Tactical ETF Portfolio Shift Commentary 4/17/2012

The portfolio changes coincide with our view that risk markets appear more vulnerable to a downturn and are likely to, at best, trade sideways going into the summer. While macro conditions improved during the first quarter, we see several hurdles to the risk asset rally continuing. These include a potential slowdown in global economic momentum, decelerating earnings, increasing policy/political risks and ongoing Euro zone instability. As such, we are lowering risk on both the equity and fixed income side of our strategies.