Monthly Sustainable Portfolios Performance Summary: June 2018

Summary
• June stock and bond market performance alternated as shifting sentiments guided by strong economic growth prospects and positive geopolitical news gave way to interest rate worries and increasing concerns over a looming trade war.
• The S&P 500 Index posted a gain of 0.62% while the Bloomberg Barclays U.S. Aggregate Bond Index recorded a decline of -0.12%. The SUSTAIN Equity Fund Index posted an increase of 0.90% in June while the SUSTAIN Bond Fund Indicator closed the month lower at -0.06%.
• The Aggressive, Moderate and Conservative sustainable model portfolios posted slight negative results in June but delivered positive total returns for the quarter.
• The sustainable funds universe consisting of 1,004 mutual funds, including share classes, exchange-traded funds (ETFs) and exchange-traded notes (ETNs) registered an average loss of -0.54% in June, ranging from high of 4.48% to a low of -10.78%.
• Sustainable funds ended the first half of 2018 at $285.9 billion in net assets, adding $1.9 billion in June bolstered by repurposed funds but experiencing $375.2 million in net outflows

June Market Performance Influenced by Strong Economic Growth Prospects and Positive Geopolitical News that Gave Way to Trade Concerns and Higher Interest Rates
Returns for the month of June reflected a best-to-worst performance range for major market segments from about 4.45% posted by the U.S. REIT sector per the Wilshire U.S. REIT Index, to about -5.46% for Asia-based stocks generally and China stocks in particular, per the FTSE China Total Return Index, as the yuan declined against the dollar due to a combination of selling on the part of investors and the Chinese central bank’s efforts to guide the currency lower as the trade conflict with the U.S. escalated. The broad measure of the U.S. stock market, captured by the S&P 500 Index, was up 0.62% while intermediate investment-grade bonds reversed course and recorded a decline of -0.12%.