg 3.53 1.29 1.30 9 11,89610 Yr Avg 5.60 1.32 1.33 4 17,25215 Yr Avg 5.61 1.09 1.09 7 22,671




Load-AdjReturn %




1 Yr 1.523 Yr 2.34 Avg -Avg QQQ5 Yr 3.53 High Avg QQQQQ10 Yr 5.60 High Avg QQQQQIncept 6.42







%Assets

Us 5yr Note (Cbt) Mar17 03-31-17 46 5,364,775 6.22US Treasury Note 1.75% 11-30-21 3,730,488 3,703,525 4.29US Treasury Bond 2.875% 11-15-46 2,915,685 2,815,517 3.2690day Euro$ Futr Dec17 12-18-17 10 2,462,000 2.85US Treasury Note 2% 11-15-26 2,438,975 2,346,989 2.72Us 2yr Note (Cbt) Mar17 03-31-17 10 2,250,300 2.61US Treasury Note 0.75% 10-31-18 2,200,710 2,185,193 2.53US Treasury Note 0.75% 10-31-17 2,131,241 2,129,493 2.47US Treasury Note 1.25% 10-31-21 1,759,598 1,706,459 1.9890day Euro$ Futr Jun18 06-18-18 5 -1,228,000 1.42US Treasury Note 1.5% 01-31-19 1,108,460 1,114,652 1.29US Treasury Note 1.125% 09-30-21 1,008,960 973,285 1.13US Treasury Note 1.25% 12-15-18 970,520 971,733 1.13US Treasury Note 07-15-25 958,381 953,489 1.10US Treasury Note 2% 12-31-21 895,200 898,575 1.04FNMA 01-01-47 770,205 789,460 0.91FNMA 01-01-47 793,920 789,020 0.91FNMA 4% 09-01-46 728,930 767,325 0.89US Treasury Bond 02-15-45 791,542 745,397 0.86US Treasury Note 1% 11-30-18 720,815 718,517 0.83


QualityHigh

Med

Low

DurationLtd Mod Ext


Avg Eff Duration1 5.6 YrsAvg Eff Maturity 7.5 YrsAvg Credit Quality BBBAvg Wtd Coupon 2.80%Avg Wtd Price 99.84% of par







Composition - Net

Cash -1.3 Bonds 100.4Stocks 0.0 Other 0.9

Special Securities


Morningstar's Take by Karin Anderson 12-19-16Metropolitan West Total Return Bond benefits from anexperienced team of managers and analysts and a time-tested investment approach. This team, led by TadRivelle, Steve Kane, Laird Landmann, and Bryan Whalen,has a good deal of flexibility compared with theBloomberg Barclays U.S. Aggregate Bond Indexbenchmark. The fund received the most inflows of anyactively managed fund in the intermediate-bondMorningstar Category following Bill Gross' departure fromPIMCO, with assets increasing by roughly 90% betweenlate September 2014 and April 2015. The inflows havecontinued since then, albeit at a much slower pace, andthe team has continued to steer the fund in a predictablefashion, dialing risk up or down based on its views on thecredit cycle. Despite a small hike in fees, the expenseratio on the fund’s institutional shares is still reasonable.All told, the fund receives a Morningstar Analyst Ratingof Gold.

This fund’s inflows were massive between late 2014and through the spring of 2015, and this team managedthem well, thanks in part to good security selection in itscorporate sleeve and strength from its midteens

nonagency mortgage stake. The fund's reduced stake inless-liquid nonagency mortgages (14% as of mid-2014 to6% as of October 2016) raised the concern that the fund’ssize has crowded it out of that niche. The team has arguedthat the reduction reflected its wariness of full valuationsrather than capacity constraints, and the pace of thechange was in keeping with the team’s dollar-cost-averaging approach. The team has been more cautiousin other areas as well, including efforts to upgrade thequality of the fund’s stakes in corporates (23%, including2% in high yield), asset-backed securities (6%), andcommercial mortgage-backed securities (6%), as well askeeping duration one half year short of the index.

The fund’s more conservative profile has resulted indecent, though not stellar, returns compared with peerfunds during the past few years, but over the long term,the team’s eye for value and well-timed moves into credithave paid off handsomely.

Address: METROPOLITAN WEST ASSET MANAGEMENT Minimum Purchase: $5000 Add: $0 IRA: $1000LOS ANGELES CA 90017 Min Auto Inv Plan: $5000 Add: $100800-241-4671 Sales Fees: No-load

Web Address: www.mwamllc.com Management Fee: 0.35%Inception: 03-31-97 Actual Fees: Mgt:0.35% Dist:0.21%Advisor: Metropolitan West Asset Management, LLC. Expense Projections: 3Yr:$214 5Yr:$373 10Yr:$835Subadvisor: None Income Distribution: Monthly


ß® Mutual Funds D


Loomis Sayles Core Plus Bond A TickerNEFRX

Yield3.0%

SEC Yield1.98%






Process ∞ PositivePerformance ∞ PositivePeople ∞ PositiveParent ¶ NeutralPrice ∞ Positive



Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0

18.0


Above AvgHighQQQQAbove Avg


Growth of $10,000


* * * & & & * & ) & & Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History11.36 10.76 11.89 12.50 12.68 13.39 12.76 13.04 12.19 12.66 12.82 NAV6.06 0.61 16.62 10.35 7.68 11.31 -0.82 6.18 -4.20 7.19 1.67 Total Return %

-0.91 -4.63 10.69 3.80 -0.16 7.10 1.20 0.22 -4.75 4.55 0.80 +/- Bmark 1-0.91 -4.63 10.69 3.80 -0.16 7.10 1.20 0.22 -4.75 4.55 0.80 +/- Bmark 25.31 5.97 5.82 5.15 4.63 4.12 3.92 3.38 2.43 3.34 0.40 Income Return %0.75 -5.35 10.80 5.19 3.05 7.19 -4.74 2.81 -6.63 3.85 1.27 Capital Return %


69 82 102 87 86 78 107 122 175 143 . Turnover Rate %110 123 158 206 319 559 418 851 809 743 740 Net Assets $mil


2012 2.47 3.03 3.65 1.73 11.312013 0.43 -3.59 0.91 1.51 -0.822014 3.54 3.02 -0.78 0.33 6.182015 0.70 -1.60 -2.56 -0.78 -4.202016 3.96 3.38 2.13 -2.34 7.19


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 2.00 0.99 0.99 11 10,2006 Mo -0.93 1.26 1.25 24 9,9071 Yr 7.98 6.56 6.57 3 10,7983 Yr Avg 2.51 -0.13 -0.13 44 10,7725 Yr Avg 3.48 1.24 1.25 10 11,86810 Yr Avg 5.91 1.63 1.63 2 17,75515 Yr Avg 5.63 1.11 1.11 6 22,742




Load-AdjReturn %




1 Yr 3.393 Yr 1.04 Avg High QQQ5 Yr 2.59 +Avg High QQQQ10 Yr 5.45 High High QQQQQIncept 6.97







%Assets

US Treasury Note 0.625% 06-30-18 185,510 184,517 3.17US Treasury Note 0.75% 07-31-18 153,115 152,463 2.62US Treasury Note 2% 11-15-26 158,365 152,185 2.62FNMA 03-13-47 134,205 140,522 2.42US Treasury Bond 02-15-45 126,282 120,434 2.07US Treasury Bond 02-15-44 107,270 118,472 2.04Mex Bonos Desarr Fix Rt 06-10-21 2,454,333 115,088 1.98US Treasury Bond 02-15-42 110,668 106,099 1.82US Treasury Note 2.25% 01-31-24 95,970 95,989 1.65US Treasury Note 0.75% 08-31-18 72,575 72,201 1.24US Treasury Note 01-15-24 68,017 69,943 1.20US Treasury Note 07-15-24 63,684 63,302 1.09FNMA 2.5% 10-01-46 64,724 61,426 1.06US Treasury Bond 02-15-46 60,570 61,677 1.06Bk Amer 5% 05-13-21 47,520 51,548 0.89Barclays 2.875% 06-08-20 50,836 50,628 0.87Mex Bonos Desarr Fix Rt 03-05-26 921,000 39,302 0.68Springleaf Fin Corporat 12-15-19 39,143 39,339 0.68US Treasury Note 0.75% 02-28-18 38,430 38,361 0.66Pt Pertamina Persero 14 05-20-43 38,432 36,421 0.63


QualityHigh

Med

Low

DurationLtd Mod Ext


Avg Eff Duration1 6.2 YrsAvg Eff Maturity 8.8 YrsAvg Credit Quality BBBAvg Wtd Coupon 3.60%Avg Wtd Price 98.25% of par







Composition - Net


Special Securities


Morningstar's Take by Sarah Bush 12-07-16An experienced and well-resourced management team,a thoughtful, credit-research-intensive approach, andstrong long-term returns support Loomis Sayles CoreBond Plus' Morningstar Analyst Rating of Gold.

Efforts made by firm CIO Jae Park to centralize andleverage research across the firm and to bulk up riskcontrols, together with the strength of the fund’smanagement team, are key to the fund’s appeal andsupport its flexible approach. Comanagers Peter Palfreyand Rick Raczkowski each have more than 15 years ofexperience at the helm. The two benefit from LoomisSayles' significant investments in research and a 40-plus-strong credit staff.

This depth of research is particularly important giventhat the fund's wide-ranging approach lands it at theaggressive end of the intermediate-term bondMorningstar Category. Indeed, the fund’s flexibility toinvest in high-yield bonds (up to 20% of the portfolio) andemerging-markets and non-U.S.-dollar currencies (up to10%) can make for a potent mix. These risks were ondisplay in 2015's rocky credit markets. That year, the fundsuffered a worst-decile 3.9% loss thanks in large part to

an overweighting in energy, as well as exposure tocommodity-sensitive currencies, including the Mexicanpeso and Brazilian real. Meanwhile, a sizable allocationto Treasury Inflation-Protected Securities failed to offsetthose risks as inflation expectations stagnated.

