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The global investment landscape was disrupted by rising bond yields, as investors contemplated a scaling back of the U.S. Federal Reserve’s bond-buying program. Within fixed income, our mortgage prepayment strategies detracted from performance but rebounded in June, while our term-structure positioning and holdings of commercial mortgage-backed securities aided results. Stock selection within directional strategies and currency positioning in non-directional strategies hampered returns in the 500 Fund and 700 Fund. We have a generally positive outlook for global economic growth and began to modestly increase the funds’ risk positioning in U.S. equities and global fixed income as the quarter concluded.