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ALTRIUS CAPITAL MANAGEMENT, INC. | TOLL FREE 855-ALTRIUS | WWW.ALTRIUSCAPITAL.COM
International ADR Dividend Income Strategy4th Quarter 2019
Q4 20192
Altrius Highlights
Data as of 12.31.2019
Altrius Capital Management, Inc. was founded in 1997
Altrius is 100% employee owned
Altrius is an SEC registered investment advisor
The Firm currently manages approximately $340mm in assets by offering separately managed account solutions
Having managed client assets for over two decades, Altrius claims compliance with Global Investment Performance Standards (GIPS®)
Altrius maintains a 17 year track record in the following strategies: Global Income, Disciplined Alpha Dividend Income and Unconstrained Fixed Income
FIRM OVERVIEW
AUM by Product
Disciplined AlphaDividend Income
International ADRDividend Income
Unconstrained FixedIncome
Cash
Chart1
Disciplined Alpha Dividend Income
International ADR Dividend Income
Unconstrained Fixed Income
Unconstrained Fixed Income
Cash
AUM by Product
AUM by Product
29.4
25.3
0
41.7
3.6
Sheet1
AUM by Product
Disciplined Alpha Dividend Income29.4
International ADR Dividend Income25.3
Unconstrained Fixed Income0
Unconstrained Fixed Income41.7
Cash3.6
To resize chart data range, drag lower right corner of range.
100
Q4 2019
GIPS VerificationACA Verification Services
ComplianceDzuira Compliance Services
TradingMoxy / Advent
AccountingBaccheta & Company
3
Altrius Organization
MANAGEMENT TEAM
INVESTMENT COMMITTEE
OPERATIONS
FIRM OVERVIEW
Zachary Q. Smith, CFAPortfolio Manager
Robert A. D’Angelo, CFAExecutive Vice President
Christopher C. Rolf, CFAExecutive Vice President
James M. RussoChief Investment Strategist
Andrea L. AitkenChief Compliance Officer
Rebecca A. HarmonTrader
Joy G. WoodsDirector of Client Service
Rita A. Hendrick-SmithChief Operations Officer
Lauren TaylorOperations Analyst
Gregory D. Kammerer, J.D.Executive Vice President
Q4 20194
Top down economics drive market cycles, market segments, and ultimately individual security prices.
Total return matters, which includes sources of returns often overlooked by investment managers and investors, such as dividends.
Value is critical; the market will reward the intrinsic value inherent in a security over time.
GLOBAL MACRODRIVES OUR
INVESTMENT ANALYSIS
TOTAL RETURN DRIVES OUR
PORTFOLIO CONSTRUCTION
VALUE DEFINES OUR
SECURITY SELECTION
Different by DesignPHILOSOPHY
Q4 20195
Income is our focus; we employ a flexible investment strategy seeking high,current income and long term capital growth by investing in stocks, bonds andalternative investments such as commodities, MLPs, REITs and preferred issues.
Global macro conditions are the basis for investing; top down economicsdrive market cycles, market segments, and ultimately individual security prices.The strategy retains asset class and sector flexibility to unearth uniqueopportunities.
Value is critical; we will not pay more for a security than we believe it is worth,with full confidence that the market will reward the intrinsic value inherent inthe security over time.
Patience is vital; we do not make extreme short term changes in response tofleeting market events, we invest for the long term and believe returns are drivenby consistency of process.
Risk management is required to ensure long term preservation of capital.
Investment PhilosophyPHILOSOPHY
Q4 2019
ECONOMIC SCENARIOS
Bear Base BullS&P 500 at 2977, Bloomberg Barclays U.S. Aggregate Bond Index yield at 2.26%, MSCI Europe Index at 1683 , ICE BofA ML High Yield Cash Pay Index at 5.6%.
