S&P 500 Catholic Values Strategy

Q3 2024 | September 30, 2024

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Annualized Returns (%) 

QTD YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception1
Gross of fees 6.16 20.33 34.55 - - - - 11.87
Net of fees 6.11 20.18 34.29 - - - - 11.66
Benchmark 5.89 22.08 36.35 - - - - 13.03
1 Inception Date: February 28, 2022 2 Benchmark: S&P 500

Characteristics

Portfolio Weight Benchmark Weight
Excess return (gross since inception) -1.16% -
Excess return (net since inception) -1.37% -
Holdings 438 504
P/E using FY1 est 23.31 23.81
P/E using FY2 est 20.57 20.89
Dividend yield 1.25% 1.26%
Historical 3 year EPS growth 29.78% 25.28%
Weighted average market cap in $M $908,291.06mm $999,590.61mm

Sector Weights (%)

Portfolio Weight Benchmark Weight
Communication Services 8.91 8.86
Consumer Discretionary 10.26 10.11
Consumer Staples 5.67 5.89
Energy 3.36 3.31
Financials 12.60 12.91
Health Care 11.82 11.60
Industrials 8.79 8.51
Information Technology 31.46 31.70
Materials 2.27 2.23
Real Estate 2.33 2.34
Utilities 2.53 2.53

Top Ten Holdings (%)

Portfolio Weight
Apple Inc. 7.35
Microsoft Corporation 6.59
NVIDIA Corporation 6.16
Meta Platforms Inc Class A 2.55
Tesla, Inc. 2.35
Alphabet Inc. Class A 1.99
Broadcom Inc. 1.67
Alphabet Inc. Class C 1.64
Procter & Gamble Company 1.64
Costco Wholesale Corporation 1.57

Distinguishing Attributes

  • Structured and disciplined investment process
  • Customized to incorporate catholic values considerations
  • Experienced investment team
  • Corporate culture built on client service and diversity

Total product assets shown above may include accounts that are not reflected in the Global Investment Performance Standards (GIPS®)* report below. Portfolio characteristics are subject to change, and current holdings may differ. Past performance is not an indication of future results. Returns are presented gross and net of management fees and include the reinvestment of all income. A GIPS report is found at the end of this presentation. Statistics shown above are supplemental information to the GIPS report at the end of this presentation. Results represent preliminary data which is subject to change. For further performance data, please see the Xponance® S&P Catholic Values Strategy disclosures below.

*GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

Portfolio Management

Sumali Sanyal, CFA

Managing Director, Senior Portfolio Manager, Systematic Global Equities

Cameron McLennan, CFA

Director, Portfolio Manager, Systematic Global Equities

About Xponance®

Xponance® is a multistrategy investment firm offering strategies across equity and fixed income. We are independent and employee owned by women and diverse professionals, whose common passion is to do the right thing for our clients and each other. Xponance® is the successor firm representing the integration of legacy firms, FIS Group, Inc. and Piedmont Investment Advisors, LLC

Investment Philosophy & Process

This strategy is designed to provide clients with an S&P 500 index-like strategy aligned to Catholic values. This strategy meets the USCCB (United States Conference of Catholic Bishops) socially responsible guidelines. The proxy voting for securities in this strategy is also done in accordance with catholic values.

Portfolio Facts

Inception date2/28/2022
Assets in strategy$15.2mm
BenchmarkS&P 500
Predicted tracking errorLess than 1.5%
No. of stocksB/m
SectorsB/m ± 0.5%
Annual turnover4-10%
Min. investment$10mm
Vehicle(s) availableSeparately managed

Trailing period performance as of 9/30/20241

(%)QTDCYTD1-Year3-Years5-Years10-YearsSince InceptionInception Date
Composite Gross6.1620.3334.55N/AN/AN/A11.872/28/2022
Composite Net6.1120.1834.29N/AN/AN/A11.66
Index5.8922.0836.35N/AN/AN/A13.03
1 Benchmark: S&P 500

Past performance is not indicative of future results. Periods greater than 1 year are annualized. The U.S. Dollar is the currency used to express performance. Investments in public equities involve risks, including the loss of principal invested.  This strategy's returns may fluctuate in response to one or more of many factors, that include financial condition of individual companies; the business market in which individual companies compete; industry market conditions; interest rates; general economic environments; portfolio management activities; and data or modeling risk where proprietary models are used in the management of the strategy.

Gross of fee returns are presented before management fees, but after custodial fees and transaction costs and include the reinvestment of all income. Net of fee returns reflect the deduction of the actual management fees (including performance-based fees if applicable) from the monthly gross of fee returns. Actual management fees incurred by clients may vary.

