All Cap Value Strategy

Strategy Overview

HIGHLIGHTS

The blend of Core and Deep Value companies provides alpha potential with a less volatile return stream compared to Deep Value only investors

  • Core Value: highest quality, strong return profiles, sustainable competitive advantages, and strong management teams
  • Deep Value: negative market sentiment, defensible franchise value, and high expected return potential

INVESTMENT APPROACH

We use a bottom-up approach that seeks to identify businesses where expectations are irrationally low, leading to significant undervaluation, based on our independent research. Both Core and Deep Value companies exhibit:
  • Strong balance sheets
  • Market overreaction short-term events
  • Key Thesis Points™ (long-term catalysts) that will improve fundamentals

Primarily invests in a combination of US Large Cap, Mid Cap and Small Cap Value companies.

Concentrated portfolio of 25-35 positions

Quick Look

as of 6/30/21

Total Assets

Mutual Fund

$47mm

Separate Accounts

$48mm

Model Delivery

$196mm

Inception Date

08/01/10

Account Minimum

$1mm

Primary Benchmark

Russell 3000 Value Index

Investment Team

Ryan Batchelor

Ryan Batchelor

PORTFOLIO MANAGER

Allan Nichols

Allan Nichols

SENIOR ANALYST

David Passey

David Passey

SENIOR ANALYST

Performance

as of 6/30/21

1-mo

3-mo

YTD

1-yr

3-yr

5-yr

10-yr

Since
Inception

ACV Composite (gross)

-1.6%

5.1%

24.4%

63.3%

15.8%

17.9%

15.9%

16.5%

ACV Composite (net)

-1.7%

4.9%

24.0%

62.6%

15.4%

17.4%

15.1%

15.8%

Russell 3000 Value

-1.1%

5.2%

17.7%

45.4%

12.2%

12.0%

11.5%

12.5%

*Returns for periods less than one year are not annualized

Performance

as of 6/30/21

*Returns for periods less than one year are not annualized

Calendar Year Returns

as of 6/30/21

Performance is preliminary and subject to change. Past performance is not indicative of future results. Clifford Capital Partners is an independent registered investment advisor. Registration does not imply a certain level of skill or training. Clifford 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 content contained herein. To receive a complete list of composite descriptions of Clifford composites and/or a GIPS Composite Report, e-mail heather@cliffordcap.com. The U.S. Dollar is the currency used to express performance.

The All Cap Value Composite contains fully discretionary equity accounts following the All Cap Value style.  The composite primarily invests in US Value companies with the goal of long-term growth of capital.  Income is a secondary objective, but only when consistent with long-term growth of capital.  For comparison purposes the composite is measured against the Russell 3000 Value TR.

The Russell 2000 Growth TR Index measures the performance of Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values.

The Russell 2000 TR Index represents the smallest 2,000 companies in the Russell 3000 Index, ranked by total market capitalization.

All rights in the Russell Indexes vest in the relevant London Stock Exchange Group plc (collectively, the “LSE Group”), which owns these indexes. Russell® is a trademark(s) of the relevant LSE Group company and is used by any other LSE Group company under license. These indexes are calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the Fund or Separate Account. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from the Fund or Separate Account or the suitability of these indexes for the purpose to which they are being put by Clifford Capital Partners.

Clifford All Cap Value Portfolio

since inception

Cumulative (annualized)

Cumulative (annualized)

ACV (net)

R3000V

S&P 500

Characteristics

as of 6/30/21

Characteristics

as of 6/30/21

ACV

R3000V

Number of Holdings

32

2226

Average Market Cap ($ Weighted)

$47.5B

$142.6B

Median Market Cap

$7.1B

$2.7B

Price / Earnings (trailing)

16.6

20.3

Price / Cash Flow

9.6

11.9

Price / Book

2.4

2.5

Dividend Yield

3.4%

2.3%

Turnover (LTM)

20.1%

n/a

Active Share

94%

0%

Top 10 Holdings

as of 6/30/21

% of Net Assets

NCR Corp

5.3%

American Express Co.

