Quarterly Investment Report

Q1 2020

For the first quarter, global equity market indices were sharply negative while fixed income indices were not as much as a safe haven as one might often expect. Credit sold off sharply during the February and March decline, while Treasuries outperformed—though also not without volatility.

For many participants in global markets, early 2020 was shaping up to be another solid year—global financial markets had come off one of their best years in the cycle, earnings growth was projected to grow at a meaningful pace (~10% according to FactSet), and despite signs of global growth moderating, very few were predicting a recession in 2020. Then the coronavirus (COVID-19 for short) really started to the markets in late January and the chaos began—the proverbial punch to the mouth landed cleanly.

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The purpose of this communication is to provide general information, opinion, and outlook. All references to potential future developments or outcomes are strictly the views and opinions of First International Bank and Trust and in no way promise, guarantee, or seek to predict with any certainty what may or may not occur in global economies and investment markets. The contents of this report should not be relied upon in making investment decisions. This information is provided "as is" and is not intended to represent the performance of an actual investment account.

Information and data presented were obtained from sources considered reliable and correct; however, we cannot guarantee their accuracy or completeness. We may change these materials at any time in the future without notice to you. We are not providing you with investment, tax, or legal advice. Past performance is not necessarily indicative of future performance. We are not offering to buy or sell any financial instrument or inviting you to participate in any trading strategy.

This material was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer under US federal tax laws. Investments with First International Bank and Trust are subject to significant risks, which include, but are not limited to, the risk of loss of principal, lack of diversification, volatility, and market disruptions. Investment products are not FDIC insured.