insurance asset management trends in 2014 strategic asset alliance insurer investment forum xiv
DESCRIPTION
Insurance Asset Management Trends in 2014 Strategic Asset Alliance Insurer Investment Forum XIV March, 2014 San Diego, CA Anthony C. Criscuolo, CFA. Topics For Discussion. What can we expect in asset allocation shifts within the P&C space in the near term? - PowerPoint PPT PresentationTRANSCRIPT
Insurance Asset Management Trends in 2014
Strategic Asset Alliance Insurer Investment Forum XIVMarch, 2014San Diego, CA
Anthony C. Criscuolo, CFA
2
Topics For Discussion
1. What can we expect in asset allocation shifts within the P&C space in the near term?
2. What areas within fixed income may provide the best near term opportunities?
3. What can we derive from a prospective 5-year sector forecast?
4. What are the regulatory consequences, particularly surrounding capital requirements?
SBICMAR021314GA
3
What can we expect in asset allocation shifts within the P&C space
in the near term?
SBICMAR021314GA
4
Low Yields Drive Migration Into Risky Assets
$742 BN $768 BN
$248 BN
$628 BN
0
200
400
600
800
1,000
1,200
1,400
1,600
2007 2011
($Bi
llions
)Outsourced Assets of U.S. Insurance Companies
High Yield, Bank Loans, Global Fixed Income, Emerging Markets Debt, Equity, RealEstate and Other Alternatives
US Core Bonds
Source: 2012 Insurance Asset Management Survey, Patpatia & Associates
153% Increase
SBICMAR021314GA
5
Increased Risk Allocations Have Boosted Returns
Source: Bloomberg as of December 31, 2013.Barclays U.S. Corporate High Yield IndexCSFB Leveraged Loan Index Barclays Emerging Markets (U.S. Dollar) IndexBarclays U.S. Intermediate Aggregate Index
Cumulative Returns since September 30, 2010
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Sep-1
0
Nov-
10
Jan-1
1
Mar
-11
May
-11
Jul-
11
Sep-1
1
Nov-
11
Jan-1
2
Mar
-12
May
-12
Jul-
12
Sep-1
2
Nov-
12
Jan-1
3
Mar
-13
May
-13
Jul-
13
Sep-1
3
Nov-
13
High Yield Bank Loans Emerging Debt (US$) Interm. Agg
Cumulative Returns - September 30, 2010 – December 31, 2013
SBICMAR021314GA
6
Risky Assets – Assessing Risk at the Portfolio level
Note: The capital market assumptions are Standish’s estimates based on historical performance of relevant indices listed in the disclosures. We do not present the capital market assumptions as actual or guaranteed future performance. This information is for illustrative purposes only and should not be relied upon as advice or interpreted as a recommendation.
0.00% 5.00% 10.00% 15.00% 20.00% 25.00%0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00% Efficient Frontier
Standard Deviation
Pote
nti
al R
etu
rn
In our view, modest increases to EMD, Bank Loans, Munis and HY can potentially increase returns and de-
crease risk.
We believe, risky assets can improve risk adjusted returns at the portfolio level, as illustrated
above.
Investment actuaries support Standish’s Insurance clients
Quantitative tools : Efficient Frontier Analysis and Dynamic Financial Analysis
Customized to your needs, e.g. using VaR and C-VaR thresholds to design portfolios within
ERM limits
Flexible models and assumptions – use our Capital Market Assumptions, yours or both
Practical considerations like book yield of alternative portfolios and realized gains and tax
implications
Forward looking return expectations over your investment horizon – provides insight into
Standish’s views on marketsSBICMAR021314GA
7
What areas within fixed income may provide the best near term
opportunities?
