When we introduced this thematic equity group in September 2012, we projected that it was poised to deliver above average returns. These companies have enjoyed many advantages atypical of most other industries, and performance-wise, this group did not disappoint. A large subset of the theme, Data Processing & Outsourced Services, is rated Attractive by our GS Scores, and has been a portfolio holding for 50 months.
In late October, Select Industries Equity Portfolio established three new holdings in Drug Retail, Hypermarkets & Super Centers, and Data Processing & Outsourced Services. Even with the MTI in Positive territory, we are maintaining some defensive exposure, as global economic worries persist.