MARKETS
- Global markets were solid in August led by U.S. Small Cap and International Developed. The global equity index (MSCI ACWI IMI) was positive at +2.47% in August and is up +14.30% YTD. The S&P 500, which tracks large cap U.S. stocks, increased by +2.03% in August and is up +10.79% YTD. The Russell 2000 Index, which tracks domestic small cap stocks increased by +7.14% in August and is up +7.06% YTD. The International developed equity index (MSCI EAFE) increased by +4.26% in August and is up +22.79% YTD. The emerging markets index (MSCI EM) increased by +1.28% in August and is up +19.02% YTD.
- In August, bond yields were mixed across maturities; the 30-year U.S. Treasury bond yield increased by 3 bps to 4.92%, the 10-year yield decreased by 14 bps to 4.23%, and the 2-year yield decreased by 35 bps to 3.59%.
- The Barclays U.S. Aggregate Index, which is a measure of U.S. Bond prices, increased by +1.20% in August and is up +4.99% YTD.
ECONOMIC AND GEOPOLITICAL HEADLINES
- U.S. gross domestic product (GDP) in the second quarter of 2025 increased by 3.3%, according to the “2nd” estimate released by the Bureau of Economic Analysis. In the first quarter of 2025 GDP decreased by -0.5%.
- The August Services PMI (formerly Non-Manufacturing Purchasing Managers Index) increased to 52.00% from 50.10% in July. This represents expansion. The August Manufacturing PMI increased to 48.70% from 48.00% in July.
- August non-farm employment increased by 22,000 jobs, and the unemployment rate was 4.3%, as reported by the Bureau of Labor Statistics on September 5th, 2025. In August employment increased health care, while the Federal government lost jobs. Average Hourly Earnings (wages) increased by 3.7% year-over-year in August.
PERFORMANCE UPDATES
- The Equity Fund increased by +2.19% in August and is up +10.62% YTD. The Bond Fund increased by +1.14% in August and is up +4.51% YTD. The Stable Value Fund was up +0.18% for August and is up +1.59% YTD. The Northern Trust World Selection Index Fund increased by +2.20% in August and is up +12.03% YTD.
- The Balanced Fund increased by +1.77% in August and is up +8.85% YTD. The Target Annuitization Date TAD 2025; TAD 2030; TAD 2035; TAD 2040 TAD 2045 and TAD 2050 returns were +0.77%, +1.35%, +1.69%, +1.80%, +1.88% and +1.96% respectively for August and +4.05%, +6.52%, +7.90%, +8.47%, +8.94% and +9.40% YTD.
