Mid Cap Growth Managed Account

Moderate Mid-Cap Growth Equities

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Overview

Client Commitment

By taking a moderate approach to an asset class with potential for fast growth, this mid-cap growth portfolio has demonstrated lower volatility than the index. Unlike many competitor products that focus on short-term growth rates, this strategy seeks to invest in companies exhibiting sustainable and durable growth.

Why Invest in the Portfolio

    “Smart Growth” Approach

  1. The Portfolio’s investment approach focuses on long duration, sustainable growth companies with strong competitive advantages and large addressable markets. We seek to avoid companies with rapid but unsustainable, short-term growth profiles.
  2. Deep, Specialized Team

  3. The Portfolio benefits from in-depth fundamental research, supported by a broad team of analysts, a team of small-mid-cap specialists, and a portfolio management team with experience in the mid-cap space.
  4. Growth Potential with Tempered Volatility

  5. Offering exposure to medium-sized companies with resilient business models, this equity portfolio is designed to weather a variety of market environments and take on moderately less risk than the index.

Featured Insights

Performance

RETURNS

(As of 06/30/2019)
(As of 07/31/2019)
Inception: Jan 01, 2006 3M YTD 1YR 3YR 5YR 10YR Since Inception
Composite Pure Gross* 6.56% 25.80% 17.99% 19.43% 15.21% 17.81% 12.10%
Composite Net 5.79% 24.01% 14.59% 15.99% 11.88% 14.42% 8.85%
Russell MidCap® Growth Index 5.40% 26.08% 13.94% 16.49% 11.10% 16.02% 9.82%
Inception: Jan 01, 2006 3M YTD 1YR 3YR 5YR 10YR Since Inception
Composite Pure Gross* 3.62% 27.51% 15.53% 18.38% 16.14% 16.94% 12.14%
Composite Net 2.87% 25.40% 12.19% 14.97% 12.79% 13.56% 8.88%
Russell MidCap® Growth Index 3.22% 29.03% 14.15% 15.51% 12.30% 15.41% 9.94%
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 06/30/19)

RISK / REWARD
VS. RUSSELL MIDCAP® GROWTH INDEX

3 YEAR 5 YEAR
Information Ratio 0.80 1.20
Alpha 4.53 5.05
Tracking Error 3.66 3.40
Beta 0.87 0.87
R-Squared (%) 94.07 94.54

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

3 YEAR 5 YEAR
Up Capture Ratio 100.15 102.64
Down Capture Ratio 80.04 77.80

STANDARD DEVIATION

3 YEAR 5 YEAR
Mid Cap Growth Managed Account 12.91 12.44
Russell MidCap® Growth Index 14.39 13.86

SHARPE RATIO

3 YEAR 5 YEAR
Mid Cap Growth Managed Account 1.40 1.15
Russell MidCap® Growth Index 1.05 0.74

Characteristics

Index represents the Russell MidCap® Growth Index.

TOP HOLDINGS

(As of 07/31/2019)

% of Rep Account
Boston Scientific Corp 2.96
Nice Ltd (ADR) 2.93
Global Payments Inc 2.90
Verisk Analytics Inc 2.78
WEX Inc 2.60
LPL Financial Holdings Inc 2.52
Microchip Technology Inc 2.45
Aon PLC 2.42
WR Berkley Corp 2.42
CoStar Group Inc 2.41
TOTAL 26.39

PORTFOLIO CHARACTERISTICS

(As of 07/31/19)

REP ACCOUNT INDEX
Number of Holdings
Equity Issues
54
399
Market Capitalization
Weighted Average
$19.67B
$18.17B
Portfolio Turnover Rate
(1-year trailing)
55.62%
-
Price/Earnings Ratio
(1-year forward)
24.88
30.01
Price/Book Ratio
(1-year forward)
5.31
9.28
Earnings Growth Rate
(1-year forward)
10.40%
12.37%

DEVELOPED VS. EMERGING MARKET

(As of 07/31/19)

% OF REP ACCOUNT % OF INDEX
U.S. 84.76 98.27
Non-U.S. Developed 9.01 1.08
Cash & Equivalents 6.23 -

SECTOR ALLOCATION

(As of 07/31/19)

% OF REP ACCOUNT % OF INDEX
Information Technology 35.73 33.38
Health Care 17.41 15.02
Industrials 15.74 16.74
Financials 11.16 4.46
Consumer Discretionary 7.12 15.20
Real Estate 4.17 2.76
Materials 1.64 2.83
Communication Services 0.80 5.13
Cash & Equivalents 6.23 -

MARKET CAPITALIZATION RANGE OF EQUITY HOLDINGS

(As of 07/31/2019)

% OF REP ACCOUNT % OF INDEX
$50B to $100B 7.49 1.95
$10B to $50B 50.83 71.45
$5B to $10B 28.99 23.93
$1B to $5B 6.46 2.66

REGIONAL ALLOCATION

(As of 07/31/19)

% OF REP ACCOUNT % OF INDEX
North America 88.07 98.27
Africa/Mideast 2.93 -
Asia/Pacific Ex Japan 1.97 1.13
Europe 0.80 0.60
Cash & Equivalents 6.23 -

Commentary & Literature

2Q19 Portfolio Commentary Highlights

  • The Portfolio outperformed its benchmark.
  • Stock selection in the technology and financial sectors contributed to relative performance.
  • Our stock selection in the materials and consumer discretionary sectors detracted from relative performance.

Read The Full Commentary