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Managing Client Assets with an Eye Toward Fed Tapering
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Managing Client Assets with an Eye Toward Fed TaperingJuly 24, 2013
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Managing Client Assets
With an Eye Toward Fed Tapering
presented by
with
2
33
Today’s Agenda
•Introduction Christopher LaPorta, AFIM, CTFA - Senior Portfolio Manager and Trust Officer,
ATG Trust Company
•Background on Financial Counselors, Inc.Eugene Helm, FCI Managing Director – Trust Investment Solutions
•Global EconomyGary Cloud, CFA, FCI Senior Vice President, Co-Chief Investment Officer -
Fixed Income
•Asset Allocation and Equity MarketsBrian Perott, CFA, FCI Senior Vice President , Managing Director of Core Equity
and Head of FCI’s Asset Allocation Committee
•Fixed Income MarketsGary Cloud
•Questions and AnswersChristopher LaPorta
44
Introduction
Christopher LaPorta
3
55
Background on
Financial Counselors, Inc.
Eugene Helm
6
Financial Counselors, Inc.
• Founded in 1966
• Based in Kansas City, Missouri with Offices in: Overland Park, KansasShelton, ConnecticutHerndon, VirginiaClayton, Missouri
• SEC Registered Investment Advisory Firm
• Owned by MTC Holding Company, which is largely owned by Employees and Directors
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7
Financial Counselors, Inc.
• Approximately $5 billion in Assets Under Management (6/30/13)
• 53 Employees, 28 are Investment Professionals– 22 Portfolio Managers– 13 CFAs– 13 MBAs– 3 CFPs– Investment Professionals Average more than 20 Years of Industry Experience– Many Portfolio Managers are former Trust Officers
8
Investment Solutions
• Accounts are managed with sensitivity to taxes, where appropriate (i.e. low turnover equity portfolios or municipal bond portfolio, retention of securities with low-cost basis)
• Diversification, via a mix of asset classes, that is consistent with each client’s tolerance for risk and investment time horizon
• Transition management that facilitates the gradual implementation of portfolio changes to mitigate tax and trading costs
• Investment recommendations that are consistent with each client’s guidelines, including any socially responsible or green investing preferences
Clients have diverse needs and FCI’s program is flexibly implemented to address those needs. Responding to client-specific issues is a cornerstone of the FCI program.
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Investment Solutions
• A Broad Range of Fiduciary-Quality Investment Solutions
– 4 Proprietary Separate Security Equity Portfolio Styles
– Fixed Income Management Utilizing Taxable and Tax-Exempt Bonds
• Portfolios are Managed According to Prudent Investor Act Standards
• Portfolios can be Managed on a Discretionary (no approval required) or Non-Discretionary Basis (trades Implemented only if approved)
1010
Global Economy
Gary Cloud, CFA
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11
Weekly Data 1/08/1999 - 7/12/2013 (Log Scale)
(IE516)
European Central Bank Assets ( ) 3114. 17U.S. Federal Reserve Bank Credit ( ) 3456. 32Bank of Japan Assets ( ) 1893. 70Bank of England Assets ( ) 606. 81
In billions dollars
Source: Haver Analytics 154 168 183 200 218 238 260 284 309 337 368 402 438 478 522 569 621 677 739 806 879 959
1046114212451359148216171764192521002291249927272975324535403862
154 168 183 200 218 238 260 284 309 337 368 402 438 478 522 569 621 677 739 806 879 959
1046114212451359148216171764192521002291249927272975324535403862
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Central Bank Balance Sheets for Selected Countries
Copyright 2013 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved. . www.ndr.com/vendorinfo/ . For data vendor disclaimers refer to www.ndr.com/copyright.htmlSee NDR Disclaimer at
©
Central Bank Balance Sheets
for Selected Countries
12
(E702)
Monthly Data 11/30/1948 - 6/30/2013 (Log Scale)
CPI Point Gain/Annum When:
Gain/ % Economy Is: Annum of Time
Contracting -1. 9 17. 1
* Expanding 0. 3 82. 9
Buy/Hold -0. 0 100. 0
Shaded areas represent National Bureau of
Economic Research recessions.
