Hello and welcome to November!
- All equity indexes shown had positive returns for October with large cap growth (+8.7%) leading the way. Not to be a wet blanket, but we think it's important to remember (and remind clients) that a return of +8.7% is closer to the average annual equity return, not the average monthly return.
- US REITs (+8.2%) and the S&P 500 (+7.0%) were the next highest monthly returns.
- Non-US equities generally trailed their US counterparts with emerging markets (+1.0%) generating the lowest monthly equity return. Emerging markets is the only equity benchmark with a negative return YTD (-0.3%).
In fixed income:
- The yield curve saw a narrowing between the short and long end of the curve. Specifically, yields on the 2, 3, and 5 Yr Treasury rose 20, 22 and 20 bps while the 20 and 30 Yr Treasuries saw their yields decline by 4 and 15 bps respectively.
- Similarly, 10+ Yr Treasuries ( +1.7%) and Corporates (+1.5%) were two of the three fixed income indexes with positive returns in October.
- The other was ST TIPS (+0.7%) which continues to benefit from increased inflation concerns. The index is now up +5.0% YTD, leading all fixed income indexes.
- 5-10 Yr Treasuries were the hardest hit for the month, declining -0.6%.
- The majority of fixed income indexes are negative on a YTD basis through October.
Should you have any questions please send an email to 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.