For the most part, however, the team has put itsflexibility to good use. Tweaks to the fund's risk profileand well-timed adjustments to its currency exposurehelped it sidestep trouble in both 2008's credit crisis and2011's turbulent markets, for example. The fund alsoturned in topnotch returns in the credit-friendly marketsthat persisted for much of the post-2008 period andrecovered nicely through the first 11 months of November2016. Over the latter period, the fund benefited fromrebounds in the fund's energy-sensitive holdings and awell-timed decision to dial back interest-rate risk over thesummer.

An improving expense profile adds to the fund'sappeal.

Address: Natixis Funds Trust I Minimum Purchase: $2500 Add: $100 IRA: $1000Boston MA 02116 Min Auto Inv Plan: $1000 Add: $50800-225-5478 Sales Fees: 4.25%L

Web Address: www.funds.natixis.com Management Fee: 0.20% mx./0.15% mn.Inception: 11-07-73 Actual Fees: Mgt:0.33% Dist:0.25%Advisor: Loomis Sayles & Company LP Expense Projections: 3Yr:$648 5Yr:$814 10Yr:$1293Subadvisor: None Income Distribution: Monthly


ß® Mutual Funds D


PRIMECAP Odyssey Growth TickerPOGRX

Yield0.4%









Œ „ ´ ‰ Á

Pillar Spectrum


10.0

15.0

20.0

25.0




Growth of $10,000


) & & * ( * & & * & ( Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History14.50 9.50 13.36 15.40 14.94 17.34 23.61 26.06 27.32 28.64 30.75 NAV4.88 -34.25 40.95 15.37 -2.22 16.76 39.30 13.92 6.18 8.42 7.37 Total Return %

-6.93 4.19 3.74 -1.34 -4.87 1.51 5.82 0.87 0.51 1.35 -0.30 +/- Bmark 1-0.61 2.75 14.48 0.31 -4.34 0.76 6.91 0.23 4.79 -3.54 1.42 +/- Bmark 20.28 0.23 0.31 0.10 0.37 0.70 0.46 0.69 0.38 0.50 0.00 Income Return %4.60 -34.48 40.64 15.27 -2.59 16.06 38.84 13.22 5.80 7.92 7.37 Capital Return %


5 13 12 5 13 12 10 10 5 9 . Turnover Rate %500 390 854 1,623 1,798 2,221 3,884 5,003 6,557 7,078 7,821 Net Assets $mil


2012 12.05 -1.61 4.43 1.42 16.762013 15.69 4.39 7.98 6.83 39.302014 4.28 2.44 0.91 5.68 13.922015 3.53 0.89 -7.46 9.84 6.182016 -3.73 -1.86 13.17 1.41 8.42


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 7.88 -1.12 -0.16 60 10,7886 Mo 12.38 3.23 2.36 2 11,2381 Yr 29.60 7.45 4.62 2 12,9603 Yr Avg 9.79 -0.68 -0.84 14 13,2345 Yr Avg 16.02 2.23 2.01 2 21,01710 Yr Avg 9.54 0.47 1.92 9 24,86315 Yr Avg — — — — —




Load-AdjReturn %




1 Yr 29.603 Yr 9.79 +Avg High QQQQ5 Yr 16.02 High High QQQQQ10 Yr 9.54 +Avg Avg QQQQIncept 10.78




Portfolio Analysis 12-31-16Total Stocks: 122Share change since 09-30-16 Sector YTD Ret % % AssetsTDreyfus Treasury Secs Cas — — 4.58

Seattle Genetics Inc Hlth Care 24.41 4.25TEli Lilly and Co Hlth Care 13.30 3.60

American Airlines Group I Industrl — 3.42Abiomed Inc Hlth Care 4.69 3.02

YAmgen Inc Hlth Care 21.52 2.82TE*TRADE Financial Corp Finan Svcs -0.40 2.40YBiogen Inc Hlth Care 7.93 2.16

Southwest Airlines Co Industrl 15.97 2.11CarMax Inc Cnsmr Cyc 0.23 2.10Microsoft Corp Technology 3.59 2.07Charles Schwab Corp Finan Svcs 2.58 1.98Micron Technology Inc Technology 6.93 1.95Adobe Systems Inc Technology 14.95 1.94Royal Caribbean Cruises L Cnsmr Cyc 17.14 1.92United Continental Holdin Industrl 1.66 1.90Roche Holding AG Dividend Hlth Care — 1.89Alibaba Group Holding Ltd Cnsmr Cyc — 1.84JPMorgan Chase & Co Finan Svcs 5.57 1.82Texas Instruments Inc Technology 5.69 1.81


LargeM

idSm

all





Long-Term Erngs 10.18 0.86Book Value 1.67 0.25Sales -4.25 -0.66Cash Flow 10.12 0.99Historical Erngs 19.95 1.82

Profitability %


SectorWeightings

% ofStocks

RelBmark 1




Composition - Net


Morningstar's Take by David Kathman, CFA 01-06-17Primecap Odyssey Growth is one of six funds managedby the Primecap team, whose Vanguard PrimecapVPMCX has achieved one of the fund industry’s best trackrecords during the past 30 years. The managers' patient,disciplined contrarian growth strategy emphasizescompanies with strong growth potential but temporarilydepressed valuations, and they're willing to hold on tostocks for a long time waiting for a turnaround. Each ofthe five portfolio managers independently runs a sleeveof assets, allowing them to follow their convictions withinthis broad strategy, and they don’t hesitate to makesignificant sector and industry bets in areas where theysee a lot of potential. In recent years, technology, biotech,and airline stocks have been the managers’ favorites.

Within that framework, this fund stands in the middleof the Primecap Odyssey funds in terms of its growthorientation; it is more aggressive than relatively cautiouslarge-blend sibling Primecap Odyssey Stock POSKX butnot as risky as mid-cap growth Primecap OdysseyAggressive Growth POAGX, which holds considerablymore small- and mid-cap stocks (70% versus this fund's42%). Its top holdings include big names like Microsoft

MSFT and Amgen AMGN but also smaller, faster-growingstocks such as Seattle Genetics SGEN and AbiomedABMD, both of which were among the top five holdingsas of Sept. 30, 2016.

This approach has worked very well since the fund's2004 inception and has mostly helped the fund avoid theperformance extremes of some of its siblings. It has onlytrailed the large-growth Morningstar Category in twocalendar years since inception (2007 and 2011), and iteasily beat the category each year from 2012 through2016, even as several other Primecap funds went throughrough stretches. The fund will inevitably go through someperiods when it trails its peers, such as the first half of2016, when returns were dragged down by healthcareand airline holdings. But such short-term slumps arenothing to worry about, and its stellar record and lowexpenses earn it a Morningstar Analyst Rating of Gold. Itand Primecap Odyssey Stock are the team's only fundsthat remain open to new investors.

Address: PRIMECAP Odyssey Funds Minimum Purchase: $2000 Add: $100 IRA: $1000Pasadena, CA 91101 Min Auto Inv Plan: — Add: $100800-729-2307 Sales Fees: No-load

Web Address: www.odysseyfunds.com Management Fee: 0.60% mx./0.55% mn.Inception: 11-01-04 Actual Fees: Mgt:0.55% Dist:—Advisor: PRIMECAP Management Company Expense Projections: 3Yr:$205 5Yr:$357 10Yr:$798Subadvisor: None Income Distribution: Annually


ß® Mutual Funds A


T. Rowe Price Dividend Growth TickerPRDGX

Yield1.4%


Mstar CategoryLarge Blend







Œ „ ´ ‰ Á

Pillar Spectrum


10.0

15.0

20.0


Above AvgBelow AvgQQQQQHighest


Growth of $10,000


* & ( ( & ( ( * & * ) Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History25.50 16.51 20.48 22.88 23.34 26.34 33.65 36.13 34.34 37.18 38.96 NAV7.07 -33.26 26.15 13.26 3.53 14.85 30.35 12.34 2.36 11.62 4.79 Total Return %1.30 4.34 -2.28 -2.84 2.03 -1.57 -2.76 -0.90 1.44 -0.44 -1.17 +/- Bmark 11.58 3.74 -0.31 -1.80 1.42 -1.16 -2.03 -1.35 0.98 -0.34 -1.16 +/- Bmark 21.51 1.39 1.83 1.42 1.49 1.94 1.56 1.40 1.70 1.67 0.00 Income Return %5.56 -34.65 24.32 11.84 2.04 12.91 28.79 10.93 0.66 9.95 4.79 Capital Return %


16 23 14 16 10 12 13 19 25 11 . Turnover Rate %884 682 1,004 1,659 2,047 2,584 3,823 4,360 4,437 5,349 . Net Assets $mil


2012 10.16 -1.90 5.64 0.61 14.852013 10.48 2.76 5.05 9.31 30.352014 1.49 3.94 0.08 6.41 12.342015 1.77 -0.42 -5.81 7.23 2.362016 2.21 4.50 2.25 2.20 11.62


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 6.13 -1.82 -1.91 86 10,6136 Mo 6.58 -3.53 -3.43 89 10,6581 Yr 21.49 -4.04 -3.48 71 12,1493 Yr Avg 10.20 0.01 -0.44 15 13,3825 Yr Avg 13.47 -0.47 -0.54 28 18,81310 Yr Avg 7.85 0.16 0.24 12 21,29315 Yr Avg 7.53 -0.12 0.18 19 29,695




Load-AdjReturn %




1 Yr 21.493 Yr 10.20 +Avg -Avg QQQQ5 Yr 13.47 +Avg Low QQQQ10 Yr 7.85 +Avg -Avg QQQQQIncept 9.59




Portfolio Analysis 12-31-16Total Stocks: 110Share change since 09-30-16 Sector YTD Ret % % AssetsTT. Rowe Price Reserve Inv — — 5.21TJPMorgan Chase & Co Finan Svcs 5.57 2.71TMicrosoft Corp Technology 3.59 2.60TUnitedHealth Group Inc Hlth Care 3.34 2.26TPfizer Inc Hlth Care 6.03 2.20TComcast Corp Class A Comm Svcs 8.39 2.13TVisa Inc Class A Finan Svcs 12.93 1.92TPepsiCo Inc Cnsmr Def 5.50 1.91TBecton, Dickinson and Co Hlth Care 10.57 1.77TDanaher Corp Industrl 9.90 1.77TWells Fargo & Co Finan Svcs 5.72 1.70TBank of New York Mellon C Finan Svcs -0.11 1.66YGeneral Electric Co Industrl -4.91 1.63RJohnson Controls Internat Cnsmr Cyc 1.82 1.62TThermo Fisher Scientific Hlth Care 11.75 1.61TMarsh & McLennan Companie Finan Svcs 9.22 1.47TWalgreens Boots Alliance Cnsmr Def 4.83 1.41TEdison International Utilities 10.77 1.40TPhilip Morris Internation Cnsmr Def 19.52 1.39TUS Bancorp Finan Svcs 7.07 1.39


LargeM

idSm

all






Profitability %


SectorWeightings

% ofStocks

RelBmark 1




Composition - Net


Morningstar's Take by Katie Rushkewicz Reichart, CFA 08-26-16T. Rowe Price Dividend Growth remains a strong choice.Backed by an experienced manager, strong analyst team,and well-executed strategy, the fund receives aMorningstar Analyst Rating of Silver.

