Tactical ETF Portfolio Shift Commentary 12/28/2015

As we move into the New Year we have made several positioning changes across both our equity and fixed income allocations to coincide with our tactical outlook for the first quarter and our broader thematic view for the capital markets in 2016. Within our equity allocation, we have increased our international exposure, as well as taken a more defensive posture within our domestic allocation. We believe US equities are increasingly vulnerable to underperformance given elevated relative valuations and increasing headwinds from peaking credit and earnings cycles, all in the backdrop of fading policy support. To this end, we have shifted a significant portion of our core US equity exposure to a low volatility focused allocation, which should help insulate against further volatility and mitigate some of the downside risk in a weaker market.