Portfolio Guidelines

  • Typically 40–60 positions
  • Maximum position size is 7%
  • Top 10 holdings are typically greater than 25% of net assets
  • Maximum industry exposure is 20%
  • Maximum sector exposure is 30%

Market Capitalization

The portfolio typically invests at least 80% of its net assets in medium market capitalization
companies, defined as those companies with a market capitalization between $1.5 billion and
$20 billion (or, if greater, the maximum market capitalization of companies generally within
the capitalization range of the Russell Midcap Index) at the time of purchase.

Top Ten Equity Holdings
As Of June 30, 2019

Loews Corp. Financials 5.1%
NVR, Inc. Cons. Discretionary 3.0
BorgWarner, Inc. Cons. Discretionary 3.0
BankUnited, Inc. Financials 2.9
Willis Towers Watson PLC Financials 2.8
Post Holdings, Inc. Consumer Staples 2.8
Cimarex Energy Co. Energy 2.8
Boston Scientific Corp. Health Care 2.6
Kirby Corp. Industrials 2.6
UGI Corp. Utilities 2.6
Total As % Of Net Assets 30.2%
Total Number Of Equity Holdings 56

This is presented as supplemental information.

Sector Allocation1
As Of June 30, 2019

Mid Cap Composite Russell Midcap Index Russell Midcap Value Index
Financials 28.9% 13.1% 17.8%
Industrials 16.0 14.1 12.7
Cons. Discretionary 12.8 11.8 8.4
Real Estate 7.4 9.0 14.0
Consumer Staples 6.6 4.0 4.7
Materials 4.8 5.0 6.0
Info. Technology 4.2 19.2 9.0
Energy 4.0 3.6 5.4
Utilities 3.3 6.5 11.4
Health Care 2.6 10.2 7.1
Communication
Services
2.2 3.5 3.2
Cash & Other 7.1 0.0 0.0

This is presented as supplemental information.

Portfolio Characteristics Vs. Benchmark2

As Of June 30, 2019

Mid Cap Composite Russell Midcap Index Russell Midcap Value Index
Median Forward P/E 14.5x 19.0x 15.9x
Median Trailing P/E 16.4x 22.1x 19.4x
Weighted Average Dividend Yield 1.4% 1.7% 2.4%
Median Price / Book 2.0x 2.9x 2.2x
Median Price / Sales 1.5x 2.6x 2.0x
Median Market Cap. $7.6B $8.1B $7.4B
Weighted Average Market Cap. $12.4B $15.5B $14.5B
Portfolio Turnover 5 Year 20% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 95% / 93% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 89% / 92% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 98% / 95% —   —  

This is presented as supplemental information.

1 Cash & Other may include cash, treasuries, money market funds, and short duration fixed income funds

2 Source: FactSet.

3 Source: Morningstar Direct. Active share measures the difference between portfolio holdings and the benchmark. The higher the active share, the greater the difference.

4 The Russell Midcap Index is the core benchmark.

The Russell Midcap Value Index is the value benchmark.

Source: eVestment Analytics based on monthly returns (gross of fees) from 1/1/14 – 6/30/19.

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