Equities Estimate Estimate Estimate
U.S. Equities -8.6% 3.1% 8.6%
Developed Int’l – Europe -8.6% 7.3% 15.3%
REITs -3.6% 4.5% 2.1%
Fixed Income
Investment-Grade Bonds 2.5% 1.1% 0.6%
High-Yield Bonds 0.2% 4.9% 5.2%
TIPS 1.2% 0.5% -1.1%
6
At Altrius, we believe that global asset allocation valuations matter. Predicated on this belief, we maintaina series of three economic scenarios under which the economy may fall at any one time. By analyzing thevaluations inherent in the current economic scenario, we are better positioned to identify securities at thesector, industry and individual company level that are best positioned to add significant value to ourportfolio over time.
Source: Advisor Intelligence and Altrius Capital
Economic Scenario Analysis
*Our likely scenario
PHILOSOPHY
Q4 2019
Demographic trends and geographic demand are derivatives of global economic growth and serve as drivers for enterprise.
Global Current and Potential Consumption Trends
Source: © 2013 The World Bank: World Development Indicators: United Nations, World Population Prospects; World HealthOrganization, National Health Account database supplemented by country data; and International Energy Agency. As of 2011 (based onmost recent data available, 2010–2011). Health expenditure (US$), electric power consumption (kwh), and energy use (kg of oilequivalent) percentages were calculated by establishing a baseline expenditure/consumption amount of $9,000, 15,000 kWh, and 8,000kg, respectively, and then measuring actual consumption per capita against the baseline.
United States Brazil India China
PotentialCurrent
7
Why Global MattersPHILOSOPHY
Q4 20198
Why Global Matters
99% 95% 89% 88%
87% 69% 67% 65%
PHILOSOPHY
Are domestic companies really domestic anymore? While a company may be headquartered in the United States, investing requires understanding the drivers of a company’s bottom line.
A Sampling of Major US Brands with Foreign Revenues Above 60% of Total Revenues
Sources: Data represented is as of the most recent 20-F filing for each company’s respective recent fiscal year end.Foreign Revenue is based on Total Revenue – Domestic Revenue. Logos are trademarks of their respective owners andare used for illustrative purposes and should not be construed as an endorsement or sponsorship of Altrius.
Q4 2019
726.65%
601.43%
More Global Less GlobalSource: © 2014 Ned Davis Research, Inc.
Comparison of S&P 500 Companies’ Returns Cumulative Total Return for the 20-Year Period Ended 06.30.2014
“More Global” represents S&P 500
companies with reported pre-tax income of more than 50% from
foreign operations.
“Less Global” represents S&P 500
companies with reported pre-tax income of less than 50% from
foreign operations.
9
125 percentage points
Why Global MattersPHILOSOPHY
Q4 201910
Source: Based on Schwert (1990) data for 1801–1870, a blend of Schwert and Siegel (2002)data for 1871–1925, and S&P 500 Index data since 1926.
Over long time periods dividends have made up a large proportion of total returns.
200 Year US Equity Return Decomposition
Why Dividends MatterPHILOSOPHY
Q4 201911
Since Altrius’ inception in 1997, the Firm has been committed to dividend growth, viewing dividends as a critical component of total return.
Why Dividends MatterPHILOSOPHY
Source: Federated Advisors
PERCEPTION
Dividends4.2%
Capital Appreciation
5.6%
DividendYield4.2%
DividendGrowth
4.4%
ValuationChanges
1.2%
REALITY
Chart1
Valuation Changes
Dividend Yield
Dividend Growth
Column1
0.012
0.042
0.044
Sheet1
Column1
Valuation Changes1.20%
Dividend Yield4.20%
Dividend Growth4.40%
To resize chart data range, drag lower right corner of range.
Chart1
Dividends
Capital Appreciation
Column1
0.042
0.056
Sheet1
Column1
Dividends4%
Capital Appreciation5.60%
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Q4 201912
Lower Risk Higher Risk
Low
er R
etur
nH
ighe
r Ret
urn
Dividend Payers Risk/Reward01.31.1972 to 12.31.2016
Source: © 2017 Ned Davis Research, Inc. Non-dividend-paying Stocks represents non-dividend-paying stocks of the S&P 500Index; Dividend Payers w/ No Change represents all dividend-paying stocks of the S&P 500 Index that maintained their existingdividend rate and reflects the reinvestment of all income. The S&P 500 Geometric Equal-Weighted Total Return Index is calculatedusing monthly equal-weighted geometric averages of the total returns of all dividend-paying stocks and non-dividend-paying stocks.
