Our Focused Large Cap Value Quantitative Strategy is based on the belief that, over multiple market cycles, investing in stocks with strong fundamental business models at attractive prices will add value versus a passive benchmark. However, we are also cognizant of the impact that shorter-term pressures can have on markets. So, though our primary focus is always our core belief, we also stay alert to these other influences and believe that they can create additional opportunities to add value.
How We Make Equity Strategies Work For You:
We seek to identify companies capable of generating returns for you. We also consider secular trends that lend themselves to long-term investment horizons.
We evaluate risk and reward based on our expectations of company fundamental performance.
We value assets relative to market and growth prospects.
We monitor our investments closely. If we believe the investment prospects are less than we expected, we remove the stock from the portfolio.
The objective of Cavanal Hill’s Focused Large Cap Value Equity Strategy is to generate a total return, net of all fees, in excess of the S&P 500 Value benchmark over rolling three to five year periods.
| First $5,000,000 | 60 bps |
| Next $5,000,000 | 55 bps |
| Next $15,000,000 | 50 bps |
| Next $25,000,000 | 45 bps |
| Next $50,000,000 | 40 bps |
| More Than $100,000,000 | 35 bps |
Cavanal Hill Focused Large Cap Value Equity Composite (creation 3/31/2006, inception 2/1/2001) Consists of quantitatively managed portfolios which invest in large cap U.S. equities that exhibit value characteristics. Certain stocks are restricted from the portfolios’ strategy due to customer requirements. On June 15, 2017, the name of the composite changed from Large Cap Value Quantitative with Exclusions Equity to the current name. This is a name change only and not a change to the investment strategy. The strategy utilizes the S&P 500/Citigroup Value index as its benchmark.
Benchmark Information: The S&P 500/Citigroup Value index was introduced in the fall of 2005 to replace its predecessor, the S&P/Barra Value index. It uses a multifactor
methodology to calculate value. Style scores are calculated taking standardized measures of 4 value factors for each constituent. The index is unmanaged. Investors cannot invest directly in an index. The above index does not reflect the fees associated with a managed account.