Sage Advice Quarterly Market Review 4Q2010

Policy and sovereign risk were the dominant performance drivers in 2010 policy decisions and announcements were the cause of key inflection points in market trends in both equities and interest rates. While equities outperformed fixed income overall, it was not a smooth ride with equities underwater for much of 2010 and still running negative cumulative returns for the year by early September. Ultimately, it took a late year equity rally and a sell-off in fixed income to provide some separation in overall returns.