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by Karl C. Mergenthaler, CFA, William Pometto and Stacey Parke
karl.c.mergenthaler@jpmorgan.com, william.x.pometto@jpmorgan.com, stacey.l.parke@jpmorgan.com
AS OF DECEMBER 31, 2011
U.S. EQUITY
- U.S. equities finished 2011 essentially flat despite the volatility
during the year.
- The Russell 3000 was up 1.03% for the year, and 3.51% annually
over the most recent 10 year period.
- Growth stocks outperformed value stocks by more than 200 basis
points for the year.
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FIXED INCOME
- The Barclays U.S. Aggregate index produced an overall return of
7.84% for 2011. The treasury yield curve flattened significantly as
spreads between 2 and 10 year treasuries declined.
- The Merrill High Yield index generated a monthly return of 2.49%
for December. High yield bond spreads declined in the fourth
quarter as investors began to regain confidence in the markets.
- The J.P. Morgan GBI Emerging Market Bond Index posted a 6.35%
loss for 2011, although 3, 5, and 10 year returns remain positive.
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INTERNATIONAL EQUITY
- The MSCI EAFE Index experienced a 12.14% decline for 2011,
attributable to the ongoing stress posed by the European sovereign
debt crisis.
- The MSCI Emerging Market Index experienced a steep decline of
18.17% for the year, while continuing to produce impressive 3, 5,
and 10 year returns through December 2011.
- Brazil markets were down and China has experienced slowed
growth of 2.5% through December 2011.
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REAL ESTATE AND OTHER
- The NAREIT index ended 2011 with a total return of 8.28%,
outperforming the broader U.S. equity market and overcoming
the macroeconomic turmoil.
- The Goldman Sachs Commodities Index was down 1.18% for the
year, with material variances among the industrial and precious
metals.
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