IMPORTANT DISCLOSURES REGARDING PERFORMANCE

Please note that past performance does not guarantee future results and that global investment entails significant risks, including but not limited to: currency risks, price risks, political risks, interest rate risks, investment risks, credit risks, and market risks. The recent growth rate in equity markets has helped produce short-term returns that are atypical and may not continue in the future. The performance results listed are for actual individual client portfolios consistently used as illustrations because they have established track records which are among the longest in duration. They also employ our global investment advisory strategy in pure form and are unrestricted by client mandates. Other client account returns may be greater or lesser due to differing strategies, client mandates, risk preferences, and asset levels. Please note that these returns are not composite returns for all assets under management. These return figures do not include performance for the JBGlobal Fund L.P., which is closed to new investors. The Growth and Balanced portfolios are also selected for their taxable status. Other client accounts may have tax-deferred or tax-free status and thus are unhindered by tax issues in investment and trading decisions, potentially altering performance. Performance numbers have been calculated automatically using Schwab PortfolioCenter Software. Schwab Portfolio Center Software computes monthly intervals using month-end dates to month-end dates while Schwab statements compute monthly intervals using month-beginning dates to month-end dates. This can occasionally lead to a slight monthly discrepancy between Schwab and Schwab Portfolio Center values for any given month.

Balanced Portfolio

A conservative, diversified portfolio invested in a balanced allocation containing equity and bond ETFs as well as individual equities.

Balanced Portfolio Performance History
(As of 10/1/2017)

Total Return Since Inception: +307.04%
[Versus Vanguard Balanced Index Total Return Since Inception: +265.34%]

Annualized Return Since Inception: +7.21%
[Versus Vanguard Balanced Index Annualized Return Since Inception: +6.64%]

10-Year Total Return: +74.81%
[Versus Vanguard Balanced Index 10-Year Total Return: +87.96%]

10-Year Annualized Return: +5.74%
[Versus Vanguard Balanced Index 10-Year Annualized Return: +6.51%]

5-Year Total Return: +64.50%
[Versus Vanguard Balanced Index 5-Year Total Return: +54.88%]

5-Year Annualized Return: +10.47%
[Versus Vanguard Balanced Index 5-Year Annualized Return: +9.15%]

3-Year Total Return: +25.32%
[Versus Vanguard Balanced Index 3-Year Total Return: +23.97%]

3-Year Annualized Return: +7.81%
[Versus Vanguard Balanced Index 3-Yr Annualized Return: +7.43%]

(Inception: 8/1/1997)

_____________________________________________________________

2017 Total Return YTD: +14.24%
[Versus Vanguard Balanced Index 2017 Total Return YTD: +9.45%]

2016 Total Return: +23.99%
[Versus Vanguard Balanced Index 2016 Total Return: +8.64%]

2015 Total Return: -11.65%
[Versus Vanguard Balanced Index 2015 Total Return: +0.37%]

2014 Total Return: +4.33%
[Versus Vanguard Balanced Index 2014 Total Return: +9.85%]

2013 Total Return: +24.03%
[Versus Vanguard Balanced Index 2013 Total Return: +17.96%]

2012 Total Return: +14.15%
[Versus Vanguard Balanced Index 2012 Total Return: +11.34%]

2011 Total Return: +0.84%
[Versus Vanguard Balanced Index 2011 Total Return: +4.14%]

2010 Total Return: +12.61%
[Versus Vanguard Balanced Index 2010 Total Return: +13.12%]

2009 Total Return: +33.10%
[Versus Vanguard Balanced Index 2009 Total Return: +20.05%]

2008 Total Return: -36.25%
[Versus Vanguard Balanced Index 2008 Total Return: -22.21%]

2007 Total Return: +4.82%
[Versus Vanguard Balanced Index 2007 Total Return: +6.16%]

2006 Total Return: +13.04%
[Versus Vanguard Balanced Index 2006 Total Return: +10.97%]

2005 Total Return: +9.81%
[Versus Vanguard Balanced Index 2005 Total Return: +4.65%]

2004 Total Return: +13.04%
[Versus Vanguard Balanced Index 2004 Total Return: +9.33%]

2003 Total Return: +25.14%
[Versus Vanguard Balanced Index 2003 Total Return: +19.87%]

2002 Total Return: -14.13%
[Versus Vanguard Balanced Index 2002 Total Return: -9.52%]

2001 Total Return: -4.66%
[Versus Vanguard Balanced Index 2001 Total Return: -3.02%]

2000 Total Return: +0.04%
[Versus Vanguard Balanced Index 2000 Total Return: -2.04%]

1999 Total Return: +34.14%
[Versus Vanguard Balanced Index 1999 Total Return: +13.61%]

1998 Total Return: +10.72%
[Versus Vanguard Balanced Index 1998 Total Return: +17.85%]

Returns are shown net of all transaction costs and net of the 0.95% – 1.00% management fee charged on this account. Other client management fees may be higher or lower depending on the amount of assets under management. Fees may rise as high as 1.5% on smaller accounts, thereby resulting in lower performance results than those quoted above. Results include the reinvestment of all dividends and other earnings. Please note that past performance does not guarantee future results and that investing in stocks, bonds, mutual funds, ETFs, and any other securities may result in loss of principal. The return shown reflects the performance of an actual client balanced portfolio with no client restrictions which is used consistently to show performance. The given figures represent the performance of one account only and are not meant to represent an average return of all accounts under management. Other accounts may have greater or lesser returns depending on individual risk preferences and other factors. The Vanguard Balanced Index Fund (VBINX) returns are shown net of fees and include the reinvestment of all dividends and other earnings. The Vanguard Balanced Index Fund contains a mixture of stocks and bonds thought to be an appropriate comparison to the Balanced Portfolio. The Vanguard Balanced Index may at times have a different asset allocation than the Balanced Portfolio and therefore may have a different risk profile which may influence differences in returns.

