Council Rock Status Update

74 W. Broad Street, Suite 340, Bethlehem, PA 18018 www.cornerstone-companies.com

Council Rock Status Update

Who We Are

We have been

delivering a

fiduciary decision

making process for

more than 30 years.

We believe that an

innovative

process leads to

superior results.

We are focused on

creating positive

outcomes for our

clients.

We are a privately

held Registered

Investment Advisor

that specializes in

consulting to

successful

institutions and

wealthy families.

Our Experience

Our team has over 30+

professional designations



_CFP



CFA



_AIF



_CEBS



_CIPM

Ranked as 38

_largest

Registered Investment

Advisor by Financial Advisor

Magazine for 2015**

Ranked #27

on the list of

Forbes’ Top 100 Wealth

Managers

for 2015**

Named to the 2015

Financial Times 300 Top

Registered Investment

Advisors**



_CPA



_CRPS



ChFC



CASL



_CLU

We have maintained

greater than 97% client

retention over the past 10

years

$

5.1

Billion

97

%

Client

Retention

30

+

Professional

Designations

Industry

Awards and

Recognition

* Combined assets under management for both Cornerstone Advisors Asset Management, Inc. & Cornerstone Institutional Investors, Inc. as of 2015 Form ADV filing.

We have more than $5

billion in assets under

management*

Our Mission

Help our clients meet the highest fiduciary standards.

Recognize and responsibly manage risk.

Control overall costs.

Drive performance and results.

1

2

3

4

5

Understand our clients and their unique situations.

Open Architecture Solutions

CLIENT



The separation of

responsibilities creates

greater accountability,

transparency and reduces

conflicts of interest.



As a Registered Investment

Advisor, we have no

financial ties to anyone but

our clients, eliminating bias

and promoting decisions

that are solely in their best

interest.

Thought Leadership

Consultants

Malcolm L. “Skip” Cowen

President

Thomas J. Scalici

Chief Executive Officer

Tiffany A. Gilbert

Principal & Senior Consultant

Christopher W. Lakatosh

Principal & Senior Consultant

Brian D. Bobeck Senior Consultant Tyler J. Papaz Senior Consultant Michael M. Straubel Senior Consultant Michael J. Zambelli Senior Consultant/ Participant Services

Client Service

Consultant & Marketing Manager

Christopher G. Derocher

Client Account Manager

Jennifer V. Bauder

Client Account Manager

Investment Analysts

Kevin Karpuk, CFA

Chief Investment Officer

Ryan D. Wood, CFA

Senior Investment Analyst

Trevor M. Reid, CFA

Senior Investment Analyst

Whitney R. Bates

Investment Analyst

Core Services

Christopher J. McKinley

Director of Technology Chief Compliance Officer

James H. Bennewitz

Data Analyst

Jessica M. Long

Compliance and Operations Manager

William M. Soberick

Business Development Associate

Parag S. Joshi, CPA

Staff Accountant Kim M. Smalley Executive Assistant Katie L. Kaplan Strategic Assistant Suzelle E. Olmos Office Administrator Ashley M. Hoffman Administrative Assistant

www.cornerstone-companies.com

Malcolm L. “Skip” Cowen, II

President

9

EDUCATION AND ACCREDITATIONS

 BA, Business Administration, Gettysburg College, 1981

 MBA, Business Administration, Lehigh University, 1987

 Masters in Taxation, Villanova Law School, 1996

 General Securities Principal, Series 24

 Municipal Securities Principal, Series 53

 FINRA Series 7, 63, 65 Licenses

 Life, Accident and Health Insurance License

 AIF, (Accredited Investment Fiduciary), The Center For Fiduciary Studies, University of Pittsburgh, 2015

Over thirty years of industry experience and a shareholder and co-founder of Cornerstone Advisors Asset Management, Inc. and Cornerstone Institutional Investors, Inc.

