InvestmentManagementDisclosureBrochure

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1 JANNEYMONTGOMERYSCOTTLLC InvestmentManagementDisclosureBrochure 1801MarketStreet Philadelphia,PA Main(215) Tol-free(800) December15,2011 Thisdisclosurebrochureprovidesinformationaboutthequalificationsandinvestmentadvisory business practicesofjanneymontgomeryscotllc. Ifyou have anyquestions aboutthe contentsofthisdisclosurebrochure,pleasecontactusat(215) theinformationinthis disclosure brochure has notbeen approved orverified by the United States Securities and ExchangeCommissionorbyanystatesecuritiesauthority. AdditionalinformationaboutJanneyMontgomeryScotLLCisavailableontheSEC swebsiteat

2 Item 2:MaterialChanges Notapplicable. -2 -

3 Item 3:TableofContents MaterialChanges... 2 InvestmentAdvisoryBusiness... 4 FeesandCompensation Performance-BasedFeesandSide-by-SideManagement TypesofClients MethodsofAnalysis,InvestmentStrategies,andRiskofLoss DisciplinaryInformation OtherFinancialIndustryActivitiesandAfiliations CodeofEthics,ParticipationorInterestinClientTransactionsandPersonalTrading BrokeragePractices Review ofaccounts ClientReferalsandOtherCompensation Custody InvestmentDiscretion VotingClientSecurities FinancialInformation BusinessContinuityPlan

4 Item 4:InvestmentAdvisoryBusiness JanneyMontgomeryScotLLC ( Janney,the firm, we or us )wasestablishedin1832. Janneyisanindirectwholy-ownedindependentsubsidiaryofthePennMutualLifeInsuranceCompany ( PennMutual ).Asbotharegisteredbroker-dealerandinvestmentadviser,Janneyprovidesbrokerage andinvestmentadvisoryservicestoabroadrangeofclients.theinvestmentadvisoryservicesoferedto clients include advice on assetalocation and investmentstrategies,the selection ofinvestment managers,portfoliomanagement,investmentpolicydevelopment,portfolioanalysis,portfoliorebalancing, portfolioperformancemonitoring,financialplanning,andconsultingservices.clientsmaynegotiateother investmentadvisoryserviceswiththefirm. Asaful-servicebroker-dealer,investmentbankandinvestmentadviser,Janneyisengagedina broadrangeofactivitiesincluding:individualandinstitutionalbrokeragetransactions,originationof,and participationin,underwritingsofcorporateandmunicipalsecurities;marketmakingandtradingactivities in corporate securitiesandmunicipaland governmentalbonds;distribution ofmutualfundsshares; options transactions;and research services. Janneyofers investmentadvisoryservices primarily throughitswealthmanagementdepartment.theinvestmentadvisoryservicesgeneralyfalwithinone offivebroadbusinesslines: (1)fee-basedadvisory wrap programs(programsthattypicalyprovide investmentadvice,brokerage trading and custody and reporting fora single fee);(2)traditional discretionaryinvestmentmanagementservicesthroughitsparkerhunterassetmanagement( PHAM ) division;(3)financialplanning services;(4)retirementplan investmentadvisory services;and (5) consultingservices.thewealthmanagementdepartmentandpham personnelworkcloselywiththe firm sprivateclientgroup,includingthefirm sfinancialadvisors,inprovidinginvestmentadvisory servicestoclients.weprovideinvestmentadvisoryservicesonadiscretionary,non-discretionaryand modelportfoliobasis. Therecanbenoassurancethatanyparticularstrategywilbesuccessfulinachievingtheclient s investmentgoalsandobjectives. Anyinvestmentinthesecuritiesmarketsinvolvesrisk,includingthe realizationofinvestmentloss. A. Fee-based wrap programs Janney curently ofers nine (9) fee-based advisory wrap programs thatare broadly characterizedasprofessionalmoneymanagement,assetalocationandinternalmoneymanagement services(eacha Program andcolectively,the Programs ).Undereachprogram,clientsretainJanney toformulateaninvestmentprogram withinanagreeduponrisktoleranceprofiletakingintoaccountthe client sinvestmentobjectives. Each Program generalyincludesinvestmentmanagement,custody, reporting,performancemonitoringandtransactionexecutionservices.theprogramsoferedbyjanney, whicharesummarizedbelow,include: ProfessionalMoney Management AssetAlocation InternalMoney Management Adviser s Keystone PartnersAdvisory Adviser smsp ETFAdvantage Compass Classic Russel Parker/HunterAsset Management -4 -

5 ProfessionalMoneyManagement Adviser s UndertheAdviser sprogram,janneywilrecommendaninvestmentadviserwhoseinvestment styleaccommodatestheclient sinvestmentobjectiveandrisktolerance.janneyandtheclientdevelop theclient srisktolerancethroughthejanneyrisktolerancequestionnaire. Janneyconductsdue diligenceonalinvestmentmanagersrecommended underthe Adviser sprogram. Theinvestment managerwilmanagetheaccountonadiscretionarybasisundertheinvestmentstrategyselectedbythe client. Asthe sponsorofthis wrap program,janneymaintainsseparate agreementswith each investmentmanageroferedundertheadvisersprogram. Thesesubadvisoryagreementsgovernthe serviceseachinvestmentmanagermustoferclientswhenselected.janneywilalsoprovidetransaction execution,custody,andperiodicperformancereportstoaccountsundertheadvisersprogram.janney oferstheseparateaccountmanagementservicesofriverfrontassetmanagementthroughaseparate turnkey solutionaspartofthisprogram. Adviser smsp TheAdviser smsp program ofersclientstheabilitytoincludeseveralinvestmentmanagers, mutualfunds,andexchangetradedfunds( ETFs )underdiferent sleeves withinthesamejanney account.clientsmayselectfrom threeoptionsundertheadviser smspprogram:(i)fixed;(i)flex;or (i)openarchitecture.thenumberofsleevesandtheirportfolioweightingsaredeterminedbyjanneyin thefixedandflexoptionsandwiltypicalydependuponthevalueoftheaccountandthestrategy selected. Theclientdeterminesthenumberofsleevesandtheirweightwithintheaccountunderthe OpenArchitectureoption.UndertheFixedoption,Janneywilassisttheclientinselectinganinvestment strategythroughuseofthejanneyrisktolerancequestionnaire. TheclientthengrantsJanneythe discretionaryauthoritytoselectinvestmentmanagerstrategiesandmutualfundsunderthepreselected investmentstrategy. Janneywilselecttheinvestmentmanagerstrategiesandmutualfundsforthe sleevesoftheprogram optionselected.undertheflexoption,janneyassiststheclientinselectingan investmentstrategythroughuseofthejanneyrisktolerancequestionnaire. Janneywilrecommend investmentmanagerstrategies and mutualfunds foreach sleeve. The clientthen selects which investmentmanagerstrategiesandmutualfundstoutilizeineachsleeve.undertheopenarchitecture option,janneywilassisttheclientinselectinganinvestmentstrategythroughuseofthejanneyrisk ToleranceQuestionnaire.Theclient,withtheadviceoftheJanneyFinancialAdvisor,wilthenselectthe numberofsleevesintheaccount,thepercentageweightingofeachsleeve,andtheinvestmentmanager strategyormutualfundtopopulatethesleeves.janneywilprovidetransactionexecution,custody,and periodicperformancereporting Classic UndertheClassicProgram,thecliententersintoanagreementwithaninvestmentmanagerthat isunrelatedtojanney. Janneyprovidestradeexecution,biling,custodial,andotherservicesforthe clientaccount.janneymay,attheclient srequest,provideperiodicperformancereviewsoftheclient s account. Theclient sselectionismadebasedonanindependentreview oftheinvestmentmanager conductedbytheclient.investmentmanagersutilizedintheclassicprogram arenotsubjecttothemore stringentreview asthosemanagersintheadviser sprogram. Janneydoesnotrecommendorselect managersundertheclassicprogram andassumesnoresponsibilityfortheclient sselectionofthe investmentmanagerorfortheinvestmentdecisions,performance,oranyothermatersinvolvingthe investmentmanager. Janneydoesnotprovideinvestmentadviceregardingtheinvestmentdecisions madeintheclientaccountundertheclassicprogram. -5 -

