Overview

• The fund reported a 2.66% return for the first half of 2025 versus 5.43% for its 60/40 composite benchmark and 5.67% for the Morningstar Moderate Allocation peer group.
• Managers cited early‑year tariff questions, conflicts in the Middle East, rising U.S. debt, and a weak dollar at the start of the year as context for market conditions.
• The Industrials overweight helped absolute results but selection detracted, with Toro cutting guidance after weaker consumer sales while Fastenal’s continued growth suggested market‑share gains.
• In Communications, Alphabet weighed on results due to concern that generative AI could pressure search, and the fund has been trimming the position as it transitions exposure toward Amazon.
• The fund added to Bio‑Techne after sector pressure from federal funding cuts and soft venture capital flows, and it initiated WEC Energy Group for Wisconsin’s balanced regulatory environment and a quasi fixed‑income role.