Mid Cap Value Managed Account

Defensive Mid-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 Portfolio

    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 60 to 90 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 09/30/2018)
(As of 09/30/2018)
Inception: Oct 01, 1998 3M YTD 1YR 3YR 5YR 10YR Since Inception
Composite Pure Gross* 2.47% 2.22% 7.69% 13.81% 10.35% 10.37% 13.57%
Composite Net 1.72% -0.02% 4.57% 10.52% 7.15% 7.17% 10.27%
Russell Midcap® Value Index 3.30% 3.13% 8.81% 13.09% 10.72% 11.29% 10.36%
Inception: Oct 01, 1998 3M YTD 1YR 3YR 5YR 10YR Since Inception
Composite Pure Gross* 2.47% 2.22% 7.69% 13.81% 10.35% 10.37% 13.57%
Composite Net 1.72% -0.02% 4.57% 10.52% 7.15% 7.17% 10.27%
Russell Midcap® Value Index 3.30% 3.13% 8.81% 13.09% 10.72% 11.29% 10.36%
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.
Perkins Mid Cap Value managed account net returns prior to 1/1/05 are presented net of custodial and trading fees. After 1/1/05 net returns are net of the maximum 3.00% fee.

RETURNS-BASED STATISTICS

(Composite As of 09/30/18)

RISK / REWARD
VS. RUSSELL MIDCAP® VALUE INDEX

3 YEAR 5 YEAR
Information Ratio 0.27 -0.13
Alpha 2.12 1.08
Tracking Error 2.67 2.82
Beta 0.88 0.86
R-Squared (%) 92.78 92.10

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

3 YEAR 5 YEAR
Up Capture Ratio 93.62 87.55
Down Capture Ratio 74.78 79.44

STANDARD DEVIATION

3 YEAR 5 YEAR
Mid Cap Value Managed Account 8.92 8.75
Russell Midcap® Value Index 9.76 9.78

SHARPE RATIO

3 YEAR 5 YEAR
Mid Cap Value Managed Account 1.46 1.13
Russell Midcap® Value Index 1.26 1.05

Characteristics

Index represents the Russell MidCap® Value Index.

TOP HOLDINGS

(As of 09/30/2018)

% of Rep Account
Equity LifeStyle Properties Inc 3.03
Lamar Advertising Co 2.93
Crown Holdings Inc 2.92
Equity Commonwealth 2.84
Casey's General Stores Inc 2.73
Graphic Packaging Holding Co 2.70
Evergy Inc 2.69
First Horizon National Corp 2.68
RenaissanceRe Holdings Ltd 2.48
Laboratory Corp of America Holdings 2.46
TOTAL 27.46

PORTFOLIO CHARACTERISTICS

(As of 09/30/18)

REP ACCOUNT INDEX
Number of Holdings
Equity Issues
58
594
Market Capitalization
Weighted Average
$10.06B
$14.97B
Portfolio Turnover Rate
(1-year trailing)
40.26%
-
Price/Earnings Ratio
(1-year forward)
18.78
19.08
Price/Book Ratio
(1-year forward)
3.12
2.53
Earnings Growth Rate
(1-year forward)
20.96%
16.69%

DEVELOPED VS. EMERGING MARKET

(As of 09/30/18)

% OF REP ACCOUNT % OF INDEX
U.S. 92.20 99.38
Non-U.S. Developed 2.78 0.29
Cash & Equivalents 5.02 -

SECTOR ALLOCATION

(As of 09/30/18)

% OF REP ACCOUNT % OF INDEX
Financials 21.72 17.54
Industrials 16.24 12.58
Materials 15.25 6.11
Real Estate 11.26 12.72
Energy 6.50 7.90
Consumer Staples 5.59 4.91
Information Technology 5.36 9.32
Consumer Discretionary 4.49 11.38
Utilities 4.39 10.08
Health Care 4.18 6.84
Cash & Equivalents 5.02 -

MARKET CAPITALIZATION RANGE OF EQUITY HOLDINGS

(As of 09/30/2018)

% OF REP ACCOUNT % OF INDEX
$10B to $50B 29.87 65.30
$5B to $10B 38.99 25.36
$1B to $5B 26.12 8.93

REGIONAL ALLOCATION

(As of 09/30/18)

% OF REP ACCOUNT % OF INDEX
North America 93.58 99.38
Africa/Mideast 1.40 -
Cash & Equivalents 5.02 -

Commentary & Literature