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Performance Overview Moat-rated companies continued their strong start to 2016 in April. U.S.-oriented Morningstar® Wide Moat Focus IndexSM (MWMFTR) topped the S&P 500® Index (5.20% vs. 0.39%) in April and widened the gap in relative performance year-to-date (12.05% vs. 1.74%). On the international front, Morningstar® Global ex-US Moat Focus IndexSM (MGEUMFUN) lagged the MSCI All Country World Index ex USA in April (1.43% vs. 2.63%), but maintained relative outperformance year-to-date (4.09% vs. 2.25%). U.S. Domestic Moats: Healthcare Rotation Pays Off St. Jude Medical, Inc. (NYSE: STJ ) was the big winner among domestic moat-rated companies in April. Late in the month Abbott Laboratories (NYSE: ABT ) announced its intent to buy STJ US in a deal that is expected to close in the coming fourth quarter. As part of its quarterly review, the MWMFTR Index rotated into several healthcare companies, including STJ. According to Morningstar, the healthcare sector offered a number of attractive valuation opportunities in March, some of which contributed to MWMFTR’s strong performance in April. Drug manufacturer Allergan plc (NYSE: AGN ), however, provided no such boost to results. A U.S. Department of Treasury tax ruling squashed any hope for its planned merger with Pfizer (NYSE: PFE ), pushing AGN lower for the month. International Moats: Oh, Canada MGEUMFUN’s exposure to financials companies, particularly Canadian banks, contributed to positive performance in April. Only three of the 24 financials companies in the Index posted negative returns last month. Additionally, Russian operator Mobile Telesystems (NYSE: MBT ) has been on a roll since announcing solid fourth quarter results in March. Strains on performance came largely from some of the Index’s consumer discretionary constituents, such as Macau gaming firm Sands China ( OTCPK:SCHYY ) and Chinese car manufacturer Dongfeng Motor Group Co. ( OTCPK:DNFGY ). Monthly Index Total Returns Top/Bottom Index Performers Index Reconstitution Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks. Scalper1 News
Scalper1 News