Our Perspective VOLATILITY RETURNS & HAPPY HOLIDAYS - DECEMBER 2016 Ronald Schwartz, CFA Managing Director, Senior Portfolio Manager, Tax-Exempt We began 2016 with the 10yr AAA MMD rate at 1.87%, on June 26th it bottomed out at 1.29%, and then peaked at 2.58% on December 1st. The election (please refer to our November 2016 Report) sparked the price plunge and retail investor selling of tax exempt mutual funds-after a year of steady inflows. We began raising cash and upgrading our portfolios in the third quarter to take advantage of tight credit spreads and in anticipation of technical dislocations that historically occur in the fall months. While we expected 4th quarter seasonal technical volatility, the degree of the rate and ratio moves were extreme as result of the November election.

The chart below shows just how volatile the year was for municipal bonds. Ron is a Senior Portfolio Manager focused on the TaxExempt Strategies. He has worked in the investment management industry since 1982. Ron received a B.A.

in Business Administration from Adelphi University and is a CFA Charterholder and a member of the CFA Society of Orlando. Scott Andreson Director, Municipal Research Scott is the Director of Municipal Research for Seix Investment Advisors. He has more than 17 years of investment experience. He earned his MPA from USC and is a current officer of the National Federation of Municipal Analysts. CONTRIBUTORS Dusty Self Managing Director, Senior Portfolio Manager, Tax-Exempt Phillip Hooks, CFA Vice President, Municipal Credit Research 2017 is likely to be another challenging year as investors weigh the potential impact of tax reform, increased infrastructure spending, ACA repeal, and negative headlines surrounding substantial unfunded pension liabilities. We believe that volatility often presents opportunities, and our relative value trading style may be well suited for the current unpredictable political environment that has led to significant bouts of market volatility. .

Our Perspective VOLATILITY RETURNS & HAPPY HOLIDAYS - DECEMBER 2016 Wishing you a Joyous Holiday Season and a New Year filled with Peace and Happiness Seix Investment Advisors LLC The assertions in this perspective are Seix Investment Advisors’ opinion. Investment Risks: All investments involve risk. Debt securities (bonds) offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Generally, a portfolio’s fixed income securities will decrease in value if interest rates rise and vice versa.

A portfolio’s income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax. There is no guarantee a specific investment strategy will be successful. This information and general market-related projections are based on information available at the time, are subject to change without notice, are for informational purposes only, are not intended as individual or specific advice, may not represent the opinions of the entire firm, and may not be relied upon for individual investing purposes. Information provided is general and educational in nature, provided as general guidance on the subject covered, and is not intended to be authoritative.

All information contained herein is believed to be correct, but accuracy cannot be guaranteed. This information may coincide or conflict with activities of the portfolio managers. It is not intended to be, and should not be construed as investment, legal, estate planning, or tax advice.

Seix Investment Advisors does not provide legal, estate planning or tax advice. Investors are advised to consult with their investment processional about their specific financial needs and goals before making any investment decisions. Past performance is not indicative of future results. ©2016 Seix Investment Advisors LLC. Seix Investment Advisors is a registered investment adviser with the SEC and a member of the RidgeWorth Capital Management LLC network of investment firms. .