Investment Strategies
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%
Company |
Percent of equity (%) |
|---|---|
| International Business Machines | 5.4 |
| MSC Industrial Direct | 5.2 |
| Zurich Insurance Group | 4.8 |
| AbbVie | 4.2 |
| Amcor | 4.1 |
| Total | 23.7 |
This report is based on the assumptions and analysis made and believed to be reasonable by Advisor. However, no assurance can be given that Advisor’s opinions or expectations will be correct. This report is intended for informational purposes only and should be not considered a recommendation or solicitation to purchase securities. Holdings are subject to change. Holdings and weightings are based on a representative portfolio. Individual Investors’ holdings may differ slightly. Data is obtained by FactSet Research Systems and is assumed to be reliable. Numbers may not always add up due to rounding. Past performance is no guarantee of future results.
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.
KAR |
MSCI® |
|
|---|---|---|
| Quality | ||
| Return on Equity-Past 5 Years | 20.8% | 22.3% |
| Debt Coverage | 6.2x | 9.0x |
| Growth | ||
| Earnings Per Share Growth-Past 5 Years | 8.6% | 15.5% |
| Dividend Per Share Growth-Past 5 Years | 5.3% | 8.3% |
| Value | ||
| Dividend Yield | 4.2% | 3.2% |
| Market Characteristics | ||
| Dividend Payout Ratio-5 Year Average | 70.6% | 60.7% |
| $ Weighted Average Market Cap | $92.0 B | $173.5 B |
| Largest Market Cap | $375.0 B | $470.7 B |
This material is deemed supplemental and complements the performance and disclosure at the end of the Disclosure page of the KAR Equity Income fact sheet. Data is obtained from FactSet Research Systems and BNY Mellon and is assumed to be reliable. Other principal consultant firms may use different algorithms to calculate selected statistics. Estimates are based on certain assumptions and historical information. Past performance is no guarantee of future results. Returns could be reduced, or losses incurred, due to currency fluctuations.
Annualized Returns (%)†
As of September 30, 2023Annual Returns (%)
KAR Equity Income
(gross)
KAR Equity Income
(net)‡
MSCI® U.S. High
Dividend Yield Index
*May 1, 2020
†All periods less than one year are total returns and are not annualized. Returns are final.
‡Net of all fees and expenses. Assumes a 0.70% annual fee. Fees presented on the Disclosure page of the KAR Equity Income fact sheet could vary from the assumed fee in the net-of-fee calculation, as actual fees paid by a particular client account differ depending on a variety of factors including, but not limited to, business unit and size of mandate. The fee used on the Disclosure page of the KAR Equity Income fact sheet utilizes an assumed maximum fee across the firm’s business units, which is further detailed on that page.
§Performance calculations are for the eight months ended December 31, 2020.
This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Equity Income fact sheet. Returns of the Kayne Anderson Rudnick composite are final. For further details on the composite, please see the Disclosure page of the KAR Equity Income fact sheet. Data is obtained from FactSet Research Systems and is assumed to be reliable. Past performance is no guarantee of future results. Returns could be reduced, or losses incurred, due to currency fluctuations.
KAR |
KAR |
MSCI® |
|
|---|---|---|---|
| Annualized Standard Deviation | 13.77 | 13.77 | 14.41 |
| Alpha | 0.73 | 0.02 | 0.00 |
| Beta | 0.93 | 0.93 | 1.00 |
| Sharpe Ratio | 0.51 | 0.45 | 0.46 |
| R-Squared | 94.34 | 94.34 | 100.00 |
*May 1, 2020
This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Equity Income fact sheet. Returns of the Kayne Anderson Rudnick composite are final. For further details on the composite, please see the Disclosure page of the KAR Equity Income fact sheet. Past performance is no guarantee of future results. Returns could be reduced, or losses incurred, due to currency fluctuations.