We’re pleased to share our third quarter market review. The third quarter of 2025 delivered broad-based gains across global markets. Emerging markets led the way with a strong return of over 10 percent, followed by U.S. stocks up just over 8 percent and international developed markets gaining about 5 percent. This quarter underscored the value of diversification, as leadership rotated once again, this time favoring smaller companies and growth-oriented stocks, particularly in the U.S. and emerging markets.
Real estate also posted positive results, with U.S. REITs outperforming their international counterparts. Bonds contributed modestly to returns, as interest rates generally declined in the U.S. and remained mixed abroad. Short- and intermediate-term U.S. Treasury, corporate, and municipal bonds all generated positive total returns.
As shown on page 4 of the report, long-term returns across most major asset classes remain healthy. Despite short-term fluctuations, the data continues to reinforce the importance of a disciplined, globally diversified investment approach.
