investment STRATEGIES

EQUITIES

 


Core Equity

Core Equity

 

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
  • Benchmark: S&P 500 Index

Team

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

Updated annually. Data as of January 1, 2018.

 



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
Peter Jones, CFA

 

Updated annually. Data as of January 1, 2018.


 


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: MSCI ACWI ex US

Team

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

Updated annually. Data as of January 1, 2018.



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: 300 to 400
  • Turnover: 30-to-70 percent
  • Benchmarks: Russell 2000 Index

Team

Ralph Cole, CFA 
Patrick Yazhari

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, 2018.

 


Global Sustainable Investing


Objectives

 Global Sustainable Investing for equities 

Global Sustainable Investing for equities 

  • Generate returns in excess of the MSCI ACWI (All Country World Index)
  • Provide a diversified global equity strategy with exposure to U.S. large-cap, U.S. small-cap, developed and emerging markets
  • Consider environmental, social and governance factors alongside traditional financial analysis

Process

  • Overlay a screening tool to narrow the investment universe to a subset of companies that score well on environmental, social and governance (ESG) factors relative to peers
  • Evaluating the companies with attractive ESG characteristics, analysts take a relative value approach to identify stocks and bonds that are attractively ranked by our proprietary, multifactor valuation model
  • Sector managers only purchase companies that are believed to be strategically positioned to outperform their sector peers
  • Investment process applies to both equity and fixed-income securities

Characteristics

  • Composition: 90 percent individual securities
  • Positions: 50-to-70 stocks, 20-to-30 bonds
  • Turnover: 40 to 60 percent
  • Benchmark: MSCI ACWI for equities, Bloomberg Barclays Capital Aggregate for fixed income 
  • Tobacco, coal and civilian firearms manufacturers excluded

Team
Peter Jones, CFA
Jason Norris, CFA
Tara Kinateder

 

Updated annually. Data as of May 1, 2018