Institutional Strategies

Science and Technology

The strategy seeks to provide capital appreciation through an actively managed, risk-controlled portfolio of investments in equity securities of the world’s leading science and technology companies. The team takes a broad view of innovation, investing beyond typical health care and technology stocks to find companies applying innovative ideas to improve business efficiencies, productivity and our daily lives.

Investment Philosophy

Our investment approach stems from the belief that firms can achieve superior levels of capital appreciation through an actively managed, risk-controlled portfolio of investments in equity securities of the world’s leading science and technology companies. The investment team believes innovation is a key catalyst for change, giving companies a true competitive edge. In turn, this creates growth opportunities for investors. As a result, the strategy takes a broad view of innovation, investing beyond typical health care and technology stocks to find companies applying innovative ideas to improve business efficiencies, productivity and our daily lives.

Investment Process

The investment team emphasizes growth potential in selecting stocks; that is, seeking companies in which earnings are likely to grow faster than the economy. The team aims to identify strong secular trends within industries and then apply a largely bottom-up, stock selection process by considering a number of factors in selecting securities for the strategy. Quantitative screens are utilized to evaluate a company’s financial strength and seeks to determine the firm’s longer term growth prospects. In particular, the investment team seeks companies with three to five-year sales and earnings growth rates of at least 20%. Fundamental analysis is utilized to gauge quality of management, market size potential and valuations that allow for multiple expansion.

We take a 360-degree approach to company evaluation

We work diligently to identify companies that can find and deploy technologies to run their businesses more effectively, as consumers have less to spend and are being more judicious in their purchases.
Sci Tech investment process

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Key Features

Composite Performance History Since 1/1/2005
Benchmark S&P North American Technology Index
Market Capitalization Generally companies with a market capitalization greater than $500 million
Annualized Turnover Typically 30–40% dollar turnover, while stock name turnover is targeted at 10-15 names annually — consistent with the strategy's targeted 3+ year holding period.
Tracking Error Residual of the strategy's investment approach
Sector Exposure The strategy seeks stocks that operate within three key areas of the economy. Key areas include:
• Science (10–20% allocation to predominately health care oriented companies such as pharmaceuticals, medical technology and biotechnology)

• Technology (65–80% allocation to information technology companies such as semiconductors, computer hardware/software and networking)

• Applied science and technology (5–15% allocation to companies across remaining sectors that utilize science and/or technology as an agent of change to enhance business opportunities)
Security Concentration Typically 40–60 positions, with top 10 holdings being roughly 40% of the strategy. Maximum position size limits are typically limited to the greater of 8% of portfolio assets or 200 basis points above index weighting.
Investment Vehicles Institutional Separate Account
Collective Investment Trust
U.S. Mutual Fund: Institutional Share Class
Variable Insurance Portfolio