Download eagle us large cap value 1q 2017

EAGLE U.S. LARGE CAP VALUE
1Q 2017
PORTFOLIO HIGHLIGHTS
INVESTMENT STRATEGY1
Style: Equity objective offering large-cap stocks
We have a classic value style with a quality bias and avoid “deep value,” cheap stocks with poor
fundamentals, as well as “relative value,” high quality companies that are excessively priced
Benchmark: Russell 1000 Value
Number of Holdings: 38
Our process is opportunistic, unlocking value through companies that are misjudged, unpopular or
oversold
Capitalization Range: Greater than $5 billion
We identify well-defined catalysts: quality companies with a clear path to unlocking intrinsic value
Assets: $100.2 M
Our approach is adaptable: flexible stock-and-sector-oriented approach
Inception Date: July 1, 1996
OBJECTIVE
Seeks to build a well-diversified portfolio with a beta
below or equal to that of the Russell 1000 Value
Index, and provide long-term capital appreciation by
outperforming the Russell 1000 Value Index
PERFORMANCE2 (as of March 31, 2017)
INVESTMENT PHILOSOPHY
20%
The team employs a Value and Reasonable Growth
(VARG) approach to exploit value opportunities that
are created when multiple negative factors center on
a single stock.
15%
10%
FIRM OVERVIEW
• Assets under management and advisement: $34.6 billion in both separately managed accounts and mutual-fund platforms (as of March 31, 2017)
• Organized as a series of independent investment teams
• Headquartered in St. Petersburg, Fla., with investment offices in Stowe, Vt. and affiliate offices in San Diego and Toronto
PORTFOLIO MANAGERS
5%
0%
Since Inception
QTD
YTD
1 Year
3 Year
5 Year
10 Year
Eagle U.S. Large Cap Value (Gross)
3.25%
3.25%
18.71%
7.68%
13.29%
8.22%
9.06%
Eagle U.S. Large Cap Value (Net)
3.05%
3.05%
17.75%
6.76%
12.09%
6.59%
7.17%
Russell 1000 Value Index
3.27%
3.27%
19.22%
8.67%
13.13%
5.93%
8.83%
(7/1/1996)
CALENDAR-YEAR TOTAL RETURNS
Ed Cowart, CFA
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
• 45 years of investment experience
Eagle U.S. Large Cap Value (Gross)
13.23% -2.66% 14.36% 39.57% 14.58% -0.54% 13.93% 28.30% -30.09% 5.75%
17.80%
• A.B., Dartmouth College
Eagle U.S. Large Cap Value (Net)
12.27% -3.49% 13.32% 38.31% 12.15% -2.66% 11.42% 26.02% -31.34% 3.92%
15.80%
Russell 1000 Value Index
17.34% -3.83% 13.46% 32.54% 17.50%
0.39%
15.55% 19.69% -36.85% -0.17% 22.21%
David Blount, CFA, CPA
• 33 years of investment experience
• B.S. in finance, University of Florida
Harald Hvideberg, CFA
• 20 years of investment experience
• B.A. in economics and B.S. in
finance, University of South Florida
• M.B.A., University of Florida
This document and any investment to which this document relates is intended for the sole use of the persons to whom it is addressed,
being persons who are Eligible Counterparties or Professional Clients as described in the FCA Financial Conduct Authority rules or persons
described in Articles 19(5) (Investment professionals) or 49(2) (High net worth companies, unincorporated associations, etc.) of The
Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or any other person to whom this promotion may
lawfully be directed. It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons and may not be
relied upon by such persons and is therefore not intended for private individuals or those who would be classified as Retail Clients.
The performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor’s portfolio, when redeemed, may be worth more or less than the original cost. Current
performance may be lower or higher than the performance information quoted. To obtain current month-end performance information, please
call your Eagle sales representative.
FOR INSTITUTIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.
PORTFOLIO ANALYSIS (as of March 31, 2017)
PORTFOLIO CONSTRUCTION
TOP 10 HOLDINGS3
Microsoft
4.37
Typical number of holdings
JPMorgan Chase
4.05
Typical cash levels
Less than 5%
PNC Financial Services Group
3.80
Anticipated annual turnover
Less than 35%
Honeywell International
3.69
Wells Fargo
3.41
Allergan
3.28
Prologis
3.26
Zimmer Biomet Holdings
3.18
Citigroup
3.17
Ingersoll-Rand
3.16
Total % in top 10 holdings
PORTFOLIO STATISTICS
Alpha
35.37%
10 Years
2.24
Beta
1.01
30-50
PORTFOLIO CHARACTERISTICS
Eagle U.S. Large
Cap Value
Russell 1000
Value Index
Forward Price/Earnings4
16.04x
16.13x
Price Earnings/Growth
1.84x
1.59x
Price/Book4
2.32x
1.96x
1.91x
1.79x
10.96x
10.32x
Long-term EPS GrowthEstimate
9.61%
9.86%
Long-term Debt/Capital
45.82%
42.73%
4
Price/Sales4
Price/Cash Flow
4
5
5
Up-Market Capture
118.98
Dividend Yield
2.02%
2.35%
Down-Market Capture
96.54
Return on Equity6
12.67%
9.93%
Information Ratio
0.55
Active Share
79.41%
--
Residual Risk
4.09
Median market cap
$52.37 B
$8.31 B
Tracking Error
4.04
Wtd. average market cap
$128.04 B
$115.38 B
Batting Average
0.700
Source: FactSet, Eagle Research
4
weighted harmonic average 5 weighted average 6 Median
Source: CAL; Eagle Research
All data as of March 31, 2017
Not every investment opportunity will meet all of the stringent investment criteria mentioned to the same degree. Trade-offs must be made, which is where experience and judgment play a key role. Accounts are invested at the discretion of the portfolio manager and may take
up to 60 days to become fully invested.
