MARKETS:
- Global markets were solid in September, led by emerging markets and followed by the U.S. The global equity index (MSCI ACWI IMI) was positive at +3.62% in September and was up +18.44% The S&P 500, which tracks large cap U.S. stocks, increased +3.65% in September and was up +14.83% YTD. The Russell 2000 Index, which tracks domestic small cap stocks, increased +3.11% in September and was up +10.39% YTD. The international developed equity index (MSCI EAFE) increased +1.91% in September and was up +25.14% YTD. The emerging markets index (MSCI EM) increased +7.15% in September and was up +27.53% YTD.
- In September, bond yields were mixed across maturities. The 30-year U.S. Treasury bond yield decreased –19 bps to 4.73%, the 10-year yield decreased –7 bps to 4.16%, and the 2-year yield increased +1 bps to 3.60%.
- The Barclays U.S. Aggregate Index, which is a measure of U.S. bond prices, increased +1.09% in September and was up +6.13%
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%.
- The September Services PMI dropped to 50.00% from 52.00% in August. The September Manufacturing PMI increased to 49.10% from 48.70% in August.
- September non-farm employment was not reported on October 3 due to the government shutdown. The Dow Jones estimate is for 51,000 jobs, with the unemployment rate holding steady at 4.3%.
PERFORMANCE UPDATES
- The Total Equity Fund increased +3.29% in September and was up +17.25% YTD. The International Equity Fund increased +3.53% in September and was up +25.94% YTD. The Small Cap Equity Fund increased +1.99% in September and was up +8.14% YTD. The Fixed Income Fund increased +0.96% in September and was up +6.04% YTD.
- Equity managers’ performance was mixed during the month, with BlackRock, Baillie Gifford and LSV outperforming, while other managers underperformed.
- The UCF Balanced Fund returned +2.36% in September and was up +12.59% YTD. The Alternatives Balanced Fund increased +2.14% in September and was up +11.10% YTD. Finally, the Beyond Fossil Fuels Balanced Fund returned +2.29% in September and was up +14.01% YTD.