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High Quality Dividend Yield
US Equity All Cap
Fact Sheet Q3 2014
Investment Approach
Our strategy begins by seeking companies with sustainable or
growing dividend payouts. From there, we take a viewpoint beyond yield, favoring companies with strong cash flow growth and
avoiding highly leveraged companies. The result is a portfolio that
is positioned to capture capital appreciation as well as yield.
The Portfolio Offers
Objective:
The High Quality Dividend Yield is for investors who want an
equity income portfolio that avoids the undue risks often associated with dividend investing. The strategy invests in equities that not
only pay dividends but also are able to sustain and even potentially grow those dividends in the future. We believe this is a prudent
approach to providing dividend income and captital growth.
Experience:
The strategy is guided by our core beliefs about dividend-focused
investing, which are supported by our research and investment
experience.
Top 10 Holdings
Company
Industry
Intel Corporation
Information Technology
4.33
Microsoft Corporation
Information Technology
3.15
Johnson & Johnson
Health Care
2.85
Wells Fargo & Company
Financials
2.51
Coca-Cola Company
Consumer Staples
2.48
McDonald’s Corporation
Consumer Discretionary
2.40
JPMorgan Chase & Co.
Financials
2.12
Chevron Corporation
Energy
2.12
Merck & Co., Inc.
Health Care
2.09
Apple Inc.
Information Technology
Total
Percentage %
1.59
25.64
As of 9/30/14. Source: Factset
Sector Exposure
Investment Selection:
In our strategy, the absolute dividend yield is far less important
than the sustainability of that dividend. Investors that “reach” for
yield are often disappointed when the dividend proves not to be
sustainable.
Diversification:
We are guided by our foundation in risk management, believing
that a portfolio with broad sector and industry diversification will
provide superior long-term returns and lower volatility when compared to a portfolio focused on a limited number of high yielding
sectors.
As of 9/30/14. Source: Factset
Advisor Partners, LLC
2175 North California Blvd., Suite #400
Walnut Creek, CA 94596
Phone: 888.265.2257 Fax: 415.989.0632
[email protected]
www.advisorpartners.com
Holdings of individual client portfolios may differ, sometimes significantly, from those shown.
© Advisor Partners, LLC 2012-2014
Performance Data *
Annualized
Performance
Q3 2014
YTD
1Yr
Since Inception (2/29/2012)
High Quality Dividend Yield (Gross of Fees)
-0.80%
6.41%
16.74%
17.29%
High Quality Dividend Yield (Net of Fees)
-0.92%
6.01%
16.17%
16.71%
S&P Composite 1500
0.44%
7.50%
18.58%
17.56%
Portfolio Management
Daniel Kern, CFA, President and Chief Investment Officer
Daniel is responsible for establishing and driving the overall
company strategy for Advisor Partners, and oversees all aspects
of company operations. As CIO, he establishes the firm’s investment philosophy and process. Prior to joining Advisor Partners,
Daniel was Managing Director and Portfolio Manager for Charles
Schwab Investment Management. He managed asset allocation
funds, including target funds, from October 2008 to July 2011.
Daniel’s leadership positions at Schwab prior to October 2008
included heading product development and serving as CFO of the
Laudus Funds. Prior to Schwab, he was Managing Director and
Principal for Montgomery Asset Management.
Portfolio Characteristics
Inception Date: February 29,2012
High Quality
Dividend Yield
Total Number of Securities
S&P Composite
1500
151
1,500
$108,545
$116,001
Dividend Yield
2.70
1.90
Price/Earnings
16.9
17.9
Price/Sales
2.90
3.50
Market Capitalization (Millions)
As of 9/30/14. Source: Factset
Daniel is a graduate of Brandeis University and earned his MBA in
Finance from the University of California, Berkeley. He is a CFA
Charterholder and a former President of the CFA Society of San
Francisco.
Advisor Partners
Our mission is to be a trusted partner to advisors and their clients
by finding creative solutions to client needs.
We specialize in Active Tax Indexing, High Quality Dividend Yield
portfolios, Socially Responsible portfolios and Managed Asset
Allocation Programs. We have the resources and cutting edge
tools to enhance the effectiveness of your offering and realize
increased efficiencies in your daily operation.
Advisor Partners, LLC was founded in 2001 as an investment
advisory firm providing a broad range of sophisticated investment
solutions to a select group of independent advisors and financial
institutions. Advisor Partners is a wholly owned subsidiary of Advisor Software (ASI), which acquired Advisor Partners in 2009.
Contact Advisor Partners
Advisor Partners, LLC
2175 North California Blvd., Suite #400
Walnut Creek, CA 94596
Phone: 888.265.2257 Fax: 415.989.0632
[email protected]
* Any investment is subject to risk. Past performance is not a guarantee of future results. The data presented was obtained from the Advisor Partners High Quality Dividend Yield Composite, which seeks to invest in dividend paying companies that have high quality financial characteristics within the S&P Composite 1500 Index in order to generate a combination of current
income and capital appreciation. It was created on February 29, 2012 and is benchmarked against the return of the S&P Composite 1500 Index. Advisor Partners claims compliance with
the Global Investment Performance Standards (GIPS®). Performance results are presented after all trading commissions have been deducted. The “gross of fees” performance results do
not reflect the deduction of advisory fees or other charges that may apply. Such fees and charges are typically deducted from an account on a quarterly basis and reduce the performance
of the account. For example, on an account with a 1% annual advisory fee billed quarterly, gross performance of 10% would be reduced to net performance of approximately 8.9%. Netof-fee performance is calculated by deducting the maximum fee charged on accounts witin this composite (0.5% annual) from the monthly gross composite return. A prospective investor
should refer to an advisor’s disclosure and account opening documents for more information regarding the fees and charges that apply to an account. To receive a list of composite
descriptions, a presentation that complies with the GIPS standards, or to request a copy of Advisor Partners Form ADV, Part 2 please contact [email protected].
High Quality Dividend Yield
US Equity All Cap
Fact Sheet Q3 2014