Q2 | 2020

EQUITY COMMENTARY

The second quarter of 2020 produced historic gains for the broad stock indices. The Dow Jones Industrial Index rose 18.5%
during the quarter, the largest quarterly gain since 1987 while the Nasdaq rose 30.9% for its largest quarterly advance since
1999. S&P 500 closed the quarter up 20.5% for its best quarter since 1998. This common theme resonated throughout broad
risk assets as investors took comfort in the fiscal stimulus provided by Congress, and the explicit backstop of various corners
of US fixed income markets by the Federal Reserve.

Advances were not predicated on a near term economic recovery but largely due to the market discounting the next few
years of earnings, and pricing higher companies which are more immune to the near-term impacts of COVID. The shift to
a more digital economy which was already underway saw demand pulled forward by multiple years as companies rushed
to implement software to enable a work from home environment. As such, larger gains were seen in technology stocks
which have historically invested for future profitability and were set up well for the way the world changed. Meanwhile,
cyclical industries such and industrials, banks, energy, and utilities all largely struggled to keep pace with the broader
markets. This bifurcation was evident in actively managed equity strategies as those who focused on next generation stocks
outperformed those who held firms which are more exposed to COVID.

Q2 | 2020

EQUITY COMMENTARY

US treasury yields were largely unchanged in 2Q of 2020. Yields from the 1-month tenor to the 2-year tenor hovered around
12-15bps. The 10-year UST yield stayed constant at 0.66%, while the yield on the 30-year UST rose 9bps to 1.41%.

The Bloomberg Barclays Aggregate Bond index appreciated 2.9% in the second quarter. US High Yield markets appreciated
by 10.1% during the quarter as spreads contracted from 880bps on 3/31 to 626bps on 6/30. Broad credit markets had a much
stronger tone during the quarter due in part from confidence instilled from the Federal Reserve supporting the investment
grade corporate bond markets. Companies with an investment grade credit rating issued about $840 billion in the first six
months of 2020, matching the previous full-year record set in 2017 and doubling the previous first half year record set in
2016. The thawing of the credit markets allowed corporations to tap the debt markets and issue debt for future flexibility to
weather the current uncertainties brought about from COVID.

Q2 | 2020

EQUITY COMMENTARY

Like other risk assets, alternatives rebounded during the second quarter with the HFRI Fund-of-Funds Composite Index
advancing by 7.2%. Global markets rallied as economies around the world started to ease COVID lock downs and central
banks continued to provide support. Specifically, ‘Equity Hedged’ and ‘Event Driven’ strategies were among the best
performing alternative strategies following their underperformance during Q1 as the HFRI Equity Hedged (Total) Index
and HFRI Event Driven (Total) Index increased by 13.6% and 9.6%, respectively. We are happy to report that the
managers whom underperformed in Q1 rebounded nicely and were the best performers in Q2. Our best performing
alternative strategies during the second quarter were ‘Event Driven’ Equity and Fixed Income managers. We continue to
have confidence in our existing managers and their ability to navigate markets during a time of great uncertainty for
economies globally.

*Data taken from HFRI (Hedge Fund Research Indices) as of July 8th, 2020