Separate Account strategies

EQUITY INCOME

SEPARATE ACCOUNT STRATEGIES > EQUITY INCOME

OBJECTIVE

The strategy aims to provide long-term capital appreciation, while focusing on the protection of principal, in a well-diversified portfolio of dividend and income paying securities.

INVESTMENT STRATEGY

The Equity Income strategy attempts to generate yield at a reasonable price without sacrificing capital appreciation through a fundamental, bottom-up, contrarian investment philosophy.

Companies are selected through our disciplined investment process to identify, research and evaluate our highest conviction stocks. Thorough reviews are conducted on each company to ensure they are in line with our investment thesis and upside target potential return.  The portfolio consists of core holdings, typically up to 3%, which are selected on the upside potential reflected in our target prices. They can include equity or debt securities, which offer yield at a reasonable price. This methodology seeks to construct a portfolio that will generate yield without sacrificing capital appreciation.The strategy has consistently demonstrated high active share versus the Russell 1000 Value index.

CHARACTERISTICS & WEIGHTINGS

  • Fully invested, typically holding 40 to 70 securities, conviction-weighted
  • Market capitalization: The weighted average market cap is expected to be similar to the Russell 1000 Value benchmark
  • Portfolio Limitations:
  • Maximum of 3% position in a stock
  • Industry or sector exposure in line with the Russell 1000 Value index
  • 80% invested in income securities

PORTFOLIO MANAGERS

ANNE S. WICKLAND, CFA
PORTFOLIO MANAGER/PRINCIPAL
Bio >
JOSEPH F. ARTUSO, CFA
PORTFOLIO MANAGER/PRINCIPAL
Bio >

CONTACT INFORMATION

Snow Capital Management, L.P.
2000 Georgetowne Drive
Suite 200
Sewickley, PA 15143
Main: (724) 934-5800
Fax: (724) 934-5855
Email: info@snowcm.com
Portfolio Characteristics1
as of 12/31/18
SNOW
 EQUITY 
INCOME
RUSSELL
1000 VALUE
Market Cap (Billions)
$78.97
$118.40
Dividend Yield
4.05%
2.82%
EPS Growth – Long Term (I/B/E/S)
1.57%
6.78%
Free Cash Flow Yield
8.67%
5.45%
P/E – Forecast 12-Month
10.03
12.55
Price-to-Book
1.56
1.81
Market Cap Weightings3
as of 12/31/18
SNOW
EQUITY INCOME
Small (< $2 billion)
0%
Mid ($2 - 10 billion)
26%
Medium Large ($10 - 50 billion)
40%
Large (>$50 billion)
34%
TOTAL
100%
Top 10 Holdings3
as of 12/31/18
% OF STOCKS
Ally Floaing Rate Preferred
4.86%
JPMorgan Chase & Co.
4.33%
MetLife, Inc.
4.25%
Broadcom, Inc.
3.56%
Wells Fargo & Co.
3.37%
Outfront Media, Inc.
3.35%
Kinder Morgan, Inc.
3.08%
Verizon Communication, Inc.
3.05%
Exelon Corp.
2.99%
Molson Coors Brewing Co.
2.89%
TOTAL
35.73
Industry Allocations3
as of 12/31/18
SNOW
EQUITY INCOME
Commercial Banks
15%
Consumer Staples (Consolidated)
10%
Oil, Gas & Consumable Fuels
9%
Materials (Consolidated)
8%
Consumer Deiscretionary (Consolidated)
8%
Information Technology (Consolidated)
8%
Communication Services
7%
Pharmaceuticals
6%
Insurance
6%
Consumer Finance
5%
Utilities
5%
Industrials (Consolidated)
3%
Biotechnology
3%
Real Estate
3%
Health Care Equipment & Supplies
2%
Health Care Providers & Services
1%
Cash
1%
Performance Data is best viewed in landscape on your mobile device.
as of 12/31/18
MTD
QTD
YTD
1 Year
3 Year
5 Year
7 Year
Since Inception
(12/31/2011)
Composite Gross
-9.70%
-11.25%
-11.41%
-11.41%
8.28%
3.95%
9.93%
9.93%
Composite Net
-9.78%
-11.47%
-12.31%
-12.31%
7.20%
2.91%
8.91%
8.91%
Russell 1000 Value
-9.60%
-11.72%
-8.27%
-8.27%
6.95%
5.95%
11.02%
11.02%
2018
2017
2016
2015
2014
2013
2012
Composite Gross
-11.41%
11.35%
28.71%
-13.19%
10.15%
36.29%
17.22%
Composite Net
-12.31%
10.23%
27.45%
-14.07%
9.05%
35.31%
16.37%
Russell 1000 Value
-8.27%
13.66%
17.34%
-3.83%
13.45%
32.53%
17.51%

Snow Capital Management L.P. is a registered investment adviser. Registration of an Investment Advisor does not imply any level of skill or training. Snow Capital Management L.P. claims compliance with the Global Investment Performance Standards (GIPS®). A fully compliant GIPS presentation along with a complete list and description of all composites is available at www.snowcm.com or by calling 724-934-5800. The Snow Capital Management Equity Income Composite contains fully discretionary equity income commission accounts consisting of an equity portfolio of at least 70% of assets invested in equity securities and remaining assets invested in foreign equities and/or fixed income securities, preferred stocks, and options and dates back to December 31, 2011. This composite has no minimum requirement and for comparison purposes is measured against the Russell 1000Value. 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. Indexes are unmanaged. It is not possible to invest directly in an index.

The U.S. Dollar is the currency used to express performance. Leverage is not used in this composite. Investing involves risk; clients may experience a profit or a loss. Past performance is not indicative of future results.

Performance is preliminary. Returns for periods greater than a year are annualized. Returns include the reinvestment of all income. Results are based on fully discretionary accounts under management that are eligible for inclusion in the composite during the performance reporting period, including those accounts no longer with the firm. The performance of any individual portfolio may vary from the Composite’s performance. Returns are presented gross and net of management fees and include the reinvestment of all income. Net of fee performance returns are calculated by deducting a model fee of 1.00%, which represents the highest applicable annual fee in effect for the respective time period, applied monthly. As of January 1, 2014, net of fee performance returns are calculated by deducting 1.00%, which is the highest applicable annual fee in effect for the respective time period (“model fee”) and includes management and custodial fees applied monthly. Prior to January 1, 2014, the model fee used to calculate net returns was 0.75%. Snow Capital’s advisory fees are outlined in our Form ADV Part 2A (Brochure), which is available upon request. Actual investment advisory fees incurred by clients may vary.

Portfolio Characteristics are presented as supplemental information to the GIPS compliant presentation to illustrate an example of selected characteristics of the Snow Capital Management Equity Income Composite as of September 30, 2018 and how an individual portfolio might have been invested at that time. These illustrations may not be representative of the Composite’s or an individual portfolio’s current or future investments.

The Industry Allocation, Capitalization Weightings, and Top Ten Holdings are presented as supplemental information to the GIPS compliant presentation to illustrate an example of the industries and securities in which the Snow Capital Management Equity Income Composite was invested on September 30, 2018 and in which an individual portfolio might have been invested at that time. These illustrations may not be representative of the Composite’s or an individual portfolio’s current or future investments. There is no assurance that any of these stocks or sectors will be purchased in the future or are currently held in the portfolio. Top 10 holdings reflect the composite’s cash position but cash is not included as a holding in the list.

INVESTMENT PRODUCTS: NOT FDIC INSURED   ●   NO BANK GUARANTEE   ●  MAY LOSE VALUE