MARKETS:
- April experienced big swings across markets, as the U.S. administration announced tariffs on imports from a wide range of countries and subsequently paused many others. The global equity index (MSCI ACWI IMI) was slightly positive at +0.93% in April and was down -0.40% The S&P 500, which tracks large cap U.S. stocks, decreased -0.68% in April and was down -4.92% YTD. The Russell 2000 Index, which tracks domestic small cap stocks, decreased -2.31% in April and was down -11.57% YTD. The international developed equity index (MSCI EAFE) increased +4.58% in April and was up +11.76% YTD. The emerging markets index (MSCI EM) increased +1.31% in April and was up +4.28% YTD.
- In April, bond yields varied across maturities. The 30-year U.S. Treasury bond yield increased +7 bps to 4.66%, the 10-year yield decreased –6 bps to 4.17%, and the 2-year yield decreased -29 bps to 3.60%.
- The Barclays U.S. Aggregate Index, which is a measure of U.S. bond prices, increased +0.39% in April and was up +3.18%
ECONOMIC AND GEOPOLITICAL HEADLINES
- U.S. gross domestic product (GDP) in the first quarter of 2025 decreased -0.3% due to larger than usual imports, according to the “Adv” estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2024, GDP increased +2.4%.
- The April Services Purchasing Managers Index (PMI) decreased to 51.40% from 54.40% in March. This represents expansion and is below market expectations of 54.00%. The April Manufacturing PMI decreased to 48.70% from 49.00% in March.
- April non-farm employment increased by 177,000 jobs, and the unemployment rate was unchanged at 4.2%, as reported by the Bureau of Labor Statistics on May 2. In April, employment increased in health care, transportation and warehousing, financial activities and social assistance. Average Hourly Earnings (wages) increased +3.8% year-over-year in April.
PERFORMANCE UPDATES
- The Total Equity Fund increased +0.62% in April and was down -1.43% YTD. The International Equity Fund increased +3.40% in April and was up +8.62% YTD. The Small Cap Equity Fund decreased -2.12% in April and was down -12.07% YTD. The Fixed Income Fund increased +0.37% in April and was up +2.85% YTD.
- Equity managers’ performance was solid in the month, with PGIM Quant BFF, Westfield, BlackRock, Baillie Gifford, LSV and RBC outperforming, while all other managers underperformed.
- The UCF Balanced Fund returned +0.50% in April and was up +0.18% YTD. The Alternatives Balanced Fund increased +0.23% in April and was down -0.36% YTD. Finally, the Beyond Fossil Fuels Balanced Fund outperformed its benchmark, returning +1.04% in April and was up +0.32% YTD.