A graphic shows various asset and sub-asset classes’ valuation percentiles relative to fair value, where numbers in the lowest third represent undervaluation, numbers in the middle third represent fair value, and numbers in the highest third represent stretched valuation. For U.S. equities, the valuation percentile was 99% as of December 31, 2025, unchanged from September 30, 2025. For global ex-U.S. equities (unhedged), it was 80%, up from 77%. For ex-U.S. developed markets (unhedged), it was 76%, up from 74%. For emerging markets (unhedged), it was 87% compared with 82%. Factor valuations are relative to broad U.S. equities; 50%, for example, is as equally overvalued as broad U.S. equities. The valuation percentile for the value factor was 20% at the end of December 2025, up from 18% at the end of September 2025. For the growth factor, it was 72%, up from 70%; for the large-cap factor, it was unchanged at 57%; and for the small-cap factor, it was 12%, down from 13%. For fixed income, the valuation percentile for U.S. aggregate bonds was 80% at the end of December 2025 compared with 66% at the end of September 2025; for global ex-U.S. aggregate bonds (hedged), it was 42%, up from 41%; for U.S. Treasury bonds, it was 79%, up from 66%; for short-term Treasuries, it was 88% compared with 71%; for intermediate-term Treasuries, it was 80% compared with 68%; for long-term Treasuries, it was 57% compared with 52%; for U.S. credit spread, it was 89%, up from 88%; for U.S. high-yield corporate bond spread, it was 91%, up from 90%; for emerging markets sovereign bond (hedged) spread, it was 82%, up from 64%; for U.S. Treasury Inflation-Protected Securities spread, it was 57%, down from 58%; and for U.S. mortgage-backed securities spread, it was 88% compared