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 03/31/2019)
(As of 03/31/2019)
Inception: Oct 01, 1998 3M YTD 1YR 3YR 5YR 10YR Since Inception
Composite Pure Gross* 14.25% 14.25% 1.69% 9.75% 7.68% 13.62% 13.07%
Composite Net 13.44% 13.44% -1.28% 6.57% 4.55% 10.33% 9.78%
Russell Midcap® Value Index 14.37% 14.37% 2.89% 9.50% 7.22% 16.39% 9.95%
Inception: Oct 01, 1998 3M YTD 1YR 3YR 5YR 10YR Since Inception
Composite Pure Gross* 14.25% 14.25% 1.69% 9.75% 7.68% 13.62% 13.07%
Composite Net 13.44% 13.44% -1.28% 6.57% 4.55% 10.33% 9.78%
Russell Midcap® Value Index 14.37% 14.37% 2.89% 9.50% 7.22% 16.39% 9.95%
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 03/31/19)

RISK / REWARD
VS. RUSSELL MIDCAP® VALUE INDEX

3 YEAR 5 YEAR
Information Ratio 0.09 0.16
Alpha 0.58 0.96
Tracking Error 2.54 2.69
Beta 0.96 0.92
R-Squared (%) 95.49 95.11

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

3 YEAR 5 YEAR
Up Capture Ratio 93.49 90.93
Down Capture Ratio 87.17 84.12

STANDARD DEVIATION

3 YEAR 5 YEAR
Mid Cap Value Managed Account 11.73 11.35
Russell Midcap® Value Index 11.94 12.04

SHARPE RATIO

3 YEAR 5 YEAR
Mid Cap Value Managed Account 0.73 0.61
Russell Midcap® Value Index 0.70 0.54

Characteristics

Index represents the Russell MidCap® Value Index.

TOP HOLDINGS

(As of 03/31/2019)

% of Rep Account
Equity LifeStyle Properties Inc 3.74
Evergy, Inc. 3.15
Equity Commonwealth 3.02
RenaissanceRe Holdings Ltd 2.89
Lamar Advertising Co 2.79
M&T Bank Corp 2.71
Graphic Packaging Holding Co 2.65
Hartford Financial Services Group Inc 2.61
Laboratory Corp of America Holdings 2.53
First Horizon National Corp 2.51
TOTAL 28.60

PORTFOLIO CHARACTERISTICS

(As of 03/31/19)

REP ACCOUNT INDEX
Number of Holdings
Equity Issues
58
589
Market Capitalization
Weighted Average
$11.12B
$14.96B
Portfolio Turnover Rate
(1-year trailing)
41.31%
-
Price/Earnings Ratio
(1-year forward)
17.16
19.18
Price/Book Ratio
(1-year forward)
3.62
2.46
Earnings Growth Rate
(1-year forward)
7.18%
2.68%

DEVELOPED VS. EMERGING MARKET

(As of 03/31/19)

% OF REP ACCOUNT % OF INDEX
U.S. 92.83 99.25
Non-U.S. Developed 2.35 0.31
Cash & Equivalents 4.82 -

SECTOR ALLOCATION

(As of 03/31/19)

% OF REP ACCOUNT % OF INDEX
Financials 24.15 17.13
Real Estate 16.11 14.48
Industrials 15.08 12.12
Materials 12.24 5.97
Utilities 7.45 11.38
Information Technology 6.65 8.94
Energy 3.98 6.06
Health Care 3.40 7.12
Consumer Staples 3.14 4.99
Consumer Discretionary 2.98 8.74
Cash & Equivalents 4.82 -

MARKET CAPITALIZATION RANGE OF EQUITY HOLDINGS

(As of 03/31/2019)

% OF REP ACCOUNT % OF INDEX
$10B to $50B 42.76 65.52
$5B to $10B 27.72 24.29
$1B to $5B 24.70 10.15

REGIONAL ALLOCATION

(As of 03/31/19)

% OF REP ACCOUNT % OF INDEX
North America 93.95 99.25
Africa/Mideast 1.23 -
Cash & Equivalents 4.82 -

Commentary & Literature

1Q19 Portfolio Commentary Highlights

  • The Portfolio captured most of the benchmark’s upside, led by positive stock selection.
  • Materials and consumer discretionary stocks contributed most to relative performance.
  • We continue to focus on stocks with strong balance sheets and durable competitive advantages trading at attractive valuations.

Read The Full Commentary