Global Balanced Fiduciary Services Lazard Asset Management

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Global Balanced Fiduciary Services Lazard Asset Management LLC Style: Global Multi Asset Year Founded: 1970 Sub-Style: Balanced Value-Oriented GIMA Status: Approved 30 Rockefeller Plaza Firm AUM: $183.9 billion^ Firm Ownership: Lazard Freres & Co. LLC New York, New York 10112 Firm Strategy AUM: $149.4 million^ Professional-Staff: 262^^^

PRODUCT OVERVIEW TARGET PORTFOLIO CHARACTERISTICS PORTFOLIO STATISTICS * Lazard Asset Management LLC's Global Balanced investment strategy Number of stock holdings: 40 to 60 ------03/16------09/15 seeks to invest in a high quality portfolio of global equity and fixed ------Average dividend yield: Similar to/Above the S&P 500 Lazard Index*** Lazard income securities. The global equity portion of the portfolio consists of 64 — 73 U.S. equities and foreign investments in the form of American Depository P/E ratio: Similar to the S&P 500 Number of stock holdings Receipts (ADRs). Lazard's value-oriented equity investment approach Cash level over market cycle: 0 to 10% Wtd avg dividend yield 1.9% — 1.9% emphasizes bottom-up stock selection that strives to identify inexpensively priced companies worldwide that are financially Risk (standard deviation): Similar to the 1040 SEC Yield —— — productive, with high returns on equity or assets. Country weightings are Average turnover rate: 0 to 30% Wtd avg P/E ratio —— 18.80x typically a fallout of stock picking. Lazard's process may, at times, result ¹ in portfolios that will be over/underweighted in particular Number of bond holdings: 1 to 10 Wtd avg portfolio beta —— — sectors/countries/regions versus the S&P 500 Index and MSCI World Average maturity: 1.0 to 5.0 years 0.0% 0.0% 0.0% Index. The fixed income portion of the investment strategy has a Mega capitalization ⁺ bottom-up orientation with a focus on credit quality. The fixed income Average credit quality: — Large capitalization ⁺ 0.0% 0.0% 0.0% portfolio consists of U.S. and foreign securities, which may include ETF's Use ADRs: 70 to 90% and Closed-End Funds. Medium capitalization ⁺ 0.0% 0.0% 0.0% Mega, Large and Medium Capitalization: Small capitalization 0.0% 0.0% 0.0% companies ⁺ Emerging markets exposure: No Micro capitalization ⁺ 0.0% 0.0% 0.0% Number of bond holdings —— — PORTFOLIO'S EQUITY SECTOR WEIGHTINGS ⁺⁺⁺ * Avg maturity —— — ------03/16 ------09/15 Sector Lazard Index*** Lazard Avg credit quality —— — 3.20 0.00 3.60 Energy PORTFOLIO'S TOP FIVE EQUITY HOLDINGS * % Materials 2.60 0.00 2.50 Apple Inc. 3.5 Industrials 11.70 0.00 8.50 Honeywell International Inc. 3.0 2.7 Consumer Discretionary 9.20 0.00 11.20 Anheuser -Busch InBev SA Alphabet Inc. Class A 2.6 Consumer Staples 17.20 0.00 15.80 Reynolds American Inc. 2.5 Health Care 15.10 0.00 13.70

Financials 13.80 0.00 21.20 % PROCESS BASED ON Information Technology 21.40 0.00 17.70 0 Asset allocation 0 Industry or sector weighting Telecomm Services 1.80 0.00 3.10 90 Stock Selection Utilities 0.00 0.00 0.00 MANAGER'S INVESTMENT STRATEGY 0 Duration Management Cash/Cash Equivalents 4.00 0.00 2.70 0 Yield Curve Management £ Top-down / portfolio structures based on economic trends 0 Sector Selection X Bottom-up / portfolio structure based on individual securities 10 Bond Selection

^As of 09/30/2015. Information as of 03/31/2016 is n ot yet available. ¹The P/E used here is calculated by the harmonic mea n. Total may not equal 100% due to rounding. ^^^As of 03/31/2015. Information as of 03/31/2016 is not yet ⁺ available. *As represented by Lazard Asset Management LLC.

