MARKETS:
- Global markets were positive in July, led by the U.S. and followed by emerging markets equities. The global equity index (MSCI ACWI IMI) was positive at +1.36% in July and was up +11.54% The S&P 500, which tracks large cap U.S. stocks, increased +2.24% in July and was up +8.59% YTD. The Russell 2000 Index, which tracks domestic small cap stocks, increased +1.73% in July and was down -0.08% YTD. The international developed equity index (MSCI EAFE) decreased -1.40% in July and was up +17.77% YTD. The emerging markets index (MSCI EM) increased +1.95% in July and was up +17.51% YTD.
- In July, bond yields increased across maturities. The 30-year U.S. Treasury bond yield increased 11 bps to 4.89%, the 10-year yield increased +13 bps to 4.37%, and the 2-year yield increased 22 bps to 3.94%.
- The Barclays U.S. Aggregate Index, which is a measure of U.S. bond prices, decreased -0.26% in July and was up +3.75%
ECONOMIC AND GEOPOLITICAL HEADLINES
- U.S. gross domestic product (GDP) in the second quarter of 2025 increased +3.0%, according to the “Adv” estimate released by the Bureau of Economic Analysis. In the first quarter of 2025, GDP decreased -0.5%.
- The July Services PMI decreased to 50.10% from 50.80% in June. The July Manufacturing PMI decreased to 48.00% from 49.00% in June.
- July non-farm employment increased by 73,000 jobs, and the unemployment rate dropped to 4.2%, as reported by the Bureau of Labor Statistics on August 1. In July, employment increased in health care and social assistance, while the Federal government lost jobs. Average Hourly Earnings (wages) increased +3.9% year-over-year in July.
PERFORMANCE UPDATES
- The Total Equity Fund increased +1.12% in July and was up +10.04% YTD. The International Equity Fund decreased -0.33% in July and was up +17.53% YTD. The Small Cap Equity Fund increased +1.76% in July and was up +0.05% YTD. The Fixed Income Fund decreased -0.20% in July and was up +3.72% YTD.
- Equity managers’ performance was mixed in the month, with PGIM Quant U.S., Westfield, Channing and LSV outperforming, while all other managers underperformed.
- The UCF Balanced Fund returned +0.62% in July and was up +7.43% YTD. The Alternatives Balanced Fund increased +1.45% in July and was up +6.70% YTD. Finally, the Beyond Fossil Fuels Balanced Fund underperformed its benchmark, returning +0.49% in July, and is up +8.61% YTD.