investment STRATEGIES

EQUITIES

 


Core Equity

Core Equities

 

Objectives

  • Consistently generate returns in excess of the S&P 500 while experiencing similar or less risk
  • Provide a diversified equity strategy that has exposure to large-cap value, growth and mid-capitalization stocks

Process

  • The Investment Policy Committee takes a top-down approach to determine sector weighting relative to the S&P 500 based on macroeconomic environment and input from sector specialists
  • Sector weights may range from +4 percent to -4 percent relative to the S&P 500
  • Sector specialists take a bottom-up, relative value approach to identify stocks that are attractively ranked by our proprietary, multi-factor valuation model. Ultimately, sector managers only purchase companies that are ranked in the top two multi-factor quintiles, and are believed to be strategically best positioned to outperform their sector peers.

Characteristics

  • Composition: U.S. equities with market capitalization more than $1.5 billion
  • Positions: 50 to 70
  • Turnover: 50 to 60 percent
  • Benchmarks: S&P 500 Index

Team

George Hosfield, CFA
Brad Houle, CFA
Ralph Cole, CFA
Shawn Narancich, CFA
Jason Norris, CFA
James Rudd

Updated annually. Data as of January 1, 2016.

 



Large-Cap Dividend Value

Large-Cap Dividend Value

Objectives

  • Value strategy
  • Total return above benchmark with less volatility and above average cash flows  
  • Inclusion of dividend-paying stocks in client portfolios

Process

  • Seek companies with strong cash flow growth, high return-on-equity and attractive valuations

Characteristics

  • Composition: Dividend-paying equities that have the ability to increase at above-average rates and/or pay a significant special dividend
  • Positions: 35 to 45 
  • Turnover: 30 to 40 percent
  • Benchmarks: Russell 1000 Value Index

Team

Jason Norris, CFA
Shawn Narancich, CFA
Ralph Cole, CFA
Brad Houle, CFA

Updated annually. Data as of January 1, 2016.


 


International Equity

International Equity

Objectives

  • Provide access to both emerging and developed international markets
  • Consistently outperform the benchmark over a market cycle

Process

  • Using a team approach we allocate capital based on regional and sector opportunities
  • We then employ sector specialists to identify stocks that are best positioned on a fundamental basis to outperform their peers

Characteristics

  • Composition: Primarily high quality, large-cap American Depository Receipts (ADRs) from both developed and emerging countries. Also include international small-cap equity and emerging markets through emerging market and small-cap mutual funds
  • Positions: 35 to 45
  • Turnover: 30 to 40 percent
  • Benchmark: MSCIACWI ex US

Team

Ralph Cole, CFA
Brad Houle, CFA
Shawn Narancich, CFA
Jason Norris, CFA
James Rudd

Updated annually. Data as of January 1, 2016.



Small-Cap Equity

Objectives

  • Seek “active” solutions, such as JPMorgan U.S. Small Company Fund, for the small-cap space
  • Where appropriate, seek “passive” solutions for small caps, such as the iShares Russell 2000 Index Fund
  • Employ funds that consistently beat the benchmark with equal to or less volatility

Process

  • We consistently review small capitalization mutual funds that employ fundamental analysis to generate excess returns to the Russell 2000 index with lower fees than the average small-cap fund peer group

Characteristics

  • Composition: U.S.-based micro, small and mid-capitalization equities
  • Positions: 50 to 100
  • Turnover: 30 to 70 percent
  • Benchmarks: Russell 2000 Index

Team

Ralph Cole, CFA 
Peter Jones, CFA

For our small-cap equity strategy, Ferguson Wellman partners with firms that have been vetted through our investment team and our compliance parameters.

Updated annually. Data as of January 1, 2016.