Past performance is no guarantee of future results. This profile is not complete without the pages, which contain important notes, including disclosures about the composite, index descriptions and a glossary of terms. Information shown is as of March 31, 2016, unless otherwise noted. All data are subject to change. Page 1 of 6

Global Balanced Fiduciary Services

MANAGER'S INVESTMENT PROCESS RISK CONSIDERATIONS PORTFOLIO'S ALLOCATION HISTORY (%) ⁺⁺⁺ * • Identify value universe through proprietary screening process Investing in securities entails risks, including: Equity portfolios 03/16 12/15 09/15 06/15 • Fundamental analysis of stocks including accounting validation are subject to the basic stock market risk that a particular U.S. Stocks 0 0 35 37 security, or securities in general, may decrease in value. Fixed • Select stocks with low price/book, low price/cash flow, high return on ADRs/Non -U.S. Stocks 0 0 22 23 Income securities may be sensitive to changes in prevailing equity and assets SPDR Barclays Shrt 0 0 18 17 interest rates. When rates rise the value generally declines. Term Corporate Bond • Select high quality bonds through systematic valuation of yield curves, There is no assurance that the private guarantors or insurers will sectors and individual securities ETF meet their obligations. International investing should be iShares Barclays MBS 0 0 21 21 • Lazard will sell securities when they believe they have become fairly considered one component of a complete and diversified Bond Fund valued, fundamentals change, or more attractive opportunities exist investment program. Investing in foreign markets entails greater Cash/Cash Equivalents 0 0 4 3 risks than those normally associated with domestic markets such as foreign political, currency, economic and market risks. Equity securities' prices may fluctuate in response to specific situations for each company, industry, market conditions and general economic environment. Companies paying dividends can reduce or cut payouts at any time. Growth investing does not guarantee a profit or eliminate risk. The stocks of these companies can have relatively high valuations. Because of these high valuations, an investment in a growth stock can be more risky than an investment in a company with more modest growth expectations. Value investing does not guarantee a profit or eliminate risk. Not all companies whose stocks are considered to be value stocks are able to turn their business around or successfully employ corrective strategies which would result in stock prices that do not rise as initially expected.

FIXED INCOME SECTOR DISTRIBUTION (%) ⁺⁺⁺ * 03/16 12/15 09/15 06/15 ishares Barclays MBS 0.00 0.00 55.00 55.00 Fixed-Rate Bond Fund SPDR Barclays Short Term 0.00 0.00 45.00 45.00 Corporate Bond ETF

Global Balanced Fiduciary Services

RISK/RETURN ANALYSIS - 5 YEARS ENDING 03/31/16 AVERAGE ANNUAL TOTAL RETURN (%) - PERIODS ENDING 03/31/16 R R a a t t e e

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R R e e t t u u r r n n s s Standard Deviation (%) STD ROR INVESTMENT RESULTS Annual Rates of Return (%) 10 Year - Ending 03/31/16 Lazard (Gross) 7.54 6.07 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Annual Std. Dev. Lazard (Gross) 16.07 9.93 -18.58 16.74 8.68 0.81 12.66 14.55 3.90 1.51 5.68 9.28 Lazard (Net) 7.51 2.97 60% MSCI World/40% BCGCI Index 7.64 5.68 Lazard (Net) 12.75 6.74 -21.12 13.40 5.52 -2.11 9.36 11.29 0.80 -1.46 2.59 9.27 90-Day T-Bills 0.02 0.06 60% MSCI World/40% 13.82 8.83 -24.43 20.59 10.29 -0.48 11.54 15.36 4.62 0.47 5.00 10.63 BCGCI Index

RISK VOLATALITY (%) PORTFOLIO'S RISK STATISTICS - PERIODS PORTFOLIO'S QUARTERLY RETURNS (%) ENDING 03/31/16 ¹ ² R Quarter1 Quarter2 Quarter3 Quarter4 3 Year 5 Year a Gross Net Gross Net Gross Net Gross Net Standard Deviation 5.29% 7.54% t 2006 4.48 3.73 0.19 -0.56 4.44 3.69 6.17 5.42 e 5.47% 7.64% 2007 1.10 0.35 4.55 3.80 3.30 2.55 0.68 -0.07 Standard Deviation of Primary Benchmark o 2008 -2.72 -3.47 -1.83 -2.58 -6.83 -7.58 -8.49 -9.24 0.99 0.80 f 2009 -5.53 -6.28 9.22 8.47 10.74 9.99 2.16 1.41 Sharpe Ratio

