Investment Team Leader Steve Wilson and Chief Financial Officer Brad Crossley share the following message:
The past year was marked by resilience in the U.S. economy, which managed solid GDP growth despite ongoing global challenges and a brief government shutdown. Equity markets delivered strong gains, supported by steady consumer spending, corporate earnings growth, and continued investment in technology and artificial intelligence.
International markets, particularly emerging markets, significantly outperformed U.S. equities, benefiting from a weaker U.S. dollar, strong Asian AI demand, and attractive valuations. Bond markets adjusted to shifting expectations for U.S. growth and inflation, with the Federal Reserve maintaining a cautious, data-dependent stance on interest rates that led to three modest cuts late in the year.
Key takeaways from 2025
Our approach balances growth and protection, employing a diversified mix of institutional managers with carefully defined mandates.
Collaborative, disciplined approach
The Foundation’s Investment Team (pictured below), working closely with our consulting partner Callan LLC, continues to implement the disciplined strategy outlined in our Investment Policy Statement (IPS). Our approach balances growth and protection, employing a diversified mix of institutional managers with carefully defined mandates. Each manager is monitored and evaluated to ensure alignment with our long-term objectives.
This disciplined framework has produced consistent results. As of December 31, 2025, the Diversified Fund’s trailing 10-year return of 9.79% (net of manager fees) outperformed its blended benchmark. Historically, the Fund has often ranked in the top decile of peers in Callan’s database of endowments and foundations. We remain committed to maintaining balance, discipline, and a long-term perspective in all investment decisions.
Looking ahead
As we enter 2026, we expect familiar themes to shape the markets: steady but moderating U.S. growth, inflation near target, and ongoing global uncertainty. Policy decisions by the administration and the Federal Reserve will continue to influence investor sentiment. While periods of volatility are inevitable, we remain optimistic about long-term prospects. The rhythm of “two steps forward, one step back” continues to define the markets, and we are prepared to navigate that journey with care and conviction.
With God’s grace and the trust of partners like you, the Foundation continues to make a meaningful difference in the lives of those we serve. We are honored to support your ministry and remain steadfast in our pursuit of excellence in all that we do.
The United Methodist Foundation of Western North Carolina, Inc. does not provide tax, legal, or investment advice. It is recommended that current and prospective clients of the Foundation seek advice from their respective professional(s) prior to engaging in any contractual relationship. Past investment fund performance does not guarantee future results.
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