Although evolving tariffs and political instability created volatility in international equity markets during October, 2025, the MSCI relevant index eked out a 2.04% gain for the month, and 29.22% year-to-date. (January 1, 2025-October 31, 2025.) Their US index was up 2.38% for the month and 17.7% year-to-date.
The MSCI Developed Market (DM) World ex USA Standard Index was up 1.09% for October. The developed European index returned only .76%. There was great dispersion among the Nordic components with Norway and Denmark down 4.29% and 3.26%, respectively; and Finland up 7.73%. Buoyed by tech stock demand, a weakening yen and stimulus expectations, Japan returned 3.4% and MSCI’s Pacific Index was up 2.07%. Australia, down 1.04%, and Singapore, down .33%, were major detractors in the region. Elsewhere, Canada withstood heightened tariff threats and was up .39%. Year-to-date, MSCI’s DM ex USA index was up 27.31%.
MSCI’s Emerging Market Index was up 4.19% for October. Continued inflows into funds that invest in European Emerging Markets funds led to an increase in MSCI’s relevant index of 1.1%, with Eastern Europe up 5.07%. EM Asia was up 4.89% but some country indices experienced a reversal of fortunes. For example, China was down 3.81% , but India and Thailand were up 4.41% and 4.68%, respectively. Performance of the Latin American Index was more muted, but was still up .94%. The Frontier Emerging Markets African index was up .8%. Year-to-date, MSCI’s EM index was up 33.59%.
In October, I was fortunate enough to attend both the Academy for Institutional Investors in Durham, NC and the ALTSSE (Alternative Investments Southeast US Conference), in Charlotte, NC. Although there are concerns about valuations in equity markets, it was obvious that there are persistent trends in the growth of AI and concomitant needs for energy and infrastructure. Bastion Fiduciary offers portfolios that specialize in those sectors.
There are many stocks in international markets that participate in these trends, and also some “boring” stocks that trade at great valuations and have good dividend yields. We hold both types and more in Bastion Fiduciary’s international equity portfolios and hope that you consider them when diversifying your equity exposure.
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