Destinations Portfolios

Markets continued to grind higher in the second quarter, with the S&P 500 gaining +5.2%, small caps (Russell 2000) up +2.1%, international developed markets (MSCI EAFE) up +4.3%, Emerg-ing Markets up +6.7% and fixed income (Barclays Aggregate) up +2.0%. The S&P 500 is now up over +7% year to date, and up nearly 20% since investor sentiment levels became elevated in September 2013. While elevated sentiment is a negative market indicator in our eyes, absent a catalyst the market can often plow through. We remain cautiously optimistic, translating into an overweight to overall risk across portfolios, primarily in moderate to aggressive strategies.

Traditional Strategies Recap

Because of the strong performance of global equity markets in the second quarter, Destinations investors were rewarded for taking risk. Aggressive Equity, which gained +4.1%, was the top performing strategy. However, all strategies produced solid gains, with Conservative up +2.6% and Moderate up +3.3%. Year to date returns for all portfolios are within a tight band of +4.1% (Conservative) to +5.2% (Aggressive Equity).

Positive contributors to performance during the quarter:

Overweight to risk

Allocation to global natural resources

Focus on yield-advantaged fixed income

Performance detractors included:

Domestic equity manager selection, particularly the growth side

Emphasis on absolute return in lieu of fixed income

Specialty Strategies Recap

Defensive gained +1.9% in the second quarter and has gained +5.2% over the last 12 months, in line with its stated objec-tives. Positive contributors for the quarter were our focus on yield advantaged fixed income, as well as a meaningful alloca-tion to equity-oriented strategies and closed-end funds. Our low volatility absolute return allocation was a detractor, as those strategies delivered slightly positive returns, but lagged pure fixed income.

Balanced Income has been our best performing strategy so far in 2014, gaining +4.1% in the second quarter and +6.7% year to date. The strategy’s value and income biases played well during the quarter helped by strong performance high dividend and preferred REIT strategies. On the fixed income side, meaningful allocations to US and emerging market credit were also positives. Our low volatility absolute return alloca-tion was a detractor, as those strategies delivered slightly positive returns, but lagged pure fixed income.

Current Positioning Summary

Allocation Decision Current Bias

Overall Risk Overweight

Global Equity Overweight U.S. versus international

U.S. EquityOverweight large cap at the expense of small cap; growth bias; equity income allocation

Int’l EquityUnderweight developed; EM overweight concentrated in frontier markets

Fixed Income Emphasize MBS, global credit, short duration

Absolute Return Credit oriented strategies, closed-end funds, event driven

Real Assets Global natural resource equities

Private EquityListed private equity allocation in moderate to aggressive strategies

MONTHLY COMMENTARY

PORTFOLIO REVIEWJUNE 2014

For use with advisors and investors in a one-on-one setting Brinker Capital Inc., A Registered Investment AdvisorBrinkerCapital.com 800.333.4573

Asset allocation does not assure a profit or protection against loss. Investing in any investment vehicle carries risk, including the possible loss of principal, and there can be no assurance that any investment strategy will provide positive performance over a period of time. The asset classes and/or investment strategies described in this publication may not be suitable for all investors. Investment decisions should be made based on the investor’s specific financial needs and objectives, goals, time horizon, tax liability, and risk tolerance. When investing in managed accounts and wrap accounts, there may be additional fees and expenses added onto the fees of the underlying investment products.

PORTFOLIO PERFORMANCE

Past performance does not guarantee future results. Returns are based on actual market values and are weighted accordingly. The returns assume reinvestment of dividends or any earnings. Time periods were selected by Brinker Capital and are shown for illustrative purposes only. Returns are calculated gross (before the deduction) of advisory fees payable to Brinker Capital and any other expenses for services not covered by the advisory fee including administrative costs, which would reduce your return. The net effect of the deduction of Brinker Capital’s fees on annualized performance, including the compounded effect over time, is determined by the relative size of the fee and the account’s investment performance. The chart to the right depicts the effect of a 1% management fee on the growth of one dollar over a ten year period at 10% (9% after fees), 5% (4% after fees) and 3% (2% after fees) assumed rates of return.

