NEW ENGLAND ASSET MANAGEMENT INC

The investment strategy has shifted from a broad-market approach using Vanguard and iShares core ETFs to a more barbelled strategy. The portfolio now blends heavy exposure to broad market and international ETFs with a concentrated selection of defensive equities, specifically in Utilities, Healthcare, and Energy. The use of ETFs remains a primary tool for execution, accounting for approximately 58.3% of the total portfolio value, suggesting a preference for liquidity and beta exposure in the core allocation.

2. Key Holdings

The portfolio is dominated by large-cap ETFs, which form the foundation of the equity allocation.

• SPDR S&P 500 ETF Trust (SPY): Remains the single largest holding at $66.75 million (22.36%). Despite a reduction of 13.9% during the quarter, it remains the primary domestic equity vehicle.
• iShares Core MSCI EAFE (IEFA): The second-largest position at $48.72 million (16.32%). This represents a significant bet on developed international markets, and the position was increased by 35.2% during the quarter.
• iShares Core MSCI Emerging Markets (IDEV): The third-largest holding at $33.72 million (11.29%), also increased by 30.1%. Combined with IEFA, international equity exposure (ex-US) accounts for roughly 27.6% of the entire portfolio.