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||–|
|P/E using FY1 est||16.73||16.86|
|P/E using FY2 est||15.49||15.23|
|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|
Top Ten Holdings (%)
|Bank of America Corp||2.97|
|United Parcel Service, Inc. Class B||2.80|
|Accenture Plc Class A||2.48|
|Procter & Gamble Company||2.36|
|United Rentals, Inc.||2.29|
- 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 email@example.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.
Sumali Sanyal, CFA
Cameron McLennan, CFA
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.
|Assets in strategy||$0.07mm|
|Benchmark||S&P 500 Value|
|Predicted tracking error||4-7% vs. b/m|
|No. of stocks||40-50|
|Vehicle(s) available||Separately managed|
Annual Disclosure Presentation
|Performance Results (%)||3-Yr Annualized Ex-Post Standard Deviation (%)|
|Year End||Composite Gross TWR||Composite Net TWR||Benchmark1||Composite Gross||Benchmark1||Number of Portfolios||Internal Dispersion (%)||Composite Assets ($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|
|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.