2010 2.44 1.69 -6.64 -7.39 8.90 8.15 4.36 3.61 Sharpe Ratio of Primary 0.96 0.74 R Benchmark e 2011 2.61 1.86 1.79 1.04 -8.00 -8.69 4.92 4.18 t 2012 8.83 8.05 -2.76 -3.50 5.03 4.25 1.37 0.61 Alpha 0.28% 0.55% u 2013 4.02 3.26 -0.37 -1.11 4.94 4.17 5.34 4.61 Beta 0.93 0.97 r 2014 -0.24 -1.01 3.18 2.41 -1.13 -1.88 2.09 1.34 1.04% 0.92% n Downside Risk s 2015 2.12 1.35 -0.23 -0.98 -3.60 -4.31 3.36 2.62 R-Squared 0.93 0.96 2016 0.41 -0.36 Tracking Error 1.42% 1.52% Related Fiduciary Services Information Ratio -0.04 0.25 *04/01/11-12/31/11 **01/01/16-03/31/16 Number Of Up Qtrs. Down PORTFOLIO DIVERSIFICATION - R ² (INCEPTION THROUGH 12/14)+ 1. Statistics are calculated using gross of fee

Qtrs. performance only. Lazard (Gross) 13 7 R² 2. 60% MSCI World/40% BCGCI Index was used as 12 8 0.96 Lazard (Net) Lazard vs. 60% MSCI World/40% BCGCI Index the primary benchmark and the 90-Day T-Bills Index 60% MSCI World/40% BCGCI Index 15 5 as the risk-free benchmark. +Statistics are calculated using gross of fee performance only.

See important notes and disclosures pages for a discussion of the sources of the performance data used to calculate the performance results and related analyses shown above.

Global Balanced Fiduciary Services

COMPOSITE DISCLOSURES Net Performance for all Periods: To demonstrate the effect of Morgan Stanl ey's fees that would have applied if you had invested in the investment manager strategy's through the Fiduciary Services Past performance is no guarantee of future results. Actual individual account results may differ program, the net results for all periods are calculated by deducting a quarterly fee of 0.75% (equivalent from the performance shown in this profile. There is no guarantee that this investment strategy to an annual fee of 3%). will work under all market conditions. Do not use this profile as the sole basis for your investment decisions. Morgan Stanley program fees are usually deducted quarterly, and have a compounding effect on performance. The Morgan Stanley program fee, which differs among programs and clients, is Performance results in this profile are calculated assuming reinvestment of dividends and income. described in the applicable Morgan Stanley ADV brochure, which is available at Returns for more than one year are annualized and based on quarterly data. Returns for periods of www.morganstanley.com/ADV or on request from your Financial Advisor or Private Wealth Advisor. less than a calendar year show the total return for the period and are not annualized. Document approval date February 2013. Related Performance (Manager's Composite): For periods before the date on which Morgan Stanley begins to calculates an applicable performance Fiduciary Services is a separately managed account program sponsored by Morgan Stanley. For composite for actual Morgan Stanley program accounts, the performance composite and certain other periods for which sufficient data is available, the profile shows a composite of client accounts managed information for this strategy (including the data on page 1 of this profile) are based on the investment by the investment manager in the Fiduciary Services program. Through June 2012, Morgan Stanley manager's own composite and data. This composite includes accounts managed by the investment offered the Fiduciary Services program through two channels - the Morgan Stanley channel and the manager according to the same or a substantially similar investment strategy. To provide maximum Smith Barney channel. For periods through June 2012, any composite based on Fiduciary Services information to you, the investment manager's own composite is linked to the Morgan Stanley accounts consists of Fiduciary Services accounts managed by the manager in the strategy in either composite to create a simulated continuous track record of performance information for the investment the Morgan Stanley channel or the Smith Barney channel. If the strategy or similar strategies were strategy. The investment manager's composite may include separately managed account s, institutional available in both the Morgan Stanley and Smith Barney forms of the program, through June 2012 this accounts and/or mutual funds. Performance and other data for the investment managers composite profile presents the composite for the strategy that is closest to the strategy currently offered in the may vary from that of Morgan Stanley accounts due to differences such as the availability and Fiduciary Series program. If both strategies were equally close, this profile shows through June 2012 weighting of securities, trading implementation or client objectives. Morgan Stanley does not verify the longer of the two composites. From July 2012, any composite based on Fiduciary Services composite and other data provided by the investment manager and therefore does not guarantee its accounts consists of all Fiduciary Services accounts managed by the manager in the strategy, subject accuracy. Some of the accounts in the investment managers composite may have invested in the to any other limitations stated in this profile. Performance and other data for Fiduciary Services initial public offering ("IPO") market, whereas accounts held in Morgan Stanley programs do not do so. composites may differ from composites in other Morgan Stanley programs, and performance and data Since investment managers may use different methods of selecting accounts to be included in their for composites in one channel may differ from composites in the other channel, due to differences composites and for calculating performance, returns of different investment managers may not be such as the availability and weighting of securities, trading implementation or client objectives. comparable.

