Large Cap Value Managed Account

Defensive Large-Cap Value Equities

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Overview

Client Commitment

As defensive value specialists, we look to invest in high-quality companies with strong management teams, stable balance sheets and durable competitive advantages that are trading at attractive valuations. We seek to achieve excess returns over full market cycles, with less risk than our benchmark and peers as measured by standard deviation, beta and down market capture.

Why Invest in the Fund

    Attractive Reward/Risk

  1. Our disciplined valuation process measures downside risk before upside potential and invests in securities with favorable reward/risk ratios.
  2. High-Conviction Process

  3. The portfolio typically holds between 40 to 60 stocks with business fundamentals considered more important than fluctuations in the wider economy.
  4. Different Than the Benchmark

  5. The benchmark is not used as a starting point for portfolio construction, which should lead to high active share.

Featured Insights

Performance

RETURNS

(As of 03/31/2019)
(As of 03/31/2019)
Inception: Oct 01, 2006 3M YTD 1YR 3YR 5YR 10YR Since Inception
Composite Pure Gross* 12.14% 12.14% 4.09% 9.59% 7.33% 12.93% 7.18%
Composite Net 11.34% 11.34% 1.06% 6.41% 4.22% 9.66% 4.07%
Russell 1000® Value Index 11.93% 11.93% 5.67% 10.45% 7.72% 14.52% 6.51%
Inception: Oct 01, 2006 3M YTD 1YR 3YR 5YR 10YR Since Inception
Composite Pure Gross* 12.14% 12.14% 4.09% 9.59% 7.33% 12.93% 7.18%
Composite Net 11.34% 11.34% 1.06% 6.41% 4.22% 9.66% 4.07%
Russell 1000® Value Index 11.93% 11.93% 5.67% 10.45% 7.72% 14.52% 6.51%
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 03/31/19)

RISK / REWARD
VS. RUSSELL 1000® VALUE INDEX

3 YEAR 5 YEAR
Information Ratio -0.37 -0.16
Alpha -0.75 -0.13
Tracking Error 2.31 2.45
Beta 1.00 0.97
R-Squared (%) 95.48 95.14

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

3 YEAR 5 YEAR
Up Capture Ratio 95.03 96.03
Down Capture Ratio 99.28 97.34

STANDARD DEVIATION

3 YEAR 5 YEAR
Large Cap Value Managed Account 10.87 11.02
Russell 1000® Value Index 10.63 11.08

SHARPE RATIO

3 YEAR 5 YEAR
Large Cap Value Managed Account 0.77 0.60
Russell 1000® Value Index 0.87 0.63

Characteristics

Index represents the Russell 1000® Value Index.

TOP HOLDINGS

(As of 03/31/2019)

% of Rep Account
Equity Residential 3.48
US Bancorp 3.45
Johnson & Johnson 3.23
Chubb Ltd 3.13
Oracle Corp 3.03
Evergy, Inc. 2.92
Chevron Corp 2.85
Berkshire Hathaway Inc 2.80
Hartford Financial Services Group Inc 2.63
M&T Bank Corp 2.48
TOTAL 30.00

PORTFOLIO CHARACTERISTICS

(As of 03/31/19)

REP ACCOUNT INDEX
Number of Holdings
Equity Issues
51
722
Market Capitalization
Weighted Average
$114.70B
$126.04B
Portfolio Turnover Rate
(1-year trailing)
39.33%
-
Price/Earnings Ratio
(1-year forward)
15.89
16.95
Price/Book Ratio
(1-year forward)
3.50
2.79
Earnings Growth Rate
(1-year forward)
2.16%
3.02%

DEVELOPED VS. EMERGING MARKET

(As of 03/31/19)

% OF REP ACCOUNT % OF INDEX
U.S. 85.97 99.24
Non-U.S. Developed 8.97 0.62
Cash & Equivalents 5.06 -

SECTOR ALLOCATION

(As of 03/31/19)

% OF REP ACCOUNT % OF INDEX
Financials 28.86 21.67
Health Care 11.75 15.27
Consumer Staples 10.90 7.90
Energy 8.57 9.71
Industrials 7.06 7.79
Information Technology 6.86 9.82
Real Estate 6.55 5.19
Utilities 5.88 6.45
Communication Services 3.76 6.92
Materials 3.64 3.98
Consumer Discretionary 1.11 5.30
Cash & Equivalents 5.06 -

MARKET CAPITALIZATION RANGE OF EQUITY HOLDINGS

(As of 03/31/2019)

% OF REP ACCOUNT % OF INDEX
Over $100B 32.59 42.16
$50B to $100B 16.01 13.90
$10B to $50B 38.12 32.71
$5B to $10B 8.22 7.90

REGIONAL ALLOCATION

(As of 03/31/19)

% OF REP ACCOUNT % OF INDEX
North America 87.15 99.24
Europe 6.44 0.60
Africa/Mideast 1.35 -
Cash & Equivalents 5.06 -

Commentary & Literature

1Q19 Portfolio Commentary Highlights

  • The Portfolio outperformed the Russell 1000 Value Index® for the period.
  • Holdings in materials and financials contributed to relative returns, while stock selection in communication services and utilities detracted.
  • We continue to focus on stocks with strong balance sheets and durable competitive advantages trading at attractive valuations.

Read The Full Commentary