Fort Walton Beach Council agenda — 08-27-13--regular — reading text

Q Sowce: I" veslrrenr soul 1 R l Packet Vp. 18  The Market Env® GICS Sector Performance 8 (Sector Weight( As of June 30, re The major equity market ` theme' this quaner was the rapid reversal in performance for the traditional high dividend yieding sectors, such as Russell 1000 eaaer 0a o + Year c Materials and Energy ( as well as Utilities in the small cap spars). With OO Consumer DISC ( 13. 0 ° r Seminar's comments suggesting an end to CE may be near the high dividend yells exemplified by companies within these sectors became less Cmsomer ..,. a' y compelling. With the ten- year bow rising 65 bps during the quarter, Enelgv (a 11 investors are already starting to act on this potential outcome. The strong performance of Utilities within the Russell 1000 wa s somewhat of an Finanp ' 1131 of anoaly m and was driven by merger and acquisition activity within that segment, highlighted by Berkshire Hathaway a takeover of NV Energy Hal Cam ( 12. av C. NVE) in late May. Inaosrela 110. 94 oi Defensive" sectors, which Include health care, consumer staples, utilities no Techndoay ( 17 2w antl telecommunications services, are rrently trading at a premium to C cyclical" sectors, which include Information technology, industrials energy, MeleN6( 3m 0 consumer discretionary, and materials. Financials do not fall Into either classification. After reaching peak vaWations in late 2( 112, investors have Ta Cam servmes( 211 migrated to higher cyclical exposure given favorable all valuations. This trend Is expected to continue as long as economic growth remains positive Juses (a. aa iY and steady. currently, defensive sectors trade at 112 that of cyclical ar sectors on a red 12 -month FE basis. This is down form a high of 1 251 in late 2912. a0uaner 1 - Y ea ° Russell 2000 as With sector perfmmacoe over the past few years being largely a byproduct Consmer DISC ( 14 1%) of the impact of macro factors ( debt ceiling, U. S. Treasury downgrade, Eurc beSoas Cmwmer Slakes Te%) issues, etc( and the resulting flight to quality ( dividend payers and large blue cop Companies), correlations between stocks were driven to all time highs. s. 1 corm, a 7%) This resulted In an Investment managers stock selection hating less of an impact on relative performance. This has charged of late, as semesters Fllonass 1229 %1 haw fallen from a high of approximately 0. 65 In 2011 to 0 M today. This Is 3 still slightly higher than the historical average of 0. 26, giving managers Heath Cam ( 126%) 0 optimism that stock selection ( and, as a result, sector retums) will be a result of strong Company fundamentals and Trot macro influences. mmnrels rya 9% 1 se IMO TeoMOlyy . % 1 Melenelx l0 e% 1 C— no Talammservices11)5%) Ep a1x Unit - 13211 . ado% s1x 101 3a% 11) 11 1541 1. 1 u4% tall% 35a% < 1. 0 Va Soinre MwningAa O) ed  The Market Env Top 10 Index Weights & Quarterly Performance for the Russell 1000 82000 Eam Mm'e cusaam 25B% 10% Bax Enmry Ph, lIc, Inc. 0. 331 12% My A{ ytl MC 23]% 40% 304% InrgmW(A iMinel gY DoMe" MoM LaWece o. 32% m 119x% Inodev omnn cwpaklm 25, 4% FmsM's 1 Po% 216% 16. 4% Inn- vw Txbntlyy En- cal PgMY TSM1 Inc. GeIx9 EbtMC fa 151% 0 % P1% OitlufMW Gnepe6W N. Irc. YTM 89A b].B% IMUMt m BlMnam AS% 6. 1% 31. 4% Xeth Cae 305ys- Cwpzallm 382% g20% InlamaOm' In. no Cbeam COp 1. 04% 159% EM9Y AISMAP Gmp, IS. 0.m 1& 114 MB% 1. etlW¢ Gagle. Inc ClcssA 140% 10. 8% 518% InMnYtim T- I Two Haboalm¢ Mm1 CO' p 027% 16J% 215% Pro] xB Gxnde Ca 1% Pl% 29.9% C Man / SMAs CtBN GrtW. YIC. OR% 11L% 59A% InMnYM TSIiIWtyy 1 36% 311% En, 120X 100% 1,n% InbmAlm T. IMMI Dlbxlp. In WsHSF BCp 1N% i2A% Zfi. 9% FnsAals 01AIpY1EM9Y LYryI1Wm Ole% 2.T% 12B. 3i4 E M9y T4aM1blm. lnc. 10].]% 2< 3. 1% Cmsume QSCMlmvy CbNS OCa'tgy ln[ 001% 13]. 6% 206. 81 Xm'P Cae ITT ESxMmY SaWCm, lnc. OW% R, 1% 59. 0% Cm¢ums gxMYnay Ows4ctcpn, lrc. 002% 126.9% T &1% Cmeunr d&>tl'nlery i MWIe I151nt 00]% 686X 2056% T mBwlces nonaics. lnc. 0. 03% 125. T% aYN Cae AMaICaI May Gal c lnc 0. 02% 80. 0% 30. 8% BIfMmMm ixMtlryy IMWpin1 0.01% 12g6Yr b6% iYxonmWtHlm erncx Cleawirt Cwp ClasA 3560% itletdnmuniutim SeMtes ResWiim Xa'Mm11d8lips lm il3% N/ A Cmwma Pxrellmry NII MSysinc 0. 01% 51. 0% 39. 9% Tebcanmurccffim & rti[ m NYlW RY6ycn C4Watim