Focus List, Approved List, and Watch Status: Related Performance: Global Investment Manager Analysis ("GIMA") uses two methods to evaluate investment products in The composite consists of N/A account(s) with a market value of N/A as of 03/31/16. applicable advisory programs. In general, strategies that have passed a more thorough evaluation may be placed on the "Focus List", while strategies that have passed through a different and less Fiduciary Services Performance: comprehensive evaluation process may be placed on the "Approved List". Sometimes an investment In this profile, the performance from 1/1/2011 through June 2012 consists of accounts in either the product may be evaluated using the Focus List process but then placed on the Approved List instead Morgan Stanley or the Smith Barney form of the Fiduciary Services program. From July 2012, of the Focus List. performance consists of all Fiduciary Services accounts managed by the investment manager in the Investme nt products may move from the Focus List to the Approved List, or vice versa. GIMA may also strategy, subject to any other limitations stated in this profile. Performance composites calculated by determine that an investment product no longer meets the criteria under either evaluation process and Morgan Stanley include all fee-paying portfolios with no investment restrictions. New accounts are will no longer be recommended in investment advisory programs (in which case the investment included upon the first full quarter of performance. Terminated accounts are removed in the quarter in product is given a "Not Approved" status). which they terminate. Performance is calculated on a total return basis and by asset weighting the GIMA has a "Watch" policy and may describe a Focus List or Approved List investment product as individual portfolio returns using the beginning of period values. being on "Watch" if GIMA identifies specific areas that (a) merit further evaluation by GIMA and (b) may, but are not certain to, result in the investment product becoming "Not Approved". The Watch Global Balanced Account (Gross): Lazard’s gross results do not reflect a deduction of the period depends on the length of time needed for GIMA to conduct its evaluation and for the investment investment advisory fees charged by Lazard, or program fees, if any, but are net of commissions manager to address any concerns. GIMA may, but is not obligated to, note the Watch status in this charged on securities transactions. report with a "W" or "Watch" on the cover page.

Global Balanced Fiduciary Services

For more information on the Focus List, Approved List, and Watch processes, please see the 60% MSCI World/40% BCGCI Index applicable Morgan Stanley ADV brochure (www.ms.com/adv). Your Financial Advisor or Private Wealth Advisor can provide on request a copy of a paper entitled "GIMA: At A Glance ". 40% Barclays Capital Intermediate Government/Credit Bond Index, 60% MSCI World Index - gross

ADDITIONAL DISCLOSURES 90 -Day T -Bills

The information about a representative account is for illustrative purposes only. Actual account The 90-Day Treasury Bill is a short-term obligation issued by the United States government. T-bills are holdings, performance and other data will vary depending on the size of an account, cash flows within purchased at a discount to the full face value, and the investor receives the full value when they an account, and restrictions on an account. Holdings are subject to change daily. The information in mature. The difference of discount is the interested earned. T-bills are issued in denominations of this profile is not a recommendation to buy, hold or sell securities. $10,000 auction and $1,000 increments thereafter.

Actual portfolio statistics may vary from target portfolio characteristics. S&P 500

The investment manager may use the same or substantially similar investment strategies, and may The S&P 500 Total Return has been widely regarded as the best single gauge of the large cap U.S. hold similar portfolios of investments, in other portfolios or products it manages (including mutual equities market since the index was first published in 1957. The index has over $5.58 trillion funds). These may be available at Morgan Stanley or elsewhere, and may cost an investor more or benchmarked, with index assets comprising approximately $1.31 trillion of this total. The index less than this strategy in the Morgan Stanley Fiduciary Services program. includes 500 leading companies in leading industries of the U.S. economy, capturing 75% coverage of U.S. equities. This index includes dividend reinvestment. The portfolio may, at times, invest in exchange-traded funds (ETFs), which are a form of equity security in seeking to maintain continued full exposure to the broad equity market. Indices are unmanaged and have no expenses. You cannot invest directly in an index.

