Summary

• The first quarter was defined less by realized macroeconomic outcomes than by a reassessment of risks.
• Despite a strong start, a challenging March led to weak 1Q financial market returns.
• Global equities declined 3%, while fixed income returns were slightly negative with headwinds from both rates and credit spreads.
• The municipal bond market had a strong start to the year due to lower supply, strong demand, and credit fundamentals.

Fund Commentary

The first quarter was defined less by realized macroeconomic outcomes than by a reassessment of risks. Economic momentum entering the quarter was reasonably constructive, and published consensus estimates for trend-like global growth and manageable inflation