U.S. ESG Value Equity

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Rebecca Ward
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About U.S. ESG Value Equity

The strategy is focused on investing in companies with above average Environmental, Social, and Governance (ESG) scores as measured by our proprietary ESG composite rating system. It’s a valuation-centric, actively-managed portfolio of individual stocks selected on a bottom-up basis whose ratings are improving – often as the result of our direct engagement with management.

Investment Process

Investment Objective:

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

Investment Overview:

Our approach to ESG investing is underpinned by the key elements of the United Nations-supported Principles for Responsible Investment (PRI) and the Investor Stewardship Group (ISG). We incorporate the consideration of relevant ESG factors into our investment management practices in a manner that is consistent with the relevant Barrow Hanley investment philosophy, process, and client mandate.

Strategy Summary

as of 9/30/2021
Asset Class
U.S. Equity
Investment Style
Value
Portfolio Benchmark
Russell  1000® Value Index
Separate Account
Open

Additional Information

Media Spotlight

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Portfolio Characteristics

as of 9/30/2021
Portfolio
Russell  1000® Value Index
S&P 500® Index
P/E Ratio (Forecasted 12 Months)
13.8
15.8
20.2
P/B Ratio
2.0
2.4
4.3
Weighted Average Market Cap ($M)
85,202
155,968
563,332
Median Market Cap ($M)
22,828
13,211
30,579
Dividend Yield
1.4
1.9
1.4

Top 10 Holdings

as of 9/30/2021
Wells Fargo & Company
3.2%
Umpqua Holdings Corporation
3.2%
CVS Health Corporation
3.1%
Ralph  Lauren Corporation Class A
3.0%
Exelon  Corporation
3.0%
Merck & Co., Inc.
3.0%
Advance Auto Parts, Inc.
3.0%
Cigna Corporation
2.9%
American  International Group, Inc.
2.8%
Darling  Ingredients Inc.
2.7%

Sector Weightings

as of 9/30/2021
Financials
19.8%
Health Care
17.1%
Industrials
16.5%
Consumer Discretionary
14.2%
Consumer Staples
8.8%
Information Technology
8.6%
Materials
3.7%
Cash
3.6%
Utilities
3.0%
Real Estate
2.4%
Communication Services
2.3%

Performance

Annualized Portfolio Returns as of 9/30/2021
Qtr*
1 Year
3 Year
Since Inception**
U.S. ESG Value Equity - Gross Returns
-0.69%
44.75%
12.30%
12.32%
U.S. ESG Value Equity  - Net Returns
-0.87%
43.75%
11.49%
11.51%
Russell 1000® Value Index
-0.78%
35.01%
10.07%
10.04%
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.
** Inception Date: 1/1/17

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 BHMS. Russell Investment Group is not responsible for the formatting or configuration of this material or for any inaccuracy in BHMS' 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 BHMS. S&P Dow Jones Indices LLC is not responsible for the formatting or configuration of this material or for any inaccuracy in BHMS' 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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