The Fund outperformed the Balanced Index during the fourth quarter of 2016.
The equity sleeve outperformed its benchmark, driven largely by strong stock selection in the consumer sectors, as well as industrials. Outperformance in the fixed income sleeve was led by our positioning in investmentgrade corporate credit.
Our asset allocation remains overweight equities versus fixed income. We are optimistic for equities with a pro-business administration taking office and cautious on fixed income in the face of rising rates.