6 AssetAlocation Keystone UndertheKeystoneprogram,theclientauthorizesJanneytoinvestaccountassetsonafuly discretionarybasisinaportfolioofno-loadandload-waivedmutualfunds,etfsandexchangetraded notes( ETNs ).Janneyassiststheclientindevelopingarisktoleranceandinvestmentobjectivebyusing thejanneyrisktolerancequestionnaire. Janneythenrecommendsaninvestmentstrategythatis compatiblewiththeclient srisktoleranceandinvestmentobjectives.theclientapprovestheselected accountstrategy.janneyalsoprovidestransactionexecution,custody,periodicperformancereporting, andotherservicesunderthisprogram.janneymay,initssolediscretion,investinanyothertypeof securityintheclientaccount.pham actsastheinvestmentmanagertothekeystoneprogram.given theinherentlong-term natureofmutualfunds,akeystoneaccountmayhavelitleornoactivityduringa givenperiod.accordingly,overtimethecostofakeystoneaccountmaybegreaterthanifmutualfunds werepurchasedseparately.wemayuseourdiscretiontoperiodicalyrebalanceclientaccountsandto makechangesinthemutualfundsintheaccountwhereappropriate. Janneymaintainsexisting clientrelationshipsunderthe Keystone Program which are nondiscretionaryinnature.thekeystoneprogram isclosedtonew,non-discretionaryinvestors. ETFAdvantage UndertheETFAdvantageprogram,theclientauthorizesJanneytoinvestaccountassetsona fulydiscretionarybasisinaportfolioofexchangetradedproducts,includingbutnotlimitedtoetfsand ETNs. Janneyassiststheclientindevelopingarisktoleranceandinvestmentobjectivebyusingthe Janney Risk Tolerance Questionnaire. Janney then recommends an investmentstrategy thatis compatiblewiththeclient srisktoleranceandinvestmentobjectives.theclientapprovestheselected accountstrategy.janneyalsoprovidestransactionexecution,custody,periodicperformancereporting, andotherservicesunderthisprogram.janneymay,initssolediscretion,investinanyothertypeof securityintheclientaccount.pham actsastheinvestmentmanagertotheetfadvantageprogram. WemayuseourdiscretiontoperiodicalyrebalanceclientaccountsandtomakechangesintheETFs, ETNsandotherexchangetradedproductsintheaccountwhereappropriate. Russel Underthe RusselModelStrategies program,the clientauthorizes Janneyto actwith ful discretiontoprovideinvestmentadviceandactivelymanagetheclient sportfolioastheinvestment manager.janneywilassisttheclientindevelopinginvestmentobjectivesandarisktolerancethrough useofthejanneyrisktolerancequestionnaire.janneywiladvisetheclientontheselectionofamodel strategythatisconsistentwiththeclient sinvestmentobjectivesandrisktolerance.client saccountwil generalybeinvestedinasuitablerusselmodelportfolioconsistingofno-loadandload-waivedrussel mutualfunds. The modelportfolios and assetalocations are separately formulated by Russel Investmentsbasedonitsresearch.Janneymay,initssolediscretion,investinanyothertypeofsecurity intheclient saccount. Clientswilalsoreceivetransactionexecution,custody,periodicperformance reporting,andotherservicesundertheprogram. SaratogaAssetAlocation Janneyalsohasalegacyassetalocationprogram thatisnolongeravailabletonewclientsbut stilservicedforexistingclients.underthisassetalocationprogram,janneywilconsultwiththeclientto formulateinvestmentobjectivesandcriteriatoestablishanassetalocationamongvariousmutualfund assetclassesdesignedtoachievetheclient sstatedobjectives.basedontheresponsesgivenbythe clientonthejanneyrisktolerancequestionnaire,janneywildevelopanassetalocationstrategy utilizingsharp StrategicHorizonAssetRealocationProgram ( SHARP ),acomputerbasedasset alocationsystem developedbysaratogacapitalmanagement,asatoolinconnectionwithitsprovision oftherecommendation. -6 -

7 JanneywilgeneralyrecommendanalocationamongportfolioscontainedwithintheSaratoga AdvantageTrust(the Trust ).Janneymay,from timetotime,recommendportfoliosoutsidethetrust. TheTrust sinvestmentadviser,saratogacapitalmanagement,isresponsibleforthedevelopmentof SHARP. Clientswilalsoreceivetransactionexecution,custody,periodicperformancereporting,and otherservicesundertheprogram.sharpmaybediferentfrom otherjanneyassetalocationmodels From time to time,saratoga CapitalManagementmayprovide Janneywith recommended changesinthealocationofprogram assetsamongtheportfolios,basedonrevisedinformationincluding butnotlimitedtochangesinmarketconditions.janneymayprovidetheclientwithitsownrecommended changes in the alocation of program assets among the portfolios. The clientreceives no recommendationsdirectlyfrom Saratoga.Alrecommendationsmadetotheclientwilbethoseofthe JanneyFinancialAdvisor,andJanney srecommendationsmaynotbeidenticaltothosegeneratedby SHARP.Janneywilimplementitsrecommendedalocationchangeonlyif(a)theclienthasselectedthe DiscretionaryManagementOptioninwhichcasethechangewilbeefectedwithoutfirstconsultingclient and(b)theclienthasnotifiedjanneythatclientacceptstherecommendedalocationchange. InternalMoneyManagement PartnersAdvisory UnderthePartnersAdvisoryprogram,Janneyprovidesinvestmentrecommendationstotheclient regardingtheinvestmentofsecuritiesandcashintheclientaccount. Servicesprovidedunderthe PartnersAdvisoryProgram arenon-discretionary.janneywilnotactwithdiscretionandtheclientmust approve altransactionsin the PartnersAdvisoryaccount. Janneywilassistclientin developing investmentobjectivesandarisktolerancethroughuseofthejanneyrisktolerancequestionnaire. Clients wilalso receive transaction execution,custody,periodic performance reporting,and other servicesundertheprogram. Inverylimitedcircumstances,thePartnersAdvisoryProgram maybe oferedtoaccountscustodiedatabrokerotherthanjanney.thoseclientswilnotreceiveperformance reportingservices.ifthereislitleornotradingactivityintheaccount,itispossiblethataclientmaypay moreinadvisoryfeesthancommissionchargesiftheaccountwasabrokerageaccount.janneymay alsoofertheseservicesonanon-wrapbasiswheretheclientpaysafeeforinvestmentadvisoryservices onlyandalsopaysfortransactioncostsrelatedtosuchinvestments. Compass UndertheCompassProgram,aJanneyFinancialAdvisorwilprovideinvestmentadviceand managetheclientaccountonadiscretionarybasisastheinvestmentmanager. Janneywilexecute recommendedsecuritiestransactionsontheclient sbehalfwithfuldiscretion.inotherwords,ajanney FinancialAdvisor,andnottheclient,hasthediscretiontodecidewhatsecuritiestobuyandselinclient accounts.janneywilassisttheclientindevelopinginvestmentobjectivesandarisktolerancethrough useofthejanneyrisktolerancequestionnaire. Clientswilreceivetransactionexecution,custody, periodicperformancereporting,andotherservicesundertheprogram.janneyfinancialadvisorsmust meet minimum qualifications for experience, education/training background, and assets under managementinordertoqualifytomanageaccountsunderthecompassprogram,andgeneralymust alsocompleteaspecialtrainingcoursespecifictothecompassprogram.janneyhasdevelopedcertain investmentparameterswhichmaylimittheclient sinvestmentoptionsunderthecompassprogram. Theselimitationswereinstitutedinordertolimitrisktotheclient. Inverylimitedcircumstances,the CompassProgram maybeoferedtoaccountscustodiedatabrokerotherthanjanney.thoseclients wilnotreceiveperformancereportingservices. CertainlegacyaccountsoperatingundertheDiscretionaryAccountProgram arenow serviced underthecompassprogram.thediscretionaryaccountprogram nolongeracceptsnewaccounts. EachJanneyFinancialAdvisormaydevelopspecificinvestmentstrategiesthatmayinclude investinginmultipleorsingleassetclasses,modelportfoliosorsomeotherdistinctinvestmentstrategy. OtherFinancialAdvisorsmaytakeamorecustomizedapproachtomanagementofclientaccounts.A -7 -

