Dividend Focused Value Equity

Magnolia
James Blake
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About Dividend Focused Value Equity

The strategy focuses on companies that have a consecutive 25-year history of paying cash dividends. Our history indicates that a strategy of emphasizing low price/book ratios and high dividend yields provides a measure of protection in down markets, as well as participation in improving economic cycles.

Investment Process

Investment Objective:

Seeks to outperform the Russell 1000® Value Index over a full market cycle.

Investment Overview:

We seek quality companies that are temporarily undervalued for reasons we can identify, understand, and believe will improve over time. We strive to construct portfolios that trade at levels below the market across multiple metrics including (P/E, P/B, EV/EBITDA) while simultaneously delivering an above-market dividend yield. The strategy focuses on companies that have a consecutive 25-year history of paying cash dividends with below-market valuations based on actual trailing earnings, characterized by low expectations due to past earnings disappointments or other temporary issues. We expect the companies in which we invest to produce above market earnings growth, profitability, and return on capital.

Strategy Summary

as of 6/30/2021
Asset Class
US Equity
Investment Style
Value
Portfolio Benchmark
Russell 1000® Value Index
Commingled Fund
Open
Separate Account
Open

Additional Information

Media Spotlight

Mark Giambrone Discusses Midterm Elections and Markets on Fox Business
November 7, 2018
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Mark Giambrone Discusses Market Trends on CNBC
November 6, 2018
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Portfolio Characteristics

as of 6/30/2021
Portfolio
Russell 1000® Value Index
S&P 500®
Index
P/E Ratio (Forecasted 12 Months)
15.8
16.7
21.3
P/B Ratio
2.4
2.6
4.4
Weighted Average Market Cap ($M)
128,881
152,698
542,792
Median Market Cap ($M)
54,008
13,796
30,216
Dividend Yield
2.1
1.9
1.3

Top 10 Holdings

as of 6/30/2021
Wells Fargo & Company
5.2%
CVS Health Corporation
4.2%
Merck & Co., Inc.
4.1%
JPMorgan Chase & Co.
4.1%
Northern  Trust Corporation
3.5%
Phillips  66
3.4%
Raytheon  Technologies Corporation
3.4%
Cigna Corporation
3.4%
General  Dynamics Corporation
3.3%
Chubb Limited
3.3%

Sector Weightings

as of 6/30/2021
Financials
23.2%
Health Care
21.0%
Industrials
12.8%
Consumer Staples
11.9%
Energy
7.0%
Utilities
6.6%
Materials
6.5%
Consumer Discretionary
5.1%
Information Technology
2.3%
Communications Services
1.9%
Real Estate
1.1%
Cash
0.6%

Performance

Annualized Portfolio Returns as of 6/30/2021
Qtr*
1 Year
3 Year
5 Year
10 Year
Dividend Focused Value Equity - Gross Returns
5.78%
44.61%
9.25%
10.41%
11.01%
Dividend Focused Value Equity - Net Returns
5.59%
43.62%
8.47%
9.61%
10.21%
Russell 1000® Value Index
5.21%
43.68%
12.42%
11.87%
11.61%
S&P 500® Index
12.15%
18.40%
14.18%
15.22%
13.88%

*Most recent quarter returns are not annualized. Past performance does not guarantee future results and there is no assurance that the Strategy will achieve its investment objective.

Disclosure

Sources for data noted above are from APX and FactSet as of the date specified.

Barrow Hanley gross returns are shown before investment management fees and custody expenses. Index returns do not reflect transaction costs, management fees, and other expenses. Performance is expressed in U.S. currency. Net returns are calculated using a model fee. The model fee is based on the highest tier of our standard fee schedule. Barrow, Hanley, Mewhinney & Strauss, LLC claims compliance with the Global Investment Performance Standards (GIPS®). 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.

Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. The data presented may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is prepared by Barrow Hanley. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in Barrow Hanley's presentation thereof.

Standard and Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC, and these trademarks have been licensed for use by S&P and Dow Jones Indices LLC and S&P Dow Jones Indices LLC. The data presented may contain confidential information and unauthorized use, disclosure, copying, dissemination or redistribution is strictly prohibited. This is prepared by Barrow Hanley. S&P Dow Jones Indices LLC is not responsible for the formatting or configuration of this material or for any inaccuracy in Barrow Hanley's presentation thereof.

The Global Industry Classification Standard (“GICS”) was developed by and is the exclusive property and a service mark of MSCI Inc. (“MSCI”) and Standard & Poor’s, a division of The McGraw Hill Companies, Inc. (“S&P”) and is licensed for use by Barrow, Hanley, Mewhinney & Strauss, LLC. Neither MSCI, S&P, nor any third party involved in making or compiling the GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any of such standard or classification.  Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

All institutional product information has been provided by Barrow, Hanley, Mewhinney & Strauss, LLC. Any questions about this material or requests for additional information may be made directly to the firm by contacting us here.

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