The primary objective of the Dynamic Growth Portfolio is to achieve high levels of long-term capital appreciation. We invest in a diversified portfolio of common stocks, with an emphasis placed on companies that are benefiting from sustainable above-average growth trends. The portfolio will have exposure to more small- and mid-cap companies, as these companies tend to have more attractive growth profiles than large-cap companies. Income is not an objective in this portfolio.
| Market Capitalization |
$62,900 |
$77,900 |
| Yield |
0.9% |
1.5% |
| Beta |
1.1 |
0.9 |
| Long-Term Earnings Growth |
13.0% |
12.0% |
| Forward Price Earnings Ratio |
16.5 |
15.5 |
|
As of December 31, 2009 |
This portfolio is expected to have above-average growth prospects, greater return expectations and higher volatility than the Standard & Poor's 500 Index (S&P 500). Expectations are for this portfolio to outperform its benchmark in a rising market as well as over a full market cycle.
Clients interested in a portfolio with a higher risk-return profile than the S&P 500 exhibits.
The Dynamic Growth Portfolio places emphasis on bottom-up fundamental analysis and stock selection. The portfolio may not align closely with the sector weights in the S&P 500. The portfolio - not each individual stock - will emphasize companies that are expected to grow faster than the market, yet are selling at reasonable valuations based on earnings, cash flows, returns on capital and intrinsic value. Valuation measures may vary between companies and industries. All companies must exhibit the potential for sustainable or expanding growth. The portfolio will generally have the following broad characteristics relative to the S&P 500:
- Higher anticipated earnings growth
- Lower dividend yield
- Lower average market cap
- Higher volatility
- Higher valuation