Summary

• Sentiment shifted as the Iran war escalated throughout March – biasing investor expectations toward weaker growth, higher inflation, and more hawkish central bank responses.
• Brent crude oil prices surged above $100 per barrel, leaving the energy sector as the standout winner in the equity space.
• Both non-U.S. developed and emerging market equities finished with small quarterly losses after surrendering earlier double-digit gains – though still finishing ahead of the mid-single-digit loss for U.S. equities.
• The Northern Funds International Equity Fund's overweight to inexpensive stocks and underweight to richly valued names contributed positively to performance.
• From a sector perspective, stock selection added most meaningfully within Industrials and Energy, though gains were partially offset by weaker selection in Materials and Information Technology.

Economic momentum entering the quarter was reasonably constructive, but sentiment shifted as the Iran war escalated throughout March – biasing investor expectations toward weaker growth, higher inflation, and more hawkish central bank responses. The effective closure of the Strait of