Alma Glenmede US Large Cap Growth Equity Fund

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Overview

  • Alma Glenmede US Large Cap Growth Equity Fund aims to achieve above-benchmark long-term return through capital appreciation of US large cap growth stocks, and by limiting downside risk.
  • The fund’s management is delegated to Glenmede Investment Management LP

Share Class

NAV

Cumulative Performance (%)

Fund Inception 12 January 2018

Daily Monthly Ytd 1Yr 3Yr 5Yr Incept. Incept.Date

The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.


Strategy & Manager

Funds Strategy

Investment objective: to achieve above-benchmark long-term return through capital appreciation of undervalued US large cap growth stocks, and by limiting downside risk

  • Investment strategy based on valuation, fundamental, earnings and technical characteristics
  • Quantitatively-based investment process with stringent risk controls
  • Focuses on underperformance risk as much as out performance opportunity
  • Portfolio of typically 60-90 names
  • Benchmark: Russell 1000 Growth Index


Investment Manager

Portfolio managed by Glenmede Investment Management LP, a Philadelphia based SEC regulated investment manager with over $17.5bn AUM, part of the Glenmede group (approx. $35 bn in assets).

  • 42 employees, all located in Philadelphia, PA
  • 21 investment professionals; senior portfolio managers with an average 24 years of experience, including 15 years at Glenmede
  • Vladimir de Vassal, director of Quantitative Research for Glenmede Investment Management LP, leads the team managing Glenmede’s quantitatively based equity portfolios, including the Large Cap Growth strategy

Key Persons

Vladimir de Vassal, CFA Director of Quantitative Research

Mr. de Vassal leads the team managing Glenmede’s quantitatively based equity portfolios, including the Large Cap Core strategy, and provides proprietary research and analytical support to a range of domestic and International funds, private equity, the Pew Charitable Trusts, and high-net-worth clients of the Glenmede Trust Company.

Mr. de Vassal joined Glenmede in 1998, after serving in senior analytical positions with CoreStates Investment Advisors and CoreStates Financial. He received a B.S. with highest honors from Drexel University in 1982, majoring in both Finance and Accounting. He received his M.B.A., with concentration in Investment Management, from Drexel University in 1987, and earned his Chartered Financial Analyst® designation in 1992. Mr. de Vassal is a member of the CFA Institute.

 

Paul T. Sullivan, CFA Portfolio Manager

Mr. Sullivan manages the Glenmede Large Cap Core and Large Cap Growth mutual funds, as well as separate accounts for institutional clients. His responsibilities also include analysis utilizing Glenmede’s quantitative stock selection models, and their continuing enhancement.

Mr. Sullivan joined Glenmede from SEI Investments in 1994. He received his B.S. in Business Administration from Bloomsburg University, and his M.B.A. from St. Joseph’s University. He holds the Chartered Financial Analyst® designation, and is a member of the CFA Society of Philadelphia and the CFA Institute.

 

Alexander R. Atanasiu, CFA Portfolio Manager, Quantitative Equity Officer

Mr. Atanasiu’s responsibilities include Glenmede’s proprietary stock ranking screening tools, multifactor stock optimizations, leading indicator analysis, and development of quantitative analytical tools for analysts and portfolio managers. He also provides support for the management of several of Glenmede’s quantitatively-based equity strategies, including long/short funds.

Mr. Atanasiu joined Glenmede in 2005. He holds dual degrees in engineering and physics from Swarthmore College, and received his M.B.A. with distinction from New York University’s Stern School of Business, with concentrations in quantitative finance and business analytics. He received his Chartered Financial Analyst® designation in 2009.


Statistics & Commentary

Performance

The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.

Sector Breakdown as a % of AUM

as of 31/12/2018

Portfolio Characteristics

as of 31/12/2018
Main indicators Fund Index
No. of securities 67 545
Projected P/E Ratio 15.9x 19.2x
Price/ Normal Earnings 19.1x 23.0x
Price / Book 5.3x 6.1x
Price/ Sales 2.0x 2.8x
Projected EPS Growth 13.2x 13.5x
Weighted Average Market Cap ($ bn) 118.9 243.5
Median Market Cap ($ bn) 28.4 10.7
Active share (%) 72.4 -

Top 10 Position Details

as of 31/12/2018
Security name Sector % AUM
Visa Inc - Class A shares Information Technology 2.72
Mastercard Inc- A Information Technology 2.68
Paypal holdings Inc - W/I Information Technology 2.63
Boeing Co/The Industrials 2.58
Microsoft Corp Information Technology 2.58
Dollar General Corp Consumer Discretionary 2.41
Omnicom Group Communication Services 2.37
UnitedHealth Group Inc Health Care 2.34
Ingersoll-Rand Plc Industrials 2.29
Walt Disney Co/The Communication Services 2.24

Investment Manager's Commentary

as of 31/12/2018

Market Review and Outlook

Review

In December 2018, S&P 500 and Russell 1000 Growth Indexes fell sharply with total returns of -9.0% and -8.6%, respectively. The S&P 500 had its worst monthly decline since February 2009 (-11%). Investors reacted negatively to ongoing trade tensions, slowