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: 40 to 60
Turnover: 30-to-50 percent
Benchmark: S&P 500 Index
Team
Jason Norris, CFA, lead
Alex Harding, CFA
Joe Herrle, CFA, CAIA
Krystal Daibes Higgins, CFA
Brad Houle, CFA
Peter Jones, CFA
Shawn Narancich, CFA
Updated annually. Data as of January 1, 2024.
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, lead
Alex Harding, CFA
Joe Herrle, CFA, CAIA
Krystal Daibes Higgins, CFA
Brad Houle, CFA
Peter Jones, CFA
Shawn Narancich, CFA
Updated annually. Data as of January 1, 2024.
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
Shawn Narancich, CFA, lead
Alex Harding, CFA
Krystal Daibes Higgins, CFA
Brad Houle, CFA
Peter Jones, CFA
Jason Norris, CFA
Updated annually. Data as of January 1, 2024.
Small-Cap Equity
Objectives
Seek “active” solutionsfor the small-cap space
Where appropriate, seek “passive” solutions for small caps
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
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, 2024.