Portfolio Breakdown as of 06/30/2015

Equity Assets
U.S. Large Cap 3.6%
U.S. Small/Mid Cap 9.4%
Intl Equity 10.2%
% of Total Assets 23.2%
Fixed Income Assets
Investment Grade 21.2%
High Yield 36.7%
Convertibles 8.8%
Emerging Mkt Currencies 9.4%
Other and Cash 0.9%
% of Total Assets 76.1%

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 06/30/2015

Consumer Discretionary
Information Technology
Health Care
Telecommunication Services
Consumer Staples
Ten Largest Equity Holdings Assets
Allergan plc 0.4%
Wells Fargo & Co. 0.3%
Baytex Energy Corp. 0.3%
Crescent Point Energy Trust 0.3%
Royal Dutch Shell plc 0.3%
National Australia Bank Ltd. 0.3%
Freenet AG 0.2%
Whitecap Resources, Inc. 0.2%
Total S.A. 0.2%
Berkeley Group Holdings plc 0.2%
Ten Largest Fixed Income Issues Assets
U.S. Treasury Note 1.0%
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 0.2%
DISH DBS Corp. 0.2%
SunPower Corp. 0.2%
Gilead Sciences, Inc. 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

Contact a Representative