S&P 500 DEI & ESG Strategy
Q4 2022 | December 31, 2022
Annualized Returns (%)
|QTD||YTD||1 Year||3 Years||5 Years||7 Years||10 Years||Since Inception1|
|Gross of fees||8.43||-18.06||-18.06||–||–||–||–||-13.43|
|Net of fees||8.38||-18.17||-18.17||–||–||–||–||-13.55|
|1 Inception Date: October 29, 2021 2 Benchmark: S&P 500|
|Portfolio Weight||Benchmark Weight|
|Excess return (gross since inception)||-0.04%||–|
|Excess return (net since inception)||-0.16%||–|
|P/E using FY1 est||17.4||16.9|
|P/E using FY2 est||16.5||16.6|
|Historical 3 year EPS growth||15.7%||18.8%|
|Weighted average market cap in $M||$416,979.07mm||$417,468.28mm|
Sector Weights (%)
|Portfolio Weight||Benchmark Weight|
Top Ten Holdings (%)
|UnitedHealth Group Incorporated||2.54|
|Alphabet Inc. Class A||1.86|
|Visa Inc. Class A||1.75|
|Alphabet Inc. Class C||1.58|
|Cisco Systems, Inc.||1.41|
- Structured and disciplined investment process
- Customized to incorporate ESG considerations
- Experienced investment team
- Corporate culture built on client service and diversity
*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
This strategy is designed to provide clients with access to an investment product that has a focus on diversity, equity, and inclusion (DEI) goals like racial justice and workplace equity. This strategy uses unique and differentiated data from shareholder advocacy non-profit As You Sow, along with ESG data from Sustainalytics. The objective is to generate index like returns using a portfolio that has a better ESG profile and higher exposure to companies with positive DEI characteristics when compared to the S&P 500. The strategy is risk aware and has a low turnover.
|Assets in strategy||$66.49mm|
|Predicted tracking error||Less than 1.5%|
|Sectors||B/m ± 2%|
|Annual Turnover||Less than 50%|
|Vehicles available||Separately managed|
Annual Disclosure Presentation
|Performance Results (%)||3-Yr Annualized Ex-Post Standard Deviation (%)|
|Year End||Composite Gross TWR||Composite Net TWR||Benchmark1||Composite Gross||Benchmark1||Number of Portfolios||Composite Assets ($mm)||Total Firm Assets ($mm)|
|20212||4.37||4.35||4.48||N/A||N/A||Five or fewer||57||14,866|
|Composite inception date: November 30, 2021. 1 Benchmark: S&P 500 2P artial Period Performance Shown from 11/30/2021-12/31/2021
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, 2020. 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. S&P 500 ESG and DEI Strategy Composite contains fully discretionary S&P 500 accounts where the portfolios are constructed to achieve specific target weights for Racial Justice and Workplace Equity Scores from As You Sow and ESG Risk Ratings from Sustainalytics. The S&P 500 ESG and DEI Strategy Composite was created on November 30, 2021. For comparison purposes this strategy is measured against the S&P 500 Index. The S&P 500 is an index of 500 stocks seen as a leading indicator of U.S. equities and a reflection of the performance of the large cap universe. The S&P 500 is a market value weighted index and one of the common benchmarks for the U.S. stock market.
Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Past performance is not indicative of future results. The composite maintains a significant cash flow policy. A significant cash flow has been 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. Net of fee performance was calculated using actual management fees. Policies for valuing investments, calculating performance, and preparing GIPS reports are available upon request.
The management fee schedule is as follows: First $50mm: 17.5 bps; Next $400mm: 12.5 bps; Over $500mm: 7.5 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.