HILIX – Q4 2017 Commentary
The Hartford International Value Fund outperformed its index and peer group during the quarter and outperformed the index by over 250 bps in 2017. The team maintains its strong track record by focusing on bottom-up stock selection that, in turn, also drives alpha through sector allocation.
LISIX – Q4 2017 Commentary
The Lazard International Strategic Equity Fund outperformed the MSCI EAFE Index during the fourth quarter, and outpaced the benchmark by almost 300 bps for the year. The team continues to focus on stock selection, maintaining a long term outlook on companies with sustainable high or improving earnings growth.
Good Morning,
Attached is the most recent Guide to the Markets provided by JP Morgan.
Good Afternoon,
Attached is another summary perspective on tax reform put together by Fidelity. This piece addresses the positive short and long term implications of the tax reform and discusses how the multiplier effect changes the magnitude of increases to U.S. GDP growth.
Thank You,
Pete
Market volatility is the rate at which prices increase or decrease over a certain period of time. One way to measure the implied volatility of the S&P 500 is the VIX.
The VIX is a volatility index comprised of options, with the price of each option reflecting the market’s expectation of future volatility. Increased put prices will indicate an expectation for greater volatility. It is important to note that the VIX measures 30-day implied volatility so this is not a tool used to predict long term market movements. Below is a link that breaks down the equation used to measure the VIX:
https://www.cboe.com/micro/vix/vixwhite.pdf
In this piece, the goal is to get a perspective on the low volatility levels experienced in 2017 and set expectations for what may occur as volatility begins to tick upward. While we are not predicting a major market correction in 2018, we want clients to be aware that it makes sense to expect increased volatility. In turn, we want to emphasize that maintaining a diversified portfolio provides downward protection during periods of equity selloff.
Good Morning,
Attached is the most recent chart pack put out by SSGA.
LISIX – Q3 2017 Commentary
The Lazard International Strategic Equity Fund outperformed its benchmark, MSCI EAFE Index, in the third quarter and has outpaced the index YTD. The Lazard team has rebounded from a period of underperformance that spanned the second half of 2016 through January of this year. The team remains focused on fundamental stock selection, looking for quality names with long term growth potential.
DBLTX – Q3 2017 Commentary
The DoubleLine Total Return Bond Fund outpaced the Agg during the quarter and is ahead by about 40 bps YTD. The fund has benefited from its positioning in RMBS and has been able to garner strong returns while taking on less risk than the benchmark. The team will monitor the effects of the Fed unwind but does not believe it will lead to a large spread widening due to the transparency set by the Fed.
TCPNX – Q3 2017 Commentary
Touchstone Total Return Bond Fund continues to be a steady, quality-driven strategy that outpaces the index on a risk adjusted basis over time. During the third quarter, the fund’s performance was in line with the benchmark, and TCPNX has outperformed on the year. The team believes the fund is well positioned and maintains a discipline that properly balances risk and return objectives for the current market environment.
Cognizant delivered strong results during the third quarter, posting revenue in line with expectations and broad based growth across segments and geography. Three of the four business segments were strong growth contributors. CTSH is focused on enhancing its digital capabilities and working to improve margins moving forward. Operating margin for the quarter was 20% and they are committed to a target of 22% in 2019 by balancing growth and profitability. CTSH has continued its momentum throughout 2017 and expects to close the year with solid revenue and earnings growth. Thesis intact. Price target unchanged.
