MARKETS

• Global equity markets posted mixed returns in January exhibiting continued strength in U.S. large-cap stocks but weaker performance in developed and emerging markets. The global equity index (MSCI ACWI IMI) increased by +0.59% in January and YTD. The S&P 500, which tracks large-cap U.S. stocks, increased by +1.68% in January and YTD. The Russell 2000 Index, which tracks domestic small-cap stocks decreased by -3.89% in January and YTD. The International developed equity index (MSCI EAFE) increased by +0.58% in January and YTD. The emerging markets index (MSCI EM) decreased by -4.64% in January and YTD.
• In January, bond yields increased across maturities; the 30-year U.S. Treasury bond yield increased by +19 bps to +4.22%, the 10-year yield increased by +11 bps to +3.99%, and the 2-year yield increased by +4 bps to +4.27%.
• The Barclays U.S. Aggregate Index, which is a measure of U.S. Bond prices, decreased by -0.27% in January and YTD.

ECONOMIC AND GEOPOLITICAL HEADLINES

• U.S. gross domestic product (GDP) in the fourth quarter of 2023 increased by 3.3%, according to the “Advanced” estimate released by the Bureau of Economic Analysis. In the third quarter of 2023, GDP increased by 4.9%.
  
• The January Services PMI (formerly Non-Manufacturing Purchasing Managers Index) increased to 53.40% from 50.60% in December. This represents expansion and is higher than market expectations of 52.00%. The January Manufacturing PMI increased to 49.10% from December’s 47.40%. Per the Institute for Supply Management (ISM), a reading above 50 is considered economic expansion, and below 50 is considered economic contraction.
  
• January non-farm employment increased by 353,000 jobs, and the unemployment rate remained unchanged at 3.7%, as reported by the Bureau of Labor Statistics on February 2nd, 2024. In January employment increased in professional and business services, health care, retail trade, and social assistance. Average Hourly Earnings (wages) increased by 4.5% year-over-year in January.

PERFORMANCE UPDATES

• The Equity Fund increased by +0.46% in January and YTD. The Bond Fund decreased by -0.21% in January and YTD. The Stable Value Fund was up +0.22% for January and YTD. The Northern Trust Global Sustainability Index Fund (GSIF) increased by +1.45% in January and YTD.
  
• The Balanced Fund increased by +0.19% in January and YTD. The Target Annuitization Date TAD 2025; TAD 2030; TAD 2035; TAD 2040 TAD 2045 and TAD 2050 returns were +0.19%, +0.21%, -0.15%, +0.11%, +0.18% and +0.22% respectively for January and YTD.