8 JanneyFinancialAdvisorisprimarilyresponsibleformakingandimplementinginvestmentmanagement decisionsforaclientaccountwithinthecompassprogram sinvestmentguidelines. Theguidelines specifythe numberand typesofsecuritieseligible forinvestmentin a CompassProgram account (includingpercentagelimitationsonaccountholdingsincertaintypesofinvestments). Theguidelines alsospecifydiversificationrequirements(acrossissuers,industrysectorsandassetclasses). Atthe JanneyWealth ManagementGroup sdiscretion,certain FinancialAdvisorshave greaterlatitude in selectingsecuritiesanddiversification.therefore,theavailabilityofinvestmentstrategiesandsecurities andtheapplicabilityofinvestmentlimitationsvarydependingonaclient sparticularjanneyfinancial Advisor.TheCompassProgram sguidelinesaresubjecttochangewithoutnotice. Depending onthe investmentstrategythefinancialadvisoruses,investmentsmayinclude equityandfixedincomesecurities,eligibleclosed-endfunds,mutualfunds,andetfs.aloraportionof aclient saccountmaybeheldincashorcashequivalents,includingsecuritiesissuedbymoneymarket mutualfundsordepositedininterest-bearingbankaccounts.whereapproved,financialadvisorsmay usecertainoptionstrategies,suchascoveredcalwritingandpurchasingprotectiveputs. AFinancialAdvisormaymakeinvestmentdecisionsthatarecontrarytoresearchratingsissued byjanney sresearchgrouporthatmaydiferfrom otherfinancialadvisors,pham ormodelalocations providedbytheconsultinggroup. ClientsshoulddiscusswiththeirrespectiveFinancialAdvisorwhichinvestmentstrategysuits theirinvestmentgoals.ajanneyfinancialadvisorcanalsoprovidemoredetailedinformationregarding thecompassprogram. FinancialInstitutionEmployeeDiscretionaryProgram TheFinancialInstitutionEmployeeDiscretionary( FIED )program hasbeendesignedsolelyfor the clients employed by anotherfinancialinstitution where thatinstitution requires its employees investmentaccountsheldatinstitutionsotherthantheemployerbehandledonadiscretionarybasis. UndertheFIED program,ajanneyfinancialadvisorwilprovideinvestmentadviceandmanagethe clientaccountonadiscretionarybasisastheinvestmentmanager. Janneywilassisttheclientin developing investmentobjectives and a risk tolerance through use ofthe JanneyRisk Tolerance Questionnaire.Janneywilexecuterecommendedsecuritiestransactionsontheclient sbehalfwithful discretion.janneywilassisttheclientindevelopinginvestmentobjectivesandarisktolerancethrough useofthejanneyrisktolerancequestionnaire. Clientswilreceivetransactionexecution,custody, periodicperformancereporting,andotherservicesundertheprogram.janneyfinancialadvisorsmust meet minimum qualifications for experience, education/training background, and assets under managementinordertoqualifytomanageaccountsunderthecompassprogram. Clientswilalso receivetransactionexecution,custody,periodicperformancereporting,andotherservicesunderthe program.janneyhasdevelopedcertaininvestmentparameterswhichmaylimittheclient sinvestment optionsunderthecompassprogram.theselimitationswereinstitutedinordertolimitrisktotheclient. B. Parker/HunterAssetManagement Janneyprovidesindividualized and continuousinvestmentadvice andportfoliomanagement servicesto individualand institutionalclientsthrough itsparker/hunterassetmanagementdivision. Throughadiscoveryprocesswiththeclient,duringwhichfinancialgoalsandinvestmentobjectivesare establishedbased upon a client sparticularcircumstances,pham craftsa personalized investment policy,thendesignsandimplementsaportfoliobasedonthatpolicy.ongoingportfoliomanagementand strategywilbeguidedbythestatedobjectivesoftheclient.pham ofersadviceonadiscretionaryand non-discretionarybasistoindividuals,pensionandprofitsharingplans,legalaccounts,eleemosynaryand religiousorganizations,andcorporations. AssetmanagementclientsmeetwiththeirFinancialAdvisortoestablishaninvestmentprogram basedontheclient sfinancialneeds,objectivesandrisktolerance.aftertheprogram isestablished,a writen InvestmentPolicyisprepared. PHAM sportfolio managersthen implementthe investment -8 -

