The objective of the Equity Income Portfolio is primarily to protect, and secondarily, to enhance the purchasing power of capital over the long-term. The Equity Income Portfolio includes a widely-diversified group of common stocks consisting of high-quality large- and mid-sized companies. Common stock equivalents, such as convertible securities or high-yield bond funds, may also be utilized to supplement the common stock portfolio.
| Market Capitalization |
$74,500 |
$81,900 |
| Yield |
2.6% |
1.9% |
| Beta |
0.9 |
1.0 |
| Long-Term Earnings Growth |
9.0% |
10.0% |
| Forward Price Earnings Growth |
14.1 |
14.4 |
|
As of December 31, 2009 |
The volatility of the portfolio is expected to be less than that of Standard & Poor's 500 Index (S&P 500), with expectations to outperform the S&P 500 in a bear market cycle.
Clients interested in a portfolio with lower expected risk than the S&P 500.
The Equity-Income Investment Portfolio strives to meet its investment objective with solid fundamental research, careful security selection and diversification. In the security selection process, current dividend yield, dividend growth and potential for long-term capital appreciation are considered. The strategy’s management team focuses on evaluating the prospects of individual companies, including future earnings, cash flow, and dividends. Companies are selected with an emphasis on financial strength. We tailor the valuation methodology to suit the nature of the particular business being valued. The investment strategy – not each individual stock – will generally have the following broad characteristics relative to the S&P 500:
- Lower volatility
- Higher dividend yield
- Higher quality
- Lower valuation