March 31, 2025

All investors face capital-market risk. Managing that risk, evaluating opportunities in the context of an investor’s goals, and assessing specific investments efficiently requires broad, objective, close-to-the-capital-market thinking. An asset allocation framework does not need to be a black box that processes statistical variables and then spits out an investment plan. It should be a logical framework that lays out choices for investors. The LJE Asset Allocation Process strives to accomplish these objectives. First, it summarizes in a logical and consistent way the investment choices recommended by our assessment of the coming economic environment. Second, we strive to provide in straightforward, plain English an explanation of our views and the rationale for the tilts to the portfolio. The first quarter performance figures show that during the quarter the benchmark appreciated 0.49% while the LJE Asset Allocation utilizing the ETFs only gained 0.15%. The LJE tilt portfolio underperformed the benchmark by thirty-four basis points during the first quarter of 2025. The second quarter allocation. Our model prescribes a decrease in the portfolio’s fixed income exposure relative to the benchmark. As a result of this, during the first quarter the allocation to fixed income declines to 30.77% relative to a 40% benchmark allocation while the equity allocation increases to 69.23% relative to a 60% equity benchmark allocation.

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