Dividend Cutters or Eliminators
Non-dividend-paying Stocks
Dividend Payers w/ No Change
Dividend Growers & Initiators
-3%
0%
3%
6%
9%
12%
10% 15% 20% 25% 30%
Aver
age
Ann
ualiz
ed T
otal
Ret
urn
Annualized Standard Deviation
Why Dividends MatterPHILOSOPHY
Q4 201913
*Source: Siegel, Jeremy, Future for Investors (2005), with updates through 20171 “What do dividends tell us about earnings quality,” Douglas Skinner, Chicago Booth School of Business
Agency Dilemma
Dividends help reduce problems arising from asymmetric information and conflicts of interest between investors and company
management.
Management(Agent)
Investor(Principal)
Signaling
Company management makes decisions about dividend policies using internal
forecasts; a stable and rising dividend can signal superior future return potential.
Dividend Stocks by Quintile vs. S&P 500Growth of $1,000*
Reliability
Earnings & cash flows can be manipulated while dividends are a more certain measure
of the return-generating capacity of a business model; academic research has
found that dividends provide information about the quality of earnings1.
Why Dividends MatterPHILOSOPHY
Q4 201914
In low interest rate environments, investors substitute toward dividend-paying stocks, resulting in higher multiples for higher payout ratios.
Source: “What if the Market is Revaluing Dividends,” Fidelity Asset Management, March 2012
Multiples At Different Payout Ratios Multiples on Distributed Versus Undistributed Earnings
Why Dividends MatterPHILOSOPHY
Q4 2019Source: Siegel, Jeremy, Future for Investors (2005), with updates through 2017
Each stock in the S&P 500 is ranked from lowest to highest by price to earnings ratio on December 31st of every yearand placed into “quintiles” (baskets of 100 stocks). The stocks in each quintile are weighted by their marketcapitalization. The price/earnings ratio is defined as each stock’s price as of December 31st of that year divided by itsnet income per share. Past performance does not guarantee future results.
Growth of $1000: Cumulative Returns by P/E Ratio 1957-2017
Why Value Matters
15
PHILOSOPHY
Q4 2019
40
50
60
70
80
90
100
110
120
16
Source: University of Michigan, FTSE Russell.*The Russell 3000 is a total market index, which assumes all cash distributions are reinvested. Peak is defined as highest index value beforea series of lower lows, while trough is defined as lowest index value before a series of higher highs. Shaded areas indicate US recessions.
At Altrius, we often view crisis as an opportunity and invest when others won’t, allowing us to capitalize on potential upside performance.
Why Value MattersPHILOSOPHY
Stock Returns During Periods of Uncertainty
May 1980:+32.0%
Jan. 2000:-4.5%
Mar. 2003:+38.1% Oct. 2005:
+16.5%
Jan 2004:+6.4%
Nov. 2008:+28.4%
Jan 2007:-2.2%
Oct. 1990:+33.9%
Mar. 1984:+19.6%
Aug. 2011:+20.0%
Sentiment cycle peak and subsequent 1-yr Russell 3000* return
Sentiment cycle trough and subsequent 1-yr Russell 3000 return
Jan 2015:-4.8%
Con
sum
er S
entim
ent I
ndex
Q4 201917
Contrary to CAPM efficient market claims, high risk is often not associated with high reward.
Empirical Returns by Volatility QuintileVa
lue
of $
1 In
vest
ed in
196
8
Source: Benchmarks as Limits to Arbitrage: Understanding the LowVolatility Anomaly; Financial Analyst Journal Volume 67, 2011
The Value of Risk-Adjusted ReturnsPHILOSOPHY
Q4 201918
A process designed to outperform driven by total return:
GLOBAL MACRO TOP DOWN PERSPECTIVE
DRIVES INITIAL UNIVERSE
Top down strategy employed to identify the most compelling geographic, industry
and/or sector set:
National GDP Growth
Demographics- Where is the Growth?