SBICMAR021314GA
8
Higher U.S. Treasury Yields
10-Year Government Bond Yields
Source: The U.S. Federal Reserve, Deutsche Bundesbank and The Bank of J apan as of December 31, 2013
0
1
2
3
4
5
6
Per
cent Y
ield
US 10-Year Treasury
German 10-Year Bund
Japanese 10-Year Government Bond
SBICMAR021314GA
9
Historically Low Range in Market Volatility
Stock and Bond Market Volatility
Source: Merrill Lynch Bank of America and the Chicago Board Option Exchange as of December 31, 2013
0
10
20
30
40
50
60
70
80
90
0
50
100
150
200
250
300
Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14
CBO
E Vola
tilit
y In
dex
(VIX
)
Mer
rill
Option V
ola
tilit
y Es
tim
ate
Index
(MO
VE)
MOVE (Left) VIX (Right)
SBICMAR021314GA
10
2014 May Be a Coupon Clipping Year for IG and HY Bonds
Investment Grade and High Yield Option Adjusted Spreads
Source: Standish as of December 31, 2013
0
100
200
300
400
500
600
700
0
200
400
600
800
1000
1200
1400
1600
1800
Jan-
07A
pr-0
7Ju
l-07
Oct
-07
Jan-
08A
pr-0
8Ju
l-08
Oct
-08
Jan-
09A
pr-0
9Ju
l-09
Oct
-09
Jan-
10A
pr-1
0Ju
l-10
Oct
-10
Jan-
11A
pr-1
1Ju
l-11
Oct
-11
Jan-
12A
pr-1
2Ju
l-12
Oct
-12
Jan-
13A
pr-1
3Ju
l-13
Oct
-13
Jan-
14
IG S
pre
ad
HY S
pre
ad
High Yield Corporate (Left)Investment Grade Corporate (Right)
Note: HY & IG Spreads are measured in bps.
SBICMAR021314GA
11
Valuations on EM Debt Are Attractive, But Security Selection
Is Key
Emerging Market Debt
Source: Standish as of December 31, 2013
5.00
5.50
6.00
6.50
7.00
7.50
8.00
8.50
9.00
9.50
0
100
200
300
400
500
600
700
800
Jan-
07
Jun-
07
Nov
-07
Apr
-08
Sep
-08
Feb-
09
Jul-09
Dec
-09
May
-10
Oct
-10
Mar
-11
Aug
-11
Jan-
12
Jun-
12
Nov
-12
Apr
-13
Sep
-13
EM L
oca
l Per
cent Y
ield
EM D
olla
r Ave
rage
Spre
ad
Emerging Market Dollar Denominated (Left)Emerging Market Local Currency Denominated (Right)
Currency Spot Rates Against U.S. Dollar
Source: Thomson Reuters Datastream as of December 31, 2013
80
85
90
95
100
105
110
May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13
Curr
ency
Spot R
ates
Agai
nst
U.S
. Dolla
r, In
dex
05
/21/
2013
= 1
00
Brazilian Real Mexican Peso Polish Zloty
Turkish Lira Chinese Renminbi Indian Rupee
SBICMAR021314GA
12
Sector Model Summary
Source: Standish as of February 1, 2014. For illustrative purposes only. Forecast information is not intended to predict future events, but rather to demonstrate the investment process of the firm in utilizing its models and market views in constructing its client portfolios. Sector models are run monthly and are subject to change. Model portfolio data is to be considered supplemental information to the attached GIPS compliant composite presentation found in the Appendix. Refer to Disclosure in Appendix.
Model R-squared Sector Actual Fair Value
Attractiveness Score (Stand. Dev.)
Forecast Value
Attractiveness Score (Stand. Dev.)
Total Relative Value Score
83% EM Local Bond Yield (%) 7.20% 6.48% 2.8 6.33% 3.4 6.175% Implied Rate Volatility (bps) 84 bps 100 bps 1.9 103 bps 2.3 4.287% Municipal Bonds (bps) 31 bps 21 bps 0.6 -3 bps 2.1 2.787% Emerging Markets (bps) 390 bps 303 bps 0.6 247 bps 1.0 1.695% 2s-10s Treasury Yield Slope (%) 2.32% 2.20% 0.4 2.35% -0.1 0.382% Investment Grade Credit (bps) 116 bps 116 bps 0.0 112 bps 0.1 0.194% Asian Credit Spread (bps) 286 bps 304 bps -0.6 266 bps 0.6 0.094% 10y Treasury Interest Rates (%) 2.65% 2.52% 0.3 2.87% -0.6 -0.284% Long Corporate OAS (bps) 161 bps 177 bps -0.6 154 bps 0.3 -0.389% 10y TIPS break-even CPI (%) 2.13% 2.01% -0.5 2.16% 0.1 -0.487% 10y Gilt Rate (%) 2.87% 2.95% -0.2 3.05% -0.4 -0.681% High Yield (bps) 435 bps 511 bps -0.8 464 bps -0.3 -1.087% European Corp. Bonds (bps) 121 bps 152 bps -1.0 126 bps -0.2 -1.192% European High Yield Bonds (bps) 374 bps 442 bps -0.5 461 bps -0.7 -1.296% Mortgage Pass Throughs (bps) 127 bps 118 bps 0.6 154 bps -2.1 -1.580% 10y Bund Rate (%) 1.80% 2.34% -1.1 2.54% -0.7 -1.883% UST/Bund Rate Differential (bps) 0.99% 0.56% -1.5 0.68% -1.1 -2.690% High Yield Bank Loan Spread (bps) 463 bps 591 bps -2.1 497 bps -0.6 -2.783% 5y Swap Spreads (bps) 12 bps 38 bps -2.3 45 bps -2.9 -5.3