6/30/2013 = 1.8%
-2
-1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
-2
-1
0
1
2
3
4
5
6
7
8
9
10
11
12
13
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1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Inflation Rate vs the Economy
Copyright 2013 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved. . www.ndr.com/vendorinfo/ . For data vendor disclaimers refer to www.ndr.com/copyright.htmlSee NDR Disclaimer at
©
Inflation Rate vs. The Economy
7
13
DAVIS182© Copyright 2013 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved.See NDR Disclaimer at www.ndr.com/copyright.html For data vendor disclaimers refer to www.ndr.com/vendorinfo/
U.S. M2 Money Supply Velocity (GDP/M2) Quarterly Data 1954-12-31 to 2013-03-31
DAVIS182© Copyright 2013 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved.See NDR Disclaimer at www.ndr.com/copyright.html For data vendor disclaimers refer to www.ndr.com/vendorinfo/
U.S. M2 Money Supply Velocity (GDP/M2) Quarterly Data 1954-12-31 to 2013-03-31
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
1.525
1.550
1.575
1.600
1.625
1.650
1.675
1.700
1.725
1.750
1.775
1.800
1.825
1.850
1.875
1.900
1.925
1.950
1.975
2.000
2.025
2.050
2.075
2.100
2.125
1.525
1.550
1.575
1.600
1.625
1.650
1.675
1.700
1.725
1.750
1.775
1.800
1.825
1.850
1.875
1.900
1.925
1.950
1.975
2.000
2.025
2.050
2.075
2.100
2.125 2013-03-31 = 1.53x
Source: Department of Commerce, Federal Reserve Board
U.S. M2 Money Supply Velocity
14
UIP503A © Copyright 2013 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved.See NDR Disclaimer at www.ndr.com/copyright.html For data vendor disclaimers refer to www.ndr.com/vendorinfo/
Commodity Sector Index Daily Data 2008-07-18 to 2013-07-19 (Log Scale)
UIP503A © Copyright 2013 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved.See NDR Disclaimer at www.ndr.com/copyright.html For data vendor disclaimers refer to www.ndr.com/vendorinfo/
Commodity Sector Index Daily Data 2008-07-18 to 2013-07-19 (Log Scale)
Sep Dec 2009
Mar Jun Sep Dec 2010
Mar Jun Sep Dec 2011
Mar Jun Sep Dec 2012
Mar Jun Sep Dec 2013
Mar Jun
133
134
136
137
138
140
141
143
144
145
147
148
150
151
153
154
156
158
159
161
162
164
166
167
169
171
172
174
176
178
179
133
134
136
137
138
140
141
143
144
145
147
148
150
151
153
154
156
158
159
161
162
164
166
167
169
171
172
174
176
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179 Commodity Sector Index / S&P 500 Index (07/19/2013 = 134.71)50-Day SMA (07/19/2013 = 135.42)200-Day SMA (07/19/2013 = 139.77)
Uses S&P 500 cap-weighted sectors (equal-weighting the returns of each sector, rebalanced quarterly). Source : S&P Capital IQ and MSCI, Inc. (GICS)
Commodity Sector Components : Energy and Materials.
