Major Asset Classes: August 2025 Performance Review

Global equities in developed markets ex-US continued to lead major asset classes in August, solidifying their year-to-date outperformance. Concurrently, the Global Market Index (GMI) extended its robust rally with a 2.6% gain in August, marking its fifth consecutive monthly advance and a 12.4% year-to-date return, reflecting strong multi-asset class benchmark performance.

Analysis

Global markets exhibited strong positive momentum in August, with equities in developed markets ex-US continuing their trend of outperformance and solidifying their year-to-date leadership among major asset classes. This specific strength is occurring within a broader, robust rally, as evidenced by the Global Market Index (GMI), a multi-asset class benchmark. The GMI advanced 2.6% in August, marking its fifth consecutive monthly gain. This sustained upward movement has pushed the GMI's year-to-date return to a significant 12.4%, reflecting a persistent and widespread risk-on sentiment across the global investment landscape.

Key Decisions for Investors

• Investors should review their portfolio's geographic allocation, as the persistent outperformance of developed ex-US equities suggests this segment is a key driver of global returns and may warrant maintaining or increasing exposure.
• The fifth consecutive monthly gain and 12.4% year-to-date return of the broad Global Market Index signal strong underlying market health, supporting confidence in diversified, long-only strategies.
• Monitor for any deceleration in the GMI's monthly gains or a potential rotation in leadership away from ex-US stocks, as these could be early indicators of a shift in market sentiment requiring portfolio rebalancing.