We are writing to inform you that the Investment Committee has approved another change to our target portfolios. When you last heard from us in June, we shared with you a trade we had authorized that reduced domestic large cap growth stocks in favor of non-US equities.
We are writing to inform you that the Investment Committee has approved a change to the construct of our target portfolios. Please note as follows:
After an extended period of low volatility, markets have been more challenging to navigate over the last several weeks. The S&P 500 has retreated since its last high on March 1, and long-term interest rates have declined over the same period, pushing bond prices higher.
We feel that the following letter from LPL’s Chief Investment Officer Burt White appropriately captures our thoughts on last night’s election result.
For much of this year many of you have offered to us in meetings your thoughts on the upcoming election, and on many occasions we have shared laughs about the riotous nature of this cycle’s electoral process.
By now you have probably seen that the citizens of the United Kingdom have voted to leave the European Union, otherwise known as the “Brexit”. This news has sent shock waves throughout the world and the markets as global leaders and investors alike grapple with how this news will affect all of us in the short and long term.
The Investment Committee has approved two changes to the construct of our target portfolios:
Last week our Investment Committee approved a slight change to the bond allocation within our target portfolios. Specifically, we are reducing exposure to floating rate fixed income and are investing the proceeds into corporate high yield bonds.
We are writing to inform you that our Investment Committee has decided to remove the Loomis Sayles Investment Grade Bond Fund from our clients’ portfolios and invest the proceeds equally between the bond allocation’s other two taxable, high quality bond investments. Loomis’s long term performance (both absolute and index-relative) is outstanding, and it is a position tha