Marquette AIM Funds
Fourth Quarter 2015 Market Performance & Commentary
Benchmark: Russell 2000: +3.63%
AIM International Equity Fund: +5.44%
Benchmark: Russell Global ex-US: +3.91%
AIM Fixed Income Fund: -0.82%
Benchmark: Barclays US Aggregate Bond: -0.57%
Fourth Quarter 2015 Commentary:
The AIM Small Cap Equity Fund (+2.17%) slightly underperformed the Russell 2000 Index (+3.63%) for the fourth quarter of 2016.
- The Information Technology, Financial Services, and Healthcare segments weighted down the fund's performance. Teladoc, Inc. (TDOC), a Dallas, Texas provider of telephonic and online video healthcare consultation services dropped nearly 20% during the quarter and Virtusa Corp. (VRTU), a Massachusetts-based provider of IT consulting, technology and outsourcing services to large corporations also dropped nearly 20% during the period.
- On a positive note, the Consumer Discretionary segment significantly outperformed its benchmark by nearly 800 bps and MGP Ingredients, Inc. (MGPI), a Kansas-based holding company, which produces certain whiskey distillery and ingredient products derived from corn and other feedstock, was up over 60% for the quarter.
The AIM International Equity Fund (+5.44%) outperformed the Russell Global ex-US Index (+3.91%) for the quarter.
- Despite an overweight in emerging markets (which underperformed developed markets), the AIM International Equity Fund generated excess returns in the Information Technology and Materials sectors.
- The top performers were: Infineon Technologies AG (IFNNY) a German provider of semiconductors; and CaesarStone Sdot-Yam Ltd. (CSTE), an Israeli manufacturer and distributor of quartz surface products.
For the fourth quarter of 2016, the AIM Fixed Income Fund (-0.82%) slightly underperformed the Barclays US Aggregate Bond Market Index (-0.57%).
- Interest rates across the US fixed income markets rose in the fourth quarter and credit spreads widened. The AIM Fund’s underperformance was the result of an overweight on corporate credits and an underweight of Treasuries.
- The AIM Fund had a slight short duration tilt; however, the credit spread increase offset the favorable duration strategy.