The U.S. stock market posted a tepid positive return that masked a drop of over 10% at one point during the quarter. Emerging markets outperformed developed markets both domestically and abroad. Long duration fixed income securities rallied as rates dropped while absorbing a more dovish U.S. Federal Reserve policy. REITs remained strong, commodities ended essentially flat, and the struggles facing MLPs continued. Skillfully managed global macro strategies within the broader diversifying strategies category posted solid returns.
A devaluation of the Chinese currency, a sharp equity market selloff in August, and an interest hike by the U.S. Federal Reserve punctuated a year that might have otherwise appeared rather pedestrian with domestic equities posting a small single-digit return.