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International stocks generated decidedly worse performance than US equities overall, as the US dollar
continued to strengthen and the US yield curve steepened following the election.
In addition, Europe continues to struggle with a sluggish recovery and fallout from an influx of refugees from Middle Eastern
countries. Within this context, international stock indices were mostly lower. The MSCI ACWI ex-USA Index, which measures
performance of world markets outside the US, declined -1.3%. The MSCI EAFE Index of developed markets stocks saw a -0.7%
return for the quarter, and produced a 2016 return of +1.0%. Regional performance was generally negative. Eastern Europe
was the strongest performer on a relative basis, with the MSCI EM Eastern Europe index posting a return of +14.3%. China and
the Asia region were the poorest relative performers, with returns of -7.1% and -6.1%, respectively. Emerging markets
performance was negative, as the MSCI Emerging Markets Index returned -4.2%, but still managed to generate a +11.2% full-
year gain.
International Equities
See disclosure page for additional information.
4Q16
2016
MSCI
LCL
USD
LCL
USD
All Country World Index
4.09
1.19
9.04
7.86
All Country World Index ex US
4.93
-1.25
7.02
4.50
EAFE
7.07
-0.71
5.34
1.00
Europe Ex UK
5.93
-0.20
2.31
-0.56
United Kingdom
4.19
-0.90
19.16
-0.10
Pacific ex Japan
1.23
-2.72
8.34
7.85
Emerging Markets
-1.44
-4.16
9.69
11.19