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Performance Disclosures
Eagle Asset Management, Inc. is an investment adviser registered with the Securities and Exchange Commission and is engaged in providing discretionary management services to client accounts. Founded in 1976, Eagle Asset Management provides institutional and individual
investors with a broad array of equity and fixed income products via both separately managed account and mutual fund platforms.
A complete list and description of all of Eagle’s performance composites are available upon request by calling 800.235.3903.
The risks associated with Value investing are based on the potential for a company’s stock price to rise based upon anticipated changes in the market or within the company itself. As with all equity investing, there is the risk that a company will not achieve its expected earnings
results, or that an unexpected change in the market or within the company will occur, both of which may adversely affect investment results. Of course, other factors relating to a company or to general market conditions may also contribute to price declines. Value stocks have
historically been sensitive to economic cycles and investor sentiment that can affect volatility and risk. As with all equity investing, there is the risk that a company will not achieve its expected earnings results, or that an unexpected change in the market or within the company
will occur, both of which may adversely affect investment results. The biggest risk of equity investing is that returns can fluctuate and investors can lose money. Not every investment opportunity will meet all of the stringent investment criteria mentioned to the same degree.
Trade-offs must be made, which is where experience and judgment play a key role. Accounts are invested at the discretion of the portfolio manager and may take up to 60 days to become fully invested.
Past performance does not guarantee or indicate future results. No inference should be drawn by present or prospective clients that managed accounts will achieve similar performance in the future. Investment in a portfolio, investment manager or security should not be based
on past performance alone. Because accounts are individually managed, returns for separate accounts may be higher or lower than the average performance stated. Individual portfolio/performance results may vary due to market conditions, trading costs and certain other
factors, which may be unique to each account. There is no guarantee that these investment strategies will work under all market conditions, and each investor should evaluate their ability to invest for the long term, especially during periods of downturn in the market. Investing
involves risk and you may incur a profit or a loss. Investment returns and principal value will fluctuate so that an investor’s portfolio, when redeemed, may be worth more or less than their original cost. Diversification does not ensure a profit or guarantee against a loss.
All performance data is shown on a time-weighted and size-weighted basis and is shown before (gross) and after (net) the deduction of management fees, custodial fees and miscellaneous charges to client accounts; all performance is shown after transaction costs.
Calculations include reinvestment of all income and gains. Performance figures include all internal, retail Value accounts of Eagle Asset Management, a St. Petersburg, Florida-based firm. A client’s return will be reduced by the advisory fees. Eagle’s fees are set forth
in Eagle’s Form ADV, Part II. Over a period of five years, an advisory fee of 1 percent could reduce the total value of a client’s portfolio by 5 percent or more. Investing in equities may result in a loss of capital. Current performance may be lower or higher than the
performance information quoted.
Performance results through 2015 have been examined by an internationally recognized accounting firm. Performance data for the current year has not been audited and are subject to revision. Thus, the composite returns shown here may be revised and Eagle will publish any
revised performance data. Eagle believes that the performance shown is reasonably representative of its management style and is sufficiently relevant for consideration by a potential or existing client.
The definition of accounts included in the Eagle U.S. Large Cap Value Equity Composite is as follows:
Eagle U.S. Large Cap Value Equity Composite was re-defined January 1, 2013 to include all accounts managed in the Eagle U.S. Large Cap Value Equity income strategy including accounts where assets exceeded $2,000,000 and granted Eagle brokerage discretion for
executing portfolio transactions regardless of fee schedules. Prior to January 1, 2013 the composite was called the “Retail Large Cap Value Composite” and did not include accounts where accounts assets were greater than $2,000,000 (i.e. Institutional accounts).
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Holdings from a representative composite account. No inference should be drawn that Value portfolios will hold these stocks in the future. References to specific securities are not intended as representative of past recommendations by Eagle.
Index Definition
The Russell 1000 Value Index measures the performance of the large-cap value segment of the U.S. equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values. Index returns do not reflect the deduction of fees,
trading costs or other expenses. The index is referred to for comparative purposes only and the composition of an index is different from the composition of the accounts included in the performance shown. Indices are unmanaged and one cannot invest directly in the index.
© 2017, Eagle Asset Management, Inc. All rights reserved. E0119 exp. 7/31/17
880 Carillon Parkway | St. Petersburg, Florida 33716 | 800.235.3903 | International: +1.727.567.6561 | eagleasset.com