In the 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
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 Index2.
In terms of the underlying
dynamics of equity market performance, while both advanced nicely in the
quarter, growth-oriented stocks had the upper hand on their value counterparts
as the MSCI ACWI Growth Index2 and the MSCI ACWI Value Index2 posted returns of 5.76% and 4.59%, respectively.
The Marsico Global Fund posted a return of 9.88% for the third
quarter and outperformed its benchmark, the MSCI All Country World Index2,
which returned 5.18%.
Primary Contributors4: Stock selection and an overweight
allocation to the strong-performing Information Technology sector3 was the primary driver of performance during the period. The Fund also benefitted from stock selection
in the Health Care sector. The Fund’s underweight allocation to the Consumer
Staples sector, the weakest-performing sector of the benchmark index, boosted
returns as well.
Primary Detractors4: Stock
selection in the Consumer Discretionary was a detractor from performance during
the period. Having no exposure to the strongest-performing sector of the
benchmark index, Energy, also had a negative effect on performance.
For more information, please click here for the Marsico Global 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 All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI Growth Index captures large and mid cap securities exhibiting overall growth style characteristics across 23 Developed Markets (DM) countries and 23 Emerging Markets (EM) countries. 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 ACWI Value Index captures large and mid cap securities exhibiting overall value style characteristics across 23 Developed Markets countries and 23 Emerging Markets (EM) countries. 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. With 1,298 constituents, the index targets 50% coverage of the free float-adjusted market capitalization of the MSCI ACWI Index. 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.