MARKETS:
- The certainty of U.S. election results led to the U.S. leading global markets in November. Meanwhile, overseas markets such as China declined on trade concerns. The global equity index (MSCI ACWI IMI) increased +3.74% in November and was up +20.34% YTD. The S&P 500, which tracks large cap U.S. stocks, increased +5.87% in November and was up +28.07% YTD. The Russell 2000 Index, which tracks domestic small cap stocks increased +10.97% in November and was up +21.58% YTD. The international developed equity index (MSCI EAFE) decreased -0.57% in November and was up +6.24% YTD. The emerging markets index (MSCI EM) decreased -3.59% in November and was up +7.65% YTD.
- In November, bond yields decreased across maturities. The 30-year U.S. Treasury bond yield decreased –11 bps to 4.36%; the 10-year yield decreased -10 bps to 4.18%, and the 2-year yield decreased by –3 bps to 4.13%.
- The Barclays U.S. Aggregate Index, which is a measure of U.S. bond prices, increased +1.06% in November and was up +2.93%
ECONOMIC AND GEOPOLITICAL HEADLINES
- U.S. gross domestic product (GDP) in the third quarter of 2024 increased +2.8%, according to the “2nd” estimate released by the Bureau of Economic Analysis. In the second quarter of 2024, GDP increased +3.0%.
- The November Services PMI (formerly Non-Manufacturing Purchasing Managers Index) decreased to 52.10% from 56.00% in October. This represents expansion but is lower than market expectations of 55.50%. The November Manufacturing PMI increased to 48.40% from 46.50% in October. Per the Institute for Supply Management (ISM), a reading above 50 is considered economic expansion, and below 50 is considered economic contraction.
- November non-farm employment increased by 227,000 jobs, and the unemployment rate increased slightly to 4.2%, as reported by the Bureau of Labor Statistics on December 6. In November, employment increased in health care, leisure and hospitality and government. Average Hourly Earnings (wages) increased +4.0% year-over-year in November.
PERFORMANCE UPDATES
- The Total Equity Fund increased +4.04% in November and was up +18.01% YTD. The International Equity Fund decreased -0.45% in November and was up +5.59% YTD. The Small Cap Equity Fund increased +9.43% in November and was up +20.00% YTD. The Fixed Income Fund increased +0.88% in November and was up +3.29% YTD.
- Equity managers’ performance was mixed during the month, with Baillie Gifford, LSV, RBC and Xponance outperforming, while all other managers were either in line or behind their respective benchmarks.
- The UCF Balanced Fund was in line with its benchmark, returning +2.75% in November, and was up +12.01% YTD. The Alternatives Balanced Fund increased +2.32% in November and was up +12.31% YTD. Finally, the Beyond Fossil Fuels Balanced Fund returned +2.55% in November and was up +14.90% YTD.