Chart Range (Years): 1 , 2 , 3 , 5, 10 , 20 , Max
Commodity Sector Index
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Monthly Data 1/31/1968 - 6/30/2013
(E102B)
6/30/2013 = 7.557%
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5
6
7
8
9
10
4
5
6
7
8
9
10
1-Month Point Change 6/30/2013 = 0.002
Unemployment Rising
Unemployment Falling
+2 Standard Deviations
-2 Standard Deviations-0.5-0.4-0.3-0.2-0.10.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
-0.5-0.4-0.3-0.2-0.10.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
Year-to-Year Point Change 6/30/2013 = -0.629
Unemployment Rising
Unemployment Falling
+1 Standard Deviation
-1 Standard Deviation Shaded areas represent
National Bureau ofEconomic Research recessions
-2
-1
0
1
2
3
4
-2
-1
0
1
2
3
4
1970 1975 1980 1985 1990 1995 2000 2005 2010
Unemployment Rate
Copyright 2013 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved. . www.ndr.com/vendorinfo/ . For data vendor disclaimers refer to www.ndr.com/copyright.htmlSee NDR Disclaimer at
©
Unemployment Rate
1616
Monthly Data 6/30/1982 - 5/31/2013
(E246I)
Total 5/31/2013 = 4.9
Balanced Market
Too Few Homes Available
Too Many Homes Available
Measured as Months' Available Supply
4
5
6
7
8
9
10
11
12
13
4
5
6
7
8
9
10
11
12
13
Existing Single-Family Homes 5/31/2013 = 5.0 Source: Haver Analytics
4 5 6 7 8 9
1011121314
4 5 6 7 8 9
1011121314
New Homes 5/31/2013 = 4.1
4
5
6
7
8
9
10
11
12
4
5
6
7
8
9
10
11
12
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Housing Inventory-to-Sales Ratios
Copyright 2013 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved. . www.ndr.com/vendorinfo/ . For data vendor disclaimers refer to www.ndr.com/copyright.htmlSee NDR Disclaimer at
©
Housing Inventory-to-Sales Ratios
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Quarterly Data 3/31/1952 - 3/31/2013
(E0502)
Household Credit Market Debt = $12800.0 Billion _______________________________________ GDP = $16004.5 Billion
= 80.0% ( )
Household Mortgage Debt = $9378.9 Billion ____________________________________GDP = $16004.5 Billion
= 58.6% ( )
46.344.5
49.0
61.7
97.4
42.8 43.1
46.7
60.9
Data Subject To Revisions ByThe Federal Reserve Board
Shaded areas representNational Bureau of
Economic Research recessions
Mean of Household Debt = 55.8%
1618202224262830323436384042444648505254565860626466687072747678808284868890929496
1618202224262830323436384042444648505254565860626466687072747678808284868890929496
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Household Debt as a % of GDP
Copyright 2013 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved. . www.ndr.com/vendorinfo/ . For data vendor disclaimers refer to www.ndr.com/copyright.htmlSee NDR Disclaimer at
©
Household Debt as a Percentage of GDP
18
(B0410A)
Monthly Data 12/31/1965 - 6/30/2013 (Log Scale)
10-Year Treasury Note Yield Normal Valuation Line 6/30/2013 = 2.30%
( )
U.S. 10-Year Treasury Note Yields6/30/2013 = 2.30%
( )
Source: Fair Value Calculation, NDR Source: Federal Reserve Board 1.4 1.6 1.9 2.2 2.5 2.9 3.3 3.8 4.4 5.1 5.9 6.8 7.8 9.0
10.412.013.815.9
1.4 1.6 1.9 2.2 2.5 2.9 3.3 3.8 4.4 5.1 5.9 6.8 7.8 9.0
10.412.013.815.9
Bullish For 10-Year Treasurys (Yields Too High)
Bearish For 10-Year Treasurys (Yields Too Low)
+1 Standard Deviation
-1 Standard Deviation
6/30/2013 = -0In Basis Points
-210-180-150-120
-90 -60 -30
0 306090
120 150 180 210
-210-180-150-120
-90 -60 -30
0 306090
120 150 180 210
10-Year Treasury Note Yield Normal Valuation Line
10-Year Note Yields Over or Under Valued
Barclays L-T Tsy (post 1979) + S&P L-T Gov. (pre 1979)
Bond Price Index % Gain
Months After After Later < -1 SD > +1 SD
6 -0. 2 1. 4
12 -0. 8 3. 5
18 -1. 8 7. 3
Determinants of Fair Value Sensitivity
Core PCE Price Index 0. 68
6-Month T-Bill Yield 0. 35
Real German Bond Yield 0. 32
Real GDP Trendline Growth 0. 01
1970 1975 1980 1985 1990 1995 2000 2005 2010
