MARKETS:
- Equity markets were flattish in November due to concerns of rising AI-related debt. The global equity index (MSCI ACWI IMI) was close to flat at -0.01% in November and was up +21.07% The S&P 500, which tracks large cap U.S. stocks, increased +0.25% in November and was up +17.81% YTD. The Russell 2000 Index, which tracks domestic small cap stocks, increased +0.96% in November and was up +13.47% YTD. The international developed equity index (MSCI EAFE) increased +0.62% in November and was up +27.40% YTD. The emerging markets index (MSCI EM) decreased -2.39% in November and was up +29.69% YTD.
- In November, bond yields were mixed across maturities. The 30-year U.S. treasury bond yield was flat at 4.67%; the 10-year yield decreased 9 bps to 4.02%; and the 2-year yield decreased 13 bps to 3.47%.
- The Barclays U.S. Aggregate Index, which is a measure of U.S. bond prices, increased +0.62% in November and was up +7.46% YTD.
ECONOMIC AND GEOPOLITICAL HEADLINES
- U.S. gross domestic product (GDP) in the second quarter of 2025 increased +3.8%, according to the “3rd” estimate released by the Bureau of Economic Analysis.
- The November Services PMI increased to 52.60% from 52.40% in October. The November Manufacturing PMI decreased to 48.20% from 48.70% in October.
- November non-farm employment increased by 64,000 jobs, and the unemployment rate increased to 4.6%, as reported by the Bureau of Labor Statistics on December 16. Employment increased in healthcare and construction, while the federal government continued to lose jobs.
PERFORMANCE UPDATES
- The Total Equity Fund increased +0.57% in November and was up +20.16% YTD. The International Equity Fund increased +0.39% in November and was up +28.08% YTD. The Small Cap Equity Fund increased +1.68% in November and was up +12.25% YTD. The Fixed Income Fund increased +0.61% in November and was up +7.44% YTD.
- Most equity managers outperformed in the month, except for Channing SmallCap Value and Baillie Gifford International.
- The UCF Balanced Fund returned +0.58% in November and was up +14.87% YTD. The Alternatives Balanced Fund increased +0.61% in November and was up +13.80% YTD. Finally, the Beyond Fossil Fuels Balanced Fund returned +0.65% in November and was up +16.21% YTD.