Summary

• The Portfolio returned -0.08% (gross) and the Bloomberg U.S. Aggregate Bond Index returned -0.05%.
• Our overweight allocation to spread risk detracted from relative performance, as did exposure to agency mortgage-backed securities (MBS).
• Allocations to asset-backed securities (ABS) and private-label collateralized mortgage obligations (CMOs) contributed.
• Despite near-term geopolitical uncertainty, we believe recent spread widening and a rise in yields presents an attractive entry point and offers favorable long-term return potential for investors.

Portfolio management

Nick Childs, CFA

Investment environment

• The U.S. fixed income market posted a small negative return for the period. The quarter marked a sharp shift in sentiment, as fixed income markets moved from early-year optimism around declining

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