The KAR Equity Income Portfolio is a U.S. large-cap portfolio of high quality, mature companies focused on providing a high level of current income while minimizing risk and preserving capital. It is a high-conviction strategy that utilizes a bottom-up fundamental research approach to identify what we believe are the best companies at the most attractive prices within the high-quality universe.
*The benchmark for the portfolio changed to the Russell 1000 Value Index on January 1, 2025. Prior to January 1, 2025, the benchmark was the MSCI U.S. High Dividend Yield Index. This change has been applied retroactively and occurred due to the strategy’s reduced emphasis on yield and to bring the strategy in line with industry peers.
Top Five Holdings
Source: SS&C GWP™ and FactSet Research Systems. Holdings are subject to change. Holdings and weightings are based on a representative portfolio. Individual Investors’ holdings may differ slightly. Numbers may not always add up due to rounding.
Sector Diversification
Source: SS&C GWP™ and FactSet Research Systems. Holdings are subject to change. Holdings and weightings are based on a representative portfolio. Individual Investors’ holdings may differ slightly. The sector information represented above is based on GICS sector classifications.
Portfolio Characteristics
*KAR utilizes the interquartile method when calculating Debt/EBITDA. The interquartile method excludes outliers from an aggregate statistic such as weighted average. The interquartile method does not assume that data from the top or bottom of the distribution are outliers—only the extreme ends are excluded—and that it can be applied consistently as a quantitative method for most fundamental characteristics. Debt/EBITDA utilizes net debt for the calculation.
†Dividend yield is a financial ratio that shows how much companies have paid out in dividends in the most recent year relative to their stock price at the end of such year. Dividend yield is being shown here as a characteristic of the stocks held in the portfolio and not to infer how the stocks have or will perform, as dividends are not the only component of the portfolio’s performance. Dividends are subject to change from year-to-year, and the portfolio’s dividend yield could be lower or higher in future years.
‡Free cash flow data is as of March 31, 2026. Prices are as of June 30, 2026. Excludes financials.
Source: SS&C GWP™ and BNY Mellon. This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Equity Income fact sheet. Other principal consultant firms may use different algorithms to calculate selected statistics. Estimates are based on certain assumptions and historical information. Returns may be affected by currency fluctuations. Past performance is no guarantee of future results.
Performance Statistics
*May 1, 2020
Source: SS&C GWP™ and FactSet Research Systems. This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Equity Income fact sheet. Returns for the Kayne Anderson Rudnick (“KAR”) composite are final. All periods less than one year are total returns and are not annualized. Composite performance does not represent the performance of any individual client account, which can differ based on factors such as cash flows and different fee arrangements. Attribution results are based on a representative client account using an external returns methodology and may differ from composite performance or the performance of any individual client account. Final performance information for existing client accounts is reflected in account statements, where applicable. Net-of-fee returns reflect an assumed maximum fee of 0.70%, as further described on the Disclosure page of the KAR Equity Income fact sheet. Returns may be affected by currency fluctuations. Past performance is no guarantee of future results.