Portfolio Guidelines

  • Typically 50–70 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 in small- and mid-capitalization companies defined as those companies with a market capitalization between $500 million and $10 billion (or if greater, the maximum market capitalization of companies generally within the capitalization range of the Russell 2500 Index), at the time of purchase.

Top Ten Equity Holdings
As Of December 31, 2018

Willis Towers Watson PLC Financials 4.3%
Post Holdings, Inc. Consumer Staples 3.4
UGI Corp. Utilities 3.2
Cimarex Energy Co. Energy 3.0
BankUnited, Inc. Financials 3.0
Boston Scientific Corp. Health Care 2.8
Red Rock Resorts, Inc. (Cl A) Cons. Discretionary 2.7
BorgWarner, Inc. Cons. Discretionary 2.7
Kirby Corp. Industrials 2.6
American Campus Communities, Inc. Real Estate 2.6
Total As % Of Net Assets 30.3%
Total Number Of Equity Holdings 63

This is presented as supplemental information.

Sector Allocation1
As Of December 31, 2018

Small-Mid Cap Composite Russell 2500 Index Russell 2500 Value Index
Financials 27.3% 15.8% 23.3%
Industrials 14.9 15.0 13.5
Cons. Discretionary 12.5 11.4 8.3
Real Estate 9.1 10.0 16.0
Consumer Staples 8.7 2.8 3.3
Info. Technology 7.8 16.1 9.0
Energy 4.1 3.2 5.0
Utilities 3.7 4.1 7.5
Materials 3.3 5.3 5.9
Health Care 2.8 13.0 5.0
Communication
Services
2.6 3.3 3.2
Cash & Other 3.3 0.0 0.0

This is presented as supplemental information.

Portfolio Characteristics Vs. Benchmark2

As Of December 31, 2018

Small-Mid Cap Composite Russell 2500 Index Russell 2500 Value Index
Median Forward P/E 12.9x 14.9x 13.4x
Median Trailing P/E 15.4x 16.5x 15.1x
Weighted Average Dividend Yield 1.7% 1.8% 2.6%
Median Price / Book 1.8x 1.8x 1.4x
Median Price / Sales 1.4x 1.9x 1.6x
Median Market Cap. $4.8B $1.0B $0.9B
Weighted Average Market Cap. $7.7B $4.4B $4.3B
Portfolio Turnover 5 Year 23% —   —  
Active Share3 vs. Core4 / Value5 Benchmark 95% / 93% —   —  
Upside/Downside Capture Ratio6 vs. Core Benchmark4 91% / 88% —   —  
Upside/Downside Capture Ratio6 vs. Value Benchmark5 94% / 88% —   —  

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 2500 Index is the core benchmark.

The Russell 2500 Value Index is the value benchmark.

6 Source: eVestment Analytics based on monthly returns (gross of fees) from 1/1/06 – 12/31/18.

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