TYC Diversified Portfolio

Please find attached the Diversified Portfolio Report.

In absence of cycle phase changes, the portfolio makes only smaller
position-size adjustments. Noteworthy is the flattening out of the long
position in Chinese equities. The change is reflecting elevated cyclical
risk and was triggered by higher valuations.

The equity rally in the first half of January has caused several other
markets to become very expensive. The resulting position size reductions
will be reflected in the February report. As a result and given that the
appetite for sizable long bond positions remains unchanged, the asset
allocation will likely become more defensive next month.