FROM: Lisa Sorani, Manager of HR Employee Services LS -

More documents

Recommendations

Info

Barrow Hanley Large Cap Value Heightened Monitoring Status Recommendation Product and Organization Review Summary Reason for Update Failed Performance Criteria Organizational Changes Scheduled Watch Update Product Key people changes Changes to team structure/individuals roles Product client gain/losses Changes to the investment process Personnel turnover Level of Concern^ None None None None None Areas of Potential Impact Investment process (client Investment Performance portfolio) Team Track Record Team/ Firm Culture Organization Ownership changes Key people changes Firm wide client gain/losses ^None, low or high None None None Review and Recommendation History Date PCA Findings and Recommendation Board 04/2013 PCA recommends placing Barrow Hanley on Heightened Monitoring status due to performance. Next review in 12 to 18 months Pending Annualized Performance Results As of 03/31/2013 Inception (12/31/05) Performance QTR YTD 1 Year 3 Years 5 Years Barrow Hanley 10.1 10.1 13.2 10.9 5.9 5.0 Russell 1000 Value Index 12.3 12.3 18.8 12.7 4.8 5.0 Difference -2.2 -2.2 -5.6 -1.8 1.1 0.0 Peer Ranking^ Barrow Hanley 82 82 80 65 40 61 Russell 1000 Value Index 28 28 8 39 60 63 Source: MPI ^Peer rankings are based on gross of fee performance. Rankings: 1 = best and 100= worst 2
Recent Investment Performance Barrow Hanley exhibits a consistently higher quality portfolio (high returns on equity, low leverage, sustained earnings) than the benchmark. This quality bias leads to a relative performance pattern wherein Barrow Hanley performs well during periods of volatility and market decline but tends to lag in strong up markets. Over time, this quality bias should lead to outperformance as a number of studies have shown higher quality stocks outperform lower quality stocks over the long term. When looking at quarterly excess performance relative to the Russell 1000 Value Index (see graph below), it is evident the portfolio’s excess returns have proven to be volatile. Since inception, Barrow Hanley has produced positive excess results relative to the Index in 13 of the 30 quarters (43% of the time). Strong excess performance in periods of market decline has helped Barrow Hanley over longer time periods. 5 4 3 Quarterly Excess Performance (Since Inception – 03/31/2013) Barrow Excess 2 Excess Return, % 1 0 -1 -2 -3 -4 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Mar-13 On a risk-adjusted basis, since inception returns ending March 31, 2013, fall below those of the strategy’s median peer fund (see following graph). Over this 91-month period, the strategy produced an average annual return of 5.0%, while incurring a 16.4% annualized standard deviation. These results produced a 0.27 Sharpe ratio (a measure of return per unit of risk). 3
Page 21: M E M O R A N D U M Date: April 29,
Page 25: Additional Considerations Barrow Ha
Page 29 and 30: For example, as of the most recent
Page 31 and 32: Q1 - 2013 Preliminary Recent Invest
Page 33 and 34: Q1 - 2013 Preliminary Periods endin
Page 35: Q1 - 2013 Preliminary Fixed Income
Page 38 and 39: AGENDA ITEMS Section Tab Current In
Page 40 and 41: THE CURRENT INTEREST RATE ENVIRONME
Page 50 and 51: SECTION 2 LOOKING FORWARD Source: W
Page 52 and 53: LOOKING FORWARD: INTRODUCTION r •
Page 54 and 55: LOOKING FORWARD: POSSIBLE OUTCOMES
Page 56 and 57: POSSIBLE OUTCOMES: ALTERNATIVE SCEN
Page 72 and 73:
POSSIBLE OUTCOMES: ALTERNATIVE SCEN
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
LOOKING FORWARD: CONCLUSIONS r •
Page 80 and 81:
INVESTMENT OPTIONS r • In light o
Page 82 and 83:
INVESTMENT OPTION 2 r • Option 2:
Page 84 and 85:
INVESTMENT OPTION 4 r • Option 4:
Page 86 and 87:
INVESTMENT OPTION 4-A r • Option
Page 88 and 89:
INVESTMENT OPTION 4-B r • Option
Page 90 and 91:
INVESTMENT OPTION 4-C r • Option
Page 92 and 93:
CONCLUSIONS r • There are a few a
Page 95 and 96:
Considering a Real Return Class Eas
Page 97 and 98:
Defining Inflation • Inflation is
Page 99 and 100:
Expert Views 5
Page 101 and 102:
Expert Views: Inflation Doves • B
Page 103 and 104:
Expert Views: Inflation Doves The E
Page 105 and 106:
Expert Views: Inflation Hawks • B
Page 107 and 108:
Expert Views: Inflation Hawks The E
Page 109 and 110:
Expert Views: Summary • Experts a
Page 111 and 112:
Institutional Investor Response •
Page 113 and 114:
Modeling the Real Return Class •
Page 115 and 116:
Modeling the Real Return Class •
Page 117 and 118:
Implementing a Real Return Class
Page 119 and 120:
Appendix 25 25
Page 121 and 122:
Modeling a Real Return Class SUMMAR
Page 123 and 124:
A Brief Description of Global Infla
Page 125 and 126:
A Brief Description of Absolute Ret
Page 127 and 128:
A Brief Description of Absolute Ret
Page 129 and 130:
A Brief Description of Commodities
Page 131 and 132:
A Brief Description of Oil & Gas RE
Page 133 and 134:
A Brief Description of Oil & Gas RE
show all

FROM: Lisa Sorani, Manager of HR Employee Services LS -

Create successful ePaper yourself

Delete template?

Save as template?