Quarterly Market Review
Q3 2023
MARKET REVIEW
SELECTED MARKET INDICIES
RETURNS (%)
Disclaimer: Non-depositinvestmentproductsarenotFDICinsuredandarenotguaranteedbythebankoranygovernmentagency.Non-depositinvestmentproductsaresubjecttoinvestmentriskandmaygodowninvalue.
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance doe s not reflect the expenses associated with the management of an actual portfolio. Market segment (index representation) as follows: Global Stocks (MSCI All Country World Index), US Stocks (Russell 3000 Index), Developed International Stocks (MSCI World ex USA Index), Emerging Markets Stock (MSCI Emerging Markets Index) and US Bond Market (Bloomberg US Aggregate Bond Index). All index returns are net of withholdin g tax on dividends. MSCI data © MSCI 2023, all rights reserved. Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Bloomberg data provided by Bloomberg
9.4 12.4 6.0 3.4 - 1.2 - 3.4 - 3.3 - 4.0 - 2.1 - 3.2 Global Stocks US Stocks Developed Intl Stocks Emerging Market Stocks US Bond Market Year To Date Q3 2023
Bloomberg US
MSCI All Country World IMI Index Russell 3000 Index MSCI World ex USA IMI Index MSCI Emerging Markets IMI Index
Aggregate Bond Index
1
MARKET REVIEW
US EQUITY MARKET
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance doe s not reflect the expenses associated with the management of an actual portfolio.
13.1 18.1 7.6 4.3 6.9 1.6 0.8 2.5 - 0.8 - 3.3 - 2.6 - 4.1 - 4.2 - 3.2 - 5.2 - 4.9 - 4.3 - 5.6 US Large Core US Large Growth US Large Value US Mid Core US Mid Growth US Mid Value US Small Core US Small Growth US Small Value Year To Date Q3 2023
RETURNS (%) S&P 500
S&P 500 Growth S&P 500 Value S&P 400 S&P 400 Growth S&P 400 Value S&P 600 S&P 600 Growth S&P 600 Value 2
MARKET REVIEW
DEVELOPED INTERNATIONAL EQUITY MARKET
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance doe s not reflect the expenses associated with the management of an actual portfolio.
6.0 3.7 8.4 5.0 7.3 4.9 - 4.0 - 7.9 0.0 - 3.5 - 5.0 - 2.4 International Core International Growth International Value International Small Europe Pacific Year To Date Q3 2023
RETURNS (%) MSCI World ex USA IMI
MSCI World ex USA Growth IMI MSCI World ex USA Value IMI MSCI World ex USA Small Cap MSCI Europe IMI MSCI Pacific IMI 3
MARKET REVIEW
EMERGING MARKET EQUITY
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance doe s not reflect the expenses associated with the management of an actual portfolio.
3.4 0.3 6.7 13.7 1.0 12.9 - 2.1 - 4.0 - 0.1 2.9 - 2.9 - 4.8 Emerging Markets Emerging Market Growth Emerging Market Value Emerging Market Small Asia Pacific Latin America Year To Date Q3 2023
RETURNS (%) MSCI Emerging Markets IMI
MSCI Emerging Markets Growth IMI MSCI Emerging Markets Value IMI MSCI Emerging Markets Small Cap MSCI Emerging Asia Pacific MSCI Latin America 4
MARKET REVIEW
COUNTRY RETURNS
THIRD QUARTER 2023 INDEX RETURNS
Past performance is no guarantee of future results. Country returns are the country component indices of the MSCI All Country World IMI Index for all countries except the United St ates, where the Russell 3000 Index is used instead. Global is the return of the MSCI All Country World IMI Index. MSCI index returns are net dividend. Indices are not available for direct investment. Their pe rformance does not reflect the expenses associated with the management of an actual portfolio. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. MSCI data © MSCI 2023, all rights reserved.
-20% -10% 0% 10% 20% 30% 40% 50% Turkey Egypt Norway UAE Malaysia India Israel Denmark Hungary Czech Republic Qatar Colombia Japan Belgium Singapore UK China Italy Indonesia Austria US Australia South Africa Spain Kuwait Philippines Thailand Canada Peru Saudi Arabia Brazil Korea Switzerland Taiwan Mexico Portugal Finland Sweden France Ireland New Zealand Germany Greece Chile Hong Kong Poland Netherlands Global
6 5
MARKET REVIEW
MSCI ALL COUNTRY WORLD INDEX WITH SELECTED HEADLINES FROM Q3 2023
“Dow Notches Longest Win Streak since 2017”
“US Wages Rise More than 4% While Consumer Prices Increase 3%”
“Turkey Agrees to Let Sweden In NATO”
“US New - Vehicle Sales Rise an Estimated 13% in First Half of the Year”
“Japan's Economy Grows at 6% Pace in Second Quarter”
“China Slips Into Deflation in Warning Sign for World Economy”
“Fitch Slashes US Credit Rating to AA+ from AAA”
“S&P 500 Extends Winning Streak with Fifth Month of Gains”
“US Factory Orders Plunge in July after Four Straight Gains”
“US Stock Market’s August Losses Snap Monthslong Winning Streak”
“Wagner Chief Who Plotted Coup Presumed Dead in Russia Plane Crash”
“US Mortgage Rates Hit 7.09%, Highest in More than 20 Years”
“Bank of England Holds Rates Steady for First Time in Nearly Two Years”
“Iran Releases Five Americans in Exchange for Frozen Funds”
“UAW Strikes at Plants Owned by GM, Ford, Stellantis”
“Oil Climbs 1.8% to End at a 10- Month High”
Theseheadlinesarenotoffered toexplainmarketreturns.Instead,theyserve asareminder thatinvestorsshouldviewdaily eventsfromalong-termperspective andavoidmaking investmentdecisionsbasedsolelyonthenews. Graph Source: MSCI ACWI Index (net dividends). MSCI data © MSCI 2023, all rights reserved. Index level based at 100 starting January 2000. It is not possible to invest directly in an index. Performance does not reflect the expenses associated with management of an actual portfolio. Past performance is not a guarantee of future results.