Tom Huber has run the fund since 2000, following aconsistent approach that focuses not on the highest-yielding stocks but those that offer some income potentialalong with reasonable valuations and strong free cashflows. In cases where dividend payouts may not be veryhigh, Huber expects to see prudent capital allocation,shareholder-friendly share buybacks, or the potential forfuture dividend growth.

The fund's yield tends to be above that of its peersin the large-blend Morningstar Category, but slightlybelow the median for a subset of dedicated dividend-growth funds. However, its focus on companies withenough financial stability to pay dividends has offeredsome defensiveness. The fund's Morningstar Risk rating,which emphasizes downside deviations in returns, isBelow Average relative to large-blend peers. It has heldup better than peers in market pullbacks, including thedrawdown between November 2015 and February 2016.

And relative to a smaller subset of dividend-growth funds,it has a below-average standard deviation.

The fund has posted top-decile returns across theone-, three-, five-, 10-, and 15-year periods through July2016 and has also edged the S&P 500 over those periods,buoyed by strong stock-picking. While major sector betsaren't the norm, the fund has favored healthcare namesover the past few years versus the S&P 500, a sectorwhere Huber is now treading carefully given that theindex's stake is a fifth of assets.

While the fund has a proven track record and is areasonably priced option among actively manageddividend-growth funds, its results track more closely withthe Nasdaq US Dividend Achievers Select Index since thelatter's 2006 inception. Still, its many pluses equate to aSilver rating.

Address: T. Rowe Price Dividend Gr Fund, Inc Minimum Purchase: $2500 Add: $100 IRA: $1000Baltimore MD 21202 Min Auto Inv Plan: $2500 Add: $100800-638-5660 Sales Fees: No-load

Web Address: www.troweprice.com Management Fee: 0.20%Inception: 12-30-92 Actual Fees: Mgt:0.49% Dist:0.00%Advisor: T. Rowe Price Associates, Inc. Expense Projections: 3Yr:$205 5Yr:$357 10Yr:$798Subadvisor: None Income Distribution: Quarterly


ß® Mutual Funds A


T. Rowe Price High Yield TickerPRHYX

Yield5.6%

SEC Yield4.84%


Mstar CategoryHigh Yield Bond

Benchmark 1: BofAML US HY Master II TR USDBenchmark 2: BBgBarc US Agg Bond TR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.5

15.0

17.520.0

7.5




Growth of $10,000


& * * * ( * & * * * * Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History6.74 4.69 6.42 6.78 6.49 6.98 7.15 6.78 6.18 6.65 6.76 NAV3.15 -24.45 49.16 14.37 3.20 15.21 9.07 2.00 -3.23 14.49 2.58 Total Return %0.96 1.94 -8.35 -0.83 -1.18 -0.37 1.65 -0.50 1.42 -3.00 -0.34 +/- Bmark 1

-3.82 -29.69 43.23 7.82 -4.64 10.99 11.09 -3.97 -3.78 11.84 1.71 +/- Bmark 27.67 7.43 10.78 8.37 7.70 7.45 6.43 6.19 6.04 6.32 0.92 Income Return %

-4.52 -31.89 38.38 6.00 -4.50 7.76 2.64 -4.20 -9.27 8.16 1.66 Capital Return %16 45 42 40 54 38 14 34 42 36 50 Total Rtn % Rank Cat




2012 5.70 1.15 4.43 3.19 15.212013 3.74 -1.16 2.57 3.71 9.072014 2.92 2.63 -1.95 -1.51 2.002015 2.51 0.88 -5.19 -1.29 -3.232016 2.69 4.07 4.96 2.07 14.49


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 4.68 -0.27 3.67 36 10,4686 Mo 5.40 -0.14 7.59 35 10,5401 Yr 18.93 -3.37 17.52 42 11,8933 Yr Avg 4.11 -0.67 1.47 25 11,2865 Yr Avg 6.60 -0.27 4.36 16 13,76310 Yr Avg 6.93 -0.46 2.65 13 19,53515 Yr Avg 7.96 -0.48 3.44 17 31,552




Load-AdjReturn %




1 Yr 18.933 Yr 4.11 +Avg Avg QQQQ5 Yr 6.60 +Avg Avg QQQQ10 Yr 6.93 +Avg Avg QQQQIncept 8.35







%Assets

Neptune Finco 144A 10.1 01-15-23 75,925 87,693 0.88Asurion Llc Tl 2l Bankd 02-18-21 75,031 76,204 0.77T Mobile Usa 6.5% 01-15-26 67,175 72,549 0.73Scientific Games Intl I 12-01-22 71,350 70,280 0.71Western Digital 144A 10 04-01-24 59,850 70,623 0.71Uber Technologies Inc T 07-07-23 70,000 70,088 0.70Altice Sa 144A 7.75% 05-15-22 63,200 67,466 0.68Sesi 7.125% 12-15-21 63,075 63,706 0.64Altice Sa 144A 7.625% 02-15-25 58,030 60,786 0.61Intelsat Jackson Hldgs 02-15-24 59,375 61,008 0.61Vpi Escrow 144A 6.375% 10-15-20 70,075 60,089 0.60Digicel Grp 144A 8.25% 09-30-20 67,050 57,862 0.58First Data 144A 7% 12-01-23 52,700 56,323 0.57Arqiva Broadcast Holdin 03-31-20 42,125 54,934 0.55Nrg Engy 144A 7.25% 05-15-26 53,025 52,892 0.53Cgg Holding Tl 1l Bankd 05-15-19 57,686 52,038 0.52Amerada Hess 7.875% 10-01-29 42,150 50,581 0.51Intl Game Tech 144A 6.5 02-15-25 46,600 49,979 0.50Wise Metals Grp Llc / W 12-15-18 45,050 46,627 0.47Energy Future Hldg Dip- 06-30-17 44,425 44,680 0.45


QualityHigh

Med

Low

DurationLtd Mod Ext


Avg Eff Duration1 3.0 YrsAvg Eff Maturity 6.6 YrsAvg Credit Quality BAvg Wtd Coupon 6.98%Avg Wtd Price 103.20% of par







Composition - Net


Special Securities


Morningstar's Take by Cara Esser, CFA 05-11-16Longtime T. Rowe Price High Yield manager Mark Vaselkivand his team are on the hunt for undiscovered firms orthose primed for a turnaround. This value-driven processhas led to superior long-term returns, driven primarily bystrong security selection. The firm and this team putshareholders first in a number of ways, including closingthe fund to new investors in April 2012 (the second timeduring Vaselkiv's tenure). In addition, its expense ratio isamong the lowest of its similarly distributed peers.Overall, the fund earns a Morningstar Analyst Rating ofGold.

After the 2008 financial crisis, Vaselkiv and his team’svalue-driven process led the fund into the lower echelonsof the junk-bond market, and they scooped up beaten-down names. That more aggressive stance helped morethan it hurt during the largely bull market in credit thatfollowed the downturn. That same valuation-focusedprocess led Vaselkiv to a more conservative stancerecently, as he believes we are in the late innings of thecredit cycle. While the allocation to bonds rated CCC andbelow (including bonds split-rated B/CCC) remains a largepart of the portfolio, Vaselkiv has added to the fund’s

higher-rated names, focusing on fallen angels especiallyin the energy and metals and mining sectors. That moveproved adept, and the fund outpaced its average peerduring 2015 and for the year to date through April despiterocky credit markets.

But Vaselkiv and his team aren’t perfect. The fundheld a 1.6% stake in troubled pharma firm Valeant VRXas of March 2016, which was the single worst contributorto the fund’s relative returns in the first quarter of 2016.The team also struggled with a number of its metals andmining names in recent months. Vaselkiv takes the longview, however, and relies on the team’s bottom-upvaluation work, which points to a sell-off in bond pricesthat was overdone given those firms’ ability to pay backthe debt.

Over the long term, Vaselkiv has built a strong trackrecord. The fund’s 10-year return as of April 2016 wasbetter than 85% of its high-yield peers'.

