June 2015 Volume 3 — Issue 2 1st Source Gazette THE s econd q uarter

WHAT IS ‘LIVING WELL’? Richard Hunt, a 79-year-old legend in his own day, who continues to make his mark in the world as one 80 YEARS AND BEYOND. of the most prolific artists working in public art today. ARTIST RICHARD HUNT Our Personal Asset Management Group is pleased STEVEN J. WESSELL, Executive Vice President to be the premier sponsor of the Krasl Art Center’s exhibition The Public Life of Richard Hunt: Just last year 1st Source was wrapping up its 150th 21st Century Projects, June 26 - September 13, 2015, anniversary in the community. We took time to celebrate in St. Joseph, Michigan. For those both near to and and reflect on milestones, decisions, and circumstances far from the southwest Michigan area, the city and that contributed to forming us into who we are today, area of St. Joseph is a treasure-trove of regional and to thank our clients for their support and loyalty. antiquity, nature, beauty and art. We want to extend to you our warmest invitation to explore A 150 year history is certainly an enduring span for an this notable opportunity to get to know the organization. 1st Source aims to continue to thrive life and work of internationally acclaimed artist for decades and generations to come, serving the clients Richard Hunt. and the communities in which we live, work and raise our families. Unlike a business with a possibly limitless “One of the central themes in my work is the longevity, as individual humans, we have a finite time to reconciliation of the organic and the industrial...” be physically present and engaged in the world around

us. Being able to have the time, health and resources “... I see my work as forming a kind of bridge to live a life of vitality is valuable. For one person this between what we experience in nature and may mean contributing to progress and production, what we experience from the urban, industrial, to another it may mean providing wise insight or technology-driven society we live in. I like to peace-making skills, and to another, spearheading think that within the work ... there is a important challenges to some idea in the world. Becoming resolution of the tensions between the sense of older does not prescribe limitations on many valuable freedom one has in contemplating nature and the and worthwhile aspects of life, or diminish each day’s sometimes restrictive, closed feeling engendered opportunity to be lived well. Consider American sculptor by the rigors of the city.” — Richard Hunt

100 North Michigan Street, South Bend, IN 46601 v 574-235-2790 v 800-882-6935 v www.1stSource.com The development of several of the dynamic projects . He opened a satellite studio Hunt is current undertaking will be on view in the in Benton Harbor in 1995. Hunt is the recipient of Public Life of Richard Hunt, including cast models numerous awards and honorary degrees, and has showing the evolution of the ’ forms, site plans produced over 125 commissions of public and scale models. In this way, visitors to the for cities across the . Richard Hunt exhibition will have the remarkable opportunity to has continued to experiment throughout his successful discover how large-scale artistic projects develop career, employing a wide range of sculptural techniques, and the many subtle changes the sculptures go through sometimes making comments on contemporary social before their final form is realized. issues.

Hunt’s strong connection to public art in Michigan will The Public Life of Richard Hunt: 21st Century also be highlighted through two major 21st century Projects will travel to the Muskegon Museum of projects the artist has undertaken in this state. The Art following its premiere at the Krasl Art Center. history and development of And You, Seas, Hunt’s A scholarly catalog presenting new research accompanies monumental sculpture visible by both land and the exhibition with essays written by American art inland sea at the intersection of the St. Joseph River historian Dr. Henry Adams, KAC Curator Tami Miller and Lake Michigan will be relayed through preliminary and MMA Curator E. Jane Connell. sculptures, models and post-project casts. The Personal Asset Management Group of Richard Hunt was appointed by President Lyndon 1st Source Bank is honored to be the Premier Sponsor Johnson as one of the first artists to serve on the of this unique exhibition. We hope you, our clients, governing board of the National Endowment for the will have an opportunity to visit between now and Arts and he also served on various boards of the mid-September. 1935 1957 1962 1971 1995 2009 2015

Richard Graduated Featured Received a Opened satellite Honored with Celebrates his Hunt from the artist in retrospective studio in the Lifetime 80th year with was born School of the Life exhibition at Benton Harbor, Achievement an exhibition in Art Institute magazine the Museum Michigan, Award from (6/26 - 9/13) and , of Chicago of Modern through the gala celebration Art in Cornerstone International (Fall 2015) New York Alliance’s Sculpture at the Krasl at age 36 program: Center Art Center Community Renewal Through the Arts

