For Financial Professionals in the US

Mid Cap Value Managed Account

Defensive-minded specialists aiming to identify undervalued mid-cap opportunities

Overview

ABOUT THIS PORTFOLIO

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 THIS PORTFOLIO

Attractive Reward/Risk
Our disciplined valuation process measures downside risk before upside potential and invests in securities with favorable reward/risk ratios.

High-Conviction Process
The portfolio typically holds between 60 to 90 stocks with business fundamentals considered more important than fluctuations in the wider economy.

Different Than the Benchmark
The benchmark is not used as a starting point for portfolio construction, which should lead to high active share.

PORTFOLIO MANAGEMENT

Kevin Preloger

Kevin Preloger

Portfolio Manager, Team Leader

Industry since 1997. Joined Firm in 2002.

Justin Tugman, CFA

Justin Tugman, CFA

Portfolio Manager, Team Leader

Industry since 2000. Joined Firm in 2004.

Performance

RETURNS (%) (As of 12/31/2022)
Composite Pure Gross* Composite Net Russell Midcap® Value Index
 
3M YTD 1YR 3YR 5YR 10YR Since Inception
(10/01/1998)
Composite Pure Gross* 11.95 -4.96 -4.96 5.10 5.78 9.60 12.26
Composite Net 11.15 -7.75 -7.75 2.03 2.70 6.42 8.99
Russell Midcap® Value Index 10.45 -12.03 -12.03 5.82 5.72 10.11 9.58

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 or 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.

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 (%) (As of 02/28/2023)
Composite Pure Gross* Composite Net Russell Midcap® Value Index
 
3M YTD 1YR 3YR 5YR 10YR Since Inception
(10/01/1998)
Composite Pure Gross* 0.24 4.83 1.88 10.99 7.45 9.43 12.38
Composite Net -0.50 4.33 -1.10 7.77 4.33 6.25 9.12
Russell Midcap® Value Index -0.70 4.62 -3.42 11.96 7.27 9.62 9.72

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 or 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.

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.
Calendar Year Returns (%)
Mid Cap Value Managed Account Russell Midcap® Value Index
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Mid Cap Value Managed Account -4.96 20.57 1.30 31.00 -12.91 14.65 20.82 -1.77 9.29 26.94
Russell Midcap® Value Index -12.03 28.34 4.96 27.06 -12.29 13.34 20.00 -4.78 14.75 33.46

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 or 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.

Calendar Year Returns (%)
Mid Cap Value Managed Account Russell Midcap® Value Index
2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Mid Cap Value Managed Account -4.96 20.57 1.30 31.00 -12.91 14.65 20.82 -1.77 9.29 26.94
Russell Midcap® Value Index -12.03 28.34 4.96 27.06 -12.29 13.34 20.00 -4.78 14.75 33.46

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 or 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.

RETURNS-BASED STATISTICS (Composite As of 12/31/2022)

RISK / REWARD
VS. Russell Midcap® Value Index		 3YR 5YR
Information Ratio -0.14 0.01
Alpha -0.19 0.55
Tracking Error 5.35 4.40
Beta 0.85 0.87
R-squared (%) 96.83 96.77
UP/DOWN MARKET CAPTURE (%)
VS. Russell Midcap® Value Index		 3YR 5YR
Up Capture Ratio 83.84 88.07
Down Capture Ratio 87.49 88.41
STANDARD DEVIATION 3YR 5YR
Mid Cap Value Managed Account 21.38 18.94
Russell Midcap® Value Index 24.79 21.42
SHARPE RATIO 3YR 5YR
Mid Cap Value Managed Account 0.21 0.24
Russell Midcap® Value Index 0.21 0.21

Portfolio

Index represents the Russell Midcap® Value Index.

Top Holdings (As of 02/28/2023)
% of Rep Account
Laboratory Corp of America Holdings 2.43
Hartford Financial Services Group Inc 2.28
Baker Hughes Co 2.21
Equity LifeStyle Properties Inc 2.06
Cardinal Health Inc 2.05
AutoZone Inc 1.98
MSC Industrial Direct Co Inc 1.98
State Street Corp 1.93
Entergy Corp 1.91
Alliant Energy Corp 1.91
Total 20.74
View full holdings
Portfolio Characteristics (As of 02/28/2023)
  REP ACCOUNT INDEX
Number of Holdings
Equity Issues		 75 698
Market Capitalization
Weighted Average		 $20.79B $19.50B
Portfolio Turnover Rate
(1-year trailing)		 52.53% -
Price/Earnings Ratio
(1-year forward)		 14.70 14.47
Price/Book Ratio
 2.42 2.14
Earnings Growth Rate
(1-year forward)		 8.80% 11.49%
Sector Allocation % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 02/28/2023)
Regional Allocation % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 02/28/2023)
Market Capitalization Range of Equity Holdings % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 02/28/2023)
Developed vs Emerging Markets % OF REP ACCOUNT % of Index % OF REP ACCOUNT % of Index (As of 02/28/2023)

Documents

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