After more than a year of relatively low to moderate volatility in the stock markets, we saw a sharp increase in volatility beginning in February. Inflation concerns tied to wage growth and a spike in the 10-year U.S. Treasury yield contributed to the significant moves in the markets. While these swings can be unsettling on a daily basis, the Diversified/Endowment Investment Funds were slightly positive for the quarter – up 0.2%. U.S. stocks in the S&P 500 Index were down (0.8%) and international stocks in the MSCI EAFE Index were off (2.2%). Out-performance can be attributed to both U.S. and International manager/stock selections and an allocation to emerging markets.

Three of the four broad asset allocation strategies of the Diversified/Endowment Investment Funds were positive for the quarter and all strategies are positive over the trailing 12 months:

Quarter Ended March 31, 2018

• U.S. Equities +0.4%     /   International Equities +0.6%
• Fixed Income (0.6%)    /   Inflation Protection Strategies +0.4%

Year ended March 31, 2018

• U.S. Equities +14.2%     /   International Equities +20.9%
• Fixed Income +3.8%    /   Inflation Protection Strategies +3.4%

Benchmark performance comparisons will be available later this month once the Lipper Median returns are released.

Notes: Historical returns are time-weighted and net of all fees.   Returns greater than one year are annualized. Past performance is no guarantee of future returns.