Standard deviation is an investment term which simply refers to performance dispersion. The higher the number, the more that performance is out of whack versus historical comparisons. Value stocks have lagged their growth brethren for over a decade now and the chart below uses standard deviation to illustrate that the deficit has reached significant levels. In fact, only twice in the last 60 years have value stocks under-performed growth stocks by this much. 
Cycles and reversion to the mean can be powerful forces in investing, as illustrated above. When value has previously reached these relative lows to growth, the rebound has been sharp and swift. We have not given up on value. In fact, we continue to rebalance prudently from growth to value-oriented managers with the fundamental belief that value will again cycle back to out-performance in the future.  

The information and opinions presented in this communication are subject to change without notice, are provided for background purposes only and do not purport to be full or complete. No representation is made concerning actual future performance of investments, markets or the economy. Information obtained from outside sources is considered reliable but is not verified. Before investing, please carefully consider whether an investment is suitable for you. Past performance is not necessarily a guide to future performance and there can be no assurance that an investment’s objective will be met. Please refer to the offering document for further details of the financial commitments and risks involved in connection with investment. 

Performance information presented is not an indication of future results and index data is provided for market reference purposes only. This is not an offer to buy or sell or the solicitation of an offer to buy or sell any security/instrument or to participate in any particular trading strategy. 

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