U.S. equities ended the quarter down 6.44% — the worst quarterly return since the third quarter of 2011. One interesting aspect of the markets this year is the underperformance of value compared to growth. The Russell 1000 Growth is outperforming the Russell 1000 Value index by 7.42% year to date. After showing brief signs of life in the first half of the year the international markets significantly underperformed the U.S. in the third quarter (MSCI EAFE -10.23%, MSCI Emerging Markets -18.53%).

The Barclays U.S. Corporate High Yield Index (-4.86%) also had its worst quarter since the 3rd quarter of 2011. Treasuries were up across the yield curve with the 10-year U.S. Treasury 2.92% for the quarter. This highlights our conviction that a tactical approach to fixed income should be a part of your fixed income asset allocation.

The opinions expressed are those of Clark Capital Management Group Investment Team. The opinions referenced are as of the date and publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Nothing herein should be construed as a solicitation, recommendation or an offer to buy, sell or hold any securities, other investments or to adopt any investment strategy or strategies.

Past performance is not indicative of future results. This is not financial advice or an offer to sell any product. Clark Capital Management Group, Inc. reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. It should not be assumed that any of the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein. Clark Capital Management Group, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Clark Capital’s advisory services can be found in its Form ADV which is available upon request.

CCM-652

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