Tactical ETF Strategies Tax Aware Multi Asset Income June 2018

1. Tactical ETF StrategiesTax Aware Multi Asset Income June 2018

2. Tactical ETF Strategies About Sage Our Firm Solutions Investment Team • Based in Austin, TX • Founded in 1996 • 100% Employee Owned • $12.6 Billion AUM/AUA* • Traditional Fixed Income • Liability Based Solutions • Tactical ETF Strategies • 19 investment team • No turnover on IC • Average IC investment experience 27 years Tactical ETF Strategies • Began using ETFs in 1998, launched all-ETF global equity strategy in 2002 • Implement institutionalfixed income strategy in all-ETF mandate • Tactical asset allocation strategies with focus on risk management * As of 6/30/2018

3. Tactical ETF Strategies Income Solutions Tax Aware Multi Asset Income Multi Asset Income Strategy • Multi-Asset Tax Aware Income Strategy • Diversified Yield-Focused Allocation • - Invests in Municipal, Taxable & Equity Markets • - Maximum Yield with Volatility Constraints • Multi-Asset Income Strategy • Diversified Yield-Focused Allocation • - Invests in Global Equity & Bond Markets • - Maximum Yield with Volatility Constraints Overview Investment Approach • Deliver consistent risk-adjusted yield profile with emphasis on managing tax-free income, volatility, correlations, and drawdown risk • Deliver consistent risk-adjusted yield profile with emphasis on managing volatility, correlations, and drawdown risk • Core Municipal Income: 20%-60% • Non-Core Fixed Income: 0%-60% • Hybrids: 0%-30% • Dividend Equities: 10%-20% • Core Fixed Income: 20%-60% • Non-Core Fixed Income: 0%-60% • Hybrids: 0%-30% • Dividend Equities: 10%-20% Investment Universe

4. Tax Aware Multi Asset Income Overview Investment Philosophy Focus on Key Risk Decisions: actively manage market segment allocation Multi Disciplined Top Down Approach: macro, fundamental, relative valuation and technical analysis Solve For The Near Term: Investment Committee meets every two weeks to form 3-6 month outlook Risk Management Investment Team • Portfolio Constraints • Correlation to Equity • Minimize Large Drawdowns • Broad Asset Classes • Segment Allocation • Yield to Volatility • Allocation Limits

5. Tax Aware Multi Asset Income Investment Universe Dividend Equities 10%-20% IDV Intl Div Eqty DEM EM Div Eqty HDV US Div Eqty Hybrids 0%-30% CWB Convertibles PFF Preferreds VNQ REITs VNQI INTL REITs AMLP MLPs • BKLN • Bank Loans HYD High Yield Muni Non-Core Fixed Income • 0%-60% PCY EM Debt HYG High Yield Core Municipal Income 20%-60% MUB Core Muni SUB ST Core Muni MLN LT Muni FI ETF Building Blocks Sample Allocation and Characteristics, ETF universe is subject to change

6. Multi Asset Income Go Beyond Core Fixed Income MAI Current Portfolio Yield: 4.0% Source: Bloomberg as of 6/30/2018

7. Multi Asset Income Consider Volatility in Search of Yield MAI Current Yield / Volatility Ratio: 0.9 Source: Bloomberg as of 6/30/2018

8. Tax Aware Multi Asset Income Go Beyond Core Municipal Income TAMAI Current Portfolio Tax Equivalent Yield: 4.8% Bloomberg as of 6/30/2018

9. Tax Aware Multi Asset Income Consider Volatility in Search of Yield TAMAI Current Tax Equivalent Yield / Volatility Ratio: 1.2 Bloomberg as of 6/30/2018

10. Multi Asset IncomeMaintain Volatility in Line with Core Fixed Income Source: Bloomberg as of 6/30/2018

11. Tax Aware Multi Asset Income Maintain Adequate Diversification Across Asset Classes Source: Bloomberg, Sage, as of 6/30/2018.

12. Multi Asset Income Portfolio Construction Current Allocation Current Allocation as of 6/30/2018

13. Tax Aware Multi Asset Income Portfolio Construction Current Allocation * Tax Equivalent Yield; Current Allocation as of 6/30/2018

