2016 Anniversary Letter

I am grateful to once again draft the Forest Capital Anniversary letter. Time brings great perspective and the cherished appreciation of quality relationships, kindness, and trust. We are grateful to have shared this journey with you and so appreciate the trust you have placed in Forest Capital. We would be remiss to not mention friends we have lost, and illnesses our friends are now suffering. Please know you are in our hearts. Peace unto you and your families.

Since our launch in March 2004, Forest Capital has been an advisory/asset management firm focused on selecting undervalued securities, generating investment income, thinking independently-Fiduciary Standard, and investing alongside our clients. These core principles have guided our investment decisions and set us apart from other investment firms.

The investment methodology for building this firm was straightforward: combine strong credit research with a valuefocus to uncover undervalued income/dividend securities across the capital structure of a company. Finding “unloved” income/dividend securities remains our passion. In 2011 Forest Capital launched Sixty Guilders Research, a robust investment research engine that provides corporate credit research, bond selection tools, and equity valuation reports. We use this research tool to provide clients with an even higher level of service and prove out our research process.

In 2015-2016 we have broadened, and deepened, the structural capabilities of our firm, including:

• Purchasing a building in Concord, NC to consolidate our operations and staff;

• Promoting Dana Christner to Operations Director for Forest Capital;

• Assisting McClure, CPA in its acquisition of well-established CPA firm in North Wilkesboro, NC;

• Celebrating the launch of another Total Return Income Portfolio focused on closed-end securities; and

• Completion of a 5-year benchmarking of our research company, Sixty Guilders Research.

We are truly thankful to our clients and friends who share these core principles of value and have entrusted their investment resources with us.

Your support, wisdom, encouragement, and faithfulness have been incredibly important in building this firm.

We are grateful for your referrals and your willingness to act as references to those considering Forest Capital. We are truly indebted to you. Thank you.

Thank you again for the opportunity to be stewards of your investment resources. We greatly appreciate all your trust and effort in helping us build Forest Capital and Sixty Guilders Research.

Regards,

Julien B. Booth

Forest Capital Corp.

jbooth@forestcapital.net

C. David McClure, CPA, PFS, CFP

McClure CPA, P.A.

dmcclure@mcclurecpa.com

Dimitri Triantafyllides, CFA

Forest Capital/Sixty Guilders Research

dtriantafyllides@forestcapital.net

Re: Form ADV – At this time each year we would also like to remind you that you may examine a copy of our disclosure document (ADV, Part 2) at our website www.forestcapital.net or request a copy be provided to you via email at jbooth@forestcapital.net or call 704-847-0101 and request a copy be sent via mail.

PRIVACY NOTIFICATION:

Forest Capital Corp. is committed to maintaining the confidentiality, integrity and security of the personal information that is entrusted to us.

The categories of nonpublic information that we collect from you may include information about your personal finances, information about your health to the extent that it is needed for the financial planning process, information about transactions between you and third parties, and information from consumer reporting agencies, e.g., credit reports. We use this information to help you meet your personal financial goals.

With your permission, we disclose limited information to attorneys, accountants, and mortgage lenders with whom you have established a relationship. You may opt out from our sharing information with these nonaffiliated third parties by notifying us at any time by telephone @ 704-847-0101, mail, fax, jbooth@forestcapital.net, or in person. With your permission, we share a limited amount of information about you with your brokerage firm in order to execute securities transactions on your behalf.

We maintain a secure office to ensure that your information is not placed at unreasonable risk. We employ a firewall barrier, secure data encryption techniques and authentication procedures in our computer environment.

We do not provide your personal information to mailing list vendors or solicitors. We require strict confidentiality in our agreements with unaffiliated third parties that require access to your personal information, including financial service companies, consultants, and auditors. Federal and state securities regulators may review our Company records and your personal records as permitted by law.

Personally identifiable information about you will be maintained while you are a client, and for the required period thereafter that records are required to be maintained by federal and state securities laws. After that time, information may be destroyed.

We will notify you in advance if our privacy policy is expected to change. We are required by law to deliver this Privacy Notice to you annually, in writing.