Portfolio Breakdown as of 07/31/2015

Equity Assets
U.S. Large Cap 21.8%
U.S. Small/Mid Cap 29.1%
Intl Equity 19.5%
% of Total Assets 70.4%
Fixed Income Assets
Investment Grade 6.5%
High Yield 21.8%
Convertibles 0.4%
Other and Cash 0.9%
% of Total Assets 28.7%

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 reduced our exposure to developed markets currencies this quarter. Exceptionally accommodative monetary policy in the eurozone and Japan continues to render their currencies less attractive, while commodity weakness represents a headwind for exporters such as Australia and Canada. As such, we viewed the second-quarter rally in these currencies as an opportunity to reduce positions in anticipation of future depreciation.

Equity Sector Allocation as of 07/31/2015

Consumer Discretionary
Health Care
Information Technology
Consumer Staples
Telecommunication Services
Ten Largest Equity Holdings Assets
Invesco Ltd. 1.0%
Whirlpool Corp. 0.9%
Fifth Third Bank 0.9%
XL Capital Ltd. 0.8%
Hartford Financial Services Group, Inc. 0.8%
Mallinckrodt plc 0.7%
M&T Bank Corp. 0.6%
Pfizer, Inc. 0.6%
JPMorgan Chase & Co. 0.6%
PPL Corp. 0.5%
Ten Largest Fixed Income Issues Assets
Banco Popular Espanol SA 0.2%
U.S. Treasury Note 0.2%
U.S. Treasury Note 0.2%
U.S. Treasury Note 0.2%
DISH DBS Corp. 0.2%
Federal National Mortgage Assoc. 0.1%
Federal National Mortgage Assoc. 0.1%
U.S. Treasury Note 0.1%
T-Mobile USA, Inc. 0.1%
WhiteWave Foods Co. 0.1%
Holdings Assets
High Yield Fund 23.0%
International Dividend Income Fund 21.1%
Calibrated Mid Cap Value Fund 16.8%
Mid Cap Stock Fund 16.6%
Calibrated Large Cap Value Fund 11.9%
Short Duration Income Fund 4.6%
Affiliated Fund 3.3%
Core Fixed Income Fund 2.8%
Fund Dividends & Cap Gains next tab

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