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QUARTERLY MARKET SUMMARY <br />For the Quarter Ended March 31, 2025 <br />Multi-Asset Class Management <br />WHAT WE’RE WATCHING <br />►The Federal Reserve (Fed) held rates flat in the first quarter. The latest Fed <br />projections continue to forecast two quarter-percentage-point rate reductions by the <br />end of 2025. Outside of the U.S., the European Central Bank (ECB) cut rates twice <br />in the first quarter and signaled further easing ahead, emphasizing it will be data <br />dependent as the US trade policy and increased defense spending adds to uncertainty <br />on the path of inflation. The Bank of Japan (BOJ) raised rates by 50 basis points at its <br />January meeting as inflation continued to heat up. The BOJ also signaled that interest <br />rates will continue to rise, with the goal of normalizing the country’s monetary policy <br />after years of ultra-low rates. <br />►U.S. consumer sentiment, as measured by the University of Michigan survey of <br />consumers, fell sharply in the first quarter, down to 57.0 in March, the lowest level <br />since November 2022 as consumers worries over the potential impacts of tariffs <br />weighed on outlook. <br />►On April 2, 2025, President Trump announced a 10% tariff on all imports into the <br />United States effective April 5 and steeper tariffs on over 60 countries, effective April <br />9, in addition to the already announced tariffs. While these levies could be removed <br />or lowered substantially as the administration negotiates with its trading partners, they <br />could adversely impact economic growth prospects should they remain in place for an <br />extended period. <br />Global Central Bank Rates <br />Source: Bloomberg. <br />U.S. ISM Manufacturing & Services PMI <br />Source: Bloomberg. <br />40 <br />45 <br />50 <br />55 <br />60 <br />65 <br />70 <br />Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 <br />Manufacturing Services <br />-1.00% <br />0.00% <br />1.00% <br />2.00% <br />3.00% <br />4.00% <br />5.00% <br />6.00% <br />Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 <br />Fed Target Rate BOJ Target Rate <br />ECB Target Rate Bank of England Target Rate <br />University of Michigan Consumer Sentiment <br />Source: Bloomberg. <br />0 <br />20 <br />40 <br />60 <br />80 <br />100 <br />Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 <br /> For Institutional Investor or Investment Professional Use Only - This material is not for inspection by, distribution to, or quotation to the general public.2.3