Stocks and bonds moved largely in unison during the third quarter of the year as global equity and bond markets managed positive periods across the board. Global equities continued their march higher, led by international markets, developed and emerging alike. Emerging market equities continued to flex as they were the leading equity measuring stick for 3Q adding about 15% in the period, totaling a 27% return for the year. On the fixed income side, EM debt both local and hard currency were the leaders in the period once again. This fixed income exposure has proven to be the bond of choice for investors in 2017 as a way to protect against inflation and add the yield they have been craving. However, investors showed their hand in September, as flows into long term U.S. government debt (as measured by the iShares 20+ Year Treasury Bond ETF) saw its strongest monthly, quarterly and year-to-date inflows of assets in its 15 year history. The fund saw over $4.4B in inflows in September alone.

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