MORE HEADLINES
Economic Update
Can the U.S. economy reach "escape velocity"?
Domestic Equity
Investors favored the higher risk and lower quality areas of the market.
International Equity
Emerging markets provided the strongest returns year-to-date.
Fixed Income
Fixed income markets showed stark differences in performance between credit ratings.
Real Estate Securities
REITs outperformed the broad equity market during the second quarter.
Hedge Funds
All major hedge fund sub-strategies garnered positive returns.
MARKET REVIEW
The global equity market rally that began in March continued into the summer, with the MSCI World Index returning over 20% in the second quarter. Not only did all of the major global stock indexes post double-digit gains, but other “risky” investments, such as real estate investment trusts, high yield bonds, and bank loans, also realized double-digit returns during the quarter. By comparison, the Barclays Capital Treasury Index lost 3% over the last three months. Essentially the strategies that performed poorly in 2008 and the first two months of this year rallied, while Treasuries, one of the few areas to perform well in 2008, declined.
