CornerStone Advisors Asset Management LLC

•   Item 5 (Fees and Compensation) was updated to remove disclosures related to separate financial
       planning fees, as the firm no longer charges clients for standalone financial planning services.

ITEM 7: TYPES OF CLIENTS                                          open architecture solutions that are designed to meet
                                                                  those goals.
Cornerstone provides its investment advisory services
primarily to:                                                     As with any investment, these results are not guaranteed,
  • Retirement plans sponsored by successful                      and clients should be prepared to bear risks of principal
      businesses, municipalities, health systems, and             loss as explained below.
      institutes of higher education.
  • Not-for-profit      foundations/endowments     and            The material risks that clients should be willing to bear
      planned giving programs.                                    include the following:
  • Wealthy & entrepreneurial families and individuals.                • Principal Risk - The loss of invested capital

    •    Inflation Risk - The inability of the portfolio to         Insurance Agent/Broker
         keep up with the rate of inflation                         Cornerstone is affiliated with Cornerstone Institutional
    •    Currency Risk - The risk that investments in a             Investors, LLC (“CII”), CII is licensed as an insurance
         currency other than a client's home currency               agency. Consequently, supervised persons may be agents
         could suffer from fluctuations in those foreign            and/or brokers for various insurance carriers. Therefore,
         currencies                                                 we do receive commission compensation resulting from
    •    Liquidity Risk - The inability of clients to readily       implementing product transactions on behalf of advisory
         convert investments into cash                              clients. Clients, however, are not under any obligation to
    •    Custody Risk - The loss of capital due to                  engage       these    individuals    when     considering
         custodian error or malfeasance                             implementation of advisory recommendations. The
                                                                    implementation of any or all recommendations is solely at
Products placed into client portfolios contain inherent             the discretion of the client.
risks. We attempt to mitigate these risks through various
measures including due diligence and diversification;               Cornerstone endeavors at all times to put the interest of
however, these risks cannot be fully discharged.                    the clients first as part of our fiduciary duty. Clients should
                                                                    be aware that the receipt of additional compensation
Cornerstone builds portfolios on a client-by-client basis           itself creates a conflict of interest and may affect the
and explain the risks and return potential of different             judgment of the individuals noted in the above paragraph
product types to our clients before investment.                     when making recommendations.

                                                                    CII is a member firm of the M Financial Group, (“M
ITEM 9: DISCIPLINARY                                                Group”), a network of financial professionals serving the
INFORMATION                                                         affluent and corporate executive markets. The M Group
                                                                    provides administrative, technical and market support to
Registered investment advisers are required to disclose all
                                                                    its member firms. CII, as well as executive officers
material facts regarding any legal or disciplinary events
                                                                    Malcolm L. Cowen, II and Thomas J. Scalici own stock in M
that would be material to your evaluation of Cornerstone
                                                                    Financial Holdings, Inc., which is the parent corporation of
or the integrity of Cornerstone’s management. We have
                                                                    the M Financial Group. They may receive incentive
no information or disclosures applicable to this Item.
                                                                    compensation from M Holdings Inc. in the form of cash
                                                                    and/or stock. The award is based on the firm's
ITEM 10: OTHER FINANCIAL                                            contribution to M Financial Holdings, Inc. profitability.
INDUSTRY ACTIVITIES AND                                             Other Investment Advisors
AFFILIATIONS                                                        Cornerstone has a relationship with Callan Associates Inc.,
Broker/Dealer                                                       a Registered Investment Advisor located in San Francisco,
All registered investment advisory associates of                    California. We are a founding member of Callan's
Cornerstone are registered representatives with MHS,                Investment Advisor Group (“IAG”), which provides
which is engaged in the design and sale of specialized              investment technology and research, access to pre-
investment products.                                                negotiated reduced investment manager fees, and a
                                                                    forum for sharing industry best practices. Cornerstone
Cornerstone and/or its executive officers may, from time            pays an annual membership fee to Callan to maintain our
to time, receive incentive awards for the                           membership. Cornerstone's fees charged to clients are
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