9 strategybymakingindividualbuyandseltransactionswithintheframeworkoftheclient sinvestment Policy. Investmentportfolios are managed employing equity-only,balanced and fixed income-only strategies.whenappropriatetotheneedsoftheclient,pham mayrecommendtheuseofshort-term trading(securitiessoldwithin30days),shortsales,margintransactionsoroptionswriting. Because these investmentstrategies involve certain degrees ofrisk,theywilonlybe recommended when consistentwiththeclient sstatedtoleranceforrisk. Inadditiontotheassetalocationstrategiesdiscussedabove,PHAM ofersthedynamicasset StrategyandDynamicIncomeStrategy(colectively,the DynamicStrategies ).TheDynamicStrategies seekcompetitivetotalreturnscomparedtotheoveralcapitalmarketsanddonothaveapredetermined assetclassmix. AccountsinvestedintheDynamicStrategiesmaybeinvestedactivelyacrossasset classesbutmayalsobeconcentratedinspecificassetclassesthatpham believesofersthebest opportunityforcapitalgrowth. Suchflexibilityinportfolioconstructionhastheriskofexposingclient accountstodecreasesinvalueduetoconcentrationincertainsecuritiesorassetclasses. CashManagementServices PHAM alsooferscashmanagementtocorporationsorinstitutions.theportfolio'sreturnwilbe derivedfrom interestanddividendincomegeneratedbyhighqualityfixedincomesecurities.normaly, theportfoliowilbestructuredwithashortaveragedurationwiththeprimaryobjectivesbeingcapital preservationandliquidity. Cashmanagementservicesincluderenderingadvicewithrespecttothe investmentofa corporate client's cash in interest-bearing accounts,cash equivalentinvestment instruments,municipalsecurities,corporate bonds,us governmentobligations and other liquid investments. Inrenderingsuchadvice,PHAM speakswithissuers,underwritersandbroker/dealers aboutinvestments,evaluatingappropriatesecuritiesandpurchasingsuchsecuritiesforandonbehalfof itscorporateclients. Inadditiontoevaluatingpossibleinvestmentssoldthroughotherbroker-dealers, PHAM itselfmayselinvestmentstocashmanagementclients. C. FinancialPlanningServices JanneydevelopsandpresentsfinancialplanstoclientsthroughbothitsFinancialAdvisorsandits WealthPlanninggroup.FinancialplansdevelopedthroughtheWealthPlanninggroupincludealistof theclient scurentfinancialassetsrelated tothe purposeoftheplan,a recommendedinvestment strategyandalistofinvestmentrecommendations. FinancialplansmayalsobedevelopedbycertainofourFinancialAdvisorsfortheirclients.Such reviewsconsistofwritenreportsdeliveredaftertheclienthascompletedaquestionnaireanddiscussed hisorherassets,liabilitiesandfinancialrequirementswiththefinancialadvisor.folowingthedelivery ofthereport,theinvestmentadvisoryrelationshipterminates.theclientmaythenopttoimplementthe financialplan,oraportionofit,withjanney.ifimplementedwithjanney,theclientmayusejanney s brokerageand/oradvisoryservices.ifadditionaladvisoryservicesareoptedforbytheclient,theywilbe coveredunderseparateadvisoryagreement(s). D. RetirementPlanInvestmentAdvisoryServices Janneyofersinvestmentadvisoryservicestoemployeeretirementplans. Janneyworkswith employersand plan administratorsand mayprovideadvice on employer-sponsoredretirementplan investmentmenu selection ofmutualfunds orotherinvestmentoptions and fund replacement recommendations. Janney may also provide ongoing selection performance monitoring and due diligence,periodicperformancereporting,employeeeducation,andotherservices. Janneytailorsthe servicesprovidedtotheneedsofeachclient. -9 -

10 E. ConsultingServices JanneyoferscertainadvisoryservicesonaconsultingbasisthroughitsFinancialAdvisors designedtoassistclientsindevelopinganinvestmentstrategy. Undertheconsultingagreement,we mayperform,amongotherservices,initialconsultingneedsassessments,investmentprofiles,on-going portfolioreview,periodicperformancemeasurements,advisermonitoringandotherservicesagreed uponbytheclientandus. Janneywilrecommendinvestmentmanagers,mutualfundsand/orother investmentsfortheclientthatwebelieveareappropriategivenjanney sunderstandingoftheclient srisk toleranceandinvestmentobjective. Theclientthenselectswhichinvestmentmanagerstrategiesand mutualfundstoutilize. TheclientmayauthorizeJanneytoactwithdiscretionwhenselectingthe investmentmanagersandmutualfunds. Wetailorouradvisoryservicestotheindividualneedsofourclients. Weprimarilyutilizethe informationprovidedbyclientsinthejanneyrisktolerancequestionnairetounderstandaclient srisk toleranceandinvestmentobjective.janneythenrecommendsinvestmentproductsandservicesthatwe believeareconsistentwiththeclient srisktoleranceandinvestmentobjectives. Clientsmayimpose investmentrestrictionsunderjanney swrapprogramsbynotifyingusinwritingofsecuritiesthatmaynot bepurchasedintheclientaccount. Undercertainwrapprograms,theclientmayalsorestrictcertain assetsfrom beingsoldoutoftheclient saccountbynotifyingusinwriting. Inaddition,underthe Adviser smspprogram,aclientmayrestrictsecuritiespurchasesincertainassetclassesbynotifyingus inwriting. F. AdditionalInformationRegardingJanney sinvestmentadvisoryservices Janneyprovides discretionaryportfolio managementservices underthe folowing wrap fee programs:(i)compass;(i)fied;(i)etfadvantage;(iv)keystone;and(v)russelstrategies. Our PHAM divisionalsoprovidesdiscretionaryportfoliomanagementservicesdirectlytoinvestmentadvisory clients orthrough one ofthe above-referenced wrap fee programs. We may provide portfolio managementservicesundertheadvisersmspprogram ifoneofourwrapprogramsisselectedasan investmentsleeve. Clientassets are managed diferently depending upon the program selected. Underthe CompassandFIEDprograms,ourFinancialAdvisorsmanagetheclientaccount.EachFinancialAdvisor managestheclientaccountbasedontheclient sindividualinvestmentobjectiveandrisktolerance. InvestmentmanagementstyleswilvarydependingupontheFinancialAdvisor. ClientswhoselecttheETF Advantage,Keystone,orPHAM program wilhavetheiraccount managedbypham accordingtothestrategyselectedbytheclient. JanneytradesmutualfundsharesintheRusselStrategiesprogram withthegoalofadheringto theportfolioassetalocationsselectedbyrusselinvestments. CertainCompassorFIEDprogram accountsmaybemanagedonacommissionbasis.forthese accounts,clients paytransaction commissions instead ofa wrap fee. Janneydoes notmanage commission-based investmentadvisoryaccounts diferentlyfrom fee-based wrap accounts. Under programswherejanneyactsastheinvestmentmanager,janneywilreceivealfeesorcommissions associatedwiththeaccount.whereanunrelatedinvestmentmanagerisselected,janneywilretaina portionofthefee.theunrelatedinvestmentmanagerreceivestheremainderofthefee. AsofDecember31,2010,Janneymanages $3.7 bilion on a discretionarybasis. Asof December31,2010,Janneymanages$5.1biliononanon-discretionarybasis

11 Item 5:FeesandCompensation Janney is typicaly compensated by charging an asset-based fee on the assets under managementintheclientaccount. Withrespecttowrapfeeprograms,theasset-basedfeetypicaly includesfees,chargesandexpensesassociatedwithinvestmentmanagement,tradingandexecution andcustodialservices.underverylimitedinstances,awrap-feeclientmaymaintainassetswithathird partycustodian. Inthatcase,aclientwouldpaythethird-partycustodian separatelyforcustodial services. PHAM,AdvisersandRiverfrontPrograms ThefeeschedulefortheParker/HunterAssetManagement,AdvisersandRiverfrontprograms areasfolows: EQUITY AND BALANCED ACCOUNTS AsetValueofthe Equityand Balanced Portion ofclient saccount AnnualFee on thefirst$ 500, % on thenext$ 500, % on thenext$ 1,000, % asetsover$ 2,000,000 Negotiable FIXED INCOMEACCOUNTS AsetValueofthe Fixed Income Portion of Client saccount AnnualFee on thefirst$ 500, % on thenext$ 500, % on thenext$ 1,000, % asetsover$ 2,000,000 Negotiable AdvisersMSP,CompassandFIEDPrograms ThefeeschedulefortheAdvisersMSP,Compass,andFinancialInstitutionEmployeeDiscretion programsareasfolows: AsetValueofClient saccount Standard Fees first$ 500, % on thenext$ 500, % on thenext$ 1,000, % asetsover$ 2,000,000 Negotiable -11 -

