Thank you for investing with Friends Fiduciary. This is your first quarter update with important news and information about Friends Fiduciary and your account with us.
Like many of you, we at Friends Fiduciary have been dismayed at the news that another war has begun, in a world already suffering from much violence and upheaval. We hold in the Light those who have been killed, their families and loved ones, and everyone who is affected by this conflict and who must now live in fear of death or displacement from war.
2026 First Quarter Summary
In what feels like a repeat of 2025, the first quarter of 2026 has gotten off to an uncertain and volatile start. Last year investors were faced with an unprecedented realignment of global trade norms sparked by the rollout of the Trump administration’s tariff regime, while this year has opened with a new and highly consequential war in the Middle East. Among the most significant outcomes from this conflict has been the halting of transit through the Strait of Hormuz, driving prices of crude oil and other critical commodities, like fertilizer inputs, to sharply higher levels. The six-week disruption in flows through the strait has economists and market strategists concerned about the economic impact of higher fuel prices on trade and commerce. The cease fire agreement this week between the U.S. and Iran has offered hope that the end of the war is near, but even if this were to occur it will take weeks for trade to stabilize and prices to recede. Prior to the onset of the conflict, rapid advancements in artificial intelligence fueled a selloff of software companies, with their ability to sustain growth in a rapidly evolving landscape increasingly coming into question. This weakness had an outsized effect on the tech-heavy U.S. equity market, with international stocks, as represented by the MSCI ACWI ex-U.S. Index, outpacing the S&P 500 Index in the first quarter with investment returns of -0.60% and -4.33%, respectively.
The weakness in the software sector has accelerated the rotation away from big tech companies that began in late 2025. Though constituting the bulk of stock market returns over recent years, every company in the so-called “Magnificent 7” (Apple, Nvidia, Amazon, Alphabet, Meta, Tesla, Microsoft) underperformed the S&P 500 in the opening quarter of 2026. Investor attention is shifting away from the massive sums of capital being invested in the backbone of AI infrastructure, to a more fundamental focus on how these investments will generate future returns to justify the spending. We believe this continued broadening of participation across asset classes and market sectors will create conditions that benefit our balanced, diversified strategies.
June 2026 Standard Distribution – Quaker Growth & Income Fund
The June 2026 distribution rate for the Quaker Growth & Income Fund will be $1.26 per unit, up from the December 2025 payout of $1.21 per unit. This represents a 4.0% pay-out rate that is reviewed and affirmed annually by the FFC Investment Committee and Board. Constituents may take more or less than the announced standard distribution rate. To request a distribution rate other than the standard rate, please contact us at info@friendsfiduciary.org.
Annual Investor Meeting
Friends Fiduciary’s Annual Investor Meeting is right around the corner! Join us on Wednesday, April 22, 2026 at 12:30 p.m. We will also have an in-person reception from 5:00 – 7:00 p.m. at Arch Street Meeting House in Philadelphia, PA. Register here for either or both events!
*REMINDER* Please Tell Us When Your Officers Change
Please tell us when you have a new treasurer or other authorized individual who will have authority over your account(s) at Friends Fiduciary. To notify us of a change, please complete an Account Authorization Form found on our website and email to info@friendsfiduciary.org or via US Mail to our office.
Charitable Gift Annuity Rates Remain High
Charitable gift annuities (CGA) provide a predictable source of lifetime income with the remainder of your gift supporting the organizations you value. Maximum payout rates for CGA contracts remain at their highest level since 2007, making this a perfect time to establish one. If you would like more information, you can access a gift calculator on the FFC website that provides the 2026 charitable deduction, rate, and annual payout associated with your gift. The only information that is needed to make the calculation is your birthdate and gift amount.
Thank you for choosing Friends Fiduciary for your investment needs. We are committed to providing rigorous Quaker values-based investing, strong performance, and excellent customer service, at cost. If you have any questions or concerns, please contact me at 215-241-7272.
Sincerely,
Ethan Birchard
Executive Director