MARKETS

• Global equity markets posted positive returns in February led by the U.S. as the economic data continued to show resilience. The global equity index (MSCI ACWI IMI) increased by +4.29% in February and is up +4.90% YTD. The S&P 500, which tracks large-cap U.S. stocks, increased by +5.34% in February and is up +7.11% YTD. The Russell 2000 Index, which tracks domestic small-cap stocks increased by +5.65% in February and is up +1.54% YTD. The International developed equity index (MSCI EAFE) increased by +1.83% in February and is up +2.42% YTD. The emerging markets index (MSCI EM) increased by +4.76% in February and is down -0.11% YTD.
• In February, bond yields increased across maturities; the 30-year U.S. Treasury bond yield increased by +16 bps to +4.38%, the 10-year yield increased by +26 bps to +4.25%, and the 2-year yield increased by +37 bps to +4.64%.
• The Barclays U.S. Aggregate Index, which is a measure of U.S. Bond prices, decreased by -1.41% in February and is down -1.68% YTD.

ECONOMIC AND GEOPOLITICAL HEADLINES

• U.S. gross domestic product (GDP) in the fourth quarter of 2023 increased by 3.2%, according to the “Second” estimate released by the Bureau of Economic Analysis. In the third quarter of 2023 GDP increased by 4.9%.
  
• The February Services PMI (formerly Non-Manufacturing Purchasing Managers Index) decreased to 52.60% from 53.40% in January. This represents expansion and is lower than market expectations of 53.00%. The February Manufacturing PMI decreased to 47.80% from January’s 49.10%. Per the Institute for Supply Management (ISM), a reading above 50 is considered economic expansion and below 50 is considered economic contraction.
  
• February non-farm employment increased by 275,000 jobs, and the unemployment rate increased to 3.9%, as reported by the Bureau of Labor Statistics on March 8th, 2024. In February employment increased in health care, government, in food services and drinking places, social assistance, and in transportation and warehousing. Average Hourly Earnings (wages) increased by 4.3% year-over-year in February.

PERFORMANCE UPDATES

• The Equity Fund increased by +4.19% in February and is up 4.67% YTD. The Bond Fund decreased by -1.29% in February and is down -1.49% YTD. The Stable Value Fund was up +0.11% for February and is up 0.34% YTD. The Northern Trust Global Sustainability Index Fund (GSIF) increased by +4.44% in February and is up 5.95% YTD.
  
• The Balanced Fund increased by +1.38% in February and is up 1.57% YTD. The Target Annuitization Date TAD 2025; TAD 2030; TAD 2035; TAD 2040 TAD 2045 and TAD 2050 returns were +0.73%, +1.27%, 1.79%, 2.34%, 2.78% and 3.16% respectively for February and up +0.92%, +1.48%, +1.64%, +2.45%, +2.97%, and +3.38% YTD.