Industrial Growth | Second Quarter 2014

August 2014 – This quarter, we provide our insights on the industrial growth market, which is experiencing strong momentum as industrial production, construction and the auto sectors all are expanding. Industrial production increased 0.4% in July, which equaled the pace in June, and capacity utilization reached its highest rate in over four years led primarily by a strong 1.7% increase in production of durable goods. According to manufacturing surveys from the Federal Reserve and industrial publications, manufacturing recoveries appears to be robust in broad sectors like auto manufacturing. The equity capital markets reported mixed results for the quarter, as only one sector of our Industrial Growth Universe – Resource Recovery & Waste Management – generated a strong return (+14.1% for the quarter) relative to the S&P 500 (+4.7%), while three sectors were generally in line with the broader market – Metals (+5.5%), Chemicals (+5.3%) and Analytical Instrumentation & Testing Equipment (+5.2%). The remaining four sectors of our universe all generated returns below the S&P 500.

(Please continue reading by downloading the full report.)