Page 282 - DCAC Feb 2026 Files

Recap of 2025

• Tariffs and trade negotiations dominated the headlines in the first and second quarters but began to
wane in the second half of the year

• Equities across geographies demonstrated strong returns for the calendar year

• In aggregate, actual company earnings came in above expectations throughout the year,
which helped to propel U.S. equity returns

• A decline in the U.S. Dollar boosted international and emerging market stock returns for U.S.
investors

• Dovish Federal Reserve policy (3 interest rate cuts) and an overall downward shift in the yield curve
fueled strong fixed income returns

• Active fixed income management outperformed passive index returns

19