Copyright 2013 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved. . www.ndr.com/vendorinfo/ . For data vendor disclaimers refer to www.ndr.com/copyright.htmlSee NDR Disclaimer at
©
10-Year Treasury Note Yield
Normal Valuation Line
10
19
(DAVIS266)
Daily Data 1/03/2006 - 7/19/2013 (Log Scale)
T-Bond Futures GPA When: Signal Dates 6/06/1984 - 7/19/2013
Gain/ % Bottom Clip is Annum of Time
Above 62 -5. 9 22. 1
Between 38 and 62 4. 8 54. 8
* Below 38 9. 7 23. 1
T-Bond Futures GPA When: Signal Dates 1/03/2006 - 7/19/2013
Gain/ % Bottom Clip is Annum of Time
Above 62 -3. 3 27. 9
Between 38 and 62 -1. 0 50. 6
* Below 38 18. 5 21. 5 Source: Commodity Systems, Inc. (CSI) www.csidata.com 102.0 104.2 106.4 108.6 110.9 113.3 115.7 118.1 120.6 123.2 125.8 128.4 131.1 133.9 136.7 139.6 142.6 145.6 148.7 151.8
102.0 104.2 106.4 108.6 110.9 113.3 115.7 118.1 120.6 123.2 125.8 128.4 131.1 133.9 136.7 139.6 142.6 145.6 148.7 151.8
7/19/2013 = 23.3
Excessive Optimism
Extreme Pessimism 152025303540455055606570758085
152025303540455055606570758085
J 2006
M M J S N J 2007
M M J S N J 2008
M M J S N J 2009
M M J S N J 2010
M M J S N J 2011
M M J S N J 2012
M M J S N J 2013
M M J
U.S. Treasury Bond Futures (13-Week Perpetual Contract)
NDR Daily Bond Sentiment Composite Copyright 2013 Ned Davis Research, Inc. Further distribution prohibited without prior permission. All Rights Reserved.
. www.ndr.com/vendorinfo/ . For data vendor disclaimers refer to www.ndr.com/copyright.htmlSee NDR Disclaimer at ©
U.S. Treasury Bond Futures
2020
Asset Allocation
Brian Perott, CFA
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Asset Allocation: The FCI Advantage
FCI’s Competitive Advantage: As active portfolio managers, we incorporate historical risk and return characteristics with the current capital market environment to develop a global strategic asset allocation based upon the investment profile for our investors.
FCI’s asset allocation assumptions are forward looking but historically aware. The foundation of our belief is that markets in the long-term are ultimately driven by fundamentals such as:
Valuations Economic activityEarnings growth Monetary & fiscal policyInterest rates Inflation expectations
22
Asset Allocation
The key determinant to investment success
8.20%
6.30%
2.30%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
20 Year Annualized Return as of 12/31/2008
S&P 500
Bonds
Average Investor
20 Year Annualized Return as of 12/31/2012Source: JP Morgan
12
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Asset Allocation
An Active Continual Process
At FCI asset allocation serves as the foundation on which we build comprehensive solutions for clients.
Our goal is to maximize long term returns while minimizing risk (risk management)
We create investment solutions by employing:Separately Managed AccountsMutual FundsExchange Traded Funds (ETFs)
Clients will receive flexible management focusedon determining optimal strategies considering:
Current capital market assumptionsHistorical risk and return dataEconomic trendsMarket driven opportunistic rebalancing
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Range of Portfolio Diversification
Risk
Re
turn
Higher Potential
Return
Less Risk More Risk
Lower Potential
Return
50% Equity50% Fixed Income
10% Equity90% Fixed Income
100% Fixed Income
70% Equity30% Fixed Income
100% Equity
60% Equity40% Fixed Income
40% Equity60% Fixed Income
30% Equity70% Fixed Income
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25
Asset Allocation Developments
Federal Reserve contemplated and then publicly discussed a reduction to its Quantitative Easing programs – Tapering?
Bank of Japan “all in” on its bond purchases – Substantial Yen devaluation
China’s restrictive economic policies
Results:Dollar strength against all other major currencies causing poor commodity returns and exacerbating poor international stock returns
Negative returns in interest rate sensitive asset classes
Strong relative returns in the U.S.
