Q1 2006 Quarter in Review

Chart of the Week for March 31-April 6, 2006

The first quarter of 2006 has come to a close and here’s a snapshot of what’s happened in the capital markets; the chart shows return information as of yesterday. It’s been a stellar year so far for international, emerging market, and small-cap stocks with returns over 10%. Stocks surpassed bond returns as rising interest rates continued to take a toll on bond prices over the last three months. Small-caps beat large-caps as small-cap indices hit record highs this quarter, boosted by a generally positive economic outlook. Value stocks provided nearly double the return of growth in the large company space, challenging the idea that growth is coming back. International stocks were the show-stoppers this quarter, boosted by stellar returns in Europe and parts of Asia and South America.

This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing.

Investment information can change rapidly and the changes can be significant particularly in volatile markets. For this reason “as of”’ dates are provided for specific data where applicable. The information should not be considered current after the dates provided.

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The performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Services, LLC by calling 800-669-7400 or by writing to 777 North Capitol Street, NE, Washington, DC 20002-4240. Para asistencia en Español llame al 800-669-8216. Performance data current to the most recent quarter end is available by visiting www.icmarc.org.