Destinations Portfolios

Specialty Strategies Recap

Defensive strategies gained 0.8% (Qualifi ed) and 0.9% (Tax-able) in August, and now are up 3.8% (Qualifi ed) and 4.4% (Taxable) so far this year. The portfolio is well positioned to protect if rates were to rise, but also to participate in bond rallies like we have experienced this year. Positive contribu-tors included our allocation to U.S. equities and equity-orient-ed absolute return strategies, as well as our core fi xed income allocation. Detractors included our allocation to low volatility fi xed income strategies, which fully hedge interest rate risk and could not keep up with the fi xed income indexes.

Balanced Income strategies gained 1.7% in August. Balanced Income continues to be our strongest performing strategy year-to-date, up 7.0% (Qualifi ed) and 7.3% (Taxable), helped by the strong performance of yield-oriented equity strategies and real assets. However, Balanced Income trailed the Moder-ate strategy in August as income equity lagged total return equity by a small margin, and growth outperformed value.

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 REVIEWAUGUST 2014

For use in a one-on-one presentation with Brinker Capital Destinations Advisors and clients. Brinker Capital Inc., A Registered Investment AdvisorBrinkerCapital.com 800.333.4573

The views expressed by Brinker Capital are for informational purposes only. Asset allocation does not assure a profi t 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 specifi c fi nancial 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.

After a lackluster July, equity markets continued to grind higher in August while global bond yields fell. Markets shook off elevated geopo-litical tensions in Ukraine and the Middle East, and focused on stronger earnings from U.S. companies, better U.S. macroeconomic data, and the anticipation that central banks globally will remain supportive.

The S&P 500 Index gained 4% and crossed the 2000 level for the fi rst time. Developed international equity markets meaningfully lagged the U.S. in August, in part due to weaker currencies. How-ever, emerging market equities posted another solid month and, after a very weak start to the year, are now ahead of U.S. equities. Global fi xed income rallied along with equities in August. The yield on the 10-year U.S. Treasury note fell 22 basis points to 2.34%, which is still above sovereign yields in Japan and most of Europe.

Traditional Strategies Recap

Destinations portfolios gained between 3.2% (Aggressive Equity) and 1.4% (Conservative), with Moderate up 2.1%. Year-to-date through August, portfolios have gained between 6.9% (Aggressive Equity) and 4.8% (Conservative), with the qualifi ed Moderate strategy up 5.7%.

Positive contributors to performance:

Overweight to risk

Underweight to international equity

International equity manager selection

Individual strategies: Columbia Select Large Cap Growth (+5.7%), RidgeWorth Mid Cap Value (+5.0%), Wasatch International Opportunities (+1.9%)

Performance detractors included:

Fixed income positioning (short duration)Absolute return allocation Listed private equity allocationIndividual strategies: Driehaus Active Income (-0.3%),JPMorgan Strategic Income Opportunities (+0.0%), Wasatch Frontier Emerging Small Countries (+0.0%)

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.

August 2014

Destinations Portfolios

For use in a one-on-one presentation with Brinker Capital Destinations Advisors and clients. Brinker Capital Inc., A Registered Investment AdvisorBrinkerCapital.com 800.333.4573

August YTD 1 Year 3 Year 5 Year 7 Year 10 YearSince

Inception 5 Year

Std Dev

Conservative Taxable 1.44% 5.74% 10.95% 6.59% 6.52% 3.88% 5.18% 6.30% (01-95) 4.68%

Conservative Qualifi ed 1.36% 4.81% 9.36% 6.51% 6.79% 3.54% 5.09% 6.10% (06-95) 4.74%

Moderately Conservative Taxable 1.67% 5.86% 12.57% 8.17% 7.75% 4.18% 5.77% 6.72% (02-95) 6.04%

Moderately Conservative Qualifi ed 1.59% 5.07% 11.21% 8.11% 7.92% 3.89% 5.68% 6.77% (02-95) 6.21%

Moderate Taxable 2.16% 6.16% 15.64% 10.88% 9.96% 4.38% 6.59% 7.54% (03-95) 8.94%

Moderate Qualifi ed 2.09% 5.67% 14.77% 10.88% 10.18% 4.45% 6.68% 7.78% (01-95) 9.12%

Moderately Aggressive Taxable 2.41% 6.32% 17.11% 12.29% 11.08% 4.48% 7.00% 7.51% (04-95) 10.37%

Moderately Aggressive Qualifi ed 2.36% 6.03% 16.57% 12.30% 11.22% 4.56% 7.11% 7.74% (01-95) 10.53%

Aggressive Taxable 2.67% 6.45% 18.49% 13.71% 12.20% 4.52% 7.37% 7.32% (07-95) 11.84%

Aggressive Qualifi ed 2.62% 6.31% 18.22% 13.76% 12.24% 4.60% 7.45% 8.04% (01-95) 11.96%

Aggressive Equity Taxable 3.21% 6.91% 21.22% 16.29% 14.05% 4.64% 7.83% 6.58% (01-97) 13.99%

Aggressive Equity Qualifi ed 3.21% 6.91% 21.23% 16.30% 14.04% 4.72% 7.88% 6.61% (01-97) 13.99%

Specialized Strategies

Conservative Government Focused 0.36% 1.60% 1.94% 0.63% 1.44% N/A N/A 1.81% (11-08) 1.42%

Defensive Taxable 0.89% 4.37% 6.86% 3.85% N/A N/A N/A 3.67% (10-09) N/A

Defensive Qualifi ed 0.82% 3.75% 5.81% 3.82% N/A N/A N/A 4.16% (10-09) N/A

Balanced Income Taxable 1.73% 7.34% 14.14% 10.06% 10.02% 4.54% N/A 5.13% (08-06) 6.60%

Balanced Income Qualifi ed 1.66% 7.03% 13.52% 10.10% 10.25% 4.47% 6.16% 6.11% (07-04) 6.65%

Major Market Indices

S&P 500 4.00% 9.89% 25.25% 20.61% 16.88% 6.79% 8.38% 13.08%

MSCI All Country World Index ex USA 0.57% 5.47% 18.25% 9.77% 8.64% 1.94% 8.41% 16.23%

Barclays US Aggregate 1.10% 4.81% 5.66% 2.91% 4.48% 5.16% 4.72% 2.79%

Barclays Muni 0.92% 5.43% 7.56% 3.80% 4.51% 4.43% 3.87% 3.56%

HFRX Global Hedge Fund 1.09% 1.97% 5.34% 2.83% 2.43% -0.67% 1.36% 4.11%

DJ UBS Commodity Index -1.05% 0.68% -2.92% -8.30% 0.22% -3.31% 0.26% 15.01%

FTSE/EPRA NAREIT Global Real Estate 1.53% 14.30% 20.29% 13.02% 13.93% 2.60% 8.64% 15.81%

Red Rocks Listed Private Equity 1.25% 1.73% 19.42% 17.63% 15.94% 0.56% 9.30% 19.33%