Morgan Stanley investment advisory programs may require a minimum asset level and, depending on GLOSSARY OF TERMS your specific investment objectives and financial position, may not be suitable for you. Investment Alpha is a mathematical estimate of risk-adjusted return expected from a portfolio above and beyond advisory program accounts are opened pursuant to a written client agreement. The investment the benchmark return at any point in time. manager acts independently of, and is not an affiliate of, Morgan Stanley Smith Barney LLC. Diversification does not guarantee a profit or protect against a loss. American Depositary Receipts (ADRs) are receipts for shares of a foreign-based corporation held in the vault of a U.S. bank. No obligation to notify Morgan Stanley has no obligation to notify you when information in this profile changes. Average Portfolio Beta is a measure of the sensitivity of a benchmark or portfolio's rates of return to changes against a market return. The market return is the S&P 500 Index. It is the coefficient Sources of information Material in this profile has been obtained from sources that we believe to be measuring a stock or a portfolio's relative volatility. reliable, but we do not guarantee its accuracy, completeness or timeliness. Third party data providers make no warranties or representations relating to the accuracy, completeness or timeliness of th e data they provide and are not liable for any damages relating to this data. Beta is a measure of the sensitivity of a portfolio's rates of return to changes in the market return. It is the coeffecient measuring a stock or a portfolio's relative volatility. No tax advice Morgan Stanley and its affiliates do not render advice on legal, tax and/or tax accounting matters to clients. Each client should consult his/her personal tax and/or legal advisor to learn about Bottom -Up Stock Selection Emphasis primarily on individual stock selection. Considerations of any potential tax or other implications that may result from acting on a particular recommendation. economic and industry factors are of secondary importance in the investment decision-making process.

Not an ERISA fiduciary Morgan Stanley is not acting as a fiduciary under either the Employee Capitalization is defined as the following: Mega (Above $100 billion), Large ($12 to $100 billion), Retirement Income Security Act of 1974, as amended, or under section 4975 of the Internal Revenue Medium ($2.5 - $12 billion), Small ($.50 - $2.5 billion) and Micro (below $.50 billion). Code of 1986, as amended, in providing the information in this profile. Dividend a portion of a company's profit paid to common and preferred shareholders. ©2015 Morgan Stanley Smith Barney LLC Member SIPC.

INDEX DESCRIPTIONS

Global Balanced Fiduciary Services

Downside Risk is a measure of the risk associated with achieving a specific target return. This statistic separates portfolio volatility into downside risk and upside uncertainty. The downside considers Top -Down/ Economic Analysis Emphasis primarily on macroeconomic trends as opposed to all returns below the target return, while the upside considers all returns equal to or above the target bottom-up stock selection. return. Tracking Error represents the standard deviation of the difference between the performance of the Duration is a measure of price sensitivity expressed in years. investment strategy and the benchmark. This provides a historical measure of the variability of the investment strategy's returns relative to its benchmark. High Grade Corporate Bonds corporate bonds from issuers with credit ratings of AA or AAA. U.S. Treasury Bonds a marketable, fixed interest U.S. government debt security with a maturity of Information Ratio is a measure of the investment manager's skill to add active value against a given more than 10 years. Treasury bonds make interest payments semi-annually and the income that benchmark relative to how stable that active return has been. Essentially, the information ratio explains holders receive is only taxed at the federal level. how significant a manager's alpha is. Therefore, the higher the information ratio, the more significant the alpha. Volatility a measure of risk based on the standard deviation of the asset return. Volatility is a variable that appears in option pricing formulas, where it denotes the volatility of the underlying asset return Investment Grade Bonds are those rated by Standard & Poor's AAA (highest rated), AA, A or BBB (or from now to the expiration of the option. There are volatility indexes. Such as a scale of 1-9; a higher equivalent rating by other rating agencies or, in the case of securities not rated, by the investment rating means higher risk. manager).

Price/Book Ratio (P/B) weighted average of the stocks' price divided by book value per share. Book value per share is defined as common equity, including intangibles, divided by shares outstanding times the adjustment factor.

Price/Cash Flow Ratio a ratio used to compare a company's market value to its cash flow. It is calculated by dividing the company's market cap by the company' operating cash flow in the most recent fiscal year (or the most recent four fiscal quarters); or, equivalently, divide the per-share stock price by the per-share operating cash flow.

Price/Earnings Ratio (P/E Ratio) shows the multiple of earnings at which a stock sells. Determined by dividing current stock price by current earnings per share (adjusted for stock splits). Earnings per share for the P/E ratio are determined by dividing earnings for past 12 months by the number of common shares outstanding. The P/E ratio shown here is calculated by the harmonic mean.

Price/Sales Ratio determined by dividing current stock price by revenue per share (adjusted for stock splits). Revenue per share for the P/S ratio is determined by dividing revenue for past 12 months by number of shares outstanding.

R2 (R -Squared)/Portfolio Diversification indicates the proportion of a security's total variance that is benchmark-related or is explained by variations in the benchmark.

Sharpe Ratio measures the efficiency, or excess return per unit of volatility, of a manager's returns. It evaluates managers' performance on a volatility-adjusted basis.

Standard Deviation is a statistical measure of historical variability or spread of returns around a mathematical average return that was produced by the investment manager over a given measurement period. The higher the standard deviation, the greater the variability in the investment manager's returns relative to its average return.