26
Current Capital Market Environment
• Sovereign Risk• Increasing Regulations• Currency Wars• Inflation
Wild Cards
NegativesPositives
• Increased Taxes and Regulation• Debt Loads-Particularly Federal, State and Local-
Drag on GDP Growth • Limited Corporate Top-line Revenue Growth• Unfavorable Demographics in
Most Developed Economies• Social Unrest-Middle East, Southern Europe• Slowing Growth In Far East, No Growth in Europe
• Massive Global Monetary Stimulus• Stable Domestic Economic Environment• Improving Housing and Automobile Markets• Strong Balance Sheets-Lots of Cash• Historically Low Interest Rates• Reasonable Equity Valuations
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27
Market Returns: 2nd Quarter and Year-to-Date 2013
As of 6/30/2013
Bonds, Commodities, and Cash
*US dollarsSource: Morningstar
Year-to-Date 2013
2nd Quarter 2013
Value VS. Growth Large Cap vs. Small Cap Domestic vs. International*
Equity Markets
28
2013 Year-to-date Global Equity Returns
Source: Bloomberg. Returns data through 6/30/2013.*Not included in the MSCI Developed or MSCI Emerging Market indices.
15
29
Global Equity Markets: Composition
Source: MSCI, IMF, J.P. Morgan Asset Management. Share of global market capitalization is based on float adjusted MSCI data. Share of global GDP based on purchasing power parity (PPP) as calculated by the IMF for 2013. Definition of emerging markets is based on MSCI and IMF data sources. Percentages may not sum to 100% due to rounding. Data as of 6/30/13.
30
S&P 500 Performance:
During Rising and Falling Yields
Source: The Bespoke Report.
16
31
Asset Allocation Outlook and Positioning
Higher Equity prices by year end
New 10–year Treasury yield range of 2.2% to 2.8%
Continue to overweight corporate credit (Investment Grade, High Yield, and Floating Rate Bank Notes) within the Fixed Income portion of portfolios
Reduce magnitude of overweight in Emerging Market Equities in favor of U.S. equity markets
Allocations to Unconstrained Fixed Income and Core Plus Equity
32
Asset Allocation Current Positions
Under
weightNeutral
Over
weight
Under
weightNeutral
Over
weight
Equities • Fixed Income •Growth • Short-Term
Investment Grade•
Value • Interm.-Term Investment Grade
•
Large Cap • Long-Term Investment Grade
•
Mid Cap • Cash •Small Cap • Commodities •International • Hi-Yield •Emerging Markets
• REITs •
Market Driven Rebalancing (Weighting relative to strategic allocation targets)
As of 6/30/13
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33
The Case For Diversification
Source: Bloomberg, Northern Trust Global Investments. Year to date returns through 06/28/2013.
3434
Equity Markets
Brian Perott, CFA
18
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Equity Outlook
Higher equity prices through year-end
Accommodative Federal Reserve policy
Strength in housing and automobiles
Reasonable valuations
Stable economic environment
Money flows into stocks
Expect “tapering” to have limited impact on equity rally
36
Stock Valuation Measures: S&P 500 Index
Source: (Top) Standard & Poor’s, FactSet, Robert Shiller Data, J.P. Morgan Asset Management.Price to Earnings is price divided by consensus analyst estimates of earnings per share for the next 12 months. Price to Book is price divided by book value per share. Data post-1992 include intangibles and are provided by Standard & Poor s. Price Cash divided by consensus analyst cash per share for the next months. Price to Sales is calculated as price divided by consensus analyst estimates of sales per share for the next 12 months. PEG Ratio is calculated as NTM P/E divided by NTM earnings growth. Dividend Yield is calculated as consensus analyst estimates of dividends for the next 12 months divided by price. All consensus analyst estimates are provided by FactSet. (Bottom left) Cyclically adjusted P/E uses as reported
earnings throughout. *Latest reflects data as of 6/30/2013. (Bottom right) Standard & Poor’s, IBES, Moody’s, FactSet, J.P. Morgan Asset Management.Data are as of 6/30/13.
