Download Large Cap Strategies

Large Cap Strategies
June 30, 2017
Objective
Strategy
The Large Cap Strategies portfolio seeks long-term
capital appreciation.
A team of Bessemer professionals oversees the portfolio, which combines different but complementary investment strategies. Sands Capital
invests in earlier-stage companies that are experiencing rapid growth through superior products or services. Bessemer Large Cap – Global and
Harding Loevner emphasize companies with established competitive advantage achieving high and sustainable returns on operating capital, but
with more moderate growth. While Bessemer Large Cap – Global is mostly focused on developed markets, Harding Loevner specializes in
emerging markets. Bessemer Large Cap – U.S. focuses on companies in the U.S. selling at low valuations where there are prospects for recovery.
Finally, Bessemer’s Managed Volatility Equities (MVE) is a quantitative lower-volatility strategy that narrows down the global equity universe to
find companies that are attractive based on valuation, management quality, and company-specific risk; the portfolio is then constructed to
achieve average volatility that is lower than the benchmark.
Portfolio Characteristics
Number of Holdings
Weighted Average Market Cap ($Bn)
Price-to-Earnings
Price-to-Book
Portfolio
437
$117.3
19.0x
2.9x
Benchmark1
1,195
$135.1
16.4x
2.2x
Portfolio
14.7%
13.3%
6.1%
15.5%
11.3%
9.3%
2.5%
0.3%
20.5%
2.0%
0.6%
3.9%
1
Benchmark
11.2%
10.3%
6.5%
19.5%
12.1%
9.6%
4.1%
2.2%
17.9%
3.7%
2.8%
–
Portfolio
9.9%
2.8%
0.89
Benchmark1
10.7%
0.0%
1.00
Sector Weights
Consumer Discretionary
Consumer Staples
Energy
Financials
Healthcare
Industrials
Materials
Real Estate
Technology
Telecom
Utilities
Cash
Highlights
•
Large Cap Strategies has an overweight position in technology companies due both to the identified growth potential of certain
emergent companies and the strong market positions of a select number of established companies.
•
The portfolio is overweight U.S. and emerging markets, while being underweight developed Europe.
•
The portfolio is underweight the telecom and utilities sectors, which are capital intensive and lack pricing power.
Regional Weights
U.S.
Developed Europe
Japan
Other Developed Markets
Emerging Markets
Cash
Currency Exposure
Portfolio
58.4%
16.4%
3.7%
3.9%
13.6%
3.9%
Benchmark1
54.3%
20.4%
7.1%
6.9%
11.4%
0.0%
64%
8%
4%
4%
4%
3%
2%
2%
2%
9%
U.S. Dollar
Euro
British Pound
Japanese Yen
Hong Kong Dollar
Indian Rupee
Swiss Franc
Swedish Krona
South Korean Won
Other²
Risk Statistics
Standard Deviation
Tracking Error
Beta
Above risk statistics are based on a 3-year time frame.
1The MSCI All Country World Large Cap Index is comprised of large-capitalization stocks in 23 developed and 23 emerging market countries. With close to 1,200 constituents, the index covers approximately 70% of the free float-adjusted market capitalization in
each country.
2 Other
includes: Argentine Peso, Australian Dollar, Brazilian Real, Canadian Dollar, Chilean Peso, Chinese Renminbi, Colombian Peso, Czech Koruna, Danish Krone, Egyptian Pound, Hungarian Forint, Indonesian Rupiah, Mexican Peso, Norwegian Krone, Phillipines
Peso, Polish Zloty, Russian Ruble, Singapore Dollar, South African Rand, Taiwan Dollar, Thailand Baht, and Turkish Lira. Currency exposures may not total 100% due to rounding.
Market capitalization is the market value of a company’s outstanding shares. Price-to-earnings ratio is the share price divided by the earnings per share, which is based on consensus earnings estimates for the next fiscal year.
Price-to-book ratio is the price per share divided by the book value per share. Standard Deviation: A measure of dispersion of a set of data from its mean.
Tracking Error: A measure of the divergence between a portfolio and its benchmark. Beta: Represents the systematic risk of a portfolio and measures its sensitivity to a benchmark.
MSCI data provided “AS IS” without warranty or liability. No further distribution or dissemination is permitted. MSCI does not make any representation regarding the advisability of any investment and does not sponsor, promote, issue, sell or otherwise
recommend or endorse any investment (including any financial products based on, tracking or otherwise utilizing any MSCI data, models, analytics or other materials or information).
Data and holdings reflect the Old Westbury Large Cap Strategies Fund as of June 30, 2017. Distributed by Foreside Funds Distributors LLC.
Source: FactSet; Standard & Poor’s; MSCI; Harding Loevner LP; Sands Capital Management LLC; Bessemer Investment Management LLC, a member of the Bessemer Trust group of companies.