Six Month ForecastCurrent Fair Value
-6
-4
-2
0
2
4
6
EM LocalBond Yield
(%)
ImpliedRate
Volatility(bps)
MunicipalBonds (bps)
EmergingMarkets(bps)
2s-10sTreasury
Yield Slope(%)
InvestmentGrade
Credit (bps)
Asian CreditSpread(bps)
10yTreasuryInterest
Rates (%)
LongCorporateOAS (bps)
10y TIPSbreak-even
CPI (%)
10y GiltRate (%)
High Yield(bps)
EuropeanCorp. Bonds
(bps)
EuropeanHigh Yield
Bonds (bps)
MortgagePass
Throughs(bps)
10y BundRate (%)
UST/BundRate
Differential(bps)
High YieldBank Loan
Spread(bps)
5y SwapSpreads(bps)
Stan
dar
d D
evia
tion
Current Value Forecast Value Total Relative Score
SBICMAR021314GA
13
What can we derive from a prospective 5-year sector
forecast?
SBICMAR021314GA
14
Return Expectations Remain Attractive For Risky Assets
Standish 5-Year Annualized Total Returns Forecasts1
Source: Standish as of October 2013. Past performance does not guarantee future results1 The Standish 5-Year Returns Forecasts are built based on various inflation and growth regimes. Considering historical experience under each regime, we then forecast yield using econometric methods. Returns are then calculated considering various factors such as duration and convexity. The returns estimates displayed above assume economic conditions of 2.5% quarter to quarter annualized percent change in GDP and 2% year to year percent change in Core CPI. For a list of relevant benchmarks, please refer to disclosures at the end of this presentation.
References to future returns are not promises or even estimates of actual returns Standish may achieve, and should not be relied upon. The forecasts contained herein are for illustrativepurposes only and are not to be relied upon as advice or interpreted as a recommendation. In addition, the forecasts are based upon subjective estimates and assumptions about circumstances and events that may not yet have taken place and may never do so.
-2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%
US Treasury Inflation Protected Security
30 Year US Treasury
Commodities
10 Year US Treasury
5 Year US Treasury
Mortgage Backed Securities
2 Year US Treasury
US Investment Grade Corporate
European Investment Grade Corporate
Long US Corporate
Municipal Bonds
European High Yield Corporate
Real Estate
US Bank Loans
US High Yield Corporate
Emerging Market Dollar Denominated
S&P 500
Emerging Market Local Currency Denominated
Ris
ky A
ssets
Core
Bonds
Total Return Forecast
SBICMAR021314GA
15
What are the regulatory consequences, particularly
surrounding capital requirements?
SBICMAR021314GA
16
Regulatory Matters
Dodd-Frank – U.S. Financial Stability – Title I
- Systemically Important Financial Institutions (SIFIs)
Federal Insurance Office – Title V
- Maintains State-Base Regulatory Model
- International Voice
- Consumer Protection
- Prudential Standards
Derivatives Management – Title VII
- Central Clearing
- Standardization
- Collateral Squeeze
Solvency II Directive – EU Target implementation - January 2016
- Risk Management/Reporting
- Impact on Investments
UCITS IV & VHedge fund Reform
Depository Liabilities
Wall Street Reform
Convergence of alternatives
Distribution
MiFID Review
T2S and infrastructure developments
Money Market Reform
Affordable Care Act
Basel III/CRD IV
Volcker Rule
Solvency II New Regulators
Investor Protection
Corporate Governance
Dodd-Frank
Taxation
Global Investing
IFRS/GAAP convergence
SBICMAR021314GA
17
Summary
Expect risk taking trends to continue on expectation that global economic activity will continue to slowly improve.
EM local & US dollar Debt most attractive along with Bank Loans, but careful of current fundamentals and technicals .