4.9%

First Hawaiian, Inc.

4.3%

CIT Group Inc.

4.2%

EVERTEC

4.0%

Autozone, Inc.

3.8%

CDK Global, Inc.

3.8%

GlaxoSmithKline PLC

3.7%

Cisco Systems, Inc.

3.5% ​

Schlumberger Ltd.

3.4%

Performance Statistics

as of 6/30/21 – 5 Year

Alpha

Beta

Standard Deviation

Upside
Capture

Downside
Capture

Sortino

Sharpe

Information
Ratio

R-Squared

ACV Core

1.0

1.00

17.3

115.4

112.2

1.04

0.68

0.20

0.92

ACV Deep

3.3

1.60

30.1

170.7

130.3

1.01

0.65

0.50

0.77

ACV Portfolio

3.7

1.17

20.3

133.9

109.5

1.26

0.83

0.89

0.91

Russell 3000 Value

0.0

1.00

16.5

100.0

100.0

0.95

0.66

-

1.00

Sector Allocation

as of 6/30/21

Sector

ACV

R3000V

Information Technology

23.1%

9.9%

Financials

22.2%

21.1%

Consumer Discretionary

15.3%

5.9%

Health Care

10.7%

16.9%

Industrials

8.8%

12.2%

Consumer Staples

5.5%

6.9%

Energy

4.8%

5.2%

Materials

4.5%

3.9%

Utilities

2.1%

4.8%

Communication Services

0.0%

8.2%

Real Estate

0.0%

5.0%

Cash

3.0%

0.0%

Sector Allocation

as of 6/30/21

Weights are calculated as a percentage of net assets including cash & cash equivalents

Market Cap Trend

Graph shows the average weights of the indicated market cap categories within the portfolio, based on the model account as if each market cap category was trading as separate ex-cash portfolios. Actual portfolios will vary in composition, characteristics from the model portfolio; therefore, the weightings in actual portfolios may deviate from those shown.

Commentary & Literature

Portfolio Characteristics, Allocations and Top Ten Holdings are derived from a representative account.

Est. 5-year EPS Growth %: Estimated percentage increase in earnings per share (EPS) per year of the fund's holdings over the next 5 years. Returns are not guaranteed and may be higher or lower. Source: Wasatch and FactSet. P/E Ratio (forward and trailing): Sum of stock prices of the fund's holdings divided by the aggregate earnings per share of those holdings for the next 12 months (forward), or past 12 months (trailing), calculated as a weighted harmonic average. P/E to Growth Rate: Forward 12-month P/E ratio divided by the estimated 5-year EPS growth rate. Portfolios with a number less than 1.0 would be considered undervalued, around 1.0 would be considered fair valued and significantly greater than 1.0 would be considered overvalued. Weighted Average Market Cap: Average market capitalization of companies held by the fund, weighted by their percentage of fund net assets. Portfolio Turnover: A measure of trading activity in a fund's portfolio over the past 12 months expressed as a percentage of the fund's average total assets. Alpha measures a fund's risk/reward potential. A positive alpha means the fund outperformed the index. A negative alpha means the fund underperformed the index. Beta measures a fund's risk in relation to the market. A beta of 0.8 means the fund's total return is likely to move up or down 80% of the market change; 1.25 means total return is likely to move up or down 25% more than the market. R-Squared measures (from 0 to 1.0) how closely a fund's movements are correlated with movements of its benchmark. An R-squared of 1.0 would mean that the fund's movements are completely correlated with the movements of its benchmark. Active Share measures the difference between portfolio holdings and the benchmark. It is the sum of the absolute values of the different weightings of each holding in the fund versus each holding in the benchmark, divided by 2. Standard Deviation measures the degree to which a fund's performance has varied from its average performance over a particular time period. The greater the standard deviation, the greater a fund's volatility (risk). Upside Capture explains how well a fund performs in time periods where the benchmark's returns are greater than zero. Downside Capture explains how well a fund performs in time periods where the benchmark's returns are less than zero.

Portfolio holdings are subject to risks and may change at any time.