JUNE 2014

For use with advisors and investors in a one-on-one setting Brinker Capital Inc., A Registered Investment AdvisorBrinkerCapital.com 800.333.4573

Destinations Portfolios

June QTD YTD 1 Year 3 Year 5 Year 7 Year 10 YearSince

Inception 5 Year

Std Dev

Conservative Taxable 0.64% 2.64% 4.63% 9.57% 5.58% 7.38% 3.66% 5.05% 6.30% (01-95) 4.85%

Conservative Qualified 0.78% 2.57% 4.06% 9.09% 5.43% 7.85% 3.38% 5.02% 6.11% (06-95) 4.96%

Moderately Conservative Taxable 0.89% 2.90% 4.78% 11.77% 6.75% 8.82% 3.94% 5.56% 6.72% (02-95) 6.23%

Moderately Conservative Qualified 1.01% 2.83% 4.29% 11.34% 6.58% 9.15% 3.69% 5.51% 6.79% (02-95) 6.43%

Moderate Taxable 1.46% 3.31% 4.98% 15.87% 8.57% 11.44% 4.06% 6.25% 7.54% (03-95) 9.17%

Moderate Qualified 1.53% 3.25% 4.67% 15.58% 8.50% 11.79% 4.16% 6.37% 7.80% (01-95) 9.39%

Moderately Aggressive Taxable 1.68% 3.54% 5.05% 17.76% 9.55% 12.70% 4.13% 6.58% 7.51% (04-95) 10.60%

Moderately Aggressive Qualified 1.74% 3.50% 4.90% 17.63% 9.49% 12.92% 4.23% 6.71% 7.75% (01-95) 10.78%

Aggressive Taxable 1.95% 3.76% 5.08% 19.60% 10.54% 14.00% 4.13% 6.86% 7.32% (07-95) 12.09%

Aggressive Qualified 1.98% 3.74% 5.02% 19.59% 10.49% 14.08% 4.22% 6.95% 8.05% (01-95) 12.21%

Aggressive Equity Taxable 2.23% 4.09% 5.15% 22.81% 12.32% 16.07% 4.15% 7.22% 6.55% (01-97) 14.26%

Aggressive Equity Qualified 2.23% 4.09% 5.15% 22.81% 12.32% 16.07% 4.22% 7.27% 6.58% (01-97) 14.26%

Specialized Strategies

Conservative Government Focused -0.01% 0.87% 1.41% 1.48% 0.91% 1.55% n/a n/a 1.83% (11-08) 1.42%

Defensive Taxable 0.47% 1.96% 3.60% 5.41% 3.60% n/a n/a n/a 3.65% (10-09) n/a

Defensive Qualified 0.57% 1.91% 3.25% 5.24% 3.49% n/a n/a n/a 4.20% (10-09) n/a

Balanced Income Taxable 1.10% 4.20% 6.75% 13.13% 8.84% 11.62% 4.10% n/a 5.16% (08-06) 6.85%

Balanced Income Qualified 1.15% 4.12% 6.56% 13.02% 8.82% 11.94% 4.09% 6.17% 6.17% (07-04) 6.93%

Major Market Indices

S&P 500 2.07% 5.23% 7.14% 24.61% 16.58% 18.83% 6.16% 7.78% 13.29%

MSCI All Country World Index ex USA 1.72% 5.25% 5.89% 22.27% 6.21% 11.59% 1.73% 8.22% 16.73%

Barclays US Aggregate 0.05% 2.04% 3.93% 4.37% 3.66% 4.85% 5.35% 4.93% 2.83%

Lipper Intermediate Municipal -0.05% 1.97% 4.30% 4.94% 4.19% 4.85% 4.35% 4.03% 3.61%

HFRX Global Hedge Fund 0.93% 0.64% 1.76% 5.28% 1.53% 2.97% -1.20% 1.22% 4.13%

DJ UBS Commodity Index 0.60% 0.08% 7.08% 8.21% -5.17% 1.99% -2.69% 0.87% 14.89%

FTSE/EPRA NAREIT Global Real Estate 1.36% 7.88% 12.21% 14.38% 10.19% 17.41% 2.01% 9.12% 16.52%

Red Rocks Listed Private Equity 3.17% 2.05% 4.69% 27.81% 13.10% 21.31% 0.18% 9.60% 20.00%