Address: T. Rowe Price High Yield Fund, Inc. Minimum Purchase: $2500 Add: $100 IRA: $1000Baltimore MD 21202 Min Auto Inv Plan: $2500 Add: $100800-638-5660 Sales Fees: No-load, 2.00%R

Web Address: www.troweprice.com Management Fee: 0.30%Inception: 12-31-84 Actual Fees: Mgt:0.59% Dist:0.00%Advisor: T. Rowe Price Associates, Inc. Expense Projections: 3Yr:$240 5Yr:$417 10Yr:$930Subadvisor: None Income Distribution: Monthly


ß® Mutual Funds D


T. Rowe Price Tax-Free Income Inv TickerPRTAX

Yield3.8%

SEC Yield2.17%


Mstar CategoryMuni National Long

Benchmark 1: BBgBarc Municipal 20 Yr 17-22 TR USDBenchmark 2: BBgBarc Municipal TR USD



Process ∞ PositivePerformance ∞ PositivePeople ∞ PositiveParent ∞ PositivePrice ¶ Neutral



Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

16.0




Growth of $10,000


* * * * ( ( & ( * * ( Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History9.83 8.84 9.80 9.56 10.12 10.57 9.82 10.44 10.37 10.03 10.07 NAV2.21 -5.81 16.09 1.73 10.25 8.57 -3.41 10.53 3.15 0.32 1.01 Total Return %

-0.08 1.84 -2.43 0.41 -3.73 -1.45 1.01 -2.50 -0.78 -0.17 -0.19 +/- Bmark 1-1.15 -3.33 3.18 -0.65 -0.45 1.79 -0.85 1.48 -0.15 0.07 -0.35 +/- Bmark 24.43 4.54 5.08 4.33 4.24 4.09 3.81 4.13 3.82 3.71 0.61 Income Return %

-2.22 -10.35 11.01 -2.60 6.01 4.48 -7.22 6.39 -0.67 -3.39 0.40 Capital Return %30 28 49 47 67 53 17 52 46 33 60 Total Rtn % Rank Cat




2012 2.47 2.26 2.81 0.77 8.572013 0.46 -3.74 -0.62 0.51 -3.412014 3.87 2.78 1.95 1.55 10.532015 1.20 -1.07 1.44 1.56 3.152016 1.58 2.74 -0.41 -3.48 0.32


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 1.87 -1.05 -0.68 66 10,1876 Mo -2.94 1.08 -0.14 19 9,7061 Yr 0.25 -0.15 0.00 42 10,0253 Yr Avg 3.75 -0.98 0.22 53 11,1675 Yr Avg 3.28 -0.64 0.21 48 11,74810 Yr Avg 4.17 -0.66 -0.11 30 15,04915 Yr Avg 4.48 -0.87 -0.09 29 19,290




Load-AdjReturn %




1 Yr 0.253 Yr 3.75 Avg -Avg QQQ5 Yr 3.28 Avg -Avg QQQ10 Yr 4.17 +Avg Avg QQQQIncept 6.02







%Assets

New York Liberty Dev Co 11-15-51 26,500 30,209 1.20South Broward Hosp Dist 05-01-33 21,860 22,114 0.88Colorado Health Facs Au 01-01-45 19,850 21,294 0.85Metropolitan Pier & Exp 06-15-50 20,000 20,744 0.83Orange Cnty Fla Health 01-01-39 19,815 20,805 0.83Metropolitan Wash D C A 10-01-39 19,250 20,429 0.81Regl Transn Auth 6% 07-01-33 15,000 19,118 0.76Metropolitan Transn Aut 11-15-26 15,000 18,501 0.74Miami-Dade Cnty Fla Tra 07-01-37 16,425 18,177 0.72Tarrant Cnty Tex Cultur 08-15-31 16,720 17,863 0.71California St For Previ 08-01-32 15,000 17,230 0.69Philadelphia Pa Arpt Re 06-15-35 16,000 17,224 0.69Gainesville & Hall Cnty 02-15-40 15,880 17,110 0.68Alachua Cnty Fla Health 12-01-44 15,820 16,763 0.67Connecticut St Health & 07-01-42 15,865 16,738 0.67


QualityHigh

Med

Low

DurationLtd Mod Ext Avg Eff Duration1 5.9 Yrs

Avg Eff Maturity 16.2 YrsAvg Credit Quality AAvg Wtd Coupon 5.15%Avg Wtd Price 108.63% of par1 figure provided by fund



Top 5 States % bonds

CA 14.8FL 10.3NY 9.9

TX 8.8IL 7.8

Composition - Net


Special Securities


Sector Weightings % of Bonds

General Obligation 10.5Advance Refunded 16.8Tobacco 0.8Education 6.0Health 23.0Housing 0.6Industrial 6.5Transportation 24.6Utilities 5.7Water & Sewer 4.3Miscellaneous Revenue 0.0

Morningstar's Take by Elizabeth Foos 12-01-16T. Rowe Price Tax-Free Income combines an experiencedteam with a sound strategy and a below-average pricetag, earning a Morningstar Analyst Rating of Gold.

Like his fellow muni managers at T. Rowe Price,veteran manager Dino Mallas follows a straightforward,research-intensive strategy in running this fund. Mallaslargely steers clear of some of the muni market's riskiercredits such as tobacco bonds and debt issued bytroubled Puerto Rico and avoids using leveragedderivatives such as inverse floaters to boost yield. He alsodoesn't make interest-rate bets, keeping the fund'sduration close to its benchmark, the Bloomberg BarclaysMunicipal Bond Index. Instead, he stays focused on thisfund's primary strength: the thorough credit research ofan experienced analyst team. The firm's 10 muni creditanalysts comb through background materials and makefrequent site visits to find issuers who are likely to bemore resilient in tough economic times than their officialcredit ratings suggest.

Because of the research-intensive nature of thefund's strategy, it's not surprising that Mallas takes a bitmore credit risk than most competitors. Most recently,

the fund held more than half of its assets in bonds ratedA or BBB, compared with less than 40% for a typical peer.Mallas has long favored midquality fare, particularly in thehealthcare sector, arguing that there's more value thererelative to the added credit risk.

Despite that extra credit risk, the fund has held upbetter than most when credit-sensitive sectors havetaken a hit. In 2008 and 2013, the fund lost 5.8% and3.4%, respectively, yet it beat more than two thirds of itspeers in the muni-national long Morningstar Category inthose years. On the other hand, when lower-quality farerallied in 2012 and 2014, the fund landed near the middleof the pack, keeping pace with rivals without loading upon the rockiest parts of the muni market. While the fundwon't win in every environment, Mallas' tack of selectiverisk-taking has generated a peer-beating 4.8% annualizedreturn over his eight-plus-year tenure.

Address: T. Rowe Price Tax-free Income Fd, Inc Minimum Purchase: $2500 Add: $100 IRA: $1000Baltimore MD 21202 Min Auto Inv Plan: $2500 Add: $100800-638-5660 Sales Fees: No-load

Web Address: www.troweprice.com Management Fee: 0.15%Inception: 10-26-76 Actual Fees: Mgt:0.44% Dist:0.00%Advisor: T. Rowe Price Associates, Inc. Expense Projections: 3Yr:$167 5Yr:$291 10Yr:$653Subadvisor: None Income Distribution: Monthly


ß® Mutual Funds D


Tweedy, Browne Worldwide Hi Div Yld Val TickerTBHDX

Yield2.5%


Mstar CategoryWorld Stock

Benchmark 1: MSCI ACWI NR USDBenchmark 2: MSCI ACWI Ex USA NR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

12.0

14.0

8.0

6.0


LowBelow AvgQLowest


Growth of $10,000


& ( ) & ) ) ) ) ( ) Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History10.00 6.85 8.56 9.01 9.20 10.16 11.83 10.82 8.88 8.89 9.25 NAV

. -29.35 28.18 7.73 4.04 12.34 18.77 -0.92 -7.51 4.56 4.05 Total Return %

. 12.84 -6.45 -4.94 11.39 -3.79 -4.03 -5.08 -5.14 -3.30 -1.57 +/- Bmark 1

. 16.17 -13.27 -3.43 17.75 -4.49 3.48 2.95 -1.85 0.07 -1.14 +/- Bmark 2

. 2.57 2.87 2.26 1.98 1.74 1.97 2.12 2.44 2.64 0.00 Income Return %

. -31.93 25.31 5.47 2.06 10.59 16.80 -3.04 -9.95 1.92 4.05 Capital Return %

. 6 75 87 7 80 83 83 87 60 84 Total Rtn % Rank Cat0.03 0.26 0.20 0.19 0.18 0.16 0.20 0.25 0.26 0.23 0.00 Income $. 0.00 0.00 0.00 0.00 0.00 0.02 0.67 0.89 0.15 0.00 Capital Gains $. 1.86 1.54 1.46 1.39 1.37 1.37 1.36 1.35 1.37 . Expense Ratio %. 2.38 2.99 2.36 2.00 2.11 1.88 2.07 1.96 2.11 . Income Ratio %. 2 38 18 16 6 12 10 7 5 . Turnover Rate %62 88 133 239 404 675 767 612 368 284 293 Net Assets $mil


2012 5.98 -2.63 5.66 3.03 12.342013 5.02 -0.39 7.61 5.50 18.772014 1.52 4.55 -4.34 -2.41 -0.922015 0.18 -0.54 -9.27 2.31 -7.512016 -1.46 2.11 2.95 0.95 4.56


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 7.89 -0.01 0.00 23 10,7896 Mo 5.62 -1.91 0.46 50 10,5621 Yr 15.98 -6.09 -3.33 75 11,5983 Yr Avg -0.49 -5.30 -0.30 96 9,8545 Yr Avg 4.76 -3.49 1.21 93 12,61710 Yr Avg — — — — —15 Yr Avg — — — — —

Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat3 Yr (estimated) -2.80 95 2.32 905 Yr (estimated) 3.00 93 1.68 8210 Yr (estimated) — — — —



Load-AdjReturn %




1 Yr 15.983 Yr -0.49 Low -Avg Q5 Yr 4.76 Low -Avg Q10 Yr — — — —Incept 3.25


Alpha -0.4 1.2Beta 0.76 0.77R-Squared 84 90

Standard Deviation 10.13Mean -0.49Sharpe Ratio -0.02

Portfolio Analysis 12-31-16Total Stocks: 28Share change since 09-30-16 Sector Country % AssetsTDreyfus Government Secs C — United States 8.87

Nestle SA Cnsmr Def Switzerland 5.54YRoyal Dutch Shell PLC Cla Energy United Kingdom 4.78YTotal SA Energy France 4.55YZurich Insurance Group AG Finan Svcs Switzerland 4.49YDiageo PLC Cnsmr Def United Kingdom 4.39YCisco Systems Inc Technology United States 4.37YVerizon Communications In Comm Svcs United States 4.24

