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 September 30, 2019

Loews Corp. Financials 4.8%
BorgWarner, Inc. Cons. Discretionary 3.1
Post Holdings, Inc. Consumer Staples 2.8
Kirby Corp. Industrials 2.8
Discover Financial Services Financials 2.6
CubeSmart Real Estate 2.6
Willis Towers Watson PLC Financials 2.5
Red Rock Resorts, Inc. (Cl A) Cons. Discretionary 2.5
Liberty Media Corp. Series C Liberty Formula One Communication Services 2.4
UGI Corp. Utilities 2.4
Total As % Of Net Assets 28.6%
Total Number Of Equity Holdings 55

This is presented as supplemental information.

Sector Allocation1
As Of September 30, 2019

Mid Cap Composite Russell Midcap Index Russell Midcap Value Index
Financials 28.2% 13.3% 18.9%
Industrials 17.5 13.7 11.4
Cons. Discretionary 11.8 11.5 8.9
Consumer Staples 7.7 4.1 4.6
Real Estate 7.0 10.1 14.7
Materials 4.9 5.2 6.5
Info. Technology 3.8 17.2 7.2
Energy 3.4 3.8 5.5
Utilities 3.2 7.2 11.8
Communication
Services
2.4 4.1 3.6
Health Care 2.3 9.8 6.7
Cash & Other 7.8 0.0 0.0

This is presented as supplemental information.

Portfolio Characteristics Vs. Benchmark2

As Of September 30, 2019

Mid Cap Composite Russell Midcap Index Russell Midcap Value Index
Median Forward P/E 14.6x 19.2x 16.6x
Median Trailing P/E 16.0x 22.4x 19.2x
Weighted Average Dividend Yield 1.5% 1.7% 2.4%
Median Price / Book 1.9x 2.8x 2.2x
Median Price / Sales 1.6x 2.5x 2.0x
Median Market Cap. $8.0B $7.9B $7.5B
Weighted Average Market Cap. $11.6B $15.9B $15.0B
Portfolio Turnover 5 Year 25% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 94% / 92% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 91% / 94% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 99% / 96% —   —  

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 – 9/30/19.

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