Portfolio Breakdown as of 03/31/2015

Equity Assets
U.S. Large Cap 16.1%
U.S. Small/Mid Cap 21.7%
Intl Equity 14.9%
% of Total Assets 52.7%
Fixed Income Assets
Investment Grade 6.4%
High Yield 22.7%
Convertibles 8.7%
Emerging Mkt Currencies 8.9%
Other and Cash 0.6%
% of Total Assets 46.7%

Portfolio Positioning as of 03/31/2015

  • The regional divergences in economic growth and central bank policy that characterized 2014 gave way to an incipient redistribution of growth during the first quarter of 2015. The cross-border impact of a relatively strong U.S. economy became evident in recent months, with the primary transmission mechanism coming in the form of a rising U.S. dollar that provided a tailwind for export markets around the world.
  • We meaningfully increased the portfolio’s allocation to emerging market currencies during the period. Expectations of a broad-based global expansion have led us to become more constructive on emerging currencies, although we continue to distinguish between those countries that should most benefit from low oil prices and structural reforms and those that are dependent on commodity exports or are expected to cut interest rates in the near-future.
  • Although we maintained a similar allocation to equities quarter-over-quarter, we shifted the composition of the portfolio’s stock holdings in favor of international securities. Given our outlook for longer-term U.S. dollar strength, we implemented currency hedges for non-U.S. equity purchases.
  • We utilized recent price appreciation as an opportunity to trim the portfolio’s high yield debt exposure. However, attractive yields and relatively limited interest rate sensitivity support the case for continued emphasis on credit-sensitive fixed income as the U.S. Federal Reserve inches closer to liftoff.

Equity Sector Allocation as of 03/31/2015

Financials
Consumer Discretionary
Information Technology
Health Care
Energy
Industrials
Utilities
Consumer Staples
Materials
Telecommunication Services
Ten Largest Equity Holdings Assets
Whirlpool Corp. 0.7%
Invesco Ltd. 0.7%
Hartford Financial Services Group, Inc. 0.6%
XL Capital Ltd. 0.6%
Fifth Third Bank 0.5%
Fidelity National Information Services, Inc. 0.5%
Cardinal Health, Inc. 0.4%
Mallinckrodt plc 0.4%
Royal Dutch Shell plc 0.4%
Wells Fargo & Co. 0.4%
Ten Largest Fixed Income Issues Assets
U.S. Treasury Note 0.5%
Yahoo!, Inc. 0.4%
Twitter, Inc. 0.3%
Tesla Motors, Inc. 0.3%
Intel Corp. 0.2%
U.S. Treasury Note 0.2%
Restoration Hardware Holdings, Inc. 0.2%
U.S. Treasury Note 0.2%
SunPower Corp. 0.2%
HomeAway, Inc. 0.2%
Holdings Assets
High Yield Fund 25.3%
International Dividend Income Fund 15.7%
Calibrated Mid Cap Value Fund 12.6%
Mid Cap Stock Fund 11.5%
Convertible Fund 9.9%
Calibrated Large Cap Value Fund 9.3%
Emerging Markets Currency Fund 7.9%
Short Duration Income Fund 3.5%
Core Fixed Income Fund 3.0%
Growth Opportunities Fund 1.1%
Fund Dividends & Cap Gains next tab

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