Durable Businesses Exploiting Growth
Demand Changes: What’s growing, moving, slowing?
Bottom up process seeks to identify companies selling below their
intrinsic value:
Seek high-yielding, durable businesses
Screen P/E ratio, the ‘real’ earnings of a company
Seeking companies generally selling for
Q4 201919
CLASSIC VALUE30-50%
PERSISTENT EARNERS30-50%
Well-established companies with dependable revenue growth, reliable earnings and healthy
dividend appreciation, priced below their historical valuations.
Persistent Earners: Nestlé SA, Unilever NV, British American Tobacco PLC
Financially sound companies selling at economical valuations relative to their earnings power which demonstrate a commitment to sound, above average
dividends over the long term.Classic Value: Total SA, GlaxoSmithKline PLC,
AstraZeneca PLC
Companies that sell at significant discounts to their intrinsic value due to market
inefficiencies driven by irrational sell-offs.Distressed/Contrarian: BHP Billiton Limited, Telefónica
SA, Lloyds Banking Group PLC
DISTRESSED/CONTRARIAN0-15%
Further fundamental analysis is designed to determine which companies are increasing top line revenue growth, earnings and dividend payments. We target a portfolio of 25-50 companies that
fall into three value categories: Distressed/Contrarian, Classic Value and Persistent Earners.
Altrius Investment ProcessPROCESS
Chart1
Contrarian Distressed
Classic Value
Persistent Earners
Security Allocation
20
40
40
Sheet1
Security Allocation
Contrarian Distressed20
Classic Value40
Persistent Earners40
To resize chart data range, drag lower right corner of range.
Q4 201920
What Smart Beta Means to Us
Since 1997, we have employed a “smart beta” active management process characterized by three aspects of portfolio management which we believe lead to potentially superior risk-adjusted returns.
We craft our portfolios based on three “factors” – macro outlook, value, and dividends– which we believe are crucial in generating total return. We don’t attempt to follow anindex, but rather tactically position ourselves where we see opportunity.
Portfolio Selection
Equal Weighting
Contrarian Rebalancing
Our portfolio holdings are weighted equally in order to diversify adequately andprevent a small number of securities from driving portfolio performance.
We employ a process of contrarian rebalancing on a conditional basis to bring holdingsback to equal weights. When deemed necessary, we trim positions that have grown invalue and use proceeds to purchase those which have declined without a deteriorationof fundamental growth potential.
PROCESS
Q4 201921
At Altrius we employ a structured risk management perspective throughout oursecurity selection, monitoring, and sell process. By maintaining a data driven, factsoriented investment management process we avoid the bias that can often resultin poor risk management decisions.
As an added risk management component to our investment process, we create worstcase and best case scenarios for evaluating market opportunities and risk.
We do not hesitate to sell securities that we believe are ‘at risk’ based onfundamental factors; we remain agile and focused on our portfolio holdings at alltimes, prepared to sell securities that are not performing or for which we believe wehave identified better candidates to maximize portfolio return and to minimizeportfolio risk.
Companies that cut their dividend are almost always an automatic sell.
Valuations that exceed 20x earnings become too pricey and typically result in a sell.
Risk Management & Sell DisciplinePROCESS
Q4 2019
Portfolio Construction Guidelines
22
Benchmarks MSCI EAFE Value Index
Number of Holdings 25-50
Average Market Cap $30 - $70B
Minimum Market Cap $2B
Max Position Size 5%
Turnover 15 - 30%
PORTFOLIO ANALYTICS
Q4 201923
A History of Above Average Dividends
Altrius has consistently delivered a higher dividend yield than the MSCI EAFE index since inception.