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Growth Portfolio

A diversified portfolio invested in a growth allocation containing equity ETFs and individual equities.

Growth Portfolio Performance History
(As of 10/1/2017)

Total Return Since Inception: +392.32%
[Versus Vanguard S&P 500 Index Total Return Since Inception: +457.18%]

Annualized Return Since Inception: +7.85%
[Versus Vanguard S&P 500 Index Annualized Return Since Inception: +8.49%]

10-Year Total Return: +73.15%
[Versus Vanguard S&P 500 Index 10-Year Total Return: +100.57%]

10-Year Annualized Return: +5.64%
[Versus Vanguard S&P 500 Index 10-Year Annualized Return: +7.21%]

5-Year Total Return: +76.69%
[Versus Vanguard S&P 500 Index 5-Year Total Return: +93.00%]

5-Year Annualized Return:+12.06%
[Versus Vanguard S&P 500 Index 5-Year Annualized Return: +14.06%]

3-Year Total Return: +30.00%
[Versus Vanguard S&P 500 Index 3-Year Total Return: +35.51%]

3-Year Annualized Return: +9.14%
[Versus Vanguard S&P 500 Index 3-Year Annualized Return: +10.66%]

(Inception: 9/1/1996)

_____________________________________________________________

2017 Total Return YTD: +18.29%
[Versus Vanguard S&P 500 Index 2017 Total Return YTD: +14.13%]

2016 Total Return: +32.36%
[Versus Vanguard S&P 500 Index 2016 Total Return: +11.82%]

2015 Total Return: -15.30%
[Versus Vanguard S&P 500 Index 2015 Total Return: +1.24%]

2014 Total Return: +1.69%
[Versus Vanguard S&P 500 Index 2014 Total Return: +13.50%]

2013 Total Return: +26.20%
[Versus Vanguard S&P 500 Index 2013 Total Return: +32.17%]

2012 Total Return: +18.32%
[Versus Vanguard S&P 500 Index 2012 Total Return: +15.83%]

2011 Total Return: -2.53%
[Versus Vanguard S&P 500 Index 2011 Total Return: +1.97%]

2010 Total Return: +12.06%
[Versus Vanguard S&P 500 Index 2010 Total Return: +14.91%]

2009 Total Return: +31.12%
[Versus Vanguard S&P 500 Index 2009 Total Return: +26.50%]

2008 Total Return: -37.52%
[Versus Vanguard S&P 500 Index 2008 Total Return: -37.58%]

2007 Total Return: +2.38%
[Versus Vanguard S&P 500 Index 2007 Total Return: +5.39%]

2006 Total Return: +13.95%
[Versus Vanguard S&P 500 Index 2006 Total Return: +15.58%]

2005 Total Return: +9.15%
[Versus Vanguard S&P 500 Index 2005 Total Return: +4.77%]

2004 Total Return: +13.10%
[Versus Vanguard S&P 500 Index 2004 Total Return: +10.74%]

2003 Total Return: +32.74%
[Versus Vanguard S&P 500 Index 2003 Total Return: +28.50%]

2002 Total Return: -16.96%
[Versus Vanguard S&P 500 Index 2002 Total Return: -22.15%]

2001 Total Return: -5.03%
[Versus Vanguard S&P 500 Index 2001 Total Return: -12.02%]

2000 Total Return: +2.55%
[Versus Vanguard S&P 500 Index 2000 Total Return: -9.06%]

1999 Total Return: +36.47%
[Versus Vanguard S&P 500 Index 1999 Total Return: +21.07%]

1998 Total Return: +7.83%
[Versus Vanguard S&P 500 Index 1998 Total Return: +28.62%]

1997 Total Return: +14.93%
[Versus Vanguard S&P 500 Index 1997 Total Return: +33.19%]

Returns are shown net of all transaction costs and net of the 1% management fee charged on this account. Other client management fees may be higher or lower depending on the amount of assets under management. Fees may rise as high as 1.5% on smaller accounts, thereby resulting in lower performance results than those quoted above. Results include the reinvestment of all dividends and other earnings. Please note that past performance does not guarantee future results and that investing in stocks, bonds, mutual funds, ETFs, and any other securities may result in loss of principal. The return shown reflects the performance of an actual client growth portfolio with no client restrictions which is used consistently to show performance. The given figures represent the performance of one account only and are not meant to represent an average return of all accounts under management. Other accounts may have greater or lesser returns depending on individual risk preferences and other factors. The Vanguard S&P 500 Index Fund (VFINX) returns are shown net of fees and include the reinvestment of all dividends and other earnings. The Vanguard S&P 500 Index Fund contains a portfolio of 500 stocks thought to be an appropriate basis for comparison to the Growth Portfolio.