14. A Representative Client List* Taft-Hartley Funds Machinists Retiree Investment Trust, CA Resilient Floor Covering, CA Plumbers & Pipefitters Union Local 74, DE Miami Ironworkers Local 272, FL Peace Officers’ Annuity & Benefit Fund, GA I.B.E.W. Local 697, INUnited Steelworkers of America, KY I.U.O.E. Pipeline Employers H&W Fund, MD Flint Area Sheet Metal Workers Local 7-4, MI UAW GM Center Human Resources, MI UAW Retirees of Mack Trucks Health Benefit Fund, MI Gulfport Steamship Companies ILA, MS Elevator Constructors Local No. 1, NJ I.B.E.W. Local 400, NJ Plumbers Local 14, NJMetro – ILA, NJ No. NJ Teamsters Local 723, NJ Teamsters Industrial Employees, NJ Teamsters Local 73, NJ Trucking Employees of New Jersey, NJ WWEC Teamsters Local 863, NJ ATU Local 1342, NY I.U.O.E. Local 15, NY UAW Local 365 Pension Fund, NY Ohio Carpenters’ Health Plan, OH UAW Northwest Ohio Area Industries, OH UAW Retirees of Daimler Trucks North America, OR Steamfitters Local Union No. 420, PA Texas Iron Workers, TX Healthcare Institutions Kingman Hospital, Inc., AZ Baptist Health Systems of South Florida, FL Tift Regional Medical Center, GA King’s Daughters’ Hospital, IN Bryan Health, NE Deborah Heart and Lung Center, NJ Asante Healthy System, OR Lancaster General Hospital, PA The Princeton Community Hospital Assoc., WV Public Funds Tuscaloosa Police and Firefighters, AL Ojai Valley Sanitary District, CA City of Danbury, CT City of Deerfield Beach, FL City of Marietta, GAGeorgia Firefighters’ Pension Fund, GA St. Charles Fire Fighters Pension Fund, IL City of Jackson Act 345 Policemen's Firemen's RP, MI Metropolitan Library Systems, OK Texas State University, TX Retirement Plans Bermuda Electric Light Company, Ltd., BM Holland & Hart LLP, CO Steinman & Rodgers, LLP, DC Homebanc N.A., FL DLA Piper LLP, IL Hitachi High Technologies America, Inc., IL Scholle Corporation, IL TrueValue Corporation, IL Edw. C. Levy Co., MI La-Z-Boy Incorporated, MI Paul, Weiss, Rifkind, Wharton & Garrison, NY Turley, Redmond, Rosasco & Rosasco, LLP, NY Baker Botts, LLP, TX Brazos Electric Power Cooperative, TX Guadalupe Valley Telephone Cooperative, TX Mary Kay, Inc., TX Overland Partners, Inc., TX The Fordyce Company, TX Urgent Surgery Associates, TX Foss Maritime Company, WA Nintendo of America, Inc, WA SEH America, Inc., WA Alliance Laundry Systems LLC, WI Foundations & Endowments National Association for Biomedical Research, DCNFL Players Association Endowment, DC Florida United Methodist Foundation, Inc., FL H. Lee Moffitt Cancer Center & Research Institute Fdn., FL Allied Services Foundation, PA Western Pennsylvania School for the Deaf Endowment, PA The Catholic Foundation for the Diocese of Greensburg, PA Cancer Therapy and Research Foundation, TX Lutheran Foundation of Texas, TX Insurance Institutions American Longshore Mutual Association, AL State of Alabama DORM, AL Development Insurance Group, Inc., AZ Northwestern Arizona Regional Insurance Co., AZ Valley Schools Insurance Group, AZ Capstone Insurance Company, Ltd., Bermuda Seaview Insurance Company, CA CPA Mutual Insurance Company, FL MCNA Insurance Company, FL Prepared Insurance Company, FL Georgia Auto Dealers Association, GA Georgia Hospital Association Workers' Compensation, GA MagMutual Insurance Company, GA 3MP Insurance Company, Ltd., Grand Cayman Oxford Insurance Company TN, LLC, MD Mississippi Windstorm Underwriting Association, MS CrossFit Risk Retention Group, MT Preferred Contractors Insurance Company, MT Synergy Insurance Company, NC Constitution Insurance Company, NE Affinity Health Plan, Inc., NY ElderServe Health, Inc., NY EmblemHealth, Inc., NY Empire Bonding & Insurance Company, NY Independent Health Association, Inc., NY American Fidelity Corporation, OK Aegis Security Insurance Company, PA American Sentinel Insurance Company, PA Lackawanna Insurance Group, PA Multinational Insurance Company, Puerto Rico Titan Insurance Company, SC Cronus Insurance Company, TX Ethos Group Incorporated, TX Service Group Insurance & Financial Services, TX Texas Lawyers’ Insurance Exchange, TX *This is a partial representative client list that shows some of Sage Advisory’s clients without regard to either performance-based criteria or type of investment strategy utilized. Inclusion on this list is not intended as an endorsement by any such client of Sage Advisory or the advisory services provided to such client. July 2018

