Second Quarter 2021

Q2

Quarterly Market Review

Second Quarter 2021

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Quarterly Market Review

Second Quarter 2021

This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets.

The report also illustrates the impact of globally diversified portfolios and features a quarterly topic.

Overview:

Market Summary World Stock Market Performance World Asset Classes US Stocks International Developed Stocks Emerging Markets Stocks Select Market Performance Select Currency Performance vs. US Dollar Real Estate Investment Trusts (REITs) Commodities Fixed Income Global Fixed Income Impact of Diversification Inflation: An Exchange Between Eugene Fama and David Booth

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Quarterly Market Summary

Index Returns

2Q 2021

US Stock Market

8.24%

International Developed Stocks

Emerging Markets Stocks

STOCKS

5.65%

5.05%

Global Real Estate

10.17%

US Bond Market

Global Bond Market ex US

BONDS

1.83%

0.35%

Since Jan. 2001

Avg. Quarterly Return

Best Quarter

Worst Quarter

2.4%

22.0% 2020 Q2 -22.8% 2008 Q4

1.7%

25.9% 2009 Q2 -23.3% 2020 Q1

3.1%

34.7% 2009 Q2 -27.6% 2008 Q4

2.6%

32.3% 2009 Q3 -36.1% 2008 Q4

1.2%

4.6% 2001 Q3

-3.4% 2021 Q1

1.1%

4.6% 2008 Q4

-2.7% 2015 Q2

Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio.

Market segment (index representation) as follows: US Stock Market (Russell 3000 Index), International Developed Stocks (MSCI World ex USA Index [net div.]), Emerging Markets (MSCI Emerging Markets Index [net div.]),

Global Real Estate (S&P Global REIT Index [net div.]), US Bond Market (Bloomberg Barclays US Aggregate Bond Index), and Global Bond Market ex US (Bloomberg Barclays Global Aggregate ex-USD Bond Index [hedged to

USD]). S&P data ? 2021 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell

Indexes. MSCI data ? MSCI 2021, all rights reserved. Bloomberg Barclays data provided by Bloomberg.

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Long-Term Market Summary

Annualized Index Returns as of June 30, 2021

1 Year

US Stock Market

44.16%

International Developed Stocks

Emerging Markets Stocks

STOCKS

33.60%

40.90%

Global Real Estate

34.83%

US Bond Market

Global Bond Market ex US

BONDS

-0.33%

0.05%

5 Years

17.89%

10.36%

13.03%

4.62%

3.03%

2.80%

10 Years

14.70%

5.70%

4.28%

6.85%

3.39%

4.12%

Past performance is not a guarantee of future results. Indices are not available for direct investment. Index performance does not reflect the expenses associated with the management of an actual portfolio.

Market segment (index representation) as follows: US Stock Market (Russell 3000 Index), International Developed Stocks (MSCI World ex USA Index [net div.]), Emerging Markets (MSCI Emerging Markets Index [net div.]),

Global Real Estate (S&P Global REIT Index [net div.]), US Bond Market (Bloomberg Barclays US Aggregate Bond Index), and Global Bond Market ex US (Bloomberg Barclays Global Aggregate ex-USD Bond Index [hedged to

USD]). S&P data ? 2021 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell

Indexes. MSCI data ? MSCI 2021, all rights reserved. Bloomberg Barclays data provided by Bloomberg.

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World Stock Market Performance

MSCI All Country World Index with selected headlines from Q2 2021

400

350

300

250

200 Mar 31

Apr 30

May 31

Jun 30

"China Creates its Own Digital Currency, a First

"US Pipeline Cyberattack Forces Closure"

"Oil Price Hits Two-Year High as OPEC Sees More Demand"

"US Inflation Is Highest in 13 Years as Prices Surge 5%"

"US Existing-Home Prices Hit Record High in May"

for Major Economy"

"Nasdaq Composite

"Bitcoin Falls as Much as

"Supreme Court

Sets First Record

30% as Investors Sour

Leaves Affordable

"US Added 916,000 Jobs in March as Hiring Accelerated"

"US Puts Fresh Sanctions on Russia Over Hacking, Election Interference"

Since February"

on Cryptocurrencies"

"CDC: Fully Vaccinated People Can Stop Wearing Face Masks, End

"Japan's Economy Shrank an Annualized 3.9% in 1st Quarter"

Care Act Intact"

"Stock Markets Cruise to Records in

"Corporate Bond Gauge

Physical Distancing in Most Settings"

First Half"

Signals Dwindling

"G-7 Nations Agree on

"Fed Pencils In

Economic Risk"

New Rules for Taxing

Earlier Interest-

Global Companies"

Rate Increase"

These headlines are not offered to explain market returns. Instead, they serve as a reminder that investors should view daily events from a long-term perspective and avoid making investment decisions based solely on the news.

Graph Source: MSCI ACWI Index [net div.]. MSCI data ? MSCI 2021, all rights reserved.

It is not possible to invest directly in an index. Performance does not reflect the expenses associated with management of an actual portfolio. Past performance is not a guarantee of future results.

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