As Cornerstone’s President, Skip works with institutional clients and wealthy families to help design, implement and monitor portfolios on their behalf. He is the chair of the Cornerstone Investment Policy Committee, which oversees all client assets. He has direct responsibility for client relationships as well as the overall direction of the firm. Skip became President of Cornerstone Advisors Asset Management, Inc. and Cornerstone Institutional Investors, Inc. in 2002.

EXPERIENCE

Expertise

Families

Fiduciary Investment Process and Governance Investment Performance

Measurement Risk Assessment

Kevin Karpuk, CFA

Chief Investment Officer

EDUCATION AND ACCREDITATIONS

 BS, Economics, Lehigh University, Bethlehem, PA, 2000

 MS, Economics, Lehigh University, Bethlehem, PA, 2001

 CFA® Charterholder, CFA Institute, 2005

 AIF® (Accredited Investment Fiduciary), The Center For Fiduciary Studies, University of Pittsburgh, 2012

 Municipal Securities Principal, Series 53

 Registered Options Principal, Series 4

 FINRA Series 7, 66 Licenses

 CIPM® (Certificate in Investment Performance Measurement) Certificant, CFA Institute

 Member of CFA Institute & CFA Society of Philadelphia

Kevin has worked with Cornerstone since May 2000, has 14 years of industry experience and is a shareholder of Cornerstone Advisors Asset Management, Inc. and Cornerstone Institutional Investors, Inc.

Kevin is Cornerstone’s Chief Investment Officer, specializing in asset allocation studies and managing due diligence and other special projects for a wide range of clients. Kevin became CIO of CAAM and CII in 2010. As such, his responsibilities include day-to-day management of client portfolios, research, having lead responsibility for Cornerstone’s fixed income and alternative investments and also managing client relationships.

EXPERIENCE

Expertise

Risk Management Manager Search / Selection

Special Projects Public Funds Planned Giving

www.cornerstone-companies.com

Tiffany A. Gilbert, AIF

®

, CHFC

®

, CASL

™

Principal

Senior Consultant & Director of Client Service Operations

11

EDUCATION AND ACCREDITATIONS

 BS, Business Administration, Shippensburg University, 1993

 ChFC® (Chartered Financial Consultant), American College, Philadelphia, PA, 2008

 CASL™ (Chartered Advisor for Senior Living), American College, Philadelphia, PA, 2008

 AIF® (Accredited Investment Fiduciary), The Center for Fiduciary Studies, University of Pittsburgh, 2002

 FINRA Series 7, 63, 65 Licenses

 Life, Accident and Health Insurance License

 Registered Paraplanner℠

Tiffany has worked with Cornerstone since August 1995. She has 19 years of industry experience and is a Principal of the organization. She consults with our investment clients and manages the service and operations teams for our firm. She serves as the liaison between our Investment Policy Committee and our Asset Management Group. She is responsible for the external and internal servicing of both CAAM and CII clients, which involves identifying client needs and solutions to ensure and promote client retention. Additionally Tiffany is one of five employees serving on Cornerstone’s Lead Team.

EXPERIENCE

Expertise

Asset Allocation Asset Management for Institutions and Affluent

Families Retirement Planning

Rita D. Miller

Investment Operations Supervisor

EDUCATION AND ACCREDITATIONS

 BS, Mathematics, Muhlenberg College, 2004, Summa Cum Laude

 MBA, Finance, DeSales University, 2009

 FINRA Series 7, 66 Licenses

Rita has been with Cornerstone since January 2005 and has ten years of industry experience. She currently oversees the operations of the Asset Management Team. Her responsibilities include coordinating all new business paperwork and ensuring the timely funding and transitioning of accounts. She is also responsible for the maintenance and ongoing servicing of client investment accounts.

EXPERIENCE

Expertise

New Accounts – Individual & Institutional

Portfolio Transitioning and Implementation

www.cornerstone-companies.com

Trevor Reid, CFA

Senior Investment Analyst

13

EDUCATION AND ACCREDITATIONS

 BS, Finance, Siena College, 2007

 CFA® Charterholder, CFA Institute

 FINRA Series 7, 66 Licenses

 AIF® (Accredited Investment Fiduciary), The Center For Fiduciary Studies, University of Pittsburgh, 2011

 Member of CFA Institute & CFA Society of Philadelphia

Trevor has been with Cornerstone since December 2008. Prior to Cornerstone, Trevor provided trading support at Evergreen Investments, a former division of Wachovia.