15. Disclosures This report is for informational purposes only and is not intended as investment advice or an offer or solicitation with respect to the purchase or sale of any security, strategy or investment product.  Although the statements of fact, information, charts, analysis and data in this report have been obtained from, and are based upon, sources Sage believes to be reliable, we do not guarantee their accuracy, and the underlying information, data, figures and publicly available information has not been verified or audited for accuracy or completeness by Sage.  Additionally, we do not represent that the information, data, analysis and charts are accurate or complete, and as such should not be relied upon as such.  All results included in this report constitute Sage’s opinions as of the date of this report and are subject to change without notice due to various factors, such as market conditions.  No part of this Material may be reproduced in any form, or referred to in any other publication, without our express written permission.  Investors should make their own decisions on investment strategies based on their specific investment objectives and financial circumstances.  All investments contain risk and may lose value.  Debt or fixed income securities are subject to market risk, credit risk, interest rate risk, call risk, tax risk, political and economic risk, derivatives risk, income risk, and other investment company risk. As interest rates rise, bond prices fall. Credit risk refers to an issuer’s ability to make interest payments when due. Below investment grade or high yield debt securities are subject to liquidity risk and heightened credit risk. Foreign investments involve additional risks as noted above.  Investing involves substantial risk and high volatility, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise.  Our Tactical ETF strategy invests in exchange traded funds (ETFs). Investors should consider funds’ investment objectives, risks, charges, and expenses carefully before investing. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. ETFs trade like stocks and may trade for less than their net asset value.  Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s investment portfolio. Past performance is not a guarantee of future results. Sage Advisory Services, Ltd. Co. is a registered investment adviser that provides investment management services for a variety of institutions and high net worth individuals.  For additional information on Sage and its investment management services, please view our web site at www.sageadvisory.com, or refer to our Form ADV, which is available upon request by calling 512.327.5530. Index Definitions: The Barclays Emerging Market Debt Index consists of the USD-denominated fixed- and floating-rate U.S. Emerging Markets Index and the fixed rate Pan-European Emerging Markets Index, which is primarily made up of GBP- and EUR-denominated securities. The Barclays Treasury Inflation Protected Securities Index is a rules based, market value-weighted index that tracks inflation-protected securities issued by the U.S. Treasury. The Barclays High Yield Bond Index measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. The Barclays MBS Index covers agency mortgage-backed pass-through securities (both fixed-rate and hybrid ARM) issued by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). The Barclays Agency Index includes native currency agency debentures from issuers such as Fannie Mae, Freddie Mac, and Federal Home Loan Bank. The Barclays Credit Index comprises the US Corporate Index and a non-corporate component that includes foreign agencies, sovereigns, supranationals and local authorities. The Barclays Treasury Index includes public obligations of the U.S. Treasury. The Russell 2000 Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe. It includes those Russell 2000 Index companies with higher price-to-value ratios and higher forecasted growth values The Russell 2000 Value Index measures the performance of small-cap value segment of the U.S. equity universe. It includes those Russell 2000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Deutsche Bank Liquid Commodity Index seeks to track the DBIQ Optimum Yield Diversified Commodity Index Excess Return™ by entering into long futures contracts and collateralizing those contracts with United States 3-month Treasury bills. The S&P 500 Growth and Value Indices measure Growth and Value in separate dimensions across six risk factors. Growth factors include sales growth, earnings change to price and momentum; and the Value factors include book value to price ratio, sales to price ratio and dividend yield. The S&P 400 Index measures the performance of the mid-capitalization sector of the US equity market. The component stocks have a market capitalization between $1 billion and $4 billion and are selected for liquidity and industry group representation. The MSCI EAFE Index seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the European, Australasian and Far Eastern markets. The WisdomTree Dividend Index of Europe, Far East Asia and Australasia (WisdomTree DEFA) is a fundamentally weighted Index that measures the performance of dividend-paying companies in the industrialized world, excluding Canada and the United States, that pay regular cash dividends and that meet other liquidity and capitalization requirements. It is comprised of companies incorporated in 16 developed European countries, Japan, Australia, New Zealand, Hong Kong and Singapore. Companies are weighted in the Index based on annual cash dividends paid. The MSCI EAFE Equal Weighted Index equally weights the securities in the MSCI EAFE Index (MSCI EAFE Cap-Weighted Index), which is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. In the MSCI EAFE Equal Weighted Index, each security has the same weight, meaning that the weight of each security is set to unity on the rebalancing date. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The Cohen & Steers Reality Majors Index consists of selected Real Estate Investment Trusts (REITs). The objective of the index is to represent relatively large and liquid REITs that my benefit from future consolidation and securitization of the U.S. real estate industry.