EQUITY COMMENTARY

The second quarter of 2020 produced historic gains for the broad stock indices. The Dow Jones Industrial Index rose 18.5%
during the quarter, the largest quarterly gain since 1987 while the Nasdaq rose 30.9% for its largest quarterly advance since
1999. S&P 500 closed the quarter up 20.5% for its best quarter since 1998. This common theme resonated throughout broad
risk assets as investors took comfort in the fiscal stimulus provided by Congress, and the explicit backstop of various corners
of US fixed income markets by the Federal Reserve.

Advances were not predicated on a near term economic recovery but largely due to the market discounting the next few
years of earnings, and pricing higher companies which are more immune to the near-term impacts of COVID. The shift to
a more digital economy which was already underway saw demand pulled forward by multiple years as companies rushed
to implement software to enable a work from home environment. As such, larger gains were seen in technology stocks
which have historically invested for future profitability and were set up well for the way the world changed. Meanwhile,
cyclical industries such and industrials, banks, energy, and utilities all largely struggled to keep pace with the broader
markets. This bifurcation was evident in actively managed equity strategies as those who focused on next generation stocks
outperformed those who held firms which are more exposed to COVID.