2016 played out differently than the past 2 years where the markets mostly consolidated and waited to determine what the next phase would bring? This year domestic equities saw a rosier future in the economy, hence they had a strong year (Q4 4.2%, 2016 12.7%) where Small Caps and Value led the way lending credence to our strategy. Small Cap Value performed the best (Q4 14%, 2016 32%). The Small Cap and Value leadership proved pervasive throughout the international markets except in emerging markets where Large Caps out performed Small Caps. On the other hand, global bond markets (Q4 (2.21), 2016 5.1%) out performed domestic bonds (Q4 (2.98), 2016 2.65%) where prices came down in the 4th quarter in anticipation of the fed continued tightening and a faster growing domestic economy and a strengthening dollar.