Long term, we like risky asset classes on improving global economic fundamentals, albeit with expected returns lower than historical averages.
Derivative management under Title VII, may result in new collateral requirements. Coupled with Solvency II initiatives, prices of higher quality, short duration securities may increase.
SBICMAR021314GA
18
Important DisclosuresThis information is not provided as a sales or advertising communication. It does not constitute investment advice. It is not an offer to sell or a solicitation of an offer to buy any security. Many factors affect performance including changes in market conditions and interest rates and in response to other economic, political, or financial developments. Past performance is not a guide to or indicative of future results. Future returns are not guaranteed and a loss of principal may occur. There can be no assurance the investment objectives described in this presentation will be achieved. This information is not intended to provide specific advice, recommendations or projected returns of any particular Standish Mellon Asset Management Company LLC (“Standish”) product. Some information contained herein has been obtained from third party sources and has not been verified by Standish. Standish makes no representations as to the accuracy or the completeness of any of the information herein.The enclosed material is confidential and not to be reproduced or redistributed without the prior written consent of Standish. Any statements of opinion constitute only current opinions of Standish, which are subject to change and which Standish does not undertake to update. Views expressed are subject to change rapidly as market and economic conditions dictate. Portfolio composition is also subject to change.The Firm is defined as Standish Mellon Asset Management Company LLC ("Standish"), a registered investment advisor and wholly owned subsidiary of The Bank of New York Mellon Corporation.BNY Mellon Investment Management is one of the world’s leading investment management organizations and one of the top U.S. wealth managers, encompassing BNY Mellon’s affiliated investment management firms, wealth management organization and global distribution companies. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation and may also be used as a generic term to reference the Corporation as a whole or its various subsidiaries generally. Products and services may be provided under various brand names and in various countries by subsidiaries, affiliates, and joint ventures of The Bank of New York Mellon Corporation where authorized and regulated as required within each jurisdiction.BNY Mellon Asset Management (UK) Limited ("AMUK") is an affiliate of Standish Mellon Asset Management Company LLC ("Standish"), located in London, which provides investment management services to qualified non US clients. Certain employees of AMUK may act in the capacity as shared employees of Standish and in such capacity may provide portfolio management support and trading services to certain Standish managed accounts. Rankings include assets managed by BNY Mellon Asset Management and BNY Mellon Wealth Management. Each ranking may not include the same mix of firms.This portfolio data should not be relied upon as a complete listing of the Portfolio’s holdings (or top holdings) as information on particular holdings may be withheld if it is in the client’s best interest to do so. Portfolio holdings are subject to change without notice and may not represent current or future portfolio composition. The portfolio date is “as of” the date indicated.There is no assurance that any securities discussed herein will remain in an account’s portfolio at the time you receive this report or that securities sold have not been repurchased. The securities discussed do not represent an account’s entire portfolio and in the aggregate may represent only a small percentage of an account’s portfolio holdings.It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.The allocation distribution and actual percentages may vary from time-to-time. The types of investments presented in the allocation chart will not always have the same comparable risks and returns. The actual performance of the portfolio will depend on the Investment Manager’s ability to identify and access appropriate investments, and balance assets to maximize return while minimizing its risk. The actual investments in the portfolio may or may not be the same or in the same proportion as those shown above.Standish believes giving an proprietary Average Quality Credit rating to the holdings in a portfolio more accurately captures its characteristics versus using a single rating agencies ratings. Standish has a ratings/number hierarchy whereby we assign a number between 0 (unrated bond) and 21 (S&P or Moody’s AAA) to all bonds in a portfolio based on the ratings of one or more of the rating agencies (with the lower of the 2 available agencies ratings prevailing), and then take a weighted numerical average of those bonds (with weighting based on each bonds percentage to the total portfolio assets). The resulting number is then compared back to the ratings/number hierarchy to determine a portfolio’s average quality. For example, if Moody’s AAA, S&P AAA= 21, Moody’s A1, S&P A+= 17, Moody’s Baa1 and S&P BBB+=14, Moody’s B1 and S&P B+=7. The numeric average of the 4 equally weighted holdings is 14.75, rounded up to the next whole number of 15. 15 converts to an average credit rating of S&P A/Moody’s A2.To the extent the strategy invests in foreign securities, its performance will be influenced by political, social and economic factors affecting investments in foreign companies. Special risks associated with investments in foreign companies include exposure to currency fluctuations and controls, less liquidity, less developed or less efficient trading markets, less governmental supervision and regulation, lack of comprehensive company information, political instability, greater market volatility, and differing auditing and legal standards. Further, investments in foreign markets can be affected by a host of factors, including political or social conditions, diplomatic relations, limitations on removal of funds or assets or imposition of
