Portfolio Details as of 12/31/2015

Weighted Average Market Cap.
117.4 B
P/E Ratio
18.3x
P/B Ratio
2.2x
Portfolio Turnover Ratio as of 10/30/2015
149.4%
Number of Holdings
55
Total Net Assets
$3.31 B

Portfolio Positioning as of 12/31/2015

  • During the fourth quarter, we decreased the portfolio’s exposure to the health care sector. We favor more defensive companies with stock-specific catalysts.
  • In addition, we increased the portfolio’s exposure to the industrials sector, and remain overweight relative to the portfolio’s benchmark, the Russell 1000® Value Index. Within the sector, we are focused on companies committed to unlocking value by reallocating capital to core competencies.
  • We increased the portfolio’s allocation to the information technology sector. We continue to favor companies that should benefit from an increase in technology infrastructure spending and information security.
  • The portfolio continues to be underweight the utilities and energy sectors, based on our fundamental and valuation analyses.
  • We expect continued market volatility due to muted growth and the uncertain macroeconomic and geopolitical backdrop, especially as structural concerns persist in China. Therefore, we continue to focus on U.S.-centric companies that have financial and capital management flexibility to compete strategically. As a result of this view, we increased attention to stock-specific decisions, near-term fundamentals, and rigorous execution of our buy/sell discipline.

Sector Allocationas of 12/31/2015

Sector Weighting Fund Change from Previous Quarter
Industrials arrowUp1.3%
Energy arrowDown2.0%
Consumer Discretionary arrowUp1.5%
Consumer Staples arrowUp1.2%
Information Technology arrowUp0.9%
Telecommunication Services arrowDown1.1%
Materials arrowUp0.5%
Health Care arrowDown0.7%
Utilities arrowUp0.2%
Financials arrowDown0.4%

Attribution Analysis 

Fundamental Equity Fund Benchmark Variance
Sector Avg. Weight Base Return Avg. Weight Base Return Stock Selection Group Weight Total

Strongest & Weakest Performers

Strongest Performers

Holding Contribution
General Electric Co. 0.9%
Microsoft Corp. 0.5%
Intel Corp. 0.5%
Dow Chemical Co. 0.4%
JPMorgan Chase & Co. 0.3%

Weakest Performers

Holding Contribution
Time Warner, Inc. -0.2%
Marathon Oil Corp. -0.2%
Target Corp. -0.1%
Devon Energy Corp. -0.1%
Affiliated Managers Group, Inc. -0.1%
Fund Dividends & Cap Gains next tab

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