Prepared by Brandon Yee and Thomas Connelly
Commentary
Developed Markets Flat in June– In the month of June, international developed markets were flat. Europe ex UK and the UK market dropped by 0.77% and 1.94%, respectively. The Japanese equity market edged up 1.06%, building upon its strong one year performance.
Commentary
Mexico Records a Strong Month – Emerging markets recorded a gain of 0.49% for the month. Mexico and China had the largest gains of 5.88% and 2.30%, respectively. The Brazilian and Russian equity markets were again the biggest drags, recording losses of 1.70% and 3.79%, respectively.
Commentary
Telecommunications and Utilities Edge Lower– Financials and healthcare posted the strongest global sector returns of 4.63% and 2.73%, respectively. The telecommunications and utility sectors recorded losses of 2.54% and 2.40%.
Commentary
Value Outperforms Growth in June – In June, domestic value indices outperformed their growth counterparts. Over the past year, small-cap value has outperformed small-cap growth, but large-cap value has lagged large-cap growth.
Commentary
Growth Companies Lag in International Markets– In the international developed markets, value indices outperformed growth indices for the month. Momentum recorded a monthly return of 0.81%.
Commentary
Money Market Yields Remain Low– Money market funds continue to have very low yields, performing in line with the 3 month T-Bill Index. The CPI fell by 0.13%.
Commentary
Catastrophe Bonds Edge Higher – The returns of deflationary hedges were mostly negative for the month. Catastrophe bonds and long-term government bonds recorded the strongest returns of 0.44% and 0.38%, respectively. Municipal bonds and mortgage-backed securities dropped the most in June.
Commentary
Oil Declines Sharply– Inflation-sensitive investment returns were mostly lower in June. U.S. real estate was up 2.45%. Oil and international real estate dropped by 5.11% and 2.3%, respectively. Gold was down 1.89%.
Commentary
The Euro Climbs Back Versus USD– The Euro and Shekel appreciated the most versus the U.S. dollar over the past three months. The Japanese Yen depreciated by 1.91% versus the USD over the same time period.
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