During the past quarter we reduced our cash allocation further to take advantage of the pull back that had occurred in June and July to grow our equity positioning but maintained a low duration and credit risk focus in our income portfolios. We also increased our exposure to financials and energy while reducing positions in emerging tech. The key driver of this decision is the expectation of a longer and more mature growth cycle and that the Fed would taper their purchases in the 2nd half of the year.

We discuss our outlook and the factors we see as key to drive markets going forward below :