“ S&P 500 Suffers Biggest Monthly Loss This Year”
“Hollywood Studios and Writers Reach a Strike - Ending Deal”
Q3 2023 1 YEAR (Q4 2022 –Q3 2023)
280 300 320 340 Jun 30 Jul 31 Aug 31 Sep 30 Sep 30 220 260 300 340 380 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Last 3 months
7 6
MARKET REVIEW
MSCI ALL COUNTRY WORLD INDEX WITH SELECTED HEADLINES FROM THE PAST 12 MONTHS
2023)
“China Braces for Deadly Covid Wave after Loosening Controls”
“US Treasury Yield Curve Inverts to Deepest Level since 1981”
“Sunak Wins Vote to Become UK’s Next Prime Minister after Truss Resigns”
“OPEC+ Agrees to Biggest Oil Production Cut since Start of Pandemic”
“US PPI Report Shows Producer Prices Rose, Pointing to Persistent Inflation”
“CEOs Say They Expect a US Recession, but Most Think It Will Be Short”
“Dow Closes 700 Points Higher on Signs of Slowing Wage Growth”
“US Stocks Close Out Worst Year since 2008”
“S&P 500 Starts a New Bull Market as Big Tech Lifts Stocks”
“US Signals Support for Allies to Send Their F - 16 Jets to Ukraine”
“US Inflation Eased to 5% in March; Lowest Level in Nearly Two Years”
“Silicon Valley Bank Closed by Regulators; FDIC Takes Control”
“Wagner Chief Who Plotted Coup Presumed Dead in Russia Plane Crash”
“China Slips Into Deflation in Warning Sign for World Economy”
“US New - Vehicle Sales Rise an Estimated 13% in First Half of the Year”
“Fed Holds Rates Steady but Expects More Increases”
“S&P 500 Suffers Biggest Monthly Loss This Year”
“UAW Strikes at Plants Owned by GM, Ford, Stellantis”
Theseheadlinesarenotofferedtoexplainmarketreturns.Instead,theyserveasareminder thatinvestorsshouldviewdailyeventsfromalong-termperspective andavoidmakinginvestmentdecisions based solelyonthenews . Graph Source: MSCI ACWI Index (net dividends). MSCI data © MSCI 2023, all rights reserved. Index level based at 100 starting January 2000.
It is not possible to invest directly in an index. Performance does not reflect the expenses associated with management of an actual portfolio. Past performance is not a guarantee of future results.
0 100 200 300 400 2000 2003 2007 2011 2015 2019 2023 LONG TERM (2000– Q3 2023) Last 12 months
220 240 260 280 300 320 340 360 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 SHORT TERM (Q4 2022– Q3
Sep 30
7
MARKET REVIEW
REAL ESTATE INVESTENT TRUSTS (REITS) THIRD QUARTER 2023 INDEX RETURNS
US real estate investment trusts underperformed non-US REITs during the quarter.
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance doe s not reflect the expenses associated with the management of an actual portfolio. Number of REIT stocks and total value based on the two indices. All index returns are net of withholding tax on dividends. To tal value of REIT stocks represented by Dow Jones US Select REIT Index and the S&P Global ex US REIT Index. Dow Jones US Select REIT Index used as proxy for the US market, and S&P Global ex US REIT Index used as proxy for the World ex US market. Dow Jones and S&P data © 2023 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved.
-4.48 -7.4 0 Global ex US REITS US REITS 68%
$844
32% Global ex US $390 billion 285 REITs Total Value of REIT Stocks Ranked Returns (%) Period Returns (%) Annualized Asset Class QTR YTD 1 Year 3 Years 5 Years 10 Years Global ex US REITS -4.48 -8.16 2.30 -2.67 -3.22 0.41 US REITS -7.40 -2.05 2.61 6.12 1.56 5.28
US
billion 107 REITs
9
8
MARKET REVIEW
FIXED INCOME
CHANGE IN US YIELD CURVE (%)
Source: US Department of the Treasury. Information presented is as of end of quarter. Past performance is not a guarantee of future results. Indices are not available for direct investment.
5.55 5.60 5.55 5.61 5.53 5.46 5.03 4.80 4.60 4.61 4.59 4.92 4.73 1 Mo 2 Mo 3 Mo 4 Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 7 Yr 10 Yr 20 Yr 30 Yr
US
CURVE (%) 0.0 2.0 4.0 6.0 1mo 3mo 6mo 1 Yr 5 Yr 10Yr 30Y Yield (%) Years to Maturity 1/3/2023 9/29/2023
YIELD
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 1990 1995 2000 2005 2010 2015 2020 Yield (%) Years 10 YEAR US YIELD CURVE OVER TIME (%) 9
MARKET REVIEW
Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance doe s not reflect the expenses associated with the management of an actual portfolio.
- 0.3 0.3 1.4 5.9 - 0.7 - 1.9 - 0.8 - 1.0 0.5 - 2.6 Marketwide Treasuries Investment Grade Credit High Yield Credit Investment Grade Municipals Year To Date Q3 2023
RETURNS (%) S&P Intermediate Term National AMT Free Municipal Index
FIXED INCOME Bloomberg US Aggregate Intermediate Bond Index Bloomberg US Corporate Bond Intermediate Index Bloomberg US High Yield Bond Intermediate Index Bloomberg US Treasury Bond Intermediate Index 10