Portfolio Guidelines

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

Market Capitalization

The portfolio typically invests in large-capitalization companies with a market capitalization of $5 billion or greater.

Top Ten Equity Holdings
As Of September 30, 2018

Abbott Laboratories Health Care 4.5%
Citigroup, Inc. Financials 4.2
Aetna, Inc. Health Care 3.5
Alphabet, Inc. (Cl A) Communication Services 3.4
Discover Financial Services Financials 3.3
Berkshire Hathaway, Inc. (Cl B) Financials 3.1
United Technologies Corp. Industrials 3.1
TJX Cos., Inc. Cons. Discretionary 3.0
MetLife, Inc. Financials 2.9
Microsoft Corp. Info. Technology 2.8
Total As % Of Net Assets 33.8%
Total Number Of Equity Holdings 50

Sector Allocation1
As Of September 30, 2018

Large Cap Composite Russell 1000 Index Russell 1000 Value Index
Financials 26.3% 13.4% 22.8%
Health Care 17.7 14.5 15.2
Communication
Services
10.7 9.4 6.8
Cons. Discretionary 9.9 10.9 6.2
Industrials 9.4 10.0 8.1
Consumer Staples 8.2 5.8 6.2
Info. Technology 7.6 21.3 9.8
Energy 4.7 5.8 10.8
Materials 3.5 2.8 3.9
Real Estate 0.0 3.3 4.6
Utilities 0.0 2.8 5.6
Cash & Other 2.0 0.0 0.0

Portfolio Characteristics Vs. Benchmark2

As Of September 30, 2018

Large Cap Composite Russell 1000 Index Russell 1000 Value Index
Median Forward P/E 17.6x 19.0x 17.1x
Median Trailing P/E 18.7x 23.1x 21.0x
Weighted Average Dividend Yield 1.6% 1.8% 2.4%
Median Price / Book 3.7x 3.2x 2.3x
Median Price / Sales 2.5x 2.6x 2.2x
Median Market Cap. $65.4B $10.8B $9.8B
Weighted Average Market Cap. $171.5B $218.1B $120.4B
Portfolio Turnover 5 Year 24% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 79% / 79% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 105% / 93% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 105% / 91% —   —  

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 1000 Index is the core benchmark.

5 The Russell 1000 Value Index is the value benchmark.

6 Source: eVestment Analytics based on monthly returns (gross of fees) from 7/1/01 – 9/30/18.

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