Security selection focuses on companies with improving growth prospects and earnings trends as well as reasonable valuation given the economic cycle. Target market capitalization is between $4 billion and $20 billion with a minimum and maximum of $3 billion and $30 billion, respectively. Returns and standard deviation reflect a well diversified portfolio of 65-85 names that results from our top-down sector/industry allocation process.
We utilize several procedures to control risk in our Mid Cap Equity portfolio. On an individual stock level, we have a maximum position limit of 4%, 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:||Mid Cap Equity|
|Primary Benchmark:||Russell Mid Cap|
|Secondary Benchmark:||Russell Mid Cap Growth|
|Inception Date:||June 30, 2008|
|Average Number of Positions:||55 - 75|
|Max Position Size:||4%|
|Weighted Average Market Cap:||$14.206 billion|
|Sector Constraint:||+/- 1000 basis points vs. benchmark (30%)|
|Target Annual Turnover:||50 - 70%|
|Data Provided as of:||September 30, 2018|