12 PartnersAdvisory,Keystone,ETFAdvantageandRusselStrategiesPrograms ThefeescheduleforthePartnersAdvisory,Keystone,ETFAdvantage,RusselStrategiesprogramsare asfolows: AsetValueofClient saccount Standard Fees first$ 500, % on thenext$ 500, % on thenext$ 1,000, % asetsover$ 2,000,000 Negotiable Janneymayoferthe PartnersAdvisoryprogram on a non-wrap fee basis where the fee referenceaboveonlycoversinvestmentadvisoryservicesandtheclientpaystransactionscostsrelated toanyinvestmentsintheaccount. ClassicAccountProgram The fee schedule fortheclasicaccountprogram isasfolows: EQUITYAND BALANCED ACCOUNTS AsetValueofClient saccount AnnualFee first$ 500, % On the next$ 500, % On the next$ 1,000, % asetsover$ 2,000,000 Negotiable FIXED INCOMEACCOUNTS AsetValueofClient saccount AnnualFee On the first$ 500, % On the next$ 500, % On the next$ 1,000, % asetsover$ 2,000,000 Negotiable ClientsundertheClassicProgram mayselecttopaycommissionsontradesinsteadofanassetbasedfee. ThefeefortheAssetManagementProgram isasfolows: AsetValueofClient saccount AnnualFee first$ 500, % $ 500,000 -$1 milion 1.25% $ 1,000,000 -$2,000, % asetsover$ 2,000,000 Negotiable -12 -

13 Janney may permitclients underthe Classic orfinancialinstitution Employee Discretion programstopaycommissionsinsteadofanasset-basedfee. Withrespecttoconsulting,financialplanningandretirementplanningservices,clientsmayelect topayanannualasset-basedfeeorafixedratefee. Thefeeschedulessetforthabovearethecurentfeeschedulesfornew clients. Otherfee schedulesmaygointoefectfrom timetotime,whichmayprovidefeeslowerorhigher,asthecasemay be,thanthoseshownabove.asnewfeeschedulesareputintoefect,theyaremadeapplicableonlyto new clients,andfeeschedulesapplicabletoexistingclientsarenotafected. Therefore,someclients maypaydiferentfeesthanthoseshownabove. AdvisoryFeesAreNegotiable Feesforanyofthe above wrap-fee programsarenegotiable. Feesforfinancialplanning, retirementplaninvestmentadvisoryservices,investmentadvisoryservices,andconsultingservicesare alsonegotiable. Asaregisteredbroker-dealer,Janneygeneralymaintainscustodyofinvestmentadvisoryclient assetsanddeductsclientfeesforwrapaccountsdirectlyfrom theclient saccountwiththefirm. For investmentadvisoryaccountsforwhichjanneyisnotthecustodian,janneydeductstheclientfeesfrom theclient scustodianaccountwithsuchthird-partycustodianpursuanttoauthorizationfrom theclient. Theclientmayauthorizeinwritinganalternateaccountfrom whichjanneymaydeducttheadvisoryfee. Janneybilsitswrapfeeclientsonaquarterlybasis,inadvance. Wheretheclientreceivesfinancial planning,retirementplaninvestmentadvisory,orconsultingservices,janneymaybiltheclientfor servicesrenderedordeductsuchfeesfrom theclient saccount. Clientsmayalsoelecttobebiled directlyfortheservicesprovidedratherthantohavetheiraccountdebitedforthefeesowed. WithrespecttothePartnersAdvisoryProgram,clientsmayholdcertainassetsorsecuritiesin those accountsas non-bilable. The advisoryfee forthese accountsdo notcovercommissions, transactionfeesandotherchargesassociatedwithtransactionsin non-bilable assetsheldintheclient s PartnersAdvisoryaccountorwithsecuritiesorotherpropertyheldbytheclientoutsideofthePartners Advisoryaccount.AclientwilpayalofJanney susualandcustomarycommissions,transactionfees andotherchargesasinefectwithrespecttosuchtransactions. Inadditiontotheinvestmentadvisoryfees,aclientmayalsoincurotherchargeswithrespectto itsadvisoryaccountincluding,forexample,(i)transactionchargesresultingfrom tradesefectedthrough orwithabroker-dealerotherthanjanneyinwrapprogram accounts,(i)anydealer-markupsandoddlot diferentials;(i)transfertaxes;section31feesimposedbythesecuritiesexchangeactof1934,as amended( ExchangeAct ),onsecuritiesexchangesandself-regulatoryorganizations(orothersec fees,asapplicable),whicharepaidbybroker-dealerssuchasjanney,andwhichjanneyinturnelectsto passontoitscustomers;andanyotherchargesimposedbylawwithregardtoanyaccounttransactions; (iv)margininterestandoperationalfeesandcharges;(v)oferingdiscounts,andcommissionsand related fees in connection with underwriten public oferings ofsecurities;(vi)ira fees;(vi)any redemptionfees,exchangefees,orsimilarfeeimposedinconnectionwithanyfundtransaction;and(vi) pertradetransactionchargesasdescribedinsection11ofthisagreement. Newdepositsinexcessof$15,000placedinaclient saccountduringanyperiodissubjecttothe feescheduleandappliedproratafortheremainderofthequarter. Dependingupontheinvestmentadvisoryprogram thattheclientselects,clientsmayusemargin (borowingmoneytobuysecurities). Anymarginfeesincuredwilbeinadditiontoinvestmentadvisory feeschargedtotheclient. Wheremargincreditisextendedtotheclient,Janneyreceivesadditional compensationinconnection withthemarginaccountbalance. WhiletheJanneyFinancialAdvisor generalydoesnotreceivecompensationfrom margininterestcharged,anymarginbalanceisincludedin thecalculationoftheadvisoryfee. Therefore,apotentialforconflictmayexistbetweentheclient s -13 -

