I hope everyone had a Happy Halloween. Fortunately, while most fixed income indexes were still down in October, equity indexes were less spooky (and mostly positive).
- The MSCI ACWI World gained 6.0% for the month, though YTD returns are still in bear market territory (-21.1%)
- US indexes led the way as small cap value jumped 12.6%
- MSCI EAFE (5.4%) and EAFE Small Cap (4.2%) were positive but Emerging Markets (-3.1%) and Frontier Markets (-4.3%) were negative for the month.
- All equity indexes shown are negative YTD and for the last 12 months.
In fixed income:
- It continues to be a duration story as rates rose across the entire Treasury curve over the month. However, rates did fall at month end from their highs earlier in the month for the 3 Yr Treasury and longer. For example, the 10 Yr Treasury ended the month at 4.10% after hitting 4.25% just a week earlier.
- For the month, only the 3 month Tbill (0.2%), Bloomberg Global Agg ex-US (hedged USD) (0.5%), ST TIPS (1.0%), and HY(2.6%) generated positive returns.
- Munis continued to outperform their Treasury and Corporate counterparts.
As always, please let us know if you have any questions by firstname.lastname@example.org.
As an additional note, please keep in mind that these reflect historical performance of the current models, not necessarily how accounts were invested in the past.