(or change in) exchange control or tax regulations in such markets. Additionally, investments denominated in a foreign currency will be subject to changes in exchange rates that may have an adverse effect on the value, price or income of the investment. These risks are magnified in emerging markets and countries since they generally have less diverse and less mature economic structures and less stable political systems than those of developed countries.These benchmarks are broad-based indices which are used for illustrative purposes only and have been selected as they are well known and are easily recognizable by investors. Comparisons to benchmarks have limitations because benchmarks have volatility and other material characteristics that may differ from the portfolio. For example, investments made for the portfolio may differ significantly in terms of security holdings, industry weightings and asset allocation from those of the benchmark. Accordingly, investment results and volatility of the portfolio may differ from those of the benchmark. Also, the indices noted in this presentation are unmanaged, are not available for direct investment, and are not subject to management fees, transaction costs or other types of expenses that the portfolio may incur. In addition, the performance of the indices reflects reinvestment of dividends and, where applicable, capital gain distributions. Therefore, investors should carefully consider these limitations and differences when evaluating the comparative benchmark data performance. The information regarding the index is included merely to show the general trends in the periods indicated and is not intended to imply that the portfolio was similar to the index in composition or risk.The strategy may use alternative investment techniques (such as derivatives) which carry additional risks. The low initial margin deposits normally required to establish a position in such instruments may permit a high degree of leverage. As a result, a relatively small movement in the price of a contract may result in a profit or loss that is high in proportion to the amount of funds actually placed as initial margin and may result in a disproportionate loss exceeding any margin deposited. Transactions in over-the-counter derivatives may involve additional risk as there is no exchange on which to close out a position, only the original counterparty. Such transactions may therefore be difficult to liquidate, to value, or to assess the exposure. The strategy may at times use certain types of investment derivatives, such as options, futures, forwards and swaps. These instruments involve risks different from, and in certain cases, greater than, the risks presented by more traditional investments.Standish sector models use regression analysis such as multi-linear data inputs, panel data, and probit function. Variables that the models take into account are: PMI, US Core CPI, Fed Fund rate, 3-month Libor, 3-month T-bill rate, foreign purchases of US Government bonds, Commodity Indices , Capacity Utilization, Deficit as a percent of GDP, S&P 500 return, Chicago Fed Index, IGOV, US output gap, Europe Core CPI, US unemployment rate, EU unemployment rate, and slope of the yield curve. Assumptions made are that samples are representative of the population for the inference prediction; regression residuals are approximately normally distributed, uncorrelated, and have constant volatility; no high degrees of multi-colinearity in the independent variables; variable sensitivity remains constant in the short term; and no structural shift in the short term.The comments provided herein are a general market overview and do not constitute investment advice, are not predictive of any future market performance, are not provided as a sales or advertising communication, and do not represent an offer to sell or a solicitation of an offer to buy any security. Similarly, this information is not intended to provide specific advice, recommendations or projected returns of any particular product of Standish Mellon Asset Management Company LLC (Standish). These views are current as of the date of this communication and are subject to rapid change as economic and market conditions dictate. Though these views may be informed by information from publicly available sources that we believe to be accurate, we can make no representation as to the accuracy of such sources nor the completeness of such information. Please contact Standish for current information about our views of the economy and the markets. Portfolio composition is subject to change, and past performance is no indication of future performance.The comments provided herein are a general market overview and do not constitute investment advice, are not predictive of any future market performance, are not provided as a sales or advertising communication, and do not represent an offer to sell or a solicitation of an offer to buy any security. Similarly, this information is not intended to provide specific advice, recommendations or projected returns of any particular product of Standish Mellon Asset Management Company LLC (Standish). These views are current as of the date of this communication and are subject to rapid change as economic and market conditions dictate. Though these views may be informed by information from publicly available sources that we believe to be accurate, we can make no representation as to the accuracy of such sources nor the completeness of such information. Please contact Standish for current information about our views of the economy and the markets. Portfolio composition is subject to change, and past performance is no indication of future performance.
