Portfolio Breakdown as of 07/31/2015

Equity Assets
U.S. Large Cap 15.2%
U.S. Small/Mid Cap 22.3%
Intl Equity 15.0%
% of Total Assets 52.5%
Fixed Income Assets
Investment Grade 7.1%
High Yield 21.4%
Convertibles 8.9%
Emerging Mkt Currencies 9.2%
Other and Cash 0.9%
% of Total Assets 46.6%

Portfolio Positioning as of 06/30/2015

  • Following a mild first-quarter contraction, the U.S. economy was bolstered by a resurgence in consumer spending and further labor market improvements. Despite early signs of wage inflation, the Federal Reserve adopted a more dovish stance in its policy deliberations, and reiterated its commitment to supporting economic growth. This change in tone led to modest depreciation of the U.S. dollar against developed currencies such as the euro and contributed to the stabilization of oil prices.
  • We slightly reduced our equity allocation through sales of profitable positions in U.S. growth stocks, while maintaining an overweight to international equities. Although the Greek debt crisis and weakness in Chinese shares dominated overseas headlines late in the quarter, non-U.S. stocks—particularly those in developed European markets—should continue to benefit from a relatively strong U.S. dollar, lower energy costs, and highly accommodative monetary policy.
  • In fixed income, we took advantage of tightening credit spreads to reduce our allocations in high-yield bonds. In addition, we added to our position in investment-grade bonds, when valuations became more attractive as longer-term interest rates reached their highs of the year. We continue to maintain a small overweight to credit-sensitive fixed income, however, as fundamentals remain favorable and defaults are running well below long-term averages. Furthermore, attractive yields and relatively limited interest-rate sensitivity should support credit as the Federal Reserve moves closer to “liftoff.” 
  • We added to our positions in emerging market currencies during the period, and now we are neutral versus our long-term targets. While we expect secular U.S. dollar appreciation, aggressive central bank stimulus should lead to more balanced global growth, which is supportive of emerging economies. As in past quarters, we continue to favor countries that should benefit from low oil prices as well as those with ties to an improving European economy.

Equity Sector Allocation as of 07/31/2015

Consumer Discretionary
Health Care
Information Technology
Telecommunication Services
Consumer Staples
Ten Largest Equity Holdings Assets
Invesco Ltd. 0.7%
Whirlpool Corp. 0.6%
Fifth Third Bank 0.6%
XL Capital Ltd. 0.6%
Hartford Financial Services Group, Inc. 0.6%
Mallinckrodt plc 0.5%
M&T Bank Corp. 0.4%
Allergan plc 0.4%
National Australia Bank Ltd. 0.4%
PPL Corp. 0.4%
Ten Largest Fixed Income Issues Assets
Yahoo!, Inc. 0.3%
Tesla Motors, Inc. 0.3%
MGIC Investment Corp. 0.3%
U.S. Treasury Note 0.3%
Intel Corp. 0.3%
U.S. Treasury Note 0.3%
U.S. Treasury Note 0.2%
Gilead Sciences, Inc. 0.2%
Lennar Corp. 0.2%
Fiat Chrysler Automobiles N.V. 0.2%
Holdings Assets
High Yield Fund 22.4%
International Dividend Income Fund 16.2%
Calibrated Mid Cap Value Fund 13.0%
Mid Cap Stock Fund 11.0%
Convertible Fund 10.5%
Emerging Markets Currency Fund 9.6%
Calibrated Large Cap Value Fund 9.5%
Short Duration Income Fund 4.4%
Core Fixed Income Fund 3.6%
Fund Dividends & Cap Gains next tab

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