Enhancements

2016 Comparison of EMD

Comparison of EMD with Other Asset Classes

State Street decided against adding EMD to its glidepath in 2016, primarily due to unresolved issues on the optimal allocation, source of allocation and entry point into the glidepath.

	Yield to Worst	Credit Rating	*Correlation with US Large-Cap Equity**	Correlation with Global Equity
US Long Gov’t Bonds	2.53	AAA/AAA	-0.29	-0.25
US Aggregate Bonds	2.32	AA1/AA2	0.03	0.13
US High-Yield Bonds	8.75	B1/B2	0.73	0.78
EM Local Currency Debt	5.23	A2/A3	0.66*	0.81*
EM Hard Currency Debt	5.97	BAA2/BAA3	0.59*	0.72*