Prepared by Brandon Yee and Thomas Connelly


Developed Markets

Japanese Equity Market Records a Strong Month– In the month of May, international developed markets posted a gain of 3.33%. Europe ex UK and the UK recorded the highest returns of 4.94% and 4.62%, respectively. The Japanese equity market also posted a strong return of 3.01%.


Emerging Markets

Mixed Results in Emerging Markets – Emerging markets moved up by 1.55% for the month. South Korea and China had the largest gains of 8.07% and 5.28%, respectively. The Brazilian and Russian equity markets were the biggest drags, recording losses of 5.01% and 6.29%, respectively.


Global Sector

Utilities and IT have a Solid Month– Utilities and information technology posted the strongest global sector returns of 5.83% and 4.73%, respectively. The energy and financial sectors recorded losses of 1.47% and 0.33%.


Domestic Equity Factors

Growth Outperforms Value in May – In May, domestic growth indices outperformed their value counterparts. Over the past year, small-cap value has outperformed small-cap growth, but large-cap value has lagged large-cap growth.


Foreign Equity Factors

Momentum Posts Strong Return– In the international developed markets, growth indices outperformed value indices. Momentum recorded a strong monthly return of 3.77%.


Liquidity Providers

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 has increased by 2.2% over the past year.


Disinflationary / Deflationary Hedges

Duration Risk Pays Off in May – The returns of deflationary hedges were positive for the month. Long-term municipals and long-term government bonds recorded strong returns of 2.25% and 1.95%, respectively. The SwissRe Global Cat Bond index posted a gain of 0.30%.


Inflation-Sensitive Investments

Gold Returns Flat– Inflation-sensitive investment returns were mostly lower in May. International real estate and infrastructure recorded gains of 1.93% and 4.27%, respectively. Energy-related investments had the toughest month.


World Currencies

The Mexican Peso Climbs Back Versus USD– The Mexican Peso and Euro appreciated the most versus the U.S. dollar over the past three months. The Canadian Dollar and Australian Dollar depreciated by 0.98% and 2.22%, respectively, versus the USD over the same time period.


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