To seek levels of total return higher than the S&P 500 by owning a diversified portfolio of companies that have sound, sustainable growth in earnings and cash flows. The Growth Portfolio is expected to have a higher growth profile than the index.
| Market Capitalization |
$95,243 |
$111,876 |
| Yield |
1.6% |
1.9% |
| Beta |
1.02 |
1.00 |
| Long-Term Future Earnings Growth |
16.0% |
11.0% |
| Forward Price Earnings Ratio |
13.1 |
13.3 |
|
As of March 31, 2012 |
The portfolio is expected to have superior returns and moderately higher volatility than the S&P 500 Index. The investment philosophy should position this portfolio to outperform the benchmark over a complete market cycle.
Clients that are willing to accept higher levels of volatility than the S&P 500 Index. Portfolio turnover is expected to be 30-50%.
Emphasis in the portfolio will be placed on bottom up fundamental analysis and stock selection. Sector allocation will not be a critical factor in security selection. The portfolio may not align closely with the sector weights in the S&P 500 Index.
The portfolio will emphasize both large and mid-cap companies that exhibit sound, sustainable growth business models. Companies owned in the Growth Portfolio will have solid, identifiable growth drivers, including sales growth, earning and cash flow growth, stable or improving margins, and market share growth. Growth businesses will be divided into three categories: Consistent Growth, Dynamic Growth, and Cyclical Growth. Valuation measures may vary between companies and industries.
No sector will comprise more than 30% of the portfolio. The portfolio expects to own between 40 and 60 names at any given time.
The portfolio will have the following characteristics relative to the S&P 500 Index:
- Higher earnings and revenue growth
- Lower dividend yield
- Higher valuation
- Lower market cap
- Higher standard deviation
- Higher returns on equity