third quarter of 2017, global financial markets were driven by significant
global increases for equity prices, with little significant action in other
asset classes. The trend of little movement in inflation stayed the same, while
in Washington stimulative tax cuts and other domestic fiscal policy actions
have been proposed but not yet legislated. Long-term bond yields and the price
of commodities generally held steady.
For the quarter, the S&P 500 Index2 advanced by +4.48% and the Nasdaq Composite Index2 rose by +6.06%,
extending the positive performance registered by the indexes over the first two
quarters of 2017. Equities in Europe rose at a comparable pace, with the MSCI
Europe Index2 climbing by +6.45%. Shares in emerging countries were generally
quite strong with a quarterly gain of +7.89% for the MSCI Emerging Markets
In terms of the underlying
dynamics of equity market performance, Growth stocks lagged value stocks as the
MSCI EAFE Growth Index2 and the MSCI EAFE Value Index2 posted returns of 4.94% and 5.87%, respectively.
The Marsico International
Opportunities Fund posted a return of 10.03% for the third quarter, outperforming
its benchmark, the MSCI EAFE Index2, which returned 5.40%.
Primary Contributors4: Stock
selection and an overweight allocation in the Information Technology sector3,
one of the strongest-performing sectors of the benchmark index, was the primary
driver of performance during the period. The Fund also benefitted from stock selection
in the Financials, Health Care and Industrials sectors. An underweight
allocation to the weakest-performing sector of the benchmark index, Consumer
Staples, also contributed to performance.
Primary Detractors4: Stock selection in the Consumer
Discretionary sector was the largest detractor from performance during the
period. Lack of exposure to the Materials and Energy sectors, the
strongest-performing sectors of the benchmark index had a negative impact on
For more information, please click here for the Marsico International Opportunities Fund Quarterly Investment Update.
1 Performance data quoted represents past performance. Past performance is no guarantee of future results. A Fund's performance, especially for short time periods, should not be the sole factor in making an investment decision. Please keep in mind that our views on investments discussed herein are subject to change at any time and the holdings represented here do not represent all of the securities purchased, sold, or recommended by Marsico Capital Management, LLC ("MCM"). Certain less-material factors may not be presented.
2 The MSCI EAFE Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Growth Index captures large and mid-cap securities exhibiting overall growth style characteristics across Developed Markets countries around the world, excluding the US and Canada. The growth investment style characteristics for index construction are defined using five variables: long-term forward EPS growth rate, short-term forward EPS growth rate, current internal growth rate and long-term historical EPS growth trend and long-term historical sales per share growth trend. The MSCI EAFE Value Index captures large and mid-cap securities exhibiting overall value style characteristics across Developed Markets countries around the world, excluding the US and Canada. The value investment style characteristics for index construction are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield. The S&P 500 Index is a registered trademark of S&P and is an unmanaged broadly-based index of the common stock prices of 500 large U.S. companies, and includes the reinvestment of dividends. The
MSCI Emerging Markets Index captures large and mid-cap representation
across 23 Emerging Markets (EM) countries. With 835 constituents, the index
covers approximately 85% of the free float-adjusted market capitalization in
each country. The Nasdaq Composite Index is the market capitalization-weighted index of approximately 3,000 common equities listed on the Nasdaq stock exchange. The types of securities in the
index include American depositary receipts,
common stocks, real estate investment trusts (REITs) and tracking stocks,
as well as limited partnership interests. The index includes all Nasdaq-listed
stocks that are not derivatives, preferred shares, funds, exchange-traded funds (ETFs) or debenture securities. The MSCI Europe Index captures large and mid cap representation across 15 Developed Markets (DM)
countries in Europe. With 446 constituents, the index covers approximately 85%
of the free float-adjusted market capitalization across the European Developed
Markets equity universe. The indexes
mentioned above are unmanaged and not available for direct investment. For
comparison purposes, it should be noted that the indexes do not charge fees and
have no expenses.
3 Sector and industry weightings are determined using the Global Industry Classification Standard (“GICS”). GICS was developed by and is the exclusive property and service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s (“S&P”), and is licensed for use by MCM. Neither MSCI, S&P, MCM, nor any third party involved in compiling GICS makes any express or implied warranties or representations with respect to such standard or classification (or the results from use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any such standard or classification. MSCI, S&P, and MCM, and any of their affiliates or third parties involved in compiling GICS shall not have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
4Source: UMB Fund Services, Inc., FactSet and Marsico Capital Management, LLC (“MCM”). Data shown such as portfolio holdings, percentages, country, and sector weightings generally applied on the date shown above, and may have changed substantially since then. References to specific securities and sectors are not recommendations to buy or sell such securities or related investments.