The Fund’s equity sleeve outperformed the S&P 500 partly due to stock selection in the financials sector.
Yield curve positioning was a key factor behind the fixed income sleeve’s outperformance.
The environment for equities should continue to be favorable provided U.S. economic growth remains steady. However,we remain more defensively positioned in fixed income.
Going forward,we are overweight equities versus fixed income as we believe that asset class offers better risk-adjusted opportunities at this juncture.