MARKETS:
- Global markets returned to new highs after a de-escalation of the conflict with Iran and both strong earnings and labor reports. The global equity index (MSCI ACWI IMI) increased +10.16% in April and was up +7.24% The S&P 500, which tracks large cap U.S. stocks, increased +10.49% in April and was up +5.70% YTD. The Russell 2000 Index, which tracks domestic small cap stocks, increased +12.21% in April and was up +13.21% YTD. The international developed equity index (MSCI EAFE) increased +7.45% in April and was up +6.12% YTD. The emerging markets index (MSCI EM) increased +14.71% in April and was up +14.52% YTD.
- In April, bond yields increased across maturities. The 30-year U.S. treasury bond yield increased +10 bps to 4.98%; the 10-year yield increased +10 bps to 4.40%; and the 2-year yield increased +9 bps to 3.88%. The Bloomberg U.S. Aggregate Index, which is a measure of U.S. bond prices, increased +0.11% in April and was up +0.07% YTD. Bond yields and prices have an inverse relationship.
ECONOMIC AND GEOPOLITICAL HEADLINES
- According to the Bureau of Economic Analysis, U.S. real gross domestic product (GDP) increased in the fourth quarter of 2025 by +0.5%, bringing the overall annual economic growth for 2025 to 2.1%. The advance estimate for the first quarter of 2026 is +2.0%.
- The April Services PMI was 53.60%, down -0.40% from March. The April Manufacturing PMI remained steady at 52.70%. Per the Institute for Supply Management (ISM), a reading above 50 is considered economic expansion, and below 50 is considered economic contraction.
- As reported by the Bureau of Labor Statistics on May 8, April non-farm employment increased by 115,000 jobs, and the unemployment rate remained unchanged at 4.3%. In April, employment increased in health care, transportation and warehousing, and retail trade. Average Hourly Earnings (wages) increased +3.6% year-over-year.
PERFORMANCE UPDATES
- The Total Equity Fund increased +10.36% in April and was up +7.47% The International Equity Fund increased +9.23% in April and was up +7.13% YTD. The Small Cap Equity Fund increased +12.05% in April and was up +14.70% YTD. The Fixed Income Fund increased +0.48% in April and was up +0.02% YTD.
- Manager performance was mixed in the month, with Xponance Large Cap, BlackRock Small Cap, Baillie Gifford International and PGIM Quant Beyond Fossil Fuels outperforming, while PGIM Quant U.S., Westfield Small Cap, Channing Small Cap, LSV International and RBC Emerging Market Equity underperformed.
- The UCF Balanced Fund increased +6.38% in April and was up +4.54% The Alternatives Balanced Fund increased +5.20% in April and was up +5.24% YTD. Finally, the Beyond Fossil Fuels Balanced Fund increased +6.50% in April and was up +4.82% YTD.