Quality Value – Large Cap Value

Q1 2023 | March 31, 2023

Annualized Returns (%) 

QTD YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception1
Gross of fees 2.10 2.10 -0.53 21.18 11.29 12.22 12.77 13.41
Net of fees 2.00 2.00 -1.05 20.54 10.74 11.68 12.20 12.78
S&P 500 Value 5.17 5.17 -0.16 19.12 9.47 10.48 10.17 11.02
1 Inception Date: September 30, 2012 2 Benchmark: S&P 500 Value


Portfolio Weight Benchmark Weight
Excess return (gross since inception) 2.39%
Excess return (net since inception) 1.76%
Information ratio (gross since inception) 0.59
Information ratio (net since inception) 0.45
Holdings 49 405
P/E using FY1 est 16.73 16.86
P/E using FY2 est 15.49 15.23
Dividend yield 2.69% 2.00%
Historical 3 year EPS growth 19.86% 18.2%
Weighted average market cap in $M $264,272.45mm $285,981.15mm

Sector Weights (%)

Portfolio Weight Benchmark Weight

Communication Services 4.14 9.40
Consumer Discretionary 6.14 10.51
Consumer Staples 7.04 7.40
Energy 1.78 1.60
Financials 21.91 19.28
Health Care 7.36 9.06
Industrials 17.52 12.31
Information Technology 15.98 17.20
Materials 3.82 3.15
Real Estate 8.24 4.55
Utilities 6.07 5.54

Top Ten Holdings (%)

Portfolio Weight
Microsoft Corporation 5.41
Amazon.com, Inc. 4.18
Bank of America Corp 2.97
BlackRock, Inc. 2.90
United Parcel Service, Inc. Class B 2.80
Intuit Inc. 2.58
Accenture Plc Class A 2.48
Coca-Cola Company 2.42
Procter & Gamble Company 2.36
United Rentals, Inc. 2.29

Distinguishing Attributes

  • Proven quantitative stock selection models
  • Focused on achieving optimal risk-return tradeoffs
  • ESG factors taken into consideration
  • Structured and disciplined investment process
  • Experienced investment team
  • Corporate culture built on client service and diversity

Total product assets shown above may include accounts that are not reflected in the Global Investment Performance Standards (GIPS®)* report below. Portfolio characteristics are subject to change, and current holdings may differ. Past performance is not an indication of future results. Returns are presented gross and net of management fees and include the reinvestment of all income. GIPS-compliant performance information for the firm’s strategies and products are available upon request at info@xponance.com. A GIPS report is found at the end of this presentation. Statistics shown above are supplemental information to the GIPS report at the end of this presentation. Results represent preliminary data which is subject to change. For further performance data, please see the Xponance® Quality Value – Large Cap Value disclosures below.

*GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

Portfolio Management

Sumali Sanyal, CFA

Managing Director, Senior Portfolio Manager, Systematic Global Equities

Cameron McLennan, CFA

Director, Portfolio Manager, Systematic Global Equities

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 & Process

Our investment philosophy focuses on striking an appropriate balance between risk and return in our management of clients’ portfolios while taking ESG factors into consideration. The elements of this philosophy include – emphasis on security selection, quantification of major sources of risk, diversification as a means of managing common factor risk without reducing expected returns and controlling tracking error. This strategy is designed to deliver a stable return stream by focusing on high quality stocks that have strong cash flow and have a demonstrated willingness to increase return of capital to investors. The investment process seeks to identify companies that have a consistent dividend and earnings growth profile, are profitable, are disciplined in capital allocation, have low semi-variance or downside volatility, and have low ESG risk.

Portfolio Facts

Inception date 09/30/2012
Assets in strategy $0.07mm
Benchmark S&P 500 Value
Predicted tracking error 4-7% vs. b/m
No. of stocks 40-50
Sectors No constraints
Annual Turnover 50-60%
Min. investment $5mm
Vehicle(s) available Separately managed

