Tactical ETF Portfolio Shift Commentary 05/11/2011

Based on our view that the dollar will stabilize, and possibly strengthen in the near-term, we have reduced dollar-sensitive assets including non-dollar fixed income, international equities and commodities. We also believe that inflation concerns have largely been priced into the market which further supports our reduction in commodities and also prompted us to exit our entire TIPs position. Exiting high yield credit is based on our view that low yields and tight spreads leave high yield vulnerable for a pullback in the coming months.