At Cornerstone, Trevor’s main responsibilities revolve around performance reporting, client reporting and manager due diligence, specifically in the domestic large capitalization category. He is also a member of Cornerstone’s Investment Policy Committee.

EXPERIENCE

Expertise

Ryan D. Wood, CFA, CIPM

Senior Investment Analyst

EDUCATION AND ACCREDITATIONS

 BA, Economics, Lehigh University, 2001

 MS, Economics, Lehigh University, 2002

 FINRA Series 7, 66, 86, 87 Licenses

 CFA® Charterholder, CFA Institute

 Member of CFA Institute & CFA Society of Philadelphia

 CIPM® (Certificate in Investment Performance Measurement) Certificant, CFA Institute

 AIF® (Accredited Investment Fiduciary), The Center For Fiduciary Studies, University of Pittsburgh, 2011

Ryan has worked with Cornerstone since May 2002 and is a Principal of the Company.

Upon completion of his Master's degree, Ryan began his career at Cornerstone as an analyst. He is responsible for portfolio design, reporting and research, and data analysis.. He is a member of the Investment Policy Committee, which makes decisions on investment-related research and due diligence. As a member of the Lead Team, Ryan plays a major role in the day-to-day operations of the business.

EXPERIENCE

Expertise

CRSD Transition Timeline

Retention (09/17/2015) Information Gathering _{(Immediate) Meeting (Early November)}Document Review and Transition of Assets _{(December 2015)}

Administrative

Retention (09/17/2015) Information Gathering (Immediate) _{Manager Search (Early November)}Current Structure Review/ Transition of Assets (December ₂₀₁₅₎

Investment

Retention (09/17/2015) _{Meetings (Early October)}Review and Consultation _{Meeting (Early November)}Findings and Solution Transition Review Meeting _{(Late December)}

Current Projects

1. Investment Policy Statement

2. Collateral Report & PLGIT Review

3. Custodian Search

4. Management Search

5. Reporting Design and Implementation

Investment Policy Statement



_{Specific Role of the Board}



_{Statement of Objectives}



_{Authority and Responsibilities}



Conditions and Assumptions



_{Securities Guidelines}



_{Selection of Managers}



_{Control Procedures}

Undivided Loyalty

In everything we do, Cornerstone is guided by a set of core principles. Our commitment to these principles is reflected in our client-first approach to business. Our obligation of undivided loyalty is born from these principles and makes us a true fiduciary.

Thought Leadership

Cornerstone is engaged in thought leadership. It's the ability to clearly understand our clients' needs so we can provide solutions that meet their expectations. We have a diverse client base that provides insight into many industries and broadens our perspective. Working with so many providers gives us feedback on best practices, trends, process and product innovations. This enables us to make better decisions.

Cornerstone's cumulative wisdom and experience inspire the innovative thinking that helps our clients.

Culture of Achievement

Cornerstone strives to create a culture of achievement. We foster a genuine commitment to exceeding expectations rather than just being in compliance. We define with our clients what success means to them and then strive to achieve that outcome. Our client retention rate in excess of 97 percent speaks volumes about their satisfaction level. In addition, every professional within the firm has accredited designations in his or her field as well as yearly educational goals.

Cornerstone is proud of not only who we work for, but who we work with in our organization.

True Open Architecture

Cornerstone has a true open architecture business model. This allows us to work with almost any money manager, custodian, record keeper, product or service provider. No one firm is the best at everything. That's why we believe that having open architecture allows us to find world-class service providers that specialize in each part of a financial solution. It also means we can negotiate contracts, pricing and services independently at every level of the relationship.

Cornerstone is dedicated to increasing the accountability of all parties involved.

