Portfolio Breakdown as of 05/29/2015

Equity Assets
U.S. Large Cap 3.4%
U.S. Small/Mid Cap 9.7%
Intl Equity 10.5%
% of Total Assets 23.6%
Fixed Income Assets
Investment Grade 20.6%
High Yield 36.6%
Convertibles 9.2%
Emerging Mkt Currencies 9.1%
Other and Cash 1.0%
% of Total Assets 75.5%

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 05/29/2015

Consumer Discretionary
Information Technology
Health Care
Consumer Staples
Telecommunication Services
Ten Largest Equity Holdings Assets
Actavis plc 0.3%
Baytex Energy Corp. 0.3%
Wells Fargo & Co. 0.3%
Crescent Point Energy Trust 0.3%
Royal Dutch Shell plc 0.3%
National Australia Bank Ltd. 0.3%
Chesapeake Energy Corp. 0.3%
Total S.A. 0.2%
Freenet AG 0.2%
Whitecap Resources, Inc. 0.2%
Ten Largest Fixed Income Issues Assets
U.S. Treasury Note 1.0%
Priceline.com, Inc. 0.4%
Tesla Motors, Inc. 0.3%
Yahoo!, Inc. 0.3%
Twitter, Inc. 0.3%
MGIC Investment Corp. 0.3%
Intel Corp. 0.3%
U.S. Treasury Note 0.2%
Gilead Sciences, Inc. 0.2%
SunPower Corp. 0.2%
Holdings Assets
High Yield Fund 33.1%
Short Duration Income Fund 23.9%
International Dividend Income Fund 11.3%
Convertible Fund 10.3%
Emerging Markets Currency Fund 9.3%
Calibrated Mid Cap Value Fund 5.1%
Core Fixed Income Fund 3.2%
Mid Cap Stock Fund 3.1%
Growth Opportunities Fund 0.6%
Fund Dividends & Cap Gains next tab

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