Today we said farewell to a respected colleague and trusted friend – James Shelton. James served the firm as our Chief Investment Officer from October 2007 until today. While we will miss him, we appreciate his leadership during the last 9 years and his thoughtfully executed departure. As we had come to expect from James, he delayed his exit until he was sure that our path was firm and our merger with Mercer Advisors was all but complete.

Unrelated to our pending merger, James had an opportunity to re-examine his career goals and decided to follow a dream that he had once set aside:  a return to the institutional side of money management. James will re-join Invesco as part of a management team in charge of building an infrastructure portfolio. We all wish him well.

With the completion of the merger, our joint (Mercer and Kanaly) Chief Investment Officer, Don Calcagni, will lead our investment staff. Our existing Kanaly portfolio managers, Troy Saldivar and Matt Wells, have been asked to participate in the Mercer Advisors Investment Committee as voting members. The combined (Mercer/Kanaly) team is dedicated to ensuring a seamless continuation of our investment philosophy and the ongoing delivery of high-quality, customized solutions for our clients.

In addition to their work on the Mercer Advisors Investment Committee, both Troy and Matt were promoted at James’s recommendation to senior roles on the current Kanaly Investment Committee. Troy will serve as Chairman of the committee, while Matt will serve as Vice Chairman. We are very proud of both Troy and Matt. Congratulations, gentlemen!

We invite you to join us for our upcoming Quarterly Conference call scheduled for August 16th at 10:00 a.m. (CDT). During the call, Drew Kanaly and our new Chief Investment Officer, Don Calcagni, will present an overview of recent market and economic activity. They will also discuss our expectations for the next quarter and will be available to answer your questions. Registration information for the call will be provided soon. Please save the date.

Disclosures

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the Funds or any stock in particular, nor should it be construed as a recommendation to purchase or sell a security, including futures contracts.

There are risks involved with investing, including loss of principal. Current and future portfolio holdings are subject to risks as well. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Narrowly focused investments and smaller companies typically exhibit higher volatility. Bonds and bond funds will decrease in value as interest rates rise. High-yield bonds involve greater risks of default or downgrade and are more volatile than investment-grade securities, due to the speculative nature of their investments. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.

Diversification may not protect against market risk. There is no assurance the objectives discussed will be met. Past performance does not guarantee future results Index returns are for illustrative purposes only and do not represent actual portfolio performance. Index returns do not reflect any management fees, transaction costs or expenses. One cannot invest directly in an index.