14 interestandtheinterestsofjanneyfinancialadvisorswhenpurchasingsecuritiesonmargin.janney hasproceduresinplacetoensurethatanyrecommendationtoincuramarginbalancewithrespecttoan investmentadvisoryprogram byfinancialadvisorisinthebestinterestofclients. Investmentadvisoryaccountsmayincludesharesofmutualfunds(includingmoneymarket funds),closed-endfunds,exchange-tradedfunds,unitinvestmenttrusts,hedgefunds,privateinvestment partnershipsorotherinvestmentcompaniesorinvestmentpools(colectively, funds ). Thevalueof theseassetsisconsideredwhencalculatingtheapplicableaccountfees.inadditiontoaccountfeesand expenses,clientassetsinvestedinfundsaresubjecttootherfeesandexpensesasdescribedinthe funds prospectusesoroferingdocument,includingthemanagementfeeandotherfeesandchargers payablebythefund.asaresult,clientsarebearingindirectlyaportionofanyinvestmentmanagement and otherfees(such asdealerconcessions,administration,custody,transferagency,legal,audit, transaction-relatedanddistribution)paidbyafundinadditiontoanyaccountfees. Thesemayalso includepaymentstojanneyanditsafiliates. Withrespecttoasset-basedfees,Janneycalculatestheclientfeeatanannualratebasedupon thevalueoftheaccountasrevaluedquarterlyonthelastbusinessdayofeachcalendarquarter.thefee ispayablequarterlyinadvance. Theinitialfeewilbeforthepartialcalendarquarterbeginningonthedateofacceptanceofthe clientagreement,computedonapro-ratabasis,forthenumberofdaysremaininginthequarter,based ona90-dayquarter. Uponaccounttermination,Janneywilmakeapro-ratarefundoffeespaidbasedonthenumber ofdaysremaininginthequarter. JanneyanditsFinancialAdvisorsmayreceivecompensationforthesaleofsecuritiesormutual funds,including 12b-1 fees,administrative,distribution,shareholderservicingandmarketingsupport (revenueshare)paymentsfrom mutualfunds(ortheirsponsors)inwhichaclient sassetsareinvested, wherepermitedunderapplicablelaw.janney sfinancialadvisors,consistentwiththefirm spractices, mayalso receive non-cash compensation and otherbenefitsfrom mutualfund companiesorother managed productsponsorswith whom Janneydoesbusiness. Such non-cash compensation may includeinvitationstoatendconferencesoreducationalseminarssponsoredbymutualfundcompaniesor theiradvisersordistributors,paymentofrelatedtravel,lodgingandmealexpenses,andreceiptofgifts andentertainment.acceptanceofthesebenefitsisinaccordancewithindustryregulationsandjanney s policies. Clientsshouldreview almutualfundprospectusesandotheroferingdocumentsforfurther explanation. TheWealthManagementDepartment,whenreviewingandrecommendingalocationsto mutualfundsandotherfundsdoesnottakeintoconsiderationwhetherthefirm hasarevenuesharing agreementwithsuchfundoritsmanagerorwhetherthefirm receivesothercompensationfrom such funds. Thispracticemaypresentaconflictofinterestandgiveusanincentivetorecommendinvestment productsbasedonthecompensationreceived,ratherthanonaclient sneeds.weaddressthisconflict bymaintainingpolicieslimitinggiftsandgratuitiesanddisclosingthisconflicttoclients.themutualfunds thatwerecommendorthatareincludedonourpreferedproviderlistaregeneralynotconsidered no load mutualfundfamilies. Clientshavetheoptiontopurchaseinvestmentproductsthatwerecommendthroughother brokersoragentsthatarenotafiliatedwithus. Advisoryaccountsaregeneralynotseparatelychargedcommissionsormarkupsunlessthe clienthaselectedsuchanarangement.theinvestmentadvisoryfeegeneralyincludescostsrelatedto theinvestmentadvisory,brokerageandcustodyandreportingservicesprovided. Inaddition,certainfundsinwhichclientassetsareinvestedtradesecuritiesthroughourfirm s institutionalbrokeragegroup,includingbothfixedandequitiessecurities.asaresult,thefirm receivesa -14 -

15 benefitfrom suchtradesineitherthecommissionpaidforagencytradesorthemark-upforprincipal trades.thefirm spolicyistonotrecommendorusediscretiontoplaceinvestmentadvisoryclientassets inthesefundssimplybecausethemanagersforsuchfundsmayexecutetradesthroughjanney. In addition,fundstypicalyhavetheirownpoliciesprohibitingthefund smanagerfrom executingtradeswith abrokeragefirm basedontheamountofassetsthatfirm sclientshaveinvestedinsuchfund. UnderthePartnersAdvisoryProgram,JanneyFinancialAdvisorsmayreceivetransaction-based compensationwhentheclientengagesincertaintypesofprincipaltrades.aprincipaltradeoccurswhen theclientselsasecuritytoorbuysasecurityfrom Janney.Thispracticepresentsaconflictofinterest becausethejanneyfinancialadvisorhasanincentivetorecommendaprincipaltradebasedonthe transaction-basedcompensation,nottheclient sneeds. Principaltradesthatgeneralypresentthis conflictoccurwhenjanneyactsasamemberofanunderwritingsyndicate.theclientpaysthepublic oferingpricefrom theunderwriter,whichcanincludecompensationforthejanneyfinancialadvisor. Janneyaddressesthisconflictinseveralways.WherethispriceincludescompensationfortheJanney FinancialAdvisor,Janneymarksthesecurityasanon-bilableassetforaperiodofoneyearfrom the purchasedate. Janneyrequiresone-timewritenauthorizationfrom theclienttoenterintoprincipal trades.thiswritendisclosure,typicalyintheclientagreement,disclosesthepracticedescribedabove. Clientshave the option ofpurchasing investmentproductsrecommended byjanneythrough other brokersthatarenotafiliatedwithjanney. IntheeventPHAM isused,janneyoritsafiliatewilreceivealfees;whereasjanneywilnot receivealfeeswhereathirdpartyinvestmentadviserisused. Janneymaypay,outofitsownresources,thirdpartiesforquantitativeorfundamentalresearch andotherinformationthatmaybeusedinmanagingclientaccounts.thereshouldbenoincreasedcosts toclientsinconnectionwithsuchpayments. Item 6:Performance-BasedFeesandSide-by-SideManagement Janneydoesnotacceptperformance-basedfees. Item 7:TypesofClients Janneyofersinvestmentadvisoryservicestoabroadrangeofindividualandinstitutionalclients including,butnotlimitedto,individuals,families,trusts,estates,corporateandnon-corporateentities, retirementplans,pensionplans,profit-sharingplans,andgovernmententities.thewrapfeeprograms mayhaveminimum investmentrequirements. Janneyrequiresaminimum investmentof$25,000 toparticipateinthefolowing programs: PartnersAdvisory,ETFAdvantage,Keystone,andRusselStrategies. Janneyrequiresaminimum $50,000investmenttoparticipateintheCompassprogram. Janney requires a minimum $100,000 investmentto participate in the Adviser s,classic, Riverfront,andPHAM programs.clientsinvestingundertheclassicprogram wilbeadditionalysubject totheaccountinvestmentminimum ofthethirdpartyinvestmentmanager.clientsinvestingunderthe Classicprogram mustsignaseparateinvestmentmanagementagreementwithathirdpartyinvestment manager. Janneydoesnotrequireaminimum investmentforthefinancialinstitutionemployeediscretion program.clientsunderthisprogram mustbeemployedbyafinancialservicesfirm thatrequireshandling ofitsemployees accountsonadiscretionarybasis

