After a challenging first quarter, both domestic and international equity markets rebounded strongly in the second quarter of 2026. The equity markets, as represented by the S&P 500 and All Country World Index (ACWI), provided strong positive returns of +15.2% and +14.9% respectively for the quarter ending June 30. Interest rates remained roughly in a trading range of 4.3% to 4.7% as measured by the 10-Year Treasury. For the second quarter of 2026, the S&P Developed BMI returned +14.9% and the ICE BofA US Corporate, Government, and Mortgage Index returned +.55%, while the Bloomberg US Aggregate Index returned +.67%. 

Within the equity segment of the Montag & Caldwell Global Tactical Model (GTAM), the small-mid holding and US Large Cap Growth were strong and outperformed the ACWI benchmark while Large Cap Value performed roughly in line. Our emerging market exposure, represented by India, continued to struggle and we elected to eliminate this holding within the equity portfolio. Given the continued strength in the U.S. economy, lower oil prices, potentially lower inflation and current yield curve structure we believe the outlook is strong. During the quarter, in the bond segment of the portfolio, there were no changes made as we are comfortable with the current positioning in this environment.

Interest rates, as measured by the 10-Year Treasury, started the quarter at 4.32% and following modest volatility in the quarter ended at 4.48% at quarter end. The Federal Reserve appears to be on hold for further rate cuts at the moment as it monitors energy prices and inflation. A new Chairman, Kevin Warsh, also adds a bit of uncertainty until he settles in.

The S&P 500 Index is an unmanaged index commonly used as benchmark to measure U.S. stock market performance and characteristics.

The S&P Developed BMI (Broad Market Index) is an unmanaged index considered a comprehensive view of the global equity investment opportunity set across a number of developed countries, capturing stocks across the market cap spectrum (large, mid and small). The Index is a subset of t

The Ice BofA US Corporate, Government & Mortgage Index is an unmanaged index that is used as a benchmark to measure fixed income performance and characteristics.

The Bloomberg US Aggregate Bond Index (often called "the Agg") is a flagship, market-capitalization-weighted benchmark that measures the performance of the U.S. investment-grade, fixed-rate, taxable bond market.