International ADR Dividend Income vs. MSCI EAFE Dividend Yield
Source: Morningstar
PORTFOLIO ANALYTICS
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Int'l ADR MSCI EAFE
Q4 201924
Geographic Diversification
International ADR Dividend Income Geographic Exposure
PORTFOLIO ANALYTICS
As of 12.31.2019
Europe Developed, 40%
United Kingdom, 34%
North America, 8%
Japan, 8%
Australasia, 4%
Asia Developed, 5%
Africa/Middle East, 2%
Latin America, 0%
Europe Emerging, 0%
Asia Emerging, 0%
Q4 201925
Geographic Diversification
International ADR Dividend Income Geographic Exposure vs. MSCI EAFE*
*Annual geographic exposure data is reported as of 12.31 of the respectiveyear since 01.01.2013. 2019 data is reported as of 12.31.2019.
PORTFOLIO ANALYTICS
-30%
-20%
-10%
0%
10%
20%
30%
Europe Emerging, 0%
North America, +7%
Asia Emerging, -1%
Europe Developed, -6%
Asia Developed, 0%
Latin America, 0%
Africa/Middle East, +2%
Australasia, -3%
United Kingdom, +18%
Japan, -17%
Q4 201926
Revenue by Geography
Global Revenue Generation
As of 12.31.2019Source: Morningstar
PORTFOLIO ANALYTICS
United States, 24.9%
Eurozone, 17.2%
Asia - Emerging, 14.1%
United Kingdom, 12.0%
Latin America, 6.6% Japan, 5.2%
Europe - ex Euro, 4.0%
Australasia, 3.4%
Europe - Emerging, 3.2%
Asia - Developed, 3.2%
Canada, 2.6%
Africa, 2.1%
Middle East, 1.7%
Other, 16.1%
Q4 201927
Sector Diversification
International ADR Dividend Income Sector Allocation*
*Sector allocation data is reported quarterly since 01.31.2013.
PORTFOLIO ANALYTICS
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Real Estate
Consumer Cyclical
Industrials
Financial Services
Technology
Communication Services
Utilities
Basic Materials
Consumer Defensive
Healthcare
Energy
Q4 201928
Sector Diversification
International ADR Dividend Income Sector Allocation vs. MSCI EAFE*
PORTFOLIO ANALYTICS
*Annual sector allocation data is reported as of 12.31 of the respective yearsince 01.01.2013. 2019 data is reported as of 06.30.2019.
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
Consumer Defensive, +2%
Technology, -6%
Basic Materials, +1%
Communication Services, 0%
Real Estate, -4%
Healthcare, +4%
Industrials, -6%
Utilities, -4%
Consumer Cyclical, -6%
Financial Services, +12%
Energy, +6%
Q4 201929
Benchmark MSCI EAFE Value Index
Trailing P/E 15.89
Dividend Yield (TTM) 4.62%
Price/Book 1.18
Standard Deviation (sinceinception*) 14.25
Alpha (annualized, since inception) 0.53
Beta (since inception) 0.87
Sharpe Ratio (annualized, since inception) 0.42
As of 12.31.2019
Portfolio Analytics
*Since inception statistics for the timeperiod: 06.01.2010 to 12.31.2019
PORTFOLIO ANALYTICS
Q4 201930
Altrius Value Proposition
Ann
ual Y
ield
*Portfolio Growth of $1,000,000 assumes reinvestment of all dividends sinceinception. All data represented is gross of fees.
PERFORMANCE
Portf
olio
Val
ue
International ADR Dividend Income Growth of $1,000,000 and Dividend Yield*
0
0.01
0.02
0.03
0.04
0.05
0.06
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
Growth of $1,000,000 Portfolio Annual Yield
European CrisisOil Sell-off
Q4 201931
Altrius Value Proposition
*Portfolio Growth of $1,000,000 and Annual Income assumes reinvestmentof all dividends since inception. All data represented is gross of fees.
