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.
Highlights
Asset Class: Dividend Income
Primary Index: MSCI U.S. High Dividend Yield Index
Inception Date: May 1, 2020
Holdings Range: 25-50
Sector Constraint: Seek broad diversification, but no sector constraints
Portfolio Turnover: 25% – 45%
Top Five Holdings
Company |
Percent of equity (%) |
---|---|
International Business Machines | 6.1 |
Zurich Insurance Group | 5.1 |
Fortis | 4.7 |
AbbVie | 4.4 |
Verizon Communications | 4.2 |
Total | 24.5 |
Sector Diversification
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. Data is obtained by FactSet Research Systems and is assumed to be reliable.
Portfolio Characteristics
Concept | KAR |
MSCI® |
---|---|---|
Quality | ||
Return on Equity-Past 5 Years | 23.5% | 24.7% |
Debt Coverage | 6.1x | 8.2x |
Growth | ||
Earnings Per Share Growth-Past 5 Years | 3.3% | 14.9% |
Dividend Per Share Growth-Past 5 Years | 5.0% | 8.3% |
Value | ||
Dividend Yield | 3.8% | 3.0% |
Market Characteristics | ||
Dividend Payout Ratio-5 Year Average | 71.8% | 59.1% |
$ Weighted Average Market Cap | $118.8 B | $198.7 B |
Largest Market Cap | $749.3 B | $749.3 B |
Historical Returns (Institutional)
Period | KAR Equity Income (gross) |
KAR Equity Income (net)‡ |
MSCI® U.S. High Dividend Yield Index |
---|---|---|---|
Annualized Returns (%)† As of June 30, 2024 | |||
2nd Quarter | (1.89) | (2.07) | (1.95) |
Year to Date | 3.17 | 2.81 | 5.80 |
1 Year | 7.37 | 6.63 | 11.67 |
3 Year | 3.44 | 2.72 | 4.98 |
Inception* | 9.90 | 9.14 | 10.21 |
Annual Returns (%) | |||
2023 | 2.36 | 1.65 | 5.83 |
2022 | (1.40) | (2.09) | (4.60) |
2021 | 18.49 | 17.68 | 20.86 |
2020§ | 20.10 | 19.56 | 16.14 |
Performance Statistics (Institutional)
Concept | KAR |
KAR |
MSCI® |
---|---|---|---|
Annualized Standard Deviation | 13.20 | 13.20 | 13.99 |
Alpha | 0.31 | (0.39) | 0.00 |
Beta | 0.91 | 0.91 | 1.00 |
Sharpe Ratio | 0.58 | 0.52 | 0.56 |
R-Squared | 93.76 | 93.76 | 100.00 |