MARKETS
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Global markets turned negative in the month as the U.S. and Israel launched a war against Iran. The global equity index (MSCI ACWI IMI) decreased by -7.24% in March and is down -2.65% YTD. The S&P 500, which tracks large cap U.S. stocks, decreased by -4.98% in March and is down -4.33% YTD. The Russell 2000 Index, which tracks domestic small cap stocks decreased by -5.00% in March and is up +0.89% YTD. The International developed equity index (MSCI EAFE) decreased by -10.29% in March and is down -1.24% YTD. The emerging markets index (MSCI EM) decreased by -13.06% in March and is down -0.17% YTD.
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In March, bond yields increased across maturities; the 30-year U.S. Treasury bond yield increased by 24 bps to 4.88%, the 10-year yield increased by 33 bps to 4.30%, and the 2-year yield increased by 41 bps to 3.79%. The Bloomberg U.S. Aggregate Index, which is a measure of U.S. Bond prices, decreased by -1.76% in March and is down -0.05% 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 +0.7%, down from the third quarter increase of +4.4%.
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The March Services PMI was 54.00%, down -2.10% from February. The March Manufacturing PMI increased to 52.70% from 52.40% in February. Per the Institute for Supply Management (ISM), a reading above 50 is considered economic expansion and below 50 is considered economic contraction.
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March non-farm employment increased by 178,000 jobs, and the unemployment rate decreased to 4.3%, as reported by the Bureau of Labor Statistics on April 3rd, 2026. In March employment increased in health care, construction, and in transportation and warehousing. Average Hourly Earnings (wages) increased by 3.5% year-over-year in March.
PERFORMANCE UPDATES
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The Equity Fund decreased by -6.36% in March and is down -1.66% YTD. The Bond Fund decreased by -2.21% in March and is down -0.56% YTD. The Stable Value Fund was up +0.25% for March and is up +0.71% YTD. The Northern Trust World Selection Index Fund decreased by -6.50% in March and is down -4.58% YTD.
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The Sustainable Balanced Fund decreased by -4.88% in March and is down -2.17% 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 -1.58%, -3.12%, -4.29%, -4.78%, -5.11%, -5.42%, -5.73%, -5.73%, and -5.71% respectively for March and is down -0.02%, -0.50%, -0.96%, -1.11%, -1.13%, -1.33%, -1.58%, -1.57%, and -1.60% respectively YTD.
Note: Fund performance values are estimates.