Capital Markets: Observations & Insights

The Earnings Growth Explosion Is Driving Performance ​ Performance

Total Return = Dividend Yield + EPS Growth +/- P/E Change

MSCI All Country World Index ex-USA

S&P 500

Dividend

EPS Growth*

P/E Change

Dividend

EPS Growth*

P/E Change

35%

25%

30%

20%

25%

15%

20%

10%

15%

5%

10%

0%

5%

EPS Growth Explosion

-5%

0%

EPS Growth Explosion

-10%

-5%

-15%

-10%

-15%

-20%

Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18

Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18

12- Month Total Return:

12- Month Total Return:

30%

19%

20%

-1%

15%

19%

18%

14%

21%

11%

-1%

7%

20%

5%

Source: FactSet as of 9/30/18. *Based on consensus estimates of next 12-month EPS. Actual earnings per share might be materially different than shown. MSCI ACWI ex-US performance based on local currency.

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