Portfolio Breakdown as of 03/31/2015

Equity Assets
U.S. Large Cap 10.3%
U.S. Small/Mid Cap 18.1%
Intl Equity 37.3%
% of Total Assets 65.7%
Fixed Income Assets
Investment Grade 0.7%
High Yield 15.8%
Convertibles 0.3%
Emerging Mkt Currencies 16.5%
Other and Cash 1.1%
% of Total Assets 33.3%

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

Consumer Discretionary
Health Care
Telecommunication Services
Information Technology
Consumer Staples
Ten Largest Equity Holdings Assets
Royal Dutch Shell plc 1.0%
National Australia Bank Ltd. 1.0%
Total S.A. 0.9%
Baytex Energy Corp. 0.9%
Whitecap Resources, Inc. 0.8%
Freenet AG 0.8%
TeliaSonera AB 0.8%
Bank of China Ltd. 0.7%
Snam SpA 0.7%
Crescent Point Energy Trust 0.7%
Ten Largest Fixed Income Issues Assets
Banco Popular Espanol SA 0.4%
Seven Generations Energy Ltd. 0.1%
WhiteWave Foods Co. 0.1%
AMC Networks, Inc. 0.1%
Valeant Pharmaceuticals International 0.1%
DISH DBS Corp. 0.1%
MEG Energy Corp. 0.1%
AerCap Ireland Capital Ltd. 0.1%
First Data Corp. 0.1%
Sabine Pass Liquefaction LLC 0.1%
Holdings Assets
International Dividend Income Fund 41.2%
High Yield Fund 18.1%
Emerging Markets Currency Fund 15.3%
Calibrated Mid Cap Value Fund 12.4%
Mid Cap Stock Fund 10.7%
Growth Opportunities Fund 1.6%
Short Duration Income Fund 0.5%
Fund Dividends & Cap Gains next tab

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