PROFFITT & GOODSON INC

Turnover was meaningful this quarter: 28 new positions and 28 liquidations, 9 increases and 13 reductions. The scale of sales in a handful of large legacy positions drove the drop in reported assets rather than a steady, distributed trimming across positions.

Key Holdings and Their Significance

• VGIT (Vanguard 3–5 Year Treasury ETF): $61.05M (24.18%). This is the single largest position and provides intermediate-duration U.S. Treasury exposure. It is a defensive allocation and the clear centerpiece of the repositioning.
• VCSH (Vanguard Short-Term Corporate Bond ETF): $44.31M (17.55%). Significant corporate credit exposure with short duration, adding yield relative to Treasuries while limiting duration risk.
• SPY (SPDR S&P 500 ETF Trust): $38.21M (15.14%). Largest remaining equity exposure; however SPY was reduced materially (-41.9% or -$22.81M) versus the prior quarter.
• SPDW (SPDR Developed World ex‑US or global developed equities ETF): $23.05M (9.13%). Provides developed‑market non‑U.S. equity exposure; it remains a meaningful equity sleeve after large international ETF exits.
• VMBS (Vanguard Mortgage‑Backed Securities ETF): $18.45M (7.31%). Adds mortgage‑backed securities exposure; this has different risk drivers (prepayment and spread) versus pure Treasuries.