The standard management fee schedule is as follows: First $50mm: 6 bps; Next $100mm: 5 bps; Next $200mm: 4 bps; Next $250mm: 3 bps; Over $500mm: 2.5 bps. Fees are charged to clients on a quarterly basis. Fees are calculated as a percentage of assets under management and vary based upon the type of product and the total amount of assets under management. The percentage fee is expressed terms of basis points ("BPS") for our products. One hundred basis points equal 1%. All fees are negotiable.

Xponance claims compliance with the Global Investment Performance Standards (GIPS®). To obtain GIPS-compliant performance information for the firm's strategies and products, please contact info@xponance.com.

The firm maintains a complete list and description of composites and limited distribution pooled fund(s) which is available upon request. Please refer to the GIPS® report for additional performance information which is included on the next page of this presentation.

GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

Annual Disclosure Presentation

Performance Results (%)3-Yr Annualized Ex-Post Standard Deviation (%)
Year EndComposite Gross TWRComposite Net TWRBenchmark1Composite GrossBenchmark1 Number of PortfoliosComposite Assets ($mm)Total Firm Assets ($mm)
202326.8726.5726.29N/AN/AFive or fewer1316,613
20222-12.47-12.57-10.98N/AN/AFive or fewer1013,512
Composite inception date: February 28, 2022. 1 Benchmark: S&P 500 2 Results shown for the calendar year 2022 represent partial period performance from February 28, 2022 through December 31, 2022.

Xponance,® Inc. ("Xponance®") claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Xponance® has been independently verified for the periods from November 1, 1998 through December 31, 2023. The verification report is available upon request.

A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm's policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

On August 31, 2018, FIS Group, Inc. ("FIS Group") acquired Piedmont Investment Advisors, Inc.'s ("PIA") predecessor, Piedmont Investment Advisors, LLC. Xponance®, Inc. ("Xponance®") is an independent, registered investment adviser and is the successor registrant under the Investment Advisers Act of 1940 (the "Advisers Act") to both FIS Group and its wholly-owned subsidiary, PIA. Pursuant to a corporate rebranding and consolidation strategy, Xponance® was established effective April 1, 2020, to leverage the long histories of its predecessor entities in providing customized investment management products to institutional clients. FIS Group (through its former subsidiaries, Fiduciary Investment Solutions, Inc. and FIS Funds Management, Inc.) managed assets since 1996 and PIA (through its former affiliate Piedmont Investment Advisors, LLC) began managing assets in 2000. The firm maintains a list of composite descriptions and limited distribution pool fund(s) descriptions, which is available upon request.

Xponance is an investment adviser registered with the United States Securities and Exchange Commission ("SEC"). Our registration as an investment adviser does not imply any level of skill or training and the information in this report has not been approved or verified by the SEC or by any state securities authority.

S&P 500 Catholic Values Strategy Composite contains fully discretionary S&P 500 accounts where the portfolios are constructed to achieve specific target weights for S&P 500 Catholic Values. Index The S&P 500 Catholic Values Strategy Composite was created on February 28, 2022. For comparison purposes this strategy is measured against the S&P 500 Index. The S&P 500 is an index of 500 stocks seen as a leading indicator of U.S. equities and a reflection of the performance of the large cap universe. The S&P 500 is a market value weighted index and one of the common benchmarks for the U.S. stock market.

Results are based on fully discretionary accounts under management. Accounts that are no longer with the firm are included through the last full measurement period such accounts were managed in the composite's style. Past performance is not indicative of future results. The U.S. Dollar is the currency used to express performance.

Gross of fee returns are presented before management fees, but after custodial fees and transaction costs and include the reinvestment of all income. Net of fee returns reflect the deduction of the actual management fees (including performance-based fees if applicable) from the monthly gross of fee returns. Actual management fees incurred by clients may vary.

The standard management fee schedule is as follows: First $50mm: 6 bps; Next $100mm: 5 bps; Next $200mm: 4 bps; Next $250mm: 3 bps; Over $500mm: 2.5 bps. Fees are charged to clients on a quarterly basis. Fees are calculated as a percentage of assets under management and vary based upon the type of product and the total amount of assets under management. The percentage fee is expressed terms of basis points ("BPS") for our products. One hundred basis points equal 1%. All fees are negotiable.

The three-year annualized standard deviation measures is not presented because 36 monthly returns are not available.

Internal dispersion presented is an equal-weighted standard deviation of annual gross returns of those portfolios that were in the composite for the entire year. For those years when less than six portfolios were included in the composite for the full year, no dispersion measure is presented.

Policies for valuing investments, calculating performance, and preparing GIPS reports are available upon request.