16 Item 8:MethodsofAnalysis,InvestmentStrategiesandRiskofLoss JanneyFinancialAdvisors consultwith theirclients and utilize the JanneyRisk Tolerance Questionnairetodevelopaninvestmentstrategyfortheclient.GiventhenumberofFinancialAdvisors providingadviceatjanney,themethodsofanalysisandinvestmentstrategieswilvarybaseduponthe individualfinancialadvisorprovidingtheadvice.oncetheclientselectsanappropriateproduct,onan on-goingbasis,janney swealthmanagementdepartmentisperformingresearchandduediligenceon investmentmanagersin orderto provideclientsa selection ofmutualfundsand separate account productsacrossthefulspectrum ofassetclasses. WithrespecttotheCompassProgram,aFinancialAdvisormayutilizefundamentalresearch and/orquantitativeresearchtoassistinmanagingclientaccounts.eachindividualfinancialadvisormay developspecificinvestmentstrategiesusingamixoftheseanalyticmethodsandmayalsoestablish qualityandconcentrationrequirements. Janney maintains investmentcommitees thatmonitorand recommend mutualfunds and investmentmanagers. EachcommiteeconsistsofseniorJanneyWealthManagementprofessionals. Thecommiteesreviewandvoteonadditions,deletions,orchangestotheJanneyMutualFundMonitor orthehighlightedlistofmanagers. Janney sprocessforselectingandmonitoringmutualfundsand separate accountproductsconsistsoffour(4)steps: (1)Screening;(2)Quantitative Analysis;(3) QualitativeReview;(4)OngoingReview. DuringtheScreeningstage,Janneyscreensover15,000 mutualfundsand6,000managedaccountstrategies.generaly,inordertobeconsideredforajanney wrapprogram thefirm shouldhave$250milionormoreinassetsundermanagementandastafofthree ormoreestablishedinvestmentprofessionals.inmostcases,managerswilhaveafive-yeartrackrecord demonstratingconsistencyofstyle,philosophy,process,andrisk-adjustedreturns. IntheQuantitative Analysisstage,absoluteandrelativeperformanceisanalyzed,versusboththestylebenchmarkandpeer universe.inthequalitativereview stage,afirm satributessuchassize,assetsundermanagement, and service capabilities are analyzed. The professionalbackground ofthose making investment decisionsisexamined.theunderlyinginvestmentphilosophymustbeunderstandableinitsstatementof the manager s long term investmentgoals.janney performs due diligence on mutualfunds and managersonanongoingbasis. PHAM PHAM sapproachtosecurityanalysisisbasedonfundamentalresearch.thisapproachentails anexaminationoftheoperating,financialandindustryconditionsafectingeachcompanywhosesecurity isunderconsideration,alfrom along-term perspective.parker/hunterassetmanagementalsostrivesto incorporateeconomicanalysisintoitsoveralmarketpolicy,employcertainrelativevaluationdisciplines and make occasional,butlimited,use oftechnicalanalysis.parker/hunterassetmanagement's investmentprofessionalswiltakeintoaccountfactorssuchascurentyield,priceatractiveness,earnings anddividendgrowthpotential,andeconomic,politicalandsociologicalfactors.inportfolioconstruction, theinvestmentmanagerswilseekaprudentleveldiversificationtoreducerisk. Whileanyoralofthesourcesofinformationmaybeused,Parker/HunterAssetManagement's principalsourcesofinformationare:issuer-preparedinformation(annualreports,proxymaterials,press releases,etc.),sec filings,managementinterviewsandcontacts,industrytradeassociationstatistics, governmentdataandfinancialpublications.researchisalsoobtainedfrom equityresearchdepartments ofotherfinancialinstitutionsandindependentresearchservices. Assetalocationisprimarilydeterminedbyanalysisoftheclient'sobjectivesandrisktolerance andsecondarilybyanalysisofmarketandeconomicfactors.investmentstrategiesrecommendedby Parker/HunterAssetManagementaregeneralylong-term oriented

17 Risks JanneyclientsaremanagedindependentlyandJanneyisundernoobligationorrequirementto buyorselthesameinvestmentsforaccounts,evenwhentheinvestmentstrategymaybesimilar. Janney sinvestmentstrategiesinvolvecertainrisks. Therecanbenoassurancethatanyparticular strategywilbesuccessfulinachievingtheclient sinvestmentgoalsandobjectives.thematerialriskfor anystrategyunderjanney sadviceisriskofloss.eachmethodofanalysisjanneyundertakesrequires subjectiveassessmentsanddecision-makingbyexperiencedinvestmentprofessionals.however,there isariskofanerorinjudgment. Thisismitigatedthroughaninvestmentprocessandinvestment commitees thatprovide thorough review ofinvestmentproducts and managers prior to their recommendation.additionalriskexistsinthateachjanneyfinancialadvisormayutilizevaryingmethods ofanalysesandinvestmentstrategies. Janneydoesnotprimarilyrecommendanyparticulartypeofsecurity. Inperiodsofmarketvolatility,wemaybeunabletoinvestnewmoneycontributedtoanaccount, orproceedsfrom thesaleofsecurities,asquicklyasitmighthavebeenabletodoundernormalmarket conditions.similarly,wemaybeunabletoselsecuritiestoraisecash,ortoaccommodateaterminating client srequesttoselsecurities,asquickly,oratfavorableprices,asitmighthavebeenabletodounder normalmarketconditions.duringperiodsofmarketvolatility,wewilusereasonableefortstomanage accountsconsistentwithapplicableaccountguidelinesandwiltakeefortstorestoretheaccounttosuch guidelinesinaprudentmannerifmarketvolatilitycausesustodeviatefrom suchaccountguidelines. Item 9:DisciplinaryInformation DetailsofJanney sdisciplinaryinformationisdescribedinmoredetailinpartiofitsform ADV, availableonthesec swebsiteatwww.adviserinfo.sec.gov.consistentwiththerequirementsofform ADVPart2A,pleasefindinformationregardingthefolowingdisciplinarymaters. On July21,2005,Janneyentered into an Acceptance,Waiver& Consent(AWC)with the FinancialIndustry Regulatory Authority(FINRA),the self-regulatory organization forthe brokerage industry(thenknownasthenasd).withoutadmitingordenyinganyfindingsbyfinra,thefirm agreed toafineof$1,200,000andagreedtopayrestitutionof$998,285.81forimpropermarkettimingactivityin connectionwithmutualfundtransactions. OnMay6,2009,JanneyenteredintoanAWC withfinra.withoutadmitingordenyingany findingsbyfinra,the firm agreedto a $200,000 monetarysanction withrespecttocertainclient transactionsinvolvingauctionratesecurities( ARS ).Thefirm curentlydoesnotpurchasearsforclient accountsandhastakenstepsbeyondthoserequiredbyregulatorstoensurethatclientswerenot harmedbythedevelopmentsnegativelyimpactingthearsmarketplace. OnNovember3,2010,JanneyenteredintoanAWCwithFINRA.Withoutadmitingordenying anyfindingsbyfinra,thefirm agreedtoa$175,000monetarysanctionwithrespecttoitsfailureto establishcertainelementsofanadequateanti-moneylaunderingprogram,failuretofolow procedures designedtopreventasupervisorortheirsubordinatefrom approvingthesupervisor sactivities,failureto approveandmaintainrecordsofcertainmarketingandmediaactivities,failuretodocumentthereviewof certaindiscretionaryoptionactivity,andthefailuretomaintaincertainrecords. Item 10:OtherFinancialIndustryActivitiesandAfiliations Janneyisregisteredasabroker-dealerundertheExchangeActandasaninvestmentadviser undertheadvisersact. JanneyFinancialAdvisorsarebothregisteredrepresentativesforbrokerage related services and investmentadvisory representatives forinvestmentadvisory related services. Janneymaygiveadviceandtakeactionintheperformanceofitsdutiestoclientsthatdiferfrom advice -17 -

