Quarterly Considerations

By Crescent Team

1Q 2020 MARKET EVENTS

ASSET CLASS PERFORMANCE

MARKET THEMES

MARKET THEMES

FIXED INCOME MARKET UPDATE

EQUITY MARKET UPDATE

ALTERNATIVES MARKET UPDATE

ECONOMIC REVIEW

THE CASE FOR DIVERSIFICATION

FINANCIAL MARKETS PERFORMANCE

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DISCLOSURES

All material and information is intended for Crescent Wealth Advisory business only. Any use or public dissemination outside firm business is prohibited. Information is obtained from a variety of sources which are believed though not guaranteed to be accurate. Any forecast represents future expectations and actual returns, volatilities and correlations will differ from forecasts. Past performance does not indicate future performance. This presentation does not represent a specific investment recommendation. Please consult with your advisor, attorney and accountant, as appropriate, regarding specific advice.

When referencing asset class returns or statistics, the following indices are used to represent those asset classes, unless otherwise notes. Each index is unmanaged and investors can not actually invest directly into an index:

• TIPS:  Bloomberg Barclays Global Inflation-Linked: U.S. TIPS Total Return Index Unhedged

• Municipals 5-Year:  Bloomberg Barclays Municipal Bond 5 Year (4-6) Total Return Index Unhedged USD

• Core Bond:  Bloomberg Barclays US Agg Total Return Value Unhedged USD

• High Yield:  Bloomberg Barclays US Corporate High Yield Total Return Index Value Unhedged USD

• Foreign Bond:  Bloomberg Barclays Global Aggregate ex-USD Total Return Index Value USD (50/50 blend of hedged and unhedged)

• EM Debt (unhedged):  J.P. Morgan GBI-EM Global Diversified Composite Unhedged USD

• U.S.:  Russell 3000 Total Return Index

• U.S. Large Cap:  S&P 500 Total Return Index

• U.S. Small Cap :  Russell 2000 Total Return Index

• International Developed:  MSCI EAFE Net Total Return USD Index

• Emerging Markets:  MSCI Emerging Markets Net Total Return USD Index

• World:  MSCI ACWI Net Total Return USD Index

• U.S. Equity REITs:  FTSE Nareit Equity REITs Total Return Index USD

• Midstream Energy:  Alerian MLP Total Return Index

• Hedge Funds:  Hedge Fund Research HFRI Fund of Funds Composite Index

• Event Driven:  Hedge Fund Research HFRI Event-Driven Total Index

• Relative Value:  Hedge Fund Research HFRI Relative Value Fixed Income-Convertible Arbitrage Index

• Equity Hedge:  Hedge Fund Research HFRI Equity Hedge Total Index

• Direct Fund Composite: Hedge Fund Research HFRI Fund Weighted Composite Index

• Fund of Funds Composite:  Hedge Fund Research HFRI Fund of Funds Composite Index

• Macro:  Hedge Fund Research HFRI Macro Total Index

• Balanced*:  2% 3-month Treasury bill, 2% TIPS, 32% Core Bond, 4% High Yield , 3% Foreign Bond. 2% EM Debt (unhedged), 17% U.S. Large Cap, 5% U.S. Small Cap, 15% International, 7% Emerging Markets, 5% U.S. Equity REITS, 6% MLPs

• U.S.:  MSCI USA Net Total Return USD Index

• China:  MSCI CHINA Net Total Return USD Index

• Japan:  MSCI Japan Net Total Return USD Index

• Germany:  MSCI Germany Net Total Return USD Index

• India:  MSCI India Net Total Return USD Index

• United Kingdom:  MSCI UK Net Total Return USD Index

• France:  MSCI France Net Total Return USD Index

• Italy:  MSCI Italy Net Total Return USD Index

• Brazil:  MSCI Brazil Net Total Return USD Index

• Canada:  MSCI Canada Net Total Return USD Index

  *Balanced represents current allocation of the DSA Balanced DPA Model Portfolio and historically tracks allocation changes to that Model. Returns are hypothetical and do not represent the actual returns earned by clients invested in the DSA Balanced DPA Model Portfolio. Please contact us for additional information on the historical allocation of this Model.