We are pleased to share our fourth quarter market review. The fourth quarter of 2025 delivered positive returns across most global markets, closing out a strong year for investors. International developed markets led the way this quarter, gaining just over 5 percent, followed by emerging markets up nearly 5 percent and U.S. stocks rising about 2 percent.
Market leadership shifted again during the quarter, highlighting the benefits of staying diversified as performance rotated across different parts of the market. Despite ongoing headlines around inflation, monetary policy, and government funding, global equity markets remained resilient and finished the year near record levels.
Real estate and fixed income produced mixed but supportive results. International REITs posted modest gains, while U.S. REITs declined slightly. Bonds contributed positively overall, with short- and intermediate-term fixed income generating solid returns as short-term interest rates declined and longer-term rates moved modestly higher.
As shown on page 4 of the report, long-term returns across major asset classes remain healthy. While short-term market leadership can change quickly, the data continues to reinforce the importance of a disciplined and diversified investment approach.