PERFORMANCE
Portf
olio
Val
ue
Ann
ual I
ncom
e
International ADR Dividend Income Growth of $1,000,000 and Dividend Income*
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
Growth of $1,000,000 Portfolio Annual Income
European CrisisOil Sell-off
Q4 201932
Portfolio Analytics:
-5%
0%
5%
10%
15%
20%
25%
YTD12.31.2019
1 Year 3 Year 5 Year SinceInception06.01.2010
Altrius (Net)
Altrius (Gross)
MSCI EAFE Value NR
PERIOD YTD12.31.2019 1 YEAR 3 YEAR 5 YEARSince
Inception
Altrius (Net) 18.16 18.16 6.68 2.47 4.50
Altrius (Gross) 19.44 19.44 7.86 3.62 5.67
MSCI EAFE Value NR 16.09 16.09 6.31 3.54 5.81
International ADR Dividend Income
As of 12.31.2019
PERFORMANCE
Chart1
YTD 12.31.2019YTD 12.31.2019YTD 12.31.2019
1 Year1 Year1 Year
3 Year3 Year3 Year
5 Year5 Year5 Year
Since Inception 06.01.2010Since Inception 06.01.2010Since Inception 06.01.2010
Altrius (Net)
Altrius (Gross)
MSCI EAFE Value NR
0.1816
0.1944
0.1609
0.1816
0.1944
0.1609
0.0668
0.0786
0.0631
0.0247
0.0362
0.0354
0.045
0.0567
0.0581
Sheet1
Altrius (Net)Altrius (Gross)MSCI EAFE Value NR
YTD 12.31.201918.16%19.44%16.09%
1 Year18.16%19.44%16.09%
3 Year6.68%7.86%6.31%
5 Year2.47%3.62%3.54%
Since Inception 06.01.20104.50%5.67%5.81%
To resize chart data range, drag lower right corner of range.
Q4 201933
Altrius International ADR Dividend Income Composite PerformanceMay 31, 2010 – December 31, 2018
YearGross
Return %
Net Return
%
BenchmarkReturn
%
Composite 3-Yr
St Dev %
Benchmark3Yr
St Dev %
# of Portfolios
Composite Dispersion
%
TotalComposite
Assets
Percent ofFirm
Assets
2010 23.80 23.08 19.67 N/A N/A 103 N/A 7,992,038 9.69
2011 (2.14) (3.27) (12.17) N/A N/A 101 0.62 10,051,518 8.08
2012 11.44 10.19 17.69 N/A N/A 105 0.58 9,923,562 7.35
2013 16.46 15.20 22.95 14.63 17.45 117 0.44 15,508,454 8.89
2014 (9.67) (10.68) (5.39) 13.01 14.32 128 0.52 22,637,241 11.96
2015 (11.77) (12.73) (5.68) 13.96 13.59 114 0.62 18,366,384 10.00
2016 7.88 6.67 5.02 13.97 13.49 133 0.81 27,156,259 10.16
2017 23.49 22.14 21.44 13.40 12.83 142 0.61 38,977,196 11.43
2018 (15.89) (14.94) (14.77) 12.36 12.19 148 0.34 34,693,791 10.45
Composite OverviewPERFORMANCE
Q4 201934
ACCOUNT FORMAT SEPARATELY MANAGED ACCOUNT
INSTITUTIONAL ACCOUNT MINIMUM $1,000,000
MANAGEMENT FEE < $25M 55 BP
MANAGEMENT FEE > $25M 50 BP
Management Fee StructureFEE STRUCTURE
Q4 201935
Performance ReportingAltrius Capital Management, Inc. (Altrius) claims compliance with the Global Investment Performance Standards (GIPS®) and has preparedand presented this report in compliance with the GIPS standards. Altrius has been independently verified for the periods January 31, 2001 –December 31, 2019 by ACA Verification Services. The verification reports are available upon request. A firm that claims compliance with theGIPS standards must establish policies and procedure for complying with all the applicable requirements of the GIPS standards. Verificationprovides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as thecalculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have beenimplemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.
The Firm is defined as Altrius Capital Management, Inc. (Altrius), a registered investment advisor with the Securities and ExchangeCommission. Altrius was founded in 1997 and manages equity, fixed income and balanced portfolios for high net worth individuals andfamilies.