No Conflicts of Interest

Cornerstone has no conflicts of interest. Individuals, committees, consultants and other parties who serve as fiduciaries are required to disclose any conflicts of interest in order to protect their portfolios. When they fail to identify conflicts, it's a breach of fiduciary duty and they're held personally liable.

Cornerstone holds itself to the highest standard of legal and moral obligation to our clients .

Transparency

Cornerstone operates with the utmost transparency, openness, and accountability. Greater transparency allows for better decision-making and helps us to understand the variables that impact asset performance. With greater transparency, we make more informed decisions, which is one of the key responsibilities of a fiduciary.

Cornerstone believes that this openness is a source of confidence that our clients rely on.

Innovative Technology

Cornerstone has innovative technology that is flexible, accurate and innovative. The technology we use to manage our business and support our clients is a combination of world-class sources such as Callan, Bloomberg, Schwab and others. This business visualization software provides global and client-specific reporting that is easy for them to use.

Cornerstone understands the value technology has to offer—it helps us to immediately respond to our clients' needs.

Commitment to Client Service

Cornerstone makes a commitment to client service. We're accessible, in person and on the phone, to answer your questions and fulfill your service needs. We're committed to providing outstanding, responsive customer service so we can address issues with an appropriate sense of urgency.

Cornerstone believes that it's the personal relationships we have with our clients that make a difference.

Rankings Explained

Inclusion in rankings and surveys does not imply anything about a particular client’s experience or investment results with Cornerstone Advisors Asset Management, Inc. or Cornerstone Institutional Investors, Inc.

2015 Financial Advisor Magazine (FA Mag) RIA Ranking

FA Magazine invites all independent registered investment advisors to participate who meet certain criteria. Firms are ranked based on assets under management as of year-end 2014 ADV filings. To be eligible for the ranking, firms must be independent registered investment advisors and file their own ADV statement with the SEC and provide financial planning and related services to individual clients. Corporate RIA firms and investment advisor representatives (IARs) are not eligible for this ranking.

2015 Forbes Top 100 Wealth Managers

The Forbes Top 100 Wealth Managers list was aggregated using data from their partner RIA Database and was ranked by assets under management from year-end 2014 ADV filings. Members of the list must manage at least 50% of their assets on behalf of retail clients, cannot run a broker-dealer (they can be affiliated with one), cannot be a bank (trust companies are permitted), and must be performing wealth management services. Lastly, firms included on the list cannot have had any regulatory, civil or criminal disclosures.

2015 Financial Times (FT) 300 Top Registered Investment Advisors

The 2015 Financial Times Top 300 Registered Investment Advisors is an independent listing produced by the Financial Times (June, 2015). The FT 300 is based on data gathered from RIA firms, regulatory disclosures, and the FT’s research. As identified by the FT, the listing reflected each practice’s performance in six primary areas, including assets under management, asset growth,

compliance record, years in existence, credentials and accessibility. Neither the RIA firms nor their employees pay a fee to The Financial Times in exchange for inclusion in the FT 300.

Disclosures

Securities offered through M Holdings Securities, Inc., MEMBER FINRA/SIPC

Investment Advisory Services offered through Cornerstone Advisors Asset Management, Inc. and/or Cornerstone Institutional Investors, Inc., which are independently owned and operated.

Performance quoted is past performance and is no guarantee of future results. Unless otherwise noted, data obtained from Callan Associates.

All indices are unmanaged and not available for direct investment.

Cornerstone Advisors Asset Management, Inc. and Cornerstone Institutional Investors, Inc. have exercised reasonable care in the preparation of this presentation. Several portions of this presentation are obtained from third party sources. While we have attempted to verify all information within, we disclaim all responsibility for any errors that may occur due to third party information and data.

The information is provided solely for informational purposes and therefore should not be considered an offer to buy or sell a security. Except as otherwise required by law, Cornerstone shall not be responsible for any trading decisions or damages or other losses resulting from, this information, data, analyses or opinions or their use. Please read the prospectus carefully before

investing. It is not a replacement for any account statement or transaction confirmation issued by the provider. Please compare this document to your custodial statement for accuracy, as applicable.