For March 2014, our returns averaged +1.7% outperforming the S&P 500, which returned +0.8%. We benefited from our investment tenet of international diversification since both emerging market stocks and international bonds did better than their US equivalents.
Value stocks did well domestically, smallcaps lagged
Domestic stocks were helped by our bias towards value with all our domestic value funds outperforming the S&P 500 and growing over 1%. Small caps generally underperformed slightly, declining 0.2% on average.
Emerging markets boosted growth, while other non-US markets lagged
Developed markets outside the US underperformed the US by 0.5% on average. However, in the case of emerging markets, all funds returned over 3.5% for the month. Domestic bond funds and TIPS generally declined less than 1%, but international bonds rose slightly.
In summary, our performance was helped particularly by our bias towards emerging market stocks and US value stocks. Developed markets outside the US and small caps were generally weaker across the board.