MARKETS:
- The U.S. equity market continued to hit new highs in October due to strong earnings results. Emerging markets performed even better. The global equity index (MSCI ACWI IMI) was positive at +2.24% in October and was up +21.09% The S&P 500, which tracks large cap U.S. stocks, increased +2.34% in October and was up +17.52% YTD. The Russell 2000 Index, which tracks domestic small cap stocks, increased +1.81% in October and was up +12.39% YTD. The international developed equity index (MSCI EAFE) increased +1.18% in October and was up +26.61% YTD. The emerging markets index (MSCI EM) increased +4.18% in October and was up +32.86% YTD.
- In October, bond yields were mixed across maturities. The 30-year U.S. treasury bond yield decreased 6 bps to 4.67%; the 10-year yield decreased 5 bps to 4.11%; and the 2-year yield stayed flat at 3.60%.
- The Barclays U.S. Aggregate Index, which is a measure of U.S. bond prices, increased +0.62% in October and was up +6.80%
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. In the first quarter of 2025, GDP decreased -0.6%. This was last updated September 25, 2025.
- The October Services PMI increased to 52.40% from 50.00% in September. The October Manufacturing PMI decreased to 48.70% from 49.10% in September.
- September non-farm employment increased by 119,000 jobs, and the unemployment rate was 4.4%, as reported by the Bureau of Labor Statistics on November 20. October non-farm employment was not reported due to the government shutdown. The Dow Jones estimate is for a loss of 60,000 jobs, with the unemployment rate increasing to 4.5%, while ADP reported that private employers added 42,000 jobs.
PERFORMANCE UPDATES
- The Total Equity Fund increased +2.06% in October and was up +19.67% YTD. The International Equity Fund increased +1.30% in October and was up +27.57% YTD. The Small Cap Equity Fund increased +2.08% in October and was up +10.39% YTD. The Fixed Income Fund increased +0.71% in October and was up +6.79% YTD.
- Equity manager performance was mixed during the month, with U.S. large cap and small cap managers outperforming, while international and global managers underperformed.
- The UCF Balanced Fund returned +1.87% in October and was up +14.70% YTD. The Alternatives Balanced Fund increased +2.00% in October and was up +13.32% YTD. Finally, the Beyond Fossil Fuels Balanced Fund returned +1.74% in October and was up +15.99% YTD.