This information is updated quarterly.  Below represents the latest quarter for which information is available.

Pittsburgh Legacy Fund

Third Quarter, 2011 – Market Update

The third quarter of 2011 brought back memories of 2008, with the exception that money markets although slightly stressed, did not completely seize up. Congressional discord in the US, that lead Standard & Poor’s to downgrade US Treasuries for the first time, was matched by similar waffling within the European Union on how to handle the insolvency of one of their members. As in 2008, asset correlations rose significantly with the US Treasury market – ironically – being the safe haven in a world of uncertainty. The consequence of this market action was felt dramatically across our portfolios and even in more conservative value managers, though to a lesser extent.

The turmoil of the past quarter has tested our managers, with some faring better than others. Notably, our defensive positions in domestic and international equities performed very well on a relative basis. We will maintain these defensive positions as our view remains that we will only achieve our long term goals with the current exposure we have to equities and hedge funds, as the real return from bonds will become increasingly more challenging. We have rebalanced slightly, following the market shift, though remain overweight to short term bonds, which represent about 6% of the portfolio.

 Intermediate Fund

Grantmaking Fund

 As we were concerned about the underlying money fund’s exposure to European banks, we shifted cash assets to an all US Treasury fund during the quarter. We expect any impaired returns will be minor for the increase in safety we obtained.