19
37
The Aftermath of the Housing Bubble
Source(Left) National Association of Realtors, Standard & Poor’s, FHFA, FactSet, J.P. Morgan Asset Management. (Top right) Census Bureau, J.P. Morgan Asset Management. Monthly mortgage payment assumes a 20% down payment at prevailing 30-year fixed-rate mortgage rates; analysis based on median asking rent and median mortgage payment based on asking price. (Bottom right) Census
Bureau, National Association of Realtors, J.P. Morgan Asset Management. *2Q13 rent and mortgage payment values are J.P. Morgan Asset Management estimates. Data are as of 6/30/13.
38
Mutual Fund Flows
Source: Investment Company Institute, J.P. Morgan Asset Management.Data include flows through May 2013 and exclude ETFs except for the bottom left chart. ICI data are subject to periodic revisions. World equityflows are inclusive of emerging market, global equity and regional equity flows. Hybrid flows include asset allocation, balanced fund, flexibleportfolio and mixed income flows.Data are as of 6/30/13.
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39
Deploying Corporate Cash
Source: Standard & Poor’s, FRB, Bloomberg, FactSet, J.P. Morgan Securities, J.P. Morgan Asset Management.(Top left) Standard & Poor’s, FactSet, J.P. Morgan Asset Management. (Top right) M&A activity is the quarterly value of deals completed andcapital expenditures are for nonfarm nonfinancial corporate business. (Bottom left) Standard & Poor’s, FactSet, J.P. Morgan AssetManagement. (Bottom right) Standard & Poor’s, Compustat, FactSet, J.P. Morgan Asset Management. Data are as of 6/30/13.
40
S&P 500 Index at Inflection Points
Source: Standard & Poor’s, First Call, Compustat, FactSet, J.P. Morgan Asset Management.Dividend yield calculated annualized dividend divided b price provided b Comp stat Forward bottom p calculation Oct. 9, 2002Dividend yield is calculated as the annualized dividend rate divided by price, as provided by Compustat. Forward Price to Earnings Ratio is a bottom-up calculation based on the most recent S&P 500 Index price, divided by consensus estimates for earnings in the next 12 months (NTM), and is provided by FactSet Market Aggregates. Returns are cumulative and based on S&P 500 Index price movement only, and do not include the reinvestment of dividends. Past performance is not indicative of future returns. Data are as of 6/30/13.
21
41
S&P 500 Performance:
During Rising and Falling Interest Rates
Source: The Bespoke Report.
42
Core Equity - Current Positioning
• Moved to an underweight position in the Consumer Staples sector –stretched valuations with limited growth
• Also underweight Telecommunications and Utilities – stretched valuations and those sectors are interest rate sensitive
• Neutral for most other economic sectors
22
4343
Fixed Income Markets
Gary Cloud, CFA
44
Fixed Income Performance By Sector
-2.32%
-1.92%
-1.55%
-2.51%
-1.96%
-2.44%
-2.11%
-1.49%
-2.67%
-2.01%
-3.00%
-2.50%
-2.00%
-1.50%
-1.00%
-0.50%
0.00%
Barclays CapitalAggregate Bonds Total
Return
U.S. Treasury U.S. Agency Credit Mortgage Backed
2Q 2013 YTD Through 6/30/2013
23
45
-1.9%
-2.8%
-3.3%
-3.9%
-3.3%-3.4%
-2.0%
-2.7%
-3.5%
-4.0%
-5.0%
-2.0%
1.0%
BarclaysCorporate
Index
Aaa Aa A Baa
2Q 2013 YTD 2013
Investment Grade Corporate Bond
Performance: 2Q and YTD 2013
-3.5%
-4.0%
-3.3%
-2.8%
-1.9%
-4.0%-4.1%
-3.4%
-5.0%
-2.0%
1.0%
BarclaysCorporate
Index
Industrial Utility Finance
2Q 2013 YTD 2013
46
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6m 2yr 5yr 10yr 30yr
12/ 31/ 2012
3/ 31/ 2013
6/ 30/ 2013
Fixed Income Market Review, Municipal
Yield Curves: (Issues Rated AA-)
>Yields on Longer Maturity Municipals Move Higher During 2Q–‘13
24
4747
Questions & Answers
Christopher LaPorta
Managing Client Assets with an Eye Toward Fed Tapering
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