18 given,ortothetimingandnatureofactiontaken,withrespecttoaccountsunderthevariousinvestment advisoryserviceslistedinthisdocument. Janneyalsomaynotbefreetodivulgeoractuponcertain informationinourpossessiononbehalfofinvestmentbankingorotherclients.undercertaininvestment advisoryprograms,janneymaybuyorselsecuritiesofissuersthatmayalsobeinvestmentbankingor otherclients. Anydecisionstobuyorselsuchsecuritiesaremadeindependentofanyinvestment bankingorotherrelationshipandjanneyfinancialadvisorsdonotparticipateintheinvestmentbanking servicesprovidedtosuchclients.additionaly,manyinvestmentmanagersoferedbyjanneyarealso clientsofjanneyinitscapacityasabroker-dealer. JanneyisalicensedinsuranceagencyandcertainFinancialAdvisorsarealsolicensedinsurance agents. Inthisrole,Janneyofersinsuranceproductstoitsclients. Inaddition,asitrelatestothe financialplanningservicesdescribedabove,janneyalsoprovidesadvicefrom timetotimewithrespect toinsurancematers. CertaininsuranceproductsmaybeissuedorsponsoredbyJanney sparent company,thepennmutualinsurancecompany. Thefirm doesnotreceivecompensationfrom investmentadvisersthatarerecommendedor selectedthroughoneofthewrapfeeprogramsthatutilizethirdpartyinvestmentmanagers.some investmentadvisers,intheircapacityasadvisertoamutualfund,closed-end,privatefundorsomeother pooledinvestment,mayshareapercentageoftherevenuetheyreceivefrom suchfundsthatrelateto investmentsinsuchfundsbyjanneyclientsasfurtherdescribedinitem 5. Item 11:CodeofEthics,ParticipationorInterestinClientTransactionsandPersonalTrading JanneyhasadoptedanInvestmentAdvisoryCodeofEthics(the Code )thatprovidesfirm employeesdetailed guidelinesgoverning theirconductincluding,butnotlimited to,the conductof businesswithfirm clients,knowledgeandenforcementoffirm privacypolicies,conflictsofinterest, compliance with state and federalstatutes,laws and regulations,personaltrading activities and possessionandactionswithregardto insideinformation.janneywilprovideacopyofitsinvestment advisorycodeofethicstoanyclientorprospectiveclientuponrequest. Janneymayexecutetradesonaprincipalbasisinclient spartnersadvisoryaccountunder certaincircumstances.aprincipaltradeoccurswhenjanneypurchases(orsels)asecuritydirectlyfrom (orto)clientaccountsfrom Janney sinventoryratherthanathirdparty. Inordertofacilitateprincipal tradesinclient saccount,janneywil(1)provideclientwithinformationaboutprincipaltradesandobtain client spriorwritenconsent,(2)verbalyconfirm,atthetimeofeachtransaction,thatthetrademaybe doneonaprincipalbasis,(3)discloseontradeconfirmationsforeachprincipaltradethatjanneyacted asprincipalinconnectionwiththetransaction,(4) Sendclientanannualreportdetailingeachprincipal tradeinclient saccountoverthepreviousyear,(5)continuetosubjectaltransactionstojanney sduty ofbestexecution and fiduciary responsibility,and (6) Comply with client s requestforadditional informationatanytimeaboutprincipaltrades.clientmayrevoketheauthorizationforjanneytoengage inprincipaltradesatanytimebyprovidingwritennoticetojanney. AconflictofinterestexistswhenJanneyexecutestradesonaprincipalbasisforclientaccounts. Janneyhasaninterestinreceivingaspread(thediferencebetweenthepriceJanneybuysthesecurity andthepriceatwhichjanneyselsthesecuritytotheclientaccount).janneymayalsoreceiveother compensation by seling from its inventory to a Clientaccount. Forexample,Janney may be compensatedasanunderwriterforselingsecuritiesonbehalfofanissuer.clientswilpaythepublic oferingpriceforsecuritiespurchasedfrom JanneywhereJanneyactsasanunderwriterordealer. Janneymaypayaportionofcompensationreceivedfrom suchatransactiontotheclient sjanney FinancialConsultant. Whereacommission,concession,ormark-upisreceivedbytheJanneyFinancialConsultant whenengaginginaprincipaltradeunderthepartnersadvisoryprogram,thesecuritypurchasedona principalbasiswilbemadeanon-bilableassetforaperiodofoneyearfrom thedateofpurchase.the -18 -

19 commission,concession,ormark-up maybe greaterorlessthan the asset-based fee the Janney FinancialConsultantwouldotherwisereceive. Transactions forclassic oradviser s Program clients are efected byjanneyonlyon the instructionoftheclient sselectedinvestmentmanager(ortheclient). Accordingly,foranyandal transactionsefectedbyorthroughjanneyinanaccountundereithertheclassicoradviser sprogram atthedirectionoftheinvestmentmanagerortheclient,janneyisnotprovidinginvestmentadviceinthe form ofrecommendationstobuyorselspecificsecurities.underthesecircumstances,janneymayact onanagencyorprincipalbasisinexecutingtransactionsonbehalfofclientsundereithertheclassicor Adviser sprogram.whenactingasprincipal,janneywilnottakeanymarkupormarkdownonthe securitiestransaction.onoccasion,principaltradeswilbeafectedfrom Janney sinventory,inwhich eventjanneymayrealizeaprofitoralossdependingonitscostbasisinthesecurities. EmployeesofJanneywilinvestinthesamesecuritiesthatJanneyrecommendsorbuysorsels forclients.theconflictpresentedbythispracticecouldleadtoanemployeepurchasingorselinga securityinadvanceofaclientandreceivingabeterprice.personalsecuritiestransactionsbyjanney FinancialAdvisorsaresubjecttotherestrictionsandproceduressetforthinCode.UndertheCode, whenaclienttradeandajanneyfinancialadvisortradeoccursonthesametradedayandinthesame security,theclientreceivesanequalorbeterprice.thecodeprovidesforlimitedexceptionstothis policy,whicharesubjecttoapprovalbythecomplianceand/orlegaldepartment.additionaly,wherea clientaccountisunderthedirectionofaninvestmentmanagerotherthanthefinancialadvisor,this policywilnotapply. Where the FinancialAdvisordirectsclientaccounttrading asthe investment manager,thefinancialadvisorisprohibitedfrom thepurchaseorsaleofindividualsecuritiesintheir accountduringthesamebusinessdayasthesolicitedpurchaseorsaleofthesamesecurityinthe FinancialAdvisor s clientaccounts. Separately,PHAM personnelare subjectto certain trading restrictionsdesigned to mitigate conflictsofinterest. These restrictionsinclude holding periodsfor securitiesandaprohibitionfrom purchasinginitialpublicoferings. Janneymayefect crossing transactions(i.e.,transactionsinwhichjanneyactsasbrokerfor thepartiesonbothsidesofthetransactions)involvingtheclassic,adviser s,orriverfrontprogramsor otherclientsonlyinaccordancewithapplicablelaw.janneywilnotefect crossing transactionsfor clientsunderthe Compass,Discretionary,and FIED programs. When efecting such transactions, Janneywouldreceivecompensation(theamountofwhichmayvary)from theotherpartytosuch transactions,whichcompensationfrom theotherpartywouldbeinadditiontothefeesdescribedherein. WhilealtransactionsinvolvingtheClassic,Riverfront,orAdviser sprogramsaredirectedbyeitherthe investmentmanagerortheclient,intheeventthatclientsdonotwantorderstobeexecutedinthis manner,theymaynotifyjanneyinwritingatanytime. Item 12:BrokeragePractices With respectto services provided pursuantto the programs described herein,the clients generalyauthorizejanneytoactasthebrokerfortrades.aclientmay,however,authorizetheuseof anotherbroker.janneyalsohasdiscretiontoselectanotherbrokerifitdeterminesthatbeterexecution canbeobtainedthroughtheotherbroker. ResearchandOtherSoftDolarBenefits InaccordancewithSection28(e)oftheSecuritiesExchangeActof1934,Janneyand/orits afiliatesmaypayhighercommissionstobrokeragefirmsthatprovideitwithinvestmentandresearch informationthantofirmswhichdonotprovidesuchservicesifjanneyand/oritsafiliatesdeterminethat suchcommissionsarereasonableinrelationtotheoveralservicesprovided.suchtransactionsmay includebothequityandfixedincometransactionsefectedonanagencybasis. Apotentialconflictof interestexistswherejanneyreceivescommissionrevenuefrom investmentadvisoryfirmsthatjanney also recommends to clients. When Janney uses clientbrokerage commissions (ormarkups or markdowns)toobtainresearchorotherservices,clientbenefitsbecausejanneydoesnothaveto -19 -