Composite CharacteristicsThe International ADR Dividend Income strategy is a subaccount from the Altrius Global Income Composite. The composite andsubaccount were created in December 2010 with a performance inception date of May 31, 2010. The subaccount strategy seeks long termcapital appreciation and income by investing at least 80% of its assets in a diversified portfolio of income-producing equity securities payinghigher than average dividends. 30-50 International ADR positions are chosen from a universe of stocks with market capitalizations generallygreater than $10 billion.
Accounts are included on the last day of the month in which the account meets the composite definition. Accounts no longer undermanagement are withdrawn from the composite on the first day of the month in which they are no longer under management. Closedaccount data is included in the composite as mandated by the standards in order to eliminate a survivorship bias.
DisclosureDISCLOSURE
Q4 2019
BenchmarkThe benchmark is the MSCI EAFE Value NR. Effective 10/01/2017, the benchmark was changed from the MSCI EAFE NR Index to
the MSCI EAFE Value NR Index. The volatility of the indices may be materially different from that of the performance composite. Inaddition, the composite’s holdings may differ significantly from the securities that comprise the indices. The indices have not been selected torepresent appropriate benchmarks to compare the composite’s performance, but rather are disclosed to allow for comparison of thecomposite’s performance to those of well-known and widely recognized indices.
Economic factors, market conditions, and investment strategies will affect the performance of any portfolio, and there are no assurancesthat it will match or outperform any particular benchmark.
Performance CalculationsValuations and returns are computed and stated in U.S. dollars. Results reflect the reinvestment of dividends and other earnings.Gross of fees return is net of transaction costs and gross of management and custodian fees. Net of fees returns are calculated using
actual management fees that were paid and are presented before custodial fees and but after management fees and all trading expenses.Returns can be net or gross of withholding taxes, depending on how taxes are recorded at the custodian. Some accounts pay fees outside oftheir accounts; thus, we enter a non-cash transaction in the performance system such that we can calculate a net of fees return. Prior to01/01/2010, cash was allocated to carve-out segments on a pro-rata basis based on beginning of period market values. Beginning01/01/2010, carve-out segments are managed separately with their own cash balance. Carve-out accounts represent 100% of composite assetsfor periods prior to 01/01/2010.
The standard management fee for the Altrius International ADR Dividend strategy is 1.40% per annum on the first $500,000 USD, 1.00%per annum on the next $500,000 and 0.80% per annum thereafter. Additional information regarding Altrius Capital Management fees areincluded in its Part II Form ADV.
Internal dispersion is calculated using the asset-weighted standard deviation of all accounts included in the composite for the entire year; itis not presented for periods less than one year or when there were five or fewer portfolios in the composite for the entire year. The three-yearannualized standard deviation measures the variability of the composite and the benchmark (MSCI EAFE Value NR) returns over thepreceding 36-month period.
There are no non-fee paying accounts in our composites. When a security is purchased or sold, the principal amounts tied to thetransaction are net of trading costs; therefore the calculation and market values represent amounts net of trading costs. Dispersion iscalculated using asset-weighted standard deviation, gross of fees. Policies for valuing portfolios, calculating performance, and preparingcompliant presentations are available upon request. A complete list and description of firm composites is available upon request.
36
DisclosureDISCLOSURE
Q4 2019
Past performance does not guarantee future results. The information provided in this material should not be considered an offer nor arecommendation to buy, sell or hold any particular security.
The Altrius International ADR Dividend Income strategy is not sponsored, endorsed, sold or promoted by Morningstar, Inc. or any of itsaffiliates (all such entities, collectively, “Morningstar Entities”). The Morningstar Entities make no representation or warranty, express orimplied, to the owners of the Altrius International ADR Dividend Income strategy or any member of the public regarding the advisability ofinvesting in an equity strategy generally or in the Altrius International ADR Dividend Income strategy in particular or the ability of the (MSCIEAFE Value NR) to track general equity market performance.
THE MORNINGSTAR ENTITIES DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THEALTRIUS INTERNATIONAL ADR DIVIDEND INCOME STRATEGY OR ANY DATA INCLUDED THEREIN ANDMORNINGSTAR ENTITIES SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN.
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DisclosureDISCLOSURE
Q4 201938
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