Concentrated Growth Managed Account

High-Conviction Large-Cap Growth Equities

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Overview

Client Commitment

Concentrated large-cap growth portfolio, leveraging our three decades of experience in high-conviction investing. By investing in our best wide-moat ideas, the Portfolio seeks to add excess returns over the long term. Given its concentrated nature, the Portfolio may exhibit moderately higher volatility than its benchmark.

Why Invest in the Portfolio

    High-Conviction Approach

  1. Fundamental research-driven approach, investing with conviction in 30 to 40 of our best large-cap growth ideas where we believe we have a differentiated view from the market.
  2. Innovative Wide-Moat Companies

  3. Seeks companies with sustainable competitive advantages that capitalize on their competitive moat to grow market share globally over a multi-year period. Emphasizes dominant companies driving innovation and change through disruptive technologies, products or business models.
  4. Stock Selection Drives Return

  5. Stock picker’s portfolio designed to deliver long-term growth of capital with a high-conviction approach. Seeks to use risk wisely, leveraging our best ideas in a concentrated portfolio to drive potential outperformance of the index over time.

Performance

RETURNS

(As of 09/30/2018)
(As of 10/31/2018)
Inception: Oct 01, 1994 3M YTD 1YR 3YR 5YR 10YR Since Inception
Composite Pure Gross* 7.67% 19.26% 24.07% 19.63% 17.01% 13.73% 14.83%
Composite Net 6.90% 16.69% 20.51% 16.19% 13.64% 10.44% 11.49%
Russell 1000® Growth Index 9.17% 17.09% 26.30% 20.55% 16.58% 14.31% 9.98%
Inception: Oct 01, 1994 3M YTD 1YR 3YR 5YR 10YR Since Inception
Composite Pure Gross* -5.35% 8.35% 9.64% 12.83% 14.07% 14.87% 14.32%
Composite Net -6.06% 5.73% 6.46% 9.57% 10.77% 11.55% 11.00%
Russell 1000® Growth Index -3.43% 6.62% 10.71% 13.67% 13.43% 15.45% 9.52%
Past performance cannot guarantee future results. Investing involves risk, including the possible loss of principal and fluctuation of value. Returns greater than one year are annualized. Returns are expressed in U.S. dollars. All returns reflect the reinvestment of dividends and other earnings.
*Pure gross performance results do not reflect the deduction of any trading costs, fees or expenses and returns will be reduced by such advisory fee and other contractual expenses as described in the individual contract and Form ADV Part 2A. Pure gross returns are supplemental to net returns.
Net returns are calculated by subtracting the highest applicable Managed Account fee (3.00% annually, or 0.25% monthly) from the pure gross composite return. The Managed Account fee includes all charges for trading costs, portfolio management, custody and other administrative fees. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size. The fees are available on request and may be found in Form ADV Part 2A.

RETURNS-BASED STATISTICS

(Composite As of 09/30/18)

RISK / REWARD
VS. RUSSELL 1000® GROWTH INDEX

3 YEAR 5 YEAR
Information Ratio -0.24 0.11
Alpha -1.26 -0.34
Tracking Error 3.88 3.92
Beta 1.03 1.05
R-Squared (%) 88.03 88.72

UP AND DOWN MARKET CAPTURE (%)
VS. RUSSELL 1000® GROWTH INDEX

3 YEAR 5 YEAR
Up Capture Ratio 98.03 102.27
Down Capture Ratio 105.77 101.23

STANDARD DEVIATION

3 YEAR 5 YEAR
Concentrated Growth Managed Account 11.17 11.55
Russell 1000® Growth Index 10.17 10.33

SHARPE RATIO

3 YEAR 5 YEAR
Concentrated Growth Managed Account 1.69 1.43
Russell 1000® Growth Index 1.94 1.56

Characteristics

Index represents the Russell 1000® Growth Index.

TOP HOLDINGS

(As of 10/31/2018)

% of Rep Account
Alphabet Inc 6.25
Microsoft Corp 6.13
Mastercard Inc 5.94
Amazon.com Inc 4.46
Apple Inc 4.27
TOTAL 27.05

PORTFOLIO CHARACTERISTICS

(As of 10/31/18)

REP ACCOUNT INDEX
Number of Holdings
Equity Issues
41
545
Market Capitalization
Weighted Average
$266.73B
$293.12B
Portfolio Turnover Rate
(1-year trailing)
47.49%
-
Price/Earnings Ratio
(1-year forward)
26.75
22.41
Price/Book Ratio
(1-year forward)
8.67
9.82
Earnings Growth Rate
(1-year forward)
28.07%
25.56%

DEVELOPED VS. EMERGING MARKET

(As of 10/31/18)

% OF REP ACCOUNT % OF INDEX
U.S. 92.20 99.43
Non-U.S. Emerging 2.63 0.05
Non-U.S. Developed 2.55 0.52
Cash & Equivalents 2.62 -

SECTOR ALLOCATION

(As of 10/31/18)

% OF REP ACCOUNT % OF INDEX
Information Technology 33.82 32.73
Health Care 17.46 13.65
Communication Services 11.97 12.01
Consumer Discretionary 10.72 14.77
Financials 8.14 4.35
Industrials 7.23 11.71
Materials 4.60 1.78
Real Estate 3.44 2.18
Cash & Equivalents 2.62 -

MARKET CAPITALIZATION RANGE OF EQUITY HOLDINGS

(As of 10/31/2018)

% OF REP ACCOUNT % OF INDEX
Over $100B 51.49 52.74
$50B to $100B 26.71 15.10
$10B to $50B 17.96 25.11
$5B to $10B 1.22 5.61

REGIONAL ALLOCATION

(As of 10/31/18)

% OF REP ACCOUNT % OF INDEX
North America 92.20 99.44
Europe 2.55 0.46
Asia/Pacific Ex Japan 1.89 0.08
Latin America 0.74 0.02
Cash & Equivalents 2.62 -

Commentary & Literature