Dear Friends,
Thank you for investing with Friends Fiduciary. This is your fourth quarter update with important news and information about Friends Fiduciary and your account with us. We wish you and your loved ones a healthy and enjoyable 2026!
2025 Fourth Quarter Summary
Stocks closed modestly higher in the final quarter of 2025, concluding an eventful year in capital markets defined by significant investment in artificial intelligence and the rising tide of international equities. Despite steep market declines in April instigated by the rollout of “Liberation Day” tariffs, equities rallied on favorable spending data for corporate and high-end consumers, surprisingly modest inflation reports, and renewed anticipation of easing interest rates as the unemployment rate continued its upward trajectory. The artificial intelligence (AI) ecosystem was again the notable winner in 2025, with the Bloomberg Artificial Intelligence Aggregate Equal Weight Total Return Index returning 35% for the year, outpacing the S&P 500’s 18% return. International equities also saw a historic year, with the MSCI ACWI ex-US (representing global equities excluding the U.S.) returning approximately 32%, constituting the largest calendar-year outperformance against the domestic S&P 500 since 2009.
Throughout the past year we thoughtfully implemented high-level asset allocation shifts to ensure that our strategies remain resilient and poised to respond to the ever changing investment landscape. In the Quaker Growth & Income Fund (QGI), we opportunistically harvested gains from the run-up in growth and technology-aligned sectors, reallocating the proceeds into a broader swath of capital sectors. We have maintained our overweight position to international equities as we anticipate the tailwinds spawned by a weaker dollar and increased foreign spending continuing into 2026. In July we added a new global corporate bond allocation to QGI managed by Hartford based Newfleet Asset Management. In December the manager completed its first full quarter as part of the fund, and we are pleased with the early results from this move. The proactive adjustments we have made are designed to mitigate concentration risk, enhance exposure to high-conviction areas, and maintain the diversification required for consistent performance across market cycles. Below are unit value changes for FFC’s five primary funds in the fourth quarter of 2025:
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.
Notes from 2025
Friends Fiduciary had a very full 2025, from concluding our Peace Testimony Convening to repeated advocacy trips to Congress to launching a feasibility study around the expansion of our work. We have also begun a major upgrade to our back-end systems, which we will launch later this year, and which will deliver a significantly improved user experience and more self-service options for constituents wishing to transact with us online. Finally, in November, we began a significant refresh of our logo and other brand elements, which we look forward to sharing with you in the second quarter of this year.
*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 age 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