Appendix
SBICMAR021314GA
19
Important Disclosures
Appendix
Standish sector models use regression analysis such as multi-linear data inputs, panel data, and probit function. Variables that the models take into account are: PMI, US Core CPI, Fed Fund rate, 3-month Libor, 3-month T-bill rate, foreign purchases of US Government bonds, Commodity Indices , Capacity Utilization, Deficit as a percent of GDP, S&P 500 return, Chicago Fed Index, IGOV, US output gap, Europe Core CPI, US unemployment rate, EU unemployment rate, and slope of the yield curve. Assumptions made are that samples are representative of the population for the inference prediction; regression residuals are approximately normally distributed, uncorrelated, and have constant volatility; no high degrees of multi-colinearity in the independent variables; variable sensitivity remains constant in the short term; and no structural shift in the short term.BNY Mellon is one of the world’s leading asset management organizations, encompassing BNY Mellon’s affiliated investment management firms, wealth management services and global distribution companies. BNY Mellon is the corporate brand for The Bank of New York Mellon Corporation. Standish is a registered investment adviser and BNY Mellon subsidiary.The information in this presentation may contain projections or other forward-looking statements regarding future events, targets or expectations regarding the strategies described herein (including those introduced by the terms “may,” “target,” “expect,” “believe,” “will,” “should” or similar terms), and is only current as of the date indicated. There is no assurance that such events or targets will be achieved, and may be significantly different from that shown here. The information in this presentation, including statements concerning financial market trends, is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons.The J.P. Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified Composite consists of regularly traded, liquid fixed-rate, domestic currency government bonds to which international investors can gain exposure. The S&P 500 Index is considered to be generally representative of the U.S. large capitalization stock market as a whole. It is an unmanaged capitalization-weighted index of 500 commonly traded stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of those stocks. The index assumes reinvestment of dividends. The index selects its companies based upon their market size, liquidity, and sector. Most of the companies in the index are solid mid cap or large cap corporations. The S&P 500 is a market-weighted index.JP Morgan Emerging Markets Bond Index Global (EMBI Global): tracks total returns for US dollar-denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, Eurobonds.Barclays U.S. Corporate High Yield Index - An unmanaged index that covers the universe of fixed-rate, noninvestment-grade debt.S&P/LSTA U.S. Leveraged Loan 100 Index - designed to reflect the performance of the largest facilities in the leveraged loan market.S&P/Case–Shiller U.S. National Home Price Index - a composite of single-family home price indices for the nine U.S. Census divisions. It is updated quarterly.BofA Merrill Lynch Euro High Yield Index tracks the performance of EUR denominated below investment grade corporate debt publicly issued in the euro domestic or eurobond markets. Qualifying securities must have a below investment grade rating (based on an average of
Moody’s, S&P and Fitch).Barclays Municipal Bond Index - An unmanaged index considered representative of the tax-exempt bond market. Barclays Euro Aggregate Bond Index - includes fixed-rate, investment-grade Euro denominated bonds. Inclusion is based on the currency of the issue, and not the domicile of the issuer. The principal sectors in the index are the Treasury, corporate, government-related and securitized.Barclays US Long Corporate Index - The index includes dollar-denominated debt from U.S. and non-U.S. industrial, utility, and financial institutions issuers with a duration of 10+ years. Barclays Mortgage-backed Securities Index - An unmanaged index comprising 15- and 30-year fixed-rate securities backed by mortgage pools of Ginnie Mae, Freddie Mac and Frannie Mae.Commodity Research Bureau Broad Index - An index that measures the overall direction of commodity sectors. The CRB was designed to isolate and reveal the directional movement of prices in overall commodity trades. Barclays U.S. Aggregate Index - An unmanaged index considered representative of the U.S. Investment-grade, fixed-rate bond market.Barclays US TIPs Index - measures the performance of the US Treasury Inflation Protected Securities("TIPS") market. The index includes TIPS with one or more years remaining maturity withtotal outstanding issue size of $500m or more.The Bloomberg US Treasury Bond Index is a rules-based, market-value weighted index engineered to measure the performance and characteristics of fixed rate coupon U.S. Treasuries which have a maturity greater than 12 monthsBarclays Euro Corporate Bond Index - contains fixed-rate, investment-grade Euro-denominated bonds from industrial, utility and financial issuers only
SBICMAR021314GA
Standish cares about the environment. Whenever possible, we choose double-sided printing to reduce paper use.