Axel Springer SE Cnsmr Cyc Germany 4.23YUnited Overseas Bank Ltd Finan Svcs Singapore 4.11TDBS Group Holdings Ltd Finan Svcs Singapore 4.10YNovartis AG Hlth Care Switzerland 3.95YWells Fargo & Co Finan Svcs United States 3.93YRoche Holding AG Dividend Hlth Care Switzerland 3.81YSiemens AG Industrl Germany 3.73YSCOR SE Finan Svcs France 3.60YGlaxoSmithKline PLC Hlth Care United Kingdom 3.59YHSBC Holdings PLC Finan Svcs United Kingdom 3.48

Cie Generale des Etabliss Cnsmr Cyc France 2.90YABB Ltd Industrl Switzerland 2.60


LargeM

idSm

all





Long-Term Erngs 6.18 0.59Book Value 2.99 0.95Sales -4.40 107.82Cash Flow -6.56 -1.60Historical Erngs -3.67 -3.59

Composition - Net



SectorWeightings

% ofStocks

RelBmark 1







Switzerland 22UK 21United States 19

France 16Germany 11

Morningstar's Take by Kevin McDevitt, CFA 09-09-16Tweedy, Browne Worldwide High Dividend Yield laid anegg during the last bear market, but the reasons behindit owe more to structure than missteps. For this reason,the fund retains its Morningstar Analyst Rating of Silver.

As with all Tweedy, Browne funds, this fund is usuallyat its best during bear markets. It owes its overalloutperformance almost entirely to excellent relativeshowings in the 2008 and 2011 bear markets. But ittrailed the MSCI World High Dividend Yield Index badlyduring the 2015-16 bear market. Peak-to-trough (May 22,2015-Feb. 11, 2016), the fund dropped 20.8% versus theindex’s 14.2% fall. As a result, the fund's 1.4% three-yearannualized return trails its benchmark by nearly 5percentage points through August 2016.

However, much of this underperformance owes tostructural factors rather than poor judgment. In particular,the fund's consistent underweighting of U.S. equities hasbeen a significant handicap. While its benchmark has a51% U.S. weighting, the fund rarely goes above 22%, inpart because higher yields are found overseas. U.S.equities have fared better than their foreign counterpartsfor years, but over the past 12 months the U.S.-focused

FTSE U.S. High Dividend Yield Index has trounced theMSCI EAFE High Dividend Yield Index by an astounding18 percentage points through August 2016.

Yet, structural factors don't explain all of the fund'spoor results. Even when taking its regional weightingsand cash stake into account, the fund's results during thebear market were basically neutral. Arguably,management was early getting into beaten-downsectors, a hazard of value investing. The portfolio'soverweightings in energy and financials stocks wereliabilities during the bear market, but both sectors havebounced back over the past six months. The team missedon a few stocks, too. Bank Standard Chartered wasparticularly problematic because of a restructuring andwas sold after the company suspended its dividend.

Overall, this stretch looks like an anomaly.Management isn't infallible, and it is prone to being early,but its patience usually pays off.

Address: Tweedy Browne Fund Inc Minimum Purchase: $2500 Add: $200 IRA: $500New York, NY 10022 Min Auto Inv Plan: — Add: —800-432-4789 Sales Fees: No-load, 2.00%R

Web Address: www.tweedy.com Management Fee: 1.25%, 0.03%AInception: 09-05-07 Actual Fees: Mgt:1.25% Dist:—Advisor: Tweedy Browne Co LLC Expense Projections: 3Yr:$437 5Yr:$755 10Yr:$1657Subadvisor: None Income Distribution: Semi-Annually


ß® Mutual Funds A


Vanguard Short-Term Bond Index Inv TickerVBISX

Yield1.4%

SEC Yield1.54%


Mstar CategoryShort-Term Bond

Benchmark 1: BBgBarc US Govt/Credit 1-5 Yr TR USDBenchmark 2: BBgBarc US Agg Bond TR USD






Œ „ ´ ‰ Á

Pillar Spectrum


10.0

11.0

12.0

13.0

14.0




Growth of $10,000


& & ) * & ) ( * & ( ( Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History10.13 10.28 10.42 10.55 10.61 10.63 10.49 10.48 10.43 10.43 10.45 NAV7.22 5.43 4.28 3.92 2.96 1.95 0.07 1.16 0.85 1.41 0.43 Total Return %

-0.05 0.30 -0.34 -0.16 -0.17 -0.29 -0.22 -0.27 -0.12 -0.15 -0.07 +/- Bmark 10.25 0.19 -1.65 -2.63 -4.88 -2.27 2.09 -4.81 0.30 -1.24 -0.44 +/- Bmark 24.71 3.91 2.89 2.22 1.85 1.46 1.10 1.11 1.24 1.41 0.24 Income Return %2.51 1.52 1.39 1.70 1.12 0.49 -1.03 0.04 -0.39 0.00 0.19 Capital Return %




2012 0.43 0.56 0.82 0.12 1.952013 0.18 -0.76 0.55 0.11 0.072014 0.37 0.56 -0.10 0.32 1.162015 0.99 -0.07 0.61 -0.66 0.852016 1.58 0.91 0.07 -1.14 1.41


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 0.48 -0.08 -0.54 70 10,0486 Mo -0.50 -0.10 1.68 90 9,9501 Yr 0.76 -0.22 -0.66 83 10,0763 Yr Avg 1.07 -0.19 -1.57 46 10,3245 Yr Avg 1.06 -0.21 -1.17 63 10,54310 Yr Avg 2.82 -0.16 -1.46 33 13,20415 Yr Avg 3.01 -0.25 -1.51 37 15,600




Load-AdjReturn %




1 Yr 0.763 Yr 1.07 Avg +Avg QQQ5 Yr 1.06 Avg Avg QQQ10 Yr 2.82 Avg Avg QQQIncept 4.20







%Assets

US Treasury Note 1.875% 01-31-22 788,385 787,029 1.65US Treasury Note 1.25% 10-31-21 746,971 725,264 1.52US Treasury Note 1.25% 03-31-21 708,951 693,666 1.45US Treasury Note 1.5% 11-30-19 677,865 678,922 1.42US Treasury Note 1.375% 08-31-20 674,045 667,830 1.40US Treasury Note 1.625% 11-30-20 656,725 654,571 1.37US Treasury Note 1.125% 08-31-21 651,438 630,468 1.32US Treasury Note 1.375% 03-31-20 617,258 614,172 1.29US Treasury Note 1.25% 11-30-18 604,864 605,716 1.27US Treasury Note 1% 08-15-18 603,419 603,045 1.26US Treasury Note 1.375% 05-31-21 612,595 601,109 1.26US Treasury Note 1.125% 09-30-21 613,753 593,137 1.24US Treasury Note 1.625% 07-31-20 568,474 568,474 1.19US Treasury Note 1.375% 10-31-20 545,046 538,914 1.13US Treasury Note 1.375% 02-29-20 536,907 534,475 1.12US Treasury Note 1.125% 06-30-21 538,713 522,465 1.09US Treasury Note 1.625% 08-31-19 505,161 508,318 1.07US Treasury Note 1% 05-31-18 495,060 495,139 1.04US Treasury Note 1.625% 06-30-19 478,254 481,391 1.01US Treasury Note 1% 09-15-18 468,324 467,664 0.98


QualityHigh

Med

Low

DurationLtd Mod Ext


Avg Eff Duration1 2.8 YrsAvg Eff Maturity 2.9 YrsAvg Credit Quality AAAvg Wtd Coupon 1.98%Avg Wtd Price 100.51% of par







Composition - Net


Special Securities


Morningstar's Take by Emory Zink 09-06-16Vanguard Short-Term Bond Index is a compelling optionfor its low fees, strong performance, and low trackingerror. The fund earns a Morningstar Analyst Rating ofSilver.

This fund targets short-term, investment-gradegovernment, corporate, and securitized bondsdenominated in U.S. dollars and weights its holdings byfree-float-adjusted market capitalization. As a result, theportfolio skews heavily toward Treasury bonds, whichtypically account for as much as two thirds of theportfolio, a much larger allocation than the average peer.This gives the fund a higher-quality portfolio than many ofits peers', which may help the fund hold up better duringtough economic climates, but also results in lowerexpected returns. The fund’s duration of 2.7 years wasslightly longer than the short-term bond MorningstarCategory average (2.2 years) at the end of July 2016,which could hurt the fund’s relative performance in aperiod of rising interest rates.

However, low fees give this fund a sustainable edge.The fund charges a rock-bottom 0.09% expense ratio. Incontrast, the average fund in the short-term category

charges around 70 basis points. In a low-interest-rateenvironment, it may be especially difficult for more-expensive funds to overcome this cost hurdle. The free-float-adjusted market-cap-weighting approach also helpsreduce transaction costs as it tilts the portfolio towardmore-liquid issues, which tend to be cheapest to trade.

In the years when the markets have performedstrongly, the fund’s cost advantage could not make up forthe lower return it earned on its higher-quality bonds. Forexample, it trailed 80% of its peers during 2012, whentaking more credit risk paid off. However, this quality tilthelped the fund hold up better during economicslowdowns, including 2008, when it beat 97% of its short-term bond peers with a 5.5% gain versus a categoryaverage loss of 4.2%. During the trailing 10-year periodthrough August 2016, the fund's returns landed near thetop third of its category.