More information about the Richard Hunt

Photograph by exhibition may be found here: Lee Balterman www.krasl.org/view/main-galleries

Personal Asset Management Group v June 2015 v Volume 3 Issue 2 “WILL THEY OR WON’T THEY?” PAUL GIFFORD, Jr., CFA, Chief Investment Officer

In the phrase “Will they or won’t they?” the “they” is the Federal Reserve, and the “Will or won’t...?” speaks to whether or not they – for the first time in eight years – will raise the Federal Funds Target Rate.

After six years of quantitative easing and a zero interest rate policy by the Federal Reserve (the “Fed”), the Fed is forecasted to raise the Fed Funds rate later this summer or in the fall. The increase is expected to be a move to 0.375 percent from a current target of 0 percent to 0.25 percent. The timing of further rate increases will be dependent on US economic activity and inflation expectations. Recent economic data has been mixed with continued improvement in the employment picture but weak in gross domestic product.

Some clients are asking us what will happen if the We are buyers of maturities around 3-7 years with a Fed raises interest rates and how their existing bond focus around the 3-4 year maturities with regard to investments might be effected. Reflecting on the individual bonds and bond funds. We continuously summer of 2013 after the Fed first discussed raising discuss the mix of investments that comprise a fixed rates, there was at that time a modest rise in interest income portfolio. In the past year we have added an rates. Other than this time, interest rates have been on a alternative bond fund to the mix in order to mitigate downward trend since the summer of 2007, resulting in the interest rate environment. The addition of high little concern of rising interest rates. While we expect yield bond funds introduced several years ago was to see a modest increase in interest rates over the next another strategy to address a rising rate scenario in a several years, unlike the past when the Fed chose to raise stable and growing economy. When rates are rising the rates at consecutive meetings, it appears more likely that economy is usually good. Corporate credits are strong the Fed will move at a slower pace and may skip several and provide more income to offset price drops. With meetings between increases. this in mind, another strategy we employ is to purchase investments that have a floating rate of interest that When interest rates increase, the price of bonds or would float higher as the Fed raises its target rate. bond funds falls. In order to reduce the impact of falling prices, adjustments are typically made to owned Just like the Federal Reserve, our strategies and their fixed income assets and the amount of interest rate risk implementation will depend on the data we analyze in the portfolio. The main strategy to reduce risk and our outlook for interest rates. Balancing current involves buying shorter maturity bonds or bond funds. income with potential loss of value is something our The challenge and assessment of earning lower interest team of investment advisors/portfolio managers work on shorter maturities is compared to the higher income to comprehensively understand for the benefit of you, of longer maturities versus the expected drop in bond our valued clients. prices.

Investment products and annuities are not insured by the FDIC or by any other government agency, are not deposits or obligations of, or guaranteed by 1st Source Bank, and may involve investment risk, including loss of value.

Personal Asset Management Group v June 2015 v Volume 3 Issue 2 We welcome to the PAMG Honored to be the Premier Sponsor of the Krasl Art Center's exhibition: team Erik Clapsaddle, Vice President and Portfolio The Public Life of Richard Hunt: Manager. With over ten years 21st Century Projects of investment research experience, Erik joined the June 26 - Investment Advisors of the September 13, 2015 Personal Asset Management Group in April 2015. In his new role, Erik will assist 1st Source clients and co-manage the fixed income common funds and the Wasatch 1st Source Income Fund with Paul Gifford. Erik earned his B.S. from York College of Pennsylvania and is both a CFA® charterholder and CFP™ professional.

Explore the diverse sculpture and rich history of internationally acclaimed artist Richard Hunt.

And You, Seas by Richard Hunt Collection of the Krasl Art Center, St. Joseph, Michigan

In the fall, the Personal Asset Management Group will be hosting an event featuring Jeannie Seely, “Miss Country Soul”, who is best known for her 1966 Grammy award-winning song, “Don’t Touch Me”, KRASL.ORG which peaked at No. 2, for being a regular host of the Grand Ole Opry, and for her award-winning songwriting.

Personal Asset Management Group v June 2015 v Volume 3 Issue 2