MARKETS:
- Global markets turned negative in the month, as the U.S. and Israel launched a war against Iran. The global equity index (MSCI ACWI IMI) decreased -7.24% in March and was down -2.65% The S&P 500, which tracks large cap U.S. stocks, decreased -4.98% in March and was down -4.33% YTD. The Russell 2000 Index, which tracks domestic small cap stocks, decreased -5.00% in March and was up +0.89% YTD. The international developed equity index (MSCI EAFE) decreased -10.29% in March and was down -1.24% YTD. The emerging markets index (MSCI EM) decreased -13.06% in March and was down -0.17% YTD.
- In March, bond yields increased across maturities. The 30-year U.S. treasury bond yield increased +24 bps to 4.88%; the 10-year yield increased +33 bps to 4.30%; and the 2-year yield increased +41 bps to 3.79%. The Bloomberg U.S. Aggregate Index, which is a measure of U.S. bond prices, decreased -1.76% in March and was down -0.05% YTD. Bond yields and prices have an inverse relationship.
ECONOMIC AND GEOPOLITICAL HEADLINES
- According to the third estimate released by the Bureau of Economic Analysis, U.S. gross domestic product (GDP) increased in the fourth quarter of 2025 by +0.5%, down from the third quarter increase of +4.4%.
- The March Services PMI was 54.00%, down -2.10% from February. The March Manufacturing PMI increased to 52.70% from 52.40% in February. Per the Institute for Supply Management (ISM), a reading above 50 is considered economic expansion, and below 50 is considered economic contraction.
- March non-farm employment increased by 178,000 jobs, and the unemployment rate decreased to 4.3%, as reported by the Bureau of Labor Statistics on April 3. In March, employment increased in health care, construction, transportation and warehousing. Average Hourly Earnings (wages) increased +3.5% year-over-year in March.
PERFORMANCE UPDATES
- The Total Equity Fund declined -7.16% in March and was down -2.62% The International Equity Fund decreased -9.86% in March and was down -1.92% YTD. The Small Cap Equity Fund decreased -6.28% in March and was up +2.36% YTD. The Fixed Income Fund decreased -2.24% in March and was down -0.46% YTD.
- Manager performance was mixed in the month, with PGIM Quant U.S., Xponance LC, BlackRock SC, LSV International and RBC EM outperforming, while Westfield SC, Channing SC, Baillie Gifford International and PGIM Quant BFF underperformed.
- The UCF Balanced Fund declined -5.23% in March and was down -1.73% The Alternatives Balanced Fund decreased -3.97% in March and was up +0.04% YTD. Finally, the Beyond Fossil Fuels Balanced Fund decreased -5.85% in March and was down -1.58% YTD.