EQUITY STRATEGIES Clause Samples

EQUITY STRATEGIES. Value Equity Strategies Value Equity strategies invest in a portfolio of equity securities which Confluence believes are undervalued or inexpensive relative to other investments. These types of securities present risks in addition to the general risks associated with investing in equity securities, including the risk that Confluence’s estimates of the intrinsic value of the stock may never be realized by the market or that the price goes down. Equity securities generally are selected based on views of an issuer’s business and economic fundamentals or the security’s current and projected credit and profit profiles, relative to current market price. Such securities are subject to the risk of misestimating certain fundamental factors. Further, because the prices of value-oriented securities tend to correlate more closely with economic cycles than growth-oriented securities, they generally are more sensitive to changing economic conditions, such as changes in interest rates, corporate earnings and industrial production. Disciplined adherence to a value investment mandate during periods in which that style is out of favor can result in significant underperformance relative to overall market indices and other managed investment vehicles that pursue growth style investments and/or flexible style mandates. Confluence Value Equity portfolios will typically hold securities of fewer issuers than a broadly diversified equity mutual fund. Confluence Value Equity portfolios may be more susceptible to a single adverse economic or regulatory occurrence affecting one or more of these issuers, experience increased volatility, and be concentrated in certain issues. Furthermore, because Value Equity portfolios have a relatively small number of issuers, the portfolios have greater susceptibility to adverse developments in one issuer or group of issuers. Confluence’s Value Equity strategies sometimes utilize American Depository Receipts (“ADRs”), which are U.S listed receipts for securities of non-U.S. companies and are typically issued by a U.S. bank or trust company and represent ownership of the underlying non-U.S. securities. While ADRs are typically U.S. dollar-denominated (which is not necessarily in the same currency as the securities into which they may be converted), many of the risks associated with non-U.S. securities often apply to ADRs as well. Issuers of non-U.S. securities are not generally subject to uniform accounting, auditing and financial standards comparabl...

EQUITY STRATEGIES. Victoria University offers opportunities and support for students who come from backgrounds of educational disadvantage. We are committed to increasing the aspirations and achievements of students, and to expanding the ways in which the University can be accessed by our target groups.

EQUITY STRATEGIES. Value Equity Strategies Confluence’s Value Equity strategies include All Cap Value, Equity Income, Increasing Dividend Equity Account IDEA, IDEA Plus, Large Cap Value, Small Cap Value and Value Opportunities. Value Equity portfolios consist primarily of equity securities of U.S. issuers and U.S.-listed securities of non-U.S. issuers. The IDEA Plus strategy utilizes, in addition to such equity securities, broad-based equity index ETFs and covered call options thereon. Confluence utilizes a team-based approach in which all equity investment committee members are fundamental analysts first and foremost. Each analyst is responsible for companies within specific industries and brings ideas to the Investment Committee for vetting of investment theses and analyzing new developments with the goal of ensuring that each security in a portfolio has the attributes Confluence looks for in its equity investments (e.g., sustainable competitive advantage, free cash flow, capable management, trading at a discount to intrinsic value, among other considerations) Confluence analysts begin by compiling data, including independent and Wall Street research, on individual securities. Data gathering includes reviews of specific company and SEC documents, company visits, management interviews, newspaper and other media stories, industry publications, competitors’ information and research reports. Much of the analysts’ time is spent qualitatively analyzing this information to determine if a company possesses a sustainable competitive advantage that allows for product pricing flexibility, with additional time spent on a quantitative cash flow analysis to determine estimates of fair value of the company’s equity securities. Typically, the process begins with an equity analyst or portfolio manager analyzing and writing up a proposed company (or recommendation) in his or her respective industry coverage. The information is disseminated to the Value Equities Investment Committee and subsequently vetted by the Committee. The vetting process is thorough, often requiring additional information or analysis. If investment in that company is approved, the Portfolio Management Committee decides placement into a portfolio based on weighting/contribution. Each portfolio has an established target number of holdings. The portfolio will become fully invested over time as targeted investments become available within the stated pricing discipline. Before investing in any equity security of a company, ...