Large Cap Strategies
Adviser/Sub-Adviser Allocation
Large Cap – U.S.
Bessemer
Geographical Exposure
Top 10 Holdings
Top 5 Sectors
U.S.
Developed
Emerging
Apple
Oracle
Philip Morris International
PepsiCo
Johnson & Johnson
UnitedHealth
Allergan
JPMorgan Chase
Qualcomm
Mondelez
Technology
Healthcare
Consumer Staples
Financials
Consumer Discretionary
99.8%
0.0%
0.0%
Key Themes
• Overweight several consumer cyclicals with
strong cash flow generation
• Overweight undervalued healthcare
companies with steady growth outlooks and
durable cash flows
• Recovery situations with strong business
franchises under new management
Price-to-Earnings Ratio
Earnings-per-Share Growth Rate
Percent of Portfolio
16.1x
8.5x
25.8%
Large Cap – Global
Bessemer
June 30, 2017
Large Cap – Global Growth
Sands Capital
Large Cap – Managed Vol. Equities
Bessemer
Large Cap – Emerging Markets
Harding Loevner
45.9%
U.S.
43.1%
Developed
11.0%
Emerging
RELX NV
U.S. Bancorp
Mastercard
Texas Instruments
Nestle S.A.
Alphabet
Tencent Holdings
Nomura Research Institute
Becton, Dickinson and Company
Sampo
Technology
Financials
Industrials
Consumer Staples
Consumer Discretionary
• Overweight high-return consumerfacing companies with strong brands
• Underweight commodity-related stocks
with low barriers to entry
• Invested in technology companies with
high barriers to entry and recurring
revenue streams
56.7%
U.S.
14.0%
Developed
29.2%
Emerging
Alibaba
Facebook
Priceline
Visa
HDFC
Amazon
Charles Schwab
Regeneron Pharma
Workday
Baidu
Consumer Discretionary
Technology
Healthcare
Financials
Consumer Staples
• Overweight faster-growing global
technology companies
• Invested in a number of
biotechnology and healthcare
technology companies
• Underweight banks
64.6%
U.S.
18.8%
Developed
16.6%
Emerging
Darden Restaurants
CBOE Holdings
Annaly Capital
Quest Diagnostics
Wal-Mart Stores
Waste Management
Clorox
Vail Resorts
Republic Services
Conagra Brands
Technology
Consumer Discretionary
Financials
Consumer Staples
Industrials
• Security selection based on specific
fundamental quantitative factors and minimizing
volatility at the portfolio level
• Devloped-market holdings mostly in Japan
and Asia ex-Japan rather than Europe
• Overweight consumer staples,
telecommunications, and utilities companies
U.S.
1.1%
Developed
12.2%
Emerging
86.6%
Samsung
Taiwan Semiconductor
Tencent
AIA Group
Sberbank Russia
Maruti Suzuki India
LUKOIL
Grupo Financiero Banorte
PT Bank Rakyat Indonesia
Axis Bank
Financials
Technology
Consumer Discretionary
Industrials
Consumer Staples
• Overweight emerging-market technology
companies mainly in Asia
• Largest weighting is in financials but well
below the benchmark
• Overweight healthcare and consumerfacing sectors
20.1x
11.2x
48.6%*
34.4x
25.4x
13.2%
16.3x
12.1x
6.8%
15.8x
20.6x
5.6%
The value of an investment in the Fund will fluctuate, which means that an investor could lose the principal amount invested. Investing in emerging and foreign markets may involve additional risks such as economic and political instability, market
illiquidity, and currency volatility. Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales. The use of derivative instruments involves significant risks, and losses may
occur.
Investors should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. The Fund’s prospectus, which can be obtained by calling 800-607-2200, contains this and other important information about the Fund and
should be read carefully before investing.
Sector and Industry classifications included in this presentation utilize the Global Industry Classification Standard (“GICS®”). GICS® is the exclusive property and a service mark of Morgan Stanley Capital International Inc. (“MSCI”) and Standard & Poor’s
(“S&P”), a division of The McGraw-Hill Companies, Inc. Neither MSCI nor S&P makes any express or implied warranties or representations or shall have any liability for any direct, indirect, special, punitive, consequential, or any other damages (including
lost profits) with respect to GICS® data or results obtained therefrom.
Top holdings are listed in order of weight within each strategy. The earnings per share growth rate is a consensus of 3- to 5-year earnings per share growth rate and represents a weighted average of the Fund’s holdings.
*Includes cash and exchange-traded funds.
This material is provided for your general information. The mention of a particular security is not intended to represent a stock-specific recommendation. Views expressed are subject to change without notice.
Source: FactSet; Standard & Poor’s; Harding Loevner LP; Sands Capital Management LLC; Bessemer Investment Management LLC, a member of the Bessemer Trust group of companies.