August 1, 2016

Dear Friends,
The low interest rates over the past several years influenced both the behavior of different sectors of
the economy and the returns of investment portfolios based upon different investment strategies.
The housing industry, for example, benefited from the low rates. The drop in mortgage rates
increased the number of potential home buyers and contributed to higher home prices. On the other
hand, industries with fixed dollar payment obligations, such as pension plans and insurance
companies, may experience operating difficulties. These firms are required by regulation to hold
highly rated assets and if they do not generate sufficient cash to meet their required outlays, some
firms may have to be reorganized.
Different portfolio investment strategies also gave rise to different returns. During the first seven
months of this year income oriented equity investment and bond portfolios enjoyed relatively high
returns. However, traditional growth oriented portfolios such as those emphasizing technology and
pharmaceutical companies often reported returns that were only in the low single digit range.
The disparity in the portfolio returns of income oriented versus growth oriented portfolios arose
because investors seeking high current income were willing to bid up the prices of the securities that
met their current cash criteria, and pass by those that only offered the potential for high returns in
the future. This pattern could change. As the economy starts to grow more vigorously, wages,
prices, and interest rates could begin to advance more rapidly. If these developments come to pass,
investors could then see the returns on their growth oriented portfolios rise and we can implement
an appropriate change in your portfolio proportions.
It has now been four years since we joined HighTower. During this period, we expanded our fixed
income capabilities, and broadened our knowledge in insurance and estate planning.
HighTower has been a pioneer in moving the industry toward the fiduciary standard by reducing
the amount of conflict embedded within the financial community. We take our fiduciary duty to our
clients very seriously. As the market continues to evolve, we continue to explore how we can reduce
any fiduciary conflicts that may remain.

500 Lake Cook Road | Suite 210 | Deerfield, IL 60015 TEL 847.282.4225 FAX 312.962.3899 hightoweradvisors.com
Securities offered through HighTower Securities, LLC | Member FINRA/SIPC/MSRB | HighTower Advisors, LLC is a SEC registered investment advisor

We have continuously tried to make the changes that we believe are in our clients best interest. As
we strive to maintain and grow your wealth, we plan to maintain our strong fiduciary standards.
We want to thank you for your past support, and look forward to a long lasting relationship in the
future.

Sincerely,

Eugene Lerner
Managing Director, Partner

JR Gondeck
Managing Director, Partner

The Lerner Group is a group of investment professionals registered with HighTower Securities, LLC, member FINRA, MSRB and SIPC, and with HighTower Advisors,
LLC, a registered investment advisor with the SEC. Securities are offered through HighTower Securities, LLC; advisory services are offered through HighTower
Advisors, LLC.
This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment
opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment
opportunities referenced herein may not be suitable for all investors.
All data and information reference herein are from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other information contained
in this research is provided as general market commentary, it does not constitute investment advice. The Lerner Group and HighTower shall not in any way be
liable for claims, and make no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information, or for
statements or errors contained in or omissions from the obtained data and information referenced herein. The data and information are provided as of the date
referenced. Such data and information are subject to change without notice.
This document was created for informational purposes only; the opinions expressed are solely those of The Lerner Group and do not represent those of
HighTower Advisors, LLC, or any of its affiliates.