There were no asset allocation changes for the program during the month of June.
Within stocks, we continue to prefer a tactical overweight to U.S. markets versus non-U.S. developed markets based on what we believe to be the relatively stronger position of the U.S. economy. As part of U.S. allocations, we still favor a tilt to higher-quality, dividend-paying growth stocks as well as lower volatility stocks, a potentially defensive bias for portfolios as the broader equity markets have continued to grow more concentrated in the top stocks and remain relatively expensive by historically valuation measures.
In fixed income, we continue to prefer an intermediate duration (i.e., interest rate sensitivity) allocated to mostly higher quality, investment-grade bonds, as we expect slower economic growth over the near term. While more conservative portfolios – those with higher allocations to fixed income – include some dedicated positions to below-investment grade bonds, our target allocations are tactically tilted towards higher quality for the near term when compared with our long-term preference for these investments.
We continue to diligently monitor the markets and your account, and we will keep you abreast of any changes to your portfolio allocation and investment selection that we deem appropriate so that you’re well positioned for what’s ahead.