Oil prices decline, volatility rises

• The dispersion of returns between small cap and large cap equities narrowed as small cap stocks outperformed large cap stocks in the fourth quarter. Falling oil prices caused the Energy sector to lag the broader market and provided a tailwind to the Consumer Discretionary sector
• U.S. interest rates continued to fall in the quarter, especially in the long-end of the curve. The precipitous decline in oil prices caused corporate high yield spreads to widen which resulted in the sector being the worst performer for the quarter. Non-U.S. fixed income continued to lag the broader fixed income market due to appreciation in the U.S. Dollar. Moreover, sovereign rates generally trended lower across the world
• The U.S. Dollar continued to strengthen against a basket of currencies. The decline in oil prices and sentiment caused inflation expectations to plummet, which resulted in commodities and natural resource equities falling in excess of 10% for the second consecutive quarter

• 4Q14 Global Positioning Statement™ 
• 4Q14 OIM Quarterly Commentary
• 4Q14 Equity Fund Review
• 4Q14 Fixed Income Review
• 4Q14 Hedge Fund Review
• 4Q14 Private Equity Review
• 4Q14 Real Assets Review