Monthly Archives: May 2011

Compass Capital Corporation Economic Update 1st Quarter 2011

Compass Partner Tom Licciardello offers our Investment Update and Outlook for the 1st Quarter 2011.This video presentation by Tom will provide you with an update on the financial markets and their impact to your investment strategies as well as guidance on our expectations for the remainder of the year.

First Quarter 2011 Market Overview:

Dear Clients and friends of the firm,

Looking back to the first quarter of 2011, global equities continued to move forward despite a host of challenges. With the exception of government-sponsored debt, fixed-income markets also moved ahead.

To keep you abreast of current market conditions, we invite you to view Kevin Barr in  SEI’s “First Quarter 2011 Market Overview and Insights” video. This brief video will provide you a synopsis around what’s happening in the markets, the impact to SEI’s strategies, and their outlook and positioning.

What’s happening in the market?

• In U.S. dollar terms, the MSCI All Country World Index, which serves as a proxy for global equity markets, was up 4.8% for the quarter. Its fixed-income counterpart, the Barclays Capital Global Aggregate Bond Index, rose 1.24% for the quarter. Overall, major equity and corporate fixed-income markets continued the trend from last year and closed in positive territory.

What’s the impact to SEI’s Strategies?

• In the first quarter of 2011, the term “eventful” would be an understatement given the magnitude of both the geopolitical changes and the tragedy in Japan. Yet, with the main exceptions of Japanese and emerging-market equities, financial markets managed through the bad news. This impressive resiliency can be attributed to the underlying strength of the global economy and to the fact that equity valuations are still in a reasonable range.

• In our opinion, the odds still favor continued growth in the global economy. The unexpected events of the past quarter, however, underscore the need for vigilance. Equities are not yet expensive, but they are not cheap either.

SEI Outlook and Perspective:

• Oil, of course, is a major concern. Demand for fossil fuels in the developing countries has matched the demand in developed countries and is projected to rise. If geopolitical developments lead to a further oil-price jump our outlook could change. The possibility that central banks in the developed world join their emerging-market counterparts in significantly tightening monetary policy is another risk to our outlook.

• At this point, however, we are cautiously optimistic that global growth will continue. We will continue to monitor the markets and manage our investment strategies accordingly.

Following our philosophy of active management, we will continue to closely monitor economic data and developments such as quantitative easing and the upcoming elections and will adjust our portfolios accordingly.

If you have any questions or would like to discuss this report further, please feel free to give me a call.
Click here for the forward looking SEI Economic Outlook Video


CEO and Chief Investment Strategist
Compass Capital Corporation

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any stock in particular, nor should it be construed as a recommendation to purchase or sell a security, including futures contracts. There is no assurance as of the date of this material that the securities mentioned remain in or out of SEI funds.

For those SEI Funds which employ the ‘manager of managers’ structure, SEI Investments Management Corporation (SIMC) has ultimate responsibility for the investment performance of the Funds due to its responsibility to oversee the sub-advisers and recommend their hiring, termination and replacement. SIMC is the adviser to the SEI Funds, which are distributed by SEI Investments Distribution Co. (SIDCo.) SIMC and SIDCo are wholly owned subsidiaries of SEI Investments Company. Neither SEI nor its subsidiaries are affiliated with your advisor.

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There are risks involved with investing, including loss of principal. Current and future portfolio holdings are subject to risks as well. Diversification may not protect against market risk. Bonds and bond funds will decrease in value as interest rates rise.

Past performance does not guarantee future results Index returns are for illustrative purposes only and do not represent actual portfolio performance. Index returns do not reflect any management fees, transaction costs or expenses. One cannot invest directly in an index.