MCF applies its philosophy through the management of goals-based, asset allocation portfolios. Each portfolio is constructed to achieve an attractive return given a desired level of risk (based on the IPS), which is controlled through diversification. The portfolios adhere to a Core + Complement strategy. We utilize broad-based, low cost, passive/index funds as core holdings to gain broad exposure to efficient markets. To complement our core holdings, we opportunistically use more targeted positions for differentiated exposure, proactively allocating away from each portfolio’s strategic (long-term) asset allocation based on current market conditions, relative valuations, and our proprietary capital market and economic outlook. The use of tactical asset allocation and positioning is intended to take advantage of short-term deviations from an asset class or investment’s long-term efficient characteristics. Complementary positions and actively managed funds are used when the IC feels an index fund does not represent efficiently the Committee’s desired asset class exposure or the Committee has high conviction regarding abnormalities in valuation levels, fundamentals, or other characteristics. The IMD and IC coordinate efforts to be responsive to changing markets, balancing risks and providing more consistent returns to help clients achieve their goals.