Address: Vanguard Bond Index Funds Minimum Purchase: $3000 Add: $1 IRA: —Valley Forge PA 19482 Min Auto Inv Plan: — Add: —800-662-7447 Sales Fees: No-load

Web Address: www.vanguard.com Management Fee: 0.13%Inception: 03-01-94 Actual Fees: Mgt:0.13% Dist:—Advisor: Vanguard Group Inc Expense Projections: 3Yr:$52 5Yr:$90 10Yr:$205Subadvisor: None Income Distribution: Monthly


ß® Mutual Funds D


Vanguard Total Bond Market Index Inv TickerVBMFX

Yield2.4%

SEC Yield2.42%






Process ∞ PositivePerformance ¶ NeutralPeople ∞ PositiveParent ∞ PositivePrice ∞ Positive



Œ „ ´ ‰ Á

Pillar Spectrum


10.0

11.0

12.0

13.0

14.0

15.016.0




Growth of $10,000


& & ) ( & ) ( * * ( ( Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History10.16 10.18 10.35 10.60 11.00 11.09 10.56 10.87 10.64 10.65 10.71 NAV6.92 5.05 5.93 6.42 7.56 4.05 -2.26 5.76 0.30 2.50 0.96 Total Return %

-0.05 -0.19 0.00 -0.12 -0.28 -0.17 -0.24 -0.21 -0.25 -0.15 0.09 +/- Bmark 1-0.05 -0.19 0.00 -0.12 -0.28 -0.17 -0.24 -0.21 -0.25 -0.15 0.09 +/- Bmark 25.13 4.79 4.22 3.56 3.23 2.62 2.33 2.53 2.36 2.42 0.39 Income Return %1.79 0.26 1.72 2.86 4.33 1.43 -4.60 3.23 -2.06 0.08 0.56 Capital Return %




2012 0.24 2.14 1.53 0.10 4.052013 -0.09 -2.45 0.51 -0.22 -2.262014 1.88 1.94 0.14 1.69 5.762015 1.62 -1.81 1.16 -0.63 0.302016 3.06 2.34 0.39 -3.19 2.50


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 1.20 0.19 0.19 57 10,1206 Mo -2.35 -0.16 -0.16 89 9,7651 Yr 1.35 -0.07 -0.06 78 10,1353 Yr Avg 2.46 -0.18 -0.18 47 10,7585 Yr Avg 2.05 -0.19 -0.18 71 11,07110 Yr Avg 4.13 -0.15 -0.15 53 14,99015 Yr Avg 4.28 -0.24 -0.24 54 18,754




Load-AdjReturn %




1 Yr 1.353 Yr 2.46 Avg +Avg QQQ5 Yr 2.05 -Avg Avg QQ10 Yr 4.13 Avg Avg QQQIncept 6.02







%Assets

US Treasury Note 2.125% 05-15-25 976,902 957,666 0.55US Treasury Note 1% 09-15-18 856,917 855,709 0.49US Treasury Note 3.625% 08-15-19 787,422 831,470 0.47US Treasury Note 2.625% 11-15-20 788,624 815,240 0.46US Treasury Note 1% 03-15-19 735,920 731,895 0.42US Treasury Note 2% 11-15-26 758,297 728,678 0.42US Treasury Note 2.25% 11-15-25 750,907 740,582 0.42US Treasury Note 1.75% 05-15-23 735,693 717,301 0.41US Treasury Note 1.25% 03-31-21 709,298 694,006 0.40US Treasury Note 1% 05-31-18 679,910 680,019 0.39US Treasury Note 1.875% 01-31-22 687,442 686,260 0.39US Treasury Note 2.5% 05-15-24 657,918 667,787 0.38US Treasury Note 3.375% 11-15-19 640,633 674,868 0.38US Treasury Note 0.75% 02-15-19 644,537 638,291 0.36US Treasury Note 3.125% 05-15-19 605,334 629,832 0.36US Treasury Note 3.5% 05-15-20 601,005 637,817 0.36US Treasury Note 1.625% 05-15-26 657,070 612,408 0.35US Treasury Note 2% 08-15-25 638,325 618,179 0.35US Treasury Note 1.625% 02-15-26 640,344 598,120 0.34US Treasury Note 2.25% 11-15-24 600,474 596,535 0.34


QualityHigh

Med

Low

DurationLtd Mod Ext


Avg Eff Duration1 6.1 YrsAvg Eff Maturity 8.3 YrsAvg Credit Quality AAAvg Wtd Coupon 3.11%Avg Wtd Price 103.14% of par







Composition - Net


Special Securities


Morningstar's Take by Alex Bryan 07-22-16Vanguard Total Bond Market Index is a solid, low-costoption for core exposure to investment-grade bonds. Itefficiently tracks the Barclays U.S. Aggregate Float-Adjusted Bond Index, which tilts toward high-qualityinvestments. The fund's heavy exposure to U.S.Treasuries and agency mortgage-backed securitiessomewhat limits its return potential. However, its sizablecost advantage should translate into attractiveperformance relative to the intermediate-term bondMorningstar Category over a full market cycle, supportingthe Morningstar Analyst Rating of Silver.

The fund offers broad exposure to liquid, U.S. dollar-denominated investment-grade bonds with a least oneyear until maturity. This creates a well-diversified portfolioconsisting of thousands of securities. It weights them byfloat-adjusted market capitalization, tilting the portfoliotoward low-yielding and relatively secure governmentbonds and agency MBS. These high-quality bonds formjust over 60% of the portfolio.

The portfolio’s bias toward high-quality investmentsshould help it to weather tough economic climates betterthan most of its peers. During 2008's financial crisis, for

example, the fund gained 5.2% while the average fund inthe category lost 4.7%. Many of its peers continue to holdmore corporate bonds and include out-of-benchmarkbonds in an effort to earn higher returns. Thoughcorporate bonds have largely outperformed in the yearsfollowing 2008’s crisis, they do add credit risk relative tothe government-backed bonds that dominate this fund'sportfolio.

The fund’s conservative credit risk profile reduces itsreturn potential but low fees help make up for this, givingthe fund a durable edge against its peers. Its Admiralshare class charges a rock-bottom 0.06% expense ratio,while the average fund in the category charges 0.77%.This cost advantage helped the fund slightly edge out theintermediate-term bond category average by 33 basispoints annually over the trailing 10 years through June2016.

Address: Vanguard Bond Index Funds Minimum Purchase: $3000 Add: $1 IRA: —Valley Forge PA 19482 Min Auto Inv Plan: — Add: —800-662-7447 Sales Fees: No-load

Web Address: www.vanguard.com Management Fee: 0.13%Inception: 12-11-86 Actual Fees: Mgt:0.13% Dist:—Advisor: Vanguard Group Inc Expense Projections: 3Yr:$52 5Yr:$90 10Yr:$205Subadvisor: None Income Distribution: Monthly


ß® Mutual Funds D


Vanguard Capital Opportunity Inv TickerVHCOX

Yield0.6%









Œ „ ´ ‰ Á

Pillar Spectrum


10.0

15.0

20.0

25.0


HighAbove AvgQQQQAbove Avg


Growth of $10,000


( * & ) ) & & & ( & * Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History36.82 20.24 30.04 33.24 29.51 33.62 46.18 52.74 51.40 53.83 57.99 NAV10.58 -39.08 48.91 11.06 -6.18 18.37 42.69 18.88 2.59 10.56 7.73 Total Return %-1.24 -0.65 11.70 -5.65 -8.83 3.11 9.20 5.83 -3.08 3.49 0.06 +/- Bmark 15.08 -2.09 22.45 -4.01 -8.30 2.36 10.30 5.19 1.21 -1.40 1.79 +/- Bmark 20.75 0.31 0.48 0.40 0.48 1.30 0.21 0.67 0.59 0.72 0.00 Income Return %9.83 -39.39 48.43 10.66 -6.67 17.06 42.48 18.21 2.00 9.84 7.73 Capital Return %




2012 11.35 -4.35 5.70 5.15 18.372013 16.18 4.25 9.45 7.63 42.692014 5.28 4.26 1.44 6.76 18.882015 4.23 -0.78 -7.87 7.67 2.592016 -3.23 -1.37 12.09 3.35 10.56


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 9.78 0.78 1.74 12 10,9786 Mo 13.86 4.71 3.84 1 11,3861 Yr 30.07 7.92 5.09 2 13,0073 Yr Avg 10.60 0.13 -0.03 7 13,5305 Yr Avg 17.78 3.99 3.77 1 22,66810 Yr Avg 9.93 0.86 2.31 6 25,77415 Yr Avg 10.51 3.14 3.16 1 44,791




Load-AdjReturn %




1 Yr 30.073 Yr 10.60 High +Avg QQQQ5 Yr 17.78 High +Avg QQQQQ10 Yr 9.93 High +Avg QQQQIncept 12.28


Alpha -0.7 2.8Beta 1.10 1.28R-Squared 74 83


Portfolio Analysis 12-31-16Total Stocks: 137Share change since 09-30-16 Sector YTD Ret % % AssetsYBiogen Inc Hlth Care 7.93 5.28YAmgen Inc Hlth Care 21.52 4.21TEli Lilly and Co Hlth Care 13.30 3.96RCMT Market Liquidity Rate — — 3.88

Southwest Airlines Co Industrl 15.97 3.86YNVIDIA Corp Technology -4.80 3.52

FedEx Corp Industrl 3.64 3.08Biomarin Pharmaceutical I Hlth Care 13.39 2.70

TAdobe Systems Inc Technology 14.95 2.43Roche Holding AG Dividend Hlth Care — 2.43United Continental Holdin Industrl 1.66 2.26

YTexas Instruments Inc Technology 5.69 2.19YCarMax Inc Cnsmr Cyc 0.23 2.09

Microsoft Corp Technology 3.59 1.99NetApp Inc Technology 19.14 1.86

TAmerican Airlines Group I Industrl — 1.81Monsanto Co Basic Mat 8.71 1.73

YCharles Schwab Corp Finan Svcs 2.58 1.71TDelta Air Lines Inc Industrl 1.92 1.64

Qiagen Nv Hlth Care — 1.58


LargeM

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Profitability %


SectorWeightings

% ofStocks

RelBmark 1




Composition - Net


Morningstar's Take by David Kathman, CFA 01-06-17This fund has been managed since 1998 by the Primecapteam, who have achieved one of the fund industry’s besttrack records during the past 30 years with their flagshipVanguard Primecap VPMCX fund. They employ a patient,disciplined contrarian growth strategy focused oncompanies with strong growth potential but temporarilydepressed valuations. They don’t hesitate to overweightsectors and industries where they see a lot of potential(lately technology, biotech, and airlines), and they'rewilling to hold on to stocks for a long time waiting for aturnaround. This fund was originally a mid-cap-orientedversion of Vanguard Primecap, and while it has been inthe large-growth Morningstar Category since 2008, it stillholds considerably more small- and mid-cap stocks thanits older sibling.

This approach has worked very well over the longterm, but the fund’s low turnover means that it’s proneto periods of short-term underperformance when thestrategy is out of sync with the market. That’s whathappened in 2010 and 2011, when weakness in the fund’shealthcare and tech stocks, combined with blowups bya few key holdings, resulted in poor relative returns. But

the managers stuck to their guns, and many of thosesame stocks were among the biggest contributors to thefund’s stellar 2013 and 2014 results, which led to theteam being named Morningstar’s Domestic Stock FundManager of the Year for 2014.

The fund fell back to more-middling results in 2015and early 2016, when many biotech stocks were hurt byregulatory fears and earnings disappointments, andairline stocks got hammered. However, it reboundedstrongly in the second half of 2016, finishing the year inthe category's top 5%. As usual, the managers have paidlittle attention to the short-term noise, mostly stickingwith their holdings and adding to such out-of-favor namesas CarMax KMX, SanDisk SSK, and NetApp NTAP. Theystill like airline stocks, which they see as very undervaluedrelative to their growth potential. Given their record,there's every reason to think that these managers knowwhat they're doing; the fund retains its MorningstarAnalyst Rating of Gold.

Address: Vanguard Horizon Funds Minimum Purchase: $3000 Add: $1 IRA: —Valley Forge PA 19482 Min Auto Inv Plan: — Add: —800-662-7447 Sales Fees: No-load

Web Address: www.vanguard.com Management Fee: 0.42%Inception: 08-14-95 Actual Fees: Mgt:0.42% Dist:—Advisor: PRIMECAP Management Company Expense Projections: 3Yr:$144 5Yr:$252 10Yr:$567Subadvisor: None Income Distribution: Annually


ß® Mutual Funds A


Vanguard Institutional Index Instl Pl TickerVIIIX

Yield2.0%









Œ „ ´ ‰ Á

Pillar Spectrum


10.0

15.0

20.0




Growth of $10,000


* * ( * & * * & & * * Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History134.14 82.54 101.98 115.01 115.05 130.53 169.28 188.68 186.63 203.84 215.95 NAV

5.50 -36.94 26.66 15.07 2.12 16.00 32.37 13.68 1.39 11.95 5.94 Total Return %-0.27 0.66 -1.77 -1.02 0.62 -0.42 -0.75 0.44 0.47 -0.10 -0.02 +/- Bmark 10.01 0.06 0.20 0.01 0.01 0.00 -0.02 -0.01 0.01 -0.01 0.00 +/- Bmark 22.02 1.92 2.73 2.12 2.09 2.50 2.44 2.13 2.46 2.30 0.00 Income Return %3.48 -38.85 23.93 12.95 0.03 13.50 29.93 11.55 -1.07 9.65 5.94 Capital Return %




2012 12.58 -2.75 6.35 -0.37 16.002013 10.60 2.91 5.24 10.51 32.372014 1.80 5.23 1.13 4.93 13.682015 0.95 0.28 -6.44 7.05 1.392016 1.34 2.45 3.85 3.82 11.95


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 8.03 0.08 0.00 21 10,8036 Mo 10.02 -0.09 0.00 37 11,0021 Yr 24.96 -0.57 -0.01 30 12,4963 Yr Avg 10.63 0.44 0.00 5 13,5415 Yr Avg 14.00 0.06 -0.01 9 19,25810 Yr Avg 7.64 -0.05 0.03 17 20,88615 Yr Avg 7.38 -0.27 0.03 23 29,091




Load-AdjReturn %




1 Yr 24.963 Yr 10.63 High Avg QQQQQ5 Yr 14.00 High -Avg QQQQQ10 Yr 7.64 +Avg Avg QQQQIncept 7.00




Portfolio Analysis 01-31-17Total Stocks: 506Share change since 12-31-16 Sector YTD Ret % % AssetsTApple Inc Technology 18.77 3.28TMicrosoft Corp Technology 3.59 2.55TExxon Mobil Corp Energy -9.07 1.77TAmazon.com Inc Cnsmr Cyc 12.69 1.65TJohnson & Johnson Hlth Care 6.77 1.56TFacebook Inc A Technology 17.81 1.55TJPMorgan Chase & Co Finan Svcs 5.57 1.54TBerkshire Hathaway Inc B Finan Svcs 5.18 1.50TGeneral Electric Co Industrl 3.95 1.33TAT&T Inc Comm Svcs -0.59 1.31TWells Fargo & Co Finan Svcs 5.72 1.29TAlphabet Inc A Technology 6.62 1.23TAlphabet Inc C Technology — 1.20TProcter & Gamble Co Cnsmr Def 9.11 1.19TBank of America Corporati Finan Svcs 11.67 1.16TChevron Corp Energy -3.50 1.07TVerizon Communications In Comm Svcs -5.94 1.01TPfizer Inc Hlth Care 6.03 0.98TComcast Corp Class A Comm Svcs 8.39 0.91TIntel Corp Technology 0.52 0.89


LargeM

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Profitability %


SectorWeightings

% ofStocks

RelBmark 1




Composition - Net


Morningstar's Take by Adam McCullough 11-22-16Vanguard Institutional Index offers investors diversifiedexposure to U.S. large-cap stocks. A low fee and asoundly constructed and reasonably representativeportfolio leave the fund well-positioned to continue itslong streak of producing superior risk-adjusted returnsrelative to its peers over the long haul, and underpin itsMorningstar Analyst Rating of Gold.

Broad diversification is an intrinsic advantage offund’s replication of the market-cap-weighted S&P 500,which covers approximately 80% of the investable marketcapitalization of the U.S. equity market. While mostindexes follow mechanical, rules-based approaches, theS&P 500 is managed by committee. Yet, this index hasperformed similarly to other popular large-cap indexes,such as the Russell 1000. Its market-cap-weightingapproach can be beneficial in bull markets that arecharacterized by large-cap leadership, such as the post-financial-crisis charge in U.S. stocks. That said, it can alsolead to significant sector- and single-securityconcentration, as witnessed at the height of thetechnology bubble. So market-cap-weighted indexes’greatest strength is arguably also their Achilles’ heel.

Low turnover is another key advantage of the fund’sbroad market-cap-weighted approach. Lower turnoverequates to lower costs and a lesser likelihood of taxablecapital gains distributions. The average annual turnoverthe fund was 6% during the past five years. This compareswith a median figure of 55% for its category peers.

The fund’s sector weights are similar to its large-capblend peers. But its holdings' average marketcapitalization is usually greater than the categoryaverage, partially due to its weighting approach, whichpulls the portfolio toward giant- and large-cap stocks.

During the 15-year period ended October 2016, thefund returned 6.89% per year, outstripping the U.S. large-blend Morningstar Category average by 0.41 percentagepoints per year. Much of this relative outperformance canbe attributed to the fund’s sizable fee advantage. At0.04%, VINIX’s annual levy is a tiny fraction of the 0.79%median fee charged by its category peers.

Address: Vanguard Institutional Index Funds Minimum Purchase: $200000000

Add: $1 IRA: —

Valley Forge PA 19482 Min Auto Inv Plan: — Add: —888-809-8102 Sales Fees: No-load

Web Address: www.vanguard.com Management Fee: 0.02%Inception: 07-07-97 Actual Fees: Mgt:0.02% Dist:—Advisor: Vanguard Group Inc Expense Projections: 3Yr:$6 5Yr:$11 10Yr:$26Subadvisor: None Income Distribution: Quarterly


ß® Mutual Funds A


Vanguard Inflation-Protected Secs Inv TickerVIPSX

Yield2.0%

SEC Yield-0.13%


Mstar CategoryInflation-ProtectedBond

Benchmark 1: BBgBarc US Treasury US TIPS TR USDBenchmark 2: BBgBarc US Agg Bond TR USD



Process ¶ NeutralPerformance ∞ PositivePeople ∞ PositiveParent ∞ PositivePrice ∞ Positive



Œ „ ´ ‰ Á

Pillar Spectrum


10.0

11.0

12.0

13.0

14.0

15.016.0




Growth of $10,000


& ( * * & * ( & * * * Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History12.45 11.52 12.55 13.00 14.11 14.53 12.98 13.18 12.84 12.98 13.16 NAV11.59 -2.85 10.80 6.17 13.24 6.78 -8.92 3.83 -1.83 4.52 1.39 Total Return %-0.05 -0.49 -0.61 -0.14 -0.33 -0.20 -0.31 0.19 -0.39 -0.16 0.07 +/- Bmark 14.63 -8.09 4.87 -0.38 5.39 2.56 -6.89 -2.14 -2.38 1.87 0.52 +/- Bmark 25.60 5.01 1.86 2.55 4.43 2.61 1.50 2.18 0.74 2.08 0.00 Income Return %6.00 -7.86 8.94 3.62 8.81 4.16 -10.41 1.65 -2.57 2.45 1.39 Capital Return %




2012 0.68 3.24 2.14 0.57 6.782013 -0.34 -7.34 0.84 -2.19 -8.922014 1.99 3.72 -1.98 0.13 3.832015 1.24 -1.27 -0.91 -0.87 -1.832016 4.60 1.73 0.95 -2.69 4.52


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 1.22 0.00 0.21 41 10,1226 Mo -0.63 -0.05 1.56 69 9,9381 Yr 3.24 -0.12 1.82 56 10,3243 Yr Avg 1.77 -0.12 -0.87 14 10,5425 Yr Avg 0.64 -0.13 -1.60 22 10,32210 Yr Avg 4.03 -0.24 -0.25 23 14,84315 Yr Avg 5.02 -0.22 0.51 38 20,862

Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat3 Yr (estimated) 1.04 19 0.72 775 Yr (estimated) -0.17 24 0.80 6710 Yr (estimated) 2.94 11 1.05 63



Load-AdjReturn %




1 Yr 3.243 Yr 1.77 +Avg +Avg QQQQ5 Yr 0.64 +Avg +Avg QQQQ10 Yr 4.03 +Avg Avg QQQQIncept 5.48







%Assets

US Treasury Note 04-15-19 1,268,580 1,324,841 5.24US Treasury Note 01-15-26 1,192,943 1,222,719 4.83US Treasury Note 04-15-21 1,145,821 1,175,214 4.65US Treasury Note 04-15-20 1,085,200 1,131,557 4.47US Treasury Note 07-15-26 1,115,529 1,086,650 4.30US Treasury Note 04-15-18 999,721 1,054,576 4.17US Treasury Note 07-15-24 1,038,771 1,038,010 4.10US Treasury Note 01-15-22 937,671 1,002,704 3.96US Treasury Note 01-15-24 931,256 980,903 3.88US Treasury Note 01-15-25 968,300 970,776 3.84US Treasury Note 07-15-22 919,019 967,997 3.83US Treasury TIP 01-15-23 931,330 967,562 3.82US Treasury Note 07-15-25 931,844 943,483 3.73US Treasury Note 07-15-21 796,801 881,427 3.48US Treasury Note 07-15-23 829,236 868,209 3.43US Treasury Note 01-15-21 730,499 846,704 3.35US Treasury TIP 1.25% 07-15-20 641,210 750,368 2.97US Treasury Bond 01-15-25 486,651 715,746 2.83US Treasury Bond 01-15-27 393,647 552,215 2.18US Treasury Bond 02-15-44 478,735 540,612 2.14


QualityHigh

Med

Low

DurationLtd Mod Ext


Avg Eff Duration1 7.9 YrsAvg Eff Maturity 8.5 YrsAvg Credit Quality AAAAvg Wtd Coupon 0.86%Avg Wtd Price 113.76% of par







Composition - Net


Special Securities


Morningstar's Take by Brian Moriarty 11-08-16Vanguard Inflation-Protected Securities is an excellentchoice for investors looking for a pure-play inflation hedge.Its fees are among the lowest for open-end mutual fundsand exchange-traded funds; it has excellent long-termperformance; and it benefits from Vanguard’s strongstewardship. For these reasons, it earns a MorningstarAnalyst Rating of Gold.

Gemma Wright-Casparius took over as lead portfoliomanager in April 2012, maintaining the fund’s long-standing process--and that’s a good thing. The fund staysclose to its benchmark, the Barclays US Treasury US TipsIndex, and lets its low fees contribute to returns.However, Wright-Casparius has the ability to add orremove risk relative to the benchmark when her team hashigh conviction about a particular trade, so it is not a trueindex fund.

Unlike many funds in the inflation-protected bondMorningstar Category, this one does not court additionalrisk by looking for extra sources of return in commodities,high-yield bonds, or other assets. The fund is meant toact as a diversifier from nominal Treasuries and as pureexposure to an inflation hedge, and adding different

assets would dilute those effects. This also brings thefund more in line with ETFs, which have pure benchmarkexposure.

One thing to be aware of with most funds that investin Treasury Inflation-Protected Securities is that theirduration can run longer than a comparable nominal bondfund, especially with many active managers shorteningtheir duration in anticipation of rate hikes. This holds truefor this fund, which has an 8.3-year duration, making ithighly sensitive to changes in interest rates.

Address: Vanguard Fixed Income Securities Funds Minimum Purchase: $3000 Add: $1 IRA: —Valley Forge PA 19482 Min Auto Inv Plan: — Add: —800-662-7447 Sales Fees: No-load

Web Address: www.vanguard.com Management Fee: 0.17%Inception: 06-29-00 Actual Fees: Mgt:0.17% Dist:—Advisor: Vanguard Group Inc Expense Projections: 3Yr:$64 5Yr:$113 10Yr:$255Subadvisor: None Income Distribution: Quarterly


ß® Mutual Funds D


Vanguard Tax-Managed Capital App Adm TickerVTCLX

Yield1.7%









Œ „ ´ ‰ Á

Pillar Spectrum


10.0

15.0

20.0




Growth of $10,000


* ( * & * * * * & & & Performance Quartile(within Category)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 02-17 History70.70 43.04 54.72 62.56 62.36 71.17 93.70 103.82 103.75 114.08 120.95 NAV6.11 -37.58 29.11 16.02 1.38 16.35 33.67 12.52 1.68 12.01 6.02 Total Return %0.33 0.02 0.68 -0.08 -0.12 -0.07 0.56 -0.72 0.76 -0.04 0.06 +/- Bmark 10.61 -0.58 2.65 0.95 -0.73 0.35 1.28 -1.17 0.29 0.05 0.08 +/- Bmark 21.65 1.48 1.97 1.69 1.71 2.21 2.00 1.72 1.69 1.95 0.00 Income Return %4.45 -39.06 27.14 14.33 -0.33 14.14 31.67 10.79 -0.02 10.06 6.02 Capital Return %




2012 12.96 -3.28 6.28 0.20 16.352013 10.84 2.73 6.22 10.51 33.672014 2.13 5.02 0.35 4.54 12.522015 1.92 0.44 -6.84 6.61 1.682016 0.88 2.47 4.03 4.17 12.01


+/- Bmark1

+/- Bmark2

%RankCat

Growth of$10,000

3 Mo 8.05 0.10 0.01 21 10,8056 Mo 10.48 0.37 0.47 25 11,0481 Yr 25.99 0.46 1.02 20 12,5993 Yr Avg 10.19 0.00 -0.44 15 13,3795 Yr Avg 14.03 0.09 0.02 8 19,27610 Yr Avg 7.79 0.10 0.17 12 21,17215 Yr Avg 7.80 0.15 0.45 14 30,862




Load-AdjReturn %




1 Yr 25.993 Yr 10.19 +Avg Avg QQQQ5 Yr 14.03 High Avg QQQQQ10 Yr 7.79 +Avg Avg QQQQIncept 7.63




Portfolio Analysis 01-31-17Total Stocks: 694Share change since 12-31-16 Sector YTD Ret % % AssetsTApple Inc Technology 18.77 3.05TMicrosoft Corp Technology 3.59 2.22TExxon Mobil Corp Energy -9.07 1.56TAmazon.com Inc Cnsmr Cyc 12.69 1.42

Berkshire Hathaway Inc B Finan Svcs 5.18 1.37TJohnson & Johnson Hlth Care 6.77 1.36TJPMorgan Chase & Co Finan Svcs 5.57 1.31TFacebook Inc A Technology 17.81 1.30TWells Fargo & Co Finan Svcs 5.72 1.15TAT&T Inc Comm Svcs -0.59 1.13TAlphabet Inc A Technology 6.62 1.11

General Electric Co Industrl -4.91 1.11Alphabet Inc C Technology — 1.07

TBank of America Corporati Finan Svcs 11.67 1.03Procter & Gamble Co Cnsmr Def 9.11 1.03Chevron Corp Energy -3.50 0.95Walt Disney Co Cnsmr Cyc 5.63 0.85

TPfizer Inc Hlth Care 6.03 0.84The Home Depot Inc Cnsmr Cyc 8.08 0.81Citigroup Inc Finan Svcs 0.91 0.79


LargeM

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Profitability %


SectorWeightings

% ofStocks

RelBmark 1




Composition - Net


Morningstar's Take by Adam McCullough 09-22-16Vanguard Tax-Managed Capital Appreciation offers tax-efficient exposure to large- and mid-cap U.S. stocks. Thecombination of low fees, broad diversification, andeffective tax management underpin its MorningstarAnalyst Rating of Gold.

The fund has two competing mandates: to efficientlytrack the Russell 1000 Index and minimize the taxconsequences. To manage taxes, managers DonaldButler and William Coleman underweight higher-dividend-paying stocks and harvest capital losses tooffset realized capital gains. As dividend payments aretaxed when they are distributed, a lower dividend yieldreduces investors’ tax bills. But this lower-yield tilt couldmodestly hinder performance when dividend stocks arein favor.

Although the managers have discretion around theiruse of tax management strategies, they are constrainedby strict tracking-error limits to the Russell 1000 Index.Consequently, the fund looks a lot like this benchmark,though it does carry a lower dividend yield. This is as faras the fund strays from the index. The fund’s sectorallocations have been consistently within plus or minus

1% of the benchmark’s. Individual stock weightings donot tend to deviate significantly from the benchmark.

So far, the fund has delivered on both mandates. Ithas not distributed a capital gain since its inception. Itspost-tax returns rank in the top decile of the large-blendMorningstar Category during three-, five-, and 10-yeartrailing periods through August 2016. At the same time,it has kept tracking error very low.

The fund’s tax-loss harvesting strategy may not beable to completely offset capital gains if it experienceslarge net outflows after a market runup, as managersmust sell positions to meet redemptions. That said, thefund experienced rolling 12-month net outflows fromMarch 2009 to May 2013 but avoided distributing capitalgains.

Address: Vanguard Tax-managed Funds Minimum Purchase: $10000 Add: $1 IRA: —Valley Forge, PA 19482 Min Auto Inv Plan: — Add: —800-662-7447 Sales Fees: No-load

Web Address: www.vanguard.com Management Fee: 0.10%Inception: 11-12-01 Actual Fees: Mgt:0.10% Dist:—Advisor: Vanguard Group Inc Expense Projections: 3Yr:$35 5Yr:$62 10Yr:$141Subadvisor: None Income Distribution: None


ß® Mutual Funds A

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#RetireFit Retirement Readiness Bootcamp 2017im.mstar.com/im/newhomepage/retirefitpicks.pdf · 2019. 7. 1. · Retirement Readiness Bootcamp 2017 March 11, 2017 ... 20.0 Historical