This information is updated quarterly. Below represents the latest quarter for which information is available.
Pittsburgh Legacy Fund
First Quarter, 2012 – Market Update
After a choppy fourth quarter, equity markets around the globe reacted to pent-up liquidity pressure and improving economic fundamentals in the United States with strong returns through February that began to taper off into March. The S&P 500 almost reached its October 2007 peak courtesy of corporate profits and the Fed’s easy monetary policy. International equity markets also reacted strongly to a more confident Europe and indications that China was loosening its monetary stance. Bond markets on the other hand reflected the low interest rate environment with the Barclay’s Aggregate Bond Index returning a meager 0.3% for the quarter.
The Legacy Fund performed slightly better than expected this quarter, outperforming its blended benchmark by 1.7%. Lower inflation and the Fund’s defensive stance muted the impressive returns in equity. Nothing has changed strategically as the fund remains committed to diversified global equity as its long term source of returns while tempered with thoughtful allocations to hedge funds which we expect to act as a fixed income replacement. We have trimmed cash by investing in short duration fixed income and redistributed some fixed income investments to appropriately protect the portfolio for deflationary shocks. Lastly, we are in the process of shifting some assets in the inflation hedging portfolio to a defensive manager.
Asset Allocation - 3/31/2012
Intermediate Fund
The Intermediate Fund participated in the positive gains of the quarter through its equity index exposure. Additionally, the active core fixed income manager (PIMCO) returned to form and exceeded its benchmark by 2.6%. The strategy for the Fund remains in place. The cash position of the portfolio was reduced by allocating to near cash short duration corporate credit.
Asset Allocation - 3/31/2012
Grantmaking Fund
We made no meaningful changes to the Fund during the past quarter; retaining assets in US Treasury backed money market funds.
Asset Allocation - 3/31/2012
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