Annual Disclosure Presentation

  Performance Results (%) 3-Yr Annualized Ex-Post Standard Deviation (%)          
Year End Composite Gross TWR Composite Net TWR Benchmark1 Composite Gross Benchmark1 Number of Portfolios Internal Dispersion (%) Composite Assets ($mm) Total Firm Assets ($mm) Bundled (%)
2021 28.13 27.38 24.90 16.53 18.69 Five or Fewer N/A 0.07 14,866 0
2020 8.87 8.38 1.36 17.29 19.34 Five or Fewer N/A 10 12,493 0
2019 26.99 26.43 31.93 11.47 11.93 Five or Fewer N/A 9 5,411 0
2018 -5.81 -6.21 -8.95 10.55 10.80 Five or Fewer N/A 6 4,026 0
2017 20.94 20.39 15.36 9.68 9.92 Five or Fewer N/A 7 6,817 0
2016 16.60 16.09 17.40 10.36 10.59 Five or Fewer N/A 6 6,249 0
2015 1.61 1.16 -3.13 10.32 10.47 6 0.33 5 5,577 0
2014 13.48 12.97 12.36 N.A N.A 6 0.36 4 2,542 0
2013 38.42 37.01 31.99 N.A N.A 6 N/A 4 2,731 0
20122 0.043 -0.40 1.64 N.A N.A Five or Fewer N/A 0.13 3,425 100

Composite inception date: September 30, 2012. 1 Benchmark: S&P 500 Value 2 Results shown for the year 2012 represent partial period performance from October 1, 2012 through December 31, 2012. 3 Gross of fees Performance for the period September 30, 2012 to September 30, 2013 is supplemental information. During that period, one account in the composite had a bundled fee. The net performance for that period is reduced by the total bundled fee, which is comprised of the custodial fee and transactions costs, plus Piedmont’s management fee. 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, 2021. The verification report is available upon request.

A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

On August 31, 2018, FIS Group, Inc. (“FIS Group”) acquired Piedmont Investment Advisors, Inc.’s (“PIA”) predecessor, Piedmont Investment Advisors, LLC. Xponance®, Inc. (“Xponance®”) is an independent, registered investment adviser and 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 list of composite descriptions and limited pool fund(s) descriptions, which is available upon request.

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

Quality Value – Large Cap Composite contains fully discretionary equity income accounts and for comparison purposes is measured against the S&P 500 Value Index. The product typically has between 35 and 45 holdings and a current yield that is greater than the S&P 500 Value. The composite name changed from Core Value to Quality Value on June 30, 2021. Prior to April 30 2021, the composite description was Core Value – Large Cap Composite and contained fully discretionary core value accounts and for comparison purposes was measured again the S&P 500.The benchmark for the Quality Value composite was changed from the S&P 500 to the S&P 500 Value as of April 30, 2021; retroactively. The composite was created on September 30, 2012.

Results are based on fully discretionary accounts under management. 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. Past performance is not indicative of future results. The composite maintains a significant cash flow policy. Effective 9/30/2022, a significant cash flow has been defined as any client requested cash flow that would impede the firm’s ability to implement the composite strategy. We will remove the assets from the account the day we raise cash or transfer the assets into the account after trading is complete; therefore, the assets will be moved or held in a temporary account and the member account will remain in the composite. Prior to 9/30/2022 the significant cash flow was defined as any client requested cash withdrawal where we must execute trades to generate the requested cash. We will remove the cash from the account the day we raise the cash; therefore, significant cash flows out of an account will be treated as a temporary account and the member account will remain in the composite.

The U.S. Dollar is the currency used to express performance. Returns are presented gross and net of management fees and include the reinvestment of all income.    Since April 1, 2021, net of fee performance results reflects a model annual management fee of 0.40%, applied monthly. Net returns are calculated by deducting the model management fee from the monthly gross composite return.   From March 31, 2021, to September 30, 2013, net of fee performance results reflects the deduction of actual management fees.  During the period September 30, 2012, to September 30, 2013, net of performance was calculated by reducing the gross of fees performance by the entire bundled fee of 1.50%, which is comprised of the custodial fee and transaction costs, plus Piedmont’s management fee.  Policies for valuing investments, calculating performance, and preparing GIPS reports are available upon request. The management fee schedule for the composite is as follows: First $50mm:40 bps; Next $50mm: 35 bps; Over $100mm: 25 bps

Fees are charged to clients on a quarterly basis. Fees are calculated as a percentage of assets under management and vary based upon the type of product and the total amount of assets under management. The percentage fee is expressed terms of basis points (“BPS”) for our products. One hundred basis points equal 1%. All fees are negotiable.

The three-year annualized standard deviation measures the variability of the composite gross returns and the benchmark returns over the preceding 36-month period.

Internal dispersion presented is an equal-weighted standard deviation of annual gross returns of those portfolios that were 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.