MARKETS
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International markets continued to outperform U.S. equity markets and small cap continued to outperform large cap stocks during the month. The global equity index (MSCI ACWI IMI) increased by +1.29% in February and is up +4.29% YTD. The S&P 500, which tracks large cap U.S. stocks, decreased by -0.76% in February and is up +0.68% YTD. The Russell 2000 Index, which tracks domestic small cap stocks increased by +0.80% in February and is up +6.20% YTD. The International developed equity index (MSCI EAFE) increased by +4.63% in February and is up +10.09% YTD. The emerging markets index (MSCI EM) increased by +5.50% in February and is up +14.83% YTD.
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In February, bond yields decreased across maturities; the 30-year U.S. Treasury bond yield decreased by 23 bps to 4.64%, the 10-year yield decreased by 29 bps to 3.97%, and the 2-year yield decreased by 14 bps to 3.38%.
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The Barclays U.S. Aggregate Index, which is a measure of U.S. Bond prices, increased by +1.64% in February and is up +1.75% YTD. Bond yields and prices have an inverse relationship.
ECONOMIC AND GEOPOLITICAL HEADLINES
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According to the advance estimate released by the Bureau of Economic Analysis, U.S. gross domestic product (GDP) increased in the fourth quarter of 2025 by 1.4%, down from the third quarter increase of +4.4%.
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The February Services PMI (formerly Non-Manufacturing Purchasing Managers Index) was 56.10%, up +2.3% from January. The February Manufacturing PMI decreased slightly to 52.40% from 52.60% in January.
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February non-farm employment decreased by 92,000 jobs, and the unemployment rate increased to 4.4%, as reported by the Bureau of Labor Statistics on March 6th, 2026. In February employment decreased in health care, information and federal government. Average Hourly Earnings (wages) increased by 3.8% year-over-year in February.
PERFORMANCE UPDATES
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The Equity Fund increased by +1.55% in February and is up +5.01% YTD. The Bond Fund increased by +1.65% in February and is up +1.69% YTD. The Stable Value Fund was up +0.36% for February and is up +0.45% YTD. The Northern Trust World Selection Index Fund decreased by -0.05% in February and is up +2.05% YTD.
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The Sustainable Balanced Fund increased by +1.06% in February and is up +2.84% YTD. The Target Annuitization Date TAD 2025; TAD 2030; TAD 2035; TAD 2040; TAD 2045; TAD 2050; TAD 2055; TAD 2060; and TAD 2065 returns were +0.80%, +1.29%, +1.54%, +1.60%, +1.66%, +1.55%, +1.45%, +1.46%, and +1.45% respectively for February and is up +1.58%, +2.70%, +3.48%, +3.86%, +4.19%, +4.32%, +4.40%, +4.41%, and +4.36% respectively YTD.