MARKETS
- Global markets were solid in September led by emerging markets and followed by the U.S. The global equity index (MSCI ACWI IMI) was positive at +3.62% in September and is up +18.44% YTD. The S&P 500, which tracks large cap U.S. stocks, increased by +3.65% in September and is up +14.83% YTD. The Russell 2000 Index, which tracks domestic small cap stocks increased by +3.11% in September and is up +10.39% YTD. The International developed equity index (MSCI EAFE) increased by +1.91% in September and is up +25.14% YTD. The emerging markets index (MSCI EM) increased by +7.15% in September and is up +27.53% YTD.
- In September, bond yields were mixed across maturities; the 30-year U.S. Treasury bond yield decreased by 19 bps to 4.73%, the 10-year yield decreased by 7 bps to 4.16%, and the 2-year yield increased by 1 bps to 3.60%.
- The Barclays U.S. Aggregate Index, which is a measure of U.S. Bond prices, increased by +1.09% in September and is up +6.13% YTD.
ECONOMIC AND GEOPOLITICAL HEADLINES
- U.S. gross domestic product (GDP) in the second quarter of 2025 increased by 3.8%, according to the “3rd” estimate released by the Bureau of Economic Analysis. In the first quarter of 2025 GDP decreased by -0.6%.
- The September Services PMI (formerly Non-Manufacturing Purchasing Managers Index) dropped to 50.00% from 52.00% in August. The September Manufacturing PMI increased to 49.10% from 48.70% in August.
- September non-farm employment was not reported on October 3, 2025 due to the government shutdown. The Dow Jones estimate is for 51,000 jobs with the unemployment rate holding steady at 4.3%.
PERFORMANCE UPDATES
- The Equity Fund increased by +2.93% in September and is up +13.87% YTD. The Bond Fund increased by +0.82% in September and is up +5.37% YTD. The Stable Value Fund was up +0.22% for September and is up +1.81% YTD. The Northern Trust World Selection Index Fund increased by +3.60% in September and is up +16.06% YTD.
- The Balanced Fund increased by +2.70% in September and is up +11.79% YTD. The Target Annuitization Date TAD 2025; TAD 2030; TAD 2035; TAD 2040 TAD 2045 and TAD 2050 returns were +0.89%, +1.51%, +1.95%, +2.16%, +2.32% and +2.48% respectively for September and +4.97%, +8.13%, +10.00%, +10.81%, +11.47% and +12.11% YTD.
