EAFE Strategy

Q4 2019 | December 31, 2019

Annualized Returns (%) 

QTD YTD 1 Year 3 Years 5 Years Since Inception1
Gross of fees 8.07 23.07 23.07 11.44 7.39 6.23
Net of fees 7.94 22.46 22.46 10.87 6.79 5.62
Benchmark2 8.17 22.01 22.01 9.56 5.67 4.60
1 Inception Date: October 1, 2013 2 Benchmark: MSCI EAFE Net

Characteristics

Portfolio Weight
Excess return (gross since inception) 1.62
Excess return (net since inception) 1.02
Tracking error 2.68
Standard deviation (annualized) 11.05
Information ratio (gross since inception) 0.60
Information ratio (net since inception) 0.38
Upside capture (3 yr) 97.72%
Downside capture (3 yr) 84.52%
Weighted average market cap $52,215mm
Weighted average market cap (benchmark) $67,153mm

Sector Weights (%)

Portfolio Weight Benchmark Weight
Communication Services 3.46 5.21
Consumer Discretionary 12.87 11.57
Consumer Staples 9.39 11.26
Energy 2.82 4.86
Financials 18.55 18.55
Health Care 13.85 12.16
Industrials 14.99 14.96
Information Technology 11.09 7.08
Materials 6.63 7.12
Real Estate 3.54 3.50
Utilities 2.80 3.73

Top Ten Holdings (%)

Portfolio Weight
Reckitt Benckiser Group plc 1.78
SAP SE 1.70
Roche Holding AG 1.57
Sony Corporation 1.51
EssilorLuxottica SA 1.41
LVMH Moet Hennessy Louis Vuitton SE 1.32
Tokio Marine Holdings, Inc. 1.28
Novo Nordisk A/S Class B 1.26
Air Liquide SA 1.22
Sonova Holding AG 1.22

Region Weights (%)

Portfolio Weight
Europe Core 45.87
Pacific Rim 27.89
United Kingdom 17.08
Canada 5.78
Cash 2.00
Middle East 1.09
Europe EM 0.21
South Asia 0.07
LatAm 0.01

Portfolio Management

Tina Byles Williams

Chief Investment Officer & Lead Portfolio Manager

Thomas Quinn, CFA

Managing Director, Sr. Portfolio Manager, Tactical & Multi-Manager Strategies

About Xponance

Xponance is a multistrategy investment firm offering strategies across equity and fixed income. We are independent and employee owned by women and diverse professionals, whose common passion is to do the right thing for our clients and each other. Xponance is the successor firm representing the integration of two great legacy firms, FIS Group, Inc. and Piedmont Investment Advisors, LLC

Investment Philosophy

We believe that a carefully constructed portfolio of small, entrepreneurial managers can outperform its benchmark and large AUM peers on a risk adjusted basis over a full market cycle, without taking on uncompensated levels of active risk. This strategy is defined by exposure to undiscovered, high conviction EAFE equity managers, who we
are delivering to clients in customizable solutions.

Portfolio Facts

Inception date 10/1/2013
Assets in strategy $968mm
Woman or diverse owned managers 40-60%
Target active share >75
Benchmark MSCI EAFE Net
Min. investment $25mm
Vehicle(s) available Separately managed
The information provided on this page should be considered supplemental. For complete performance data, please see the Xponance EAFE Strategy disclosures below.

Annualized Disclosure Presentation

Composite Assets Annualized Performance Results (%) 3 Year Ex-Post Standard Deviation (%)
Year End Total Firm Assets ($mm) USD ($mm) Number of Accounts Composite Gross Composite Net Benchmark1 Composite Net Benchmark1
2019 4,621 968 5 or Fewer 23.07 22.46 22.01 10.50 10.81
2018 4,868 678 5 or Fewer -12.17 -12.62 -13.79 11.25 11.24
2017 5,103 776 5 or Fewer 28.03 27.38 25.03 11.04 11.83
2016 4,695 608 5 or Fewer 0.11 -0.53 1.00 11.67 12.46
2015 4,475 104 5 or Fewer 3.10 2.44 -0.81 N/A2 N/A2
2014 4,527 101 5 or Fewer -3.17 -3.79 -4.90 N/A2 N/A2
20133 4,368 105 5 or Fewer 5.48 5.31 5.71 N/A2 N/A2
1 Benchmark: MSCI EAFE Net 2 Not shown because 36 monthly returns are not available
3 Results shown for the calendar year 2013 represent partial period performance from October 1, 2013 through December 31, 2013.

Xponance, Inc. (“Xponance”) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Xponance has been independently verified for the periods from November 1, 1998 through December 31, 2019. A copy of the verification reports are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation.

On August 31, 2018, FIS Group, Inc. (“FIS Group”) acquired Piedmont Investment Advisors, Inc.’s (“PIA”) predecessor, Piedmont Investment Advisors, LLC. Xponance is the successor registrant under the Investment Advisers Act of 1940 (the “Advisers Act”) to both FIS Group and its wholly-owned subsidiary, PIA. Pursuant to a corporate rebranding and consolidation strategy, Xponance was established effective April 1, 2020, to leverage the long histories of its predecessor entities in providing customized investment management products to institutional clients. FIS Group (through its former subsidiaries, Fiduciary Investment Solutions, Inc. and FIS Funds Management, Inc.) managed assets since 1996 and PIA (through its former affiliate Piedmont Investment Advisors, LLC) began managing assets in 2000. The firm maintains a complete list of composite descriptions, which is available upon request.

Total firm asset presented through, and including, Calendar Year 2019 represent total firm asset for FIS Group as, prior to April 1, 2020, this composite was managed by legacy firm FIS Group. Total firm assets presented post April 1, 2020 represent the total firm assets of Xponance.

Xponance EAFE Strategy is a developed non-US equity composite which contains fully discretionary non-US equity account(s) that are constructed by using the manager of managers concept. Accounts that are no longer with the firm are included through the last full measurement period such accounts were managed in the composite’s style. For comparison purposes this composite is measured against the MSCI EAFE net Index. Since the performance inception of the composite, sub-advisor(s) have been utilized to manage assets within the Xponance EAFE Strategy. The Xponance EAFE Strategy composite was created October 1, 2013. The composite name changed from “FIS Group EAFE Strategy” to “Xponance EAFE Strategy” on April 1, 2020.

Past performance is not indicative of future results. The US Dollar is the currency used to express performance. Returns include the effect of foreign currency exchange rates. Sources of foreign exchange rates may be different among the portfolios within a composite, and between the composite and the benchmark. Composite performance is presented net of foreign withholding taxes on dividends, interest income, and capital gains. The actual tax rate applied may vary by custodian and the investor’s domicile. MSCI uses the maximum withholding tax rate applicable to institutional investors in calculating MSCI net dividends.

Gross of fee performance results are presented gross of management fees and include the reinvestment of all income. Net of fee performance results reflect the deduction of the actual management fees. Actual management fees incurred by clients may vary. Xponance uses the following asset-based standard fee schedule: 0.90% for the first $50 million, 0.875% for the next $50 million, 0.85% for the next $50 million, 0.825% for the next $50 million, 0.80% thereafter. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

Internal dispersion is calculated using the equal-weighted standard deviation of annual gross of fee returns of those portfolios that were included in the composite for the entire year. For those years when less than six portfolios were included in the composite for the full year, no dispersion measure is presented.