Security selection focuses on companies with improving growth prospects and earnings trends as well as reasonable valuation given the economic cycle. Target market capitalization in excess of $15 billion with minimum market capitalization of $10 billion. Returns and standard deviation reflect a well diversified portfolio of 45-65 names that results from our top-down sector/industry allocation process.
We utilize several procedures to control risk in our Large Cap Equity portfolio. On an individual stock level, we have a maximum position limit of 5%, ensuring proper diversification across different securities. For the portfolio, we impose a maximum/minimum sector overweight/underweight of +/- 1000 basis points versus the benchmark sector weight, with an overall maximum sector exposure of 30%. Our investment policies and procedures also call for a review of securities by Investment Committee that have underperformed to the benchmark on a rolling three-month basis.
|Asset Class:||Large Cap Equity|
|Primary Benchmark:||S&P 500|
|Secondary Benchmark:||Russell 1000 Growth|
|Inception Date:||December 31, 1992|
|Average Number of Positions:||45 - 65|
|Max Position Size:||5%|
|Weighted Average Market Cap:||$198.442 billion|
|Sector Constraint:||+/- 1000 basis points vs. benchmark (30%)|
|Target Annual Turnover:||50 - 60%|
|Data Provided as of:||September 30, 2018|