Market Environment and Economic Outlook

Steve discussed the current market environment, noting periods of continued uncertainty but feeling better compared to previous tumult.

• Steve mentioned the impact of Jamie Dimon's comments and Donald Trump's shift in trade policy approach, leading to market reactions.
• Steve highlighted the trade deal announcement with Great Britain and its potential implications.
• Steve analyzed the economic outlook, mentioning increased imports and inventory levels, and the need to observe economic growth trends.
• Steve discussed the importance of buffer exposure in portfolios to mitigate drawdowns and generate returns in various market conditions.

Portfolio Management and Strategy

Steve explained the goal of transitioning to a pure equity portfolio while maintaining some buffer exposure for risk mitigation.

• Steve discussed the use of a global equity market-neutral fund to generate non-correlated returns and smooth out portfolio performance.
• Steve mentioned the importance of reevaluating portfolio holdings and identifying complacent or underperforming assets.
• Steve outlined the strategy of moving buffer funds towards pure equity during periods of increased market volatility to capture potential upside.
• Steve discussed the current asset allocation split, including the removal of energy exposure and increased allocation to market-neutral strategies.

Cash Management and Liquidity

Denise inquired about the deposit account at PeoplesBank and the possibility of moving funds while maintaining liquidity.

• Steve suggested using government agencies, T-bills, and money market funds for cash management, balancing safety, liquidity, and yield.
• Steve recommended a combination of money market funds with daily liquidity, T-bill ETFs, and agency securities for the deposit account.
• Steve offered to create a customized portfolio based on the monthly operating budget and expected cash flow needs.

Performance and Portfolio Review

Steve provided a real-time update on the portfolio performance year-to-date, reporting a -2.5% return.

• Steve discussed the portfolio's resilience during market volatility and its ability to provide optionality within the equity-oriented mandate.
• Steve presented the current asset allocation, including approximately 4% cash, 51.5% pure equity, 14% buffer, 5% other alternatives, and 30% fixed income.