Strategic and tactical allocations Proposed allocations for taxable client (where hedge funds are suitable) Income Growth & Income Growth Maximum Growth Strategic Tactical IIK2331111.111111MIIIIII Strategic Tactical Strategic Tactical Strategic Tactical Equities 49.E 87.0% 84.5% U.S. Large Cap 15.0% 15.0% 23.5% 23.5% 33.0% 33.0% 42.0% 42.0% U.S. Small Cap 2.0% 1.5% 2.5% 2.0% 3.5% 3.0% 4.0% 3.0% EAFE 11.5% 11.5% 17.0% 17.0% 22.5% 22.5% 29.0% 29.0% European 7.5% 7.5% 11.5% 11.5% 15.0% 15.0% 20.0% 20.0% Japan 2.5% 2.5% 3.0% 3.0% 45% 4.5% 5.5% 5.5% Pacific ex-Japan 1.5% 1.5% 2.5% 2.5% 3.0% 3.0% 3.5% 3.5% Emerging Market 4.0% 3.5% 6.0% 5.5% 8.0% 7.0% 9.5% 8.5% Core Emg MMs Equity 2.0% 3.5% 4.5% 5.5% Emg Mk% Asia Equity 1.5% 2.0% 2.5% 3.0% Fixed Income & Cash 5135% .4. C.'s:, ' Municipal Bonds 50.5% 50.5% 32.0% 32.0% 16.0% 16.0% High Yield Bonds 2.0% 3.0% 2.0% 3.0% 2.0% 3.0% 2.5% 4.0% Intl Bonds- Hedged Emerging Market Bonds 2.0% 2.5% 2.5% 3.0% 2.0% 2.5% 2.5% 3.5% TIPS 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Cash 2.0% 2.5% 20% 25% 20% 3.0% 2-0% 3.0% Alternatives 9 0 O U. n'is 0% b 5% Hedge Funds 7.0% 7.0% 8.5% 8.5% 7.0% 7.0% 6.0% 6.0% Non-directional HF 5.0% 5.0% 4.5% 4.5% 3.0% 3.0% Directional HF 2.0% 2.0% 4.0% 4.0% 4.0% 4.0% 6.0% 6.0% Commodities 2.0% 1.0% 2.0% 1.0% 2.0% 1.0% 2.5% 1.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Source. Internal wsuiciss. Last asset allocation charge was May 19. 2015 and is reviewed montruy. Allocation recommendations are subject to cnange without notice The 'strategic allocation" represeras our longer term outlook on portfolio diversification and serves as a frame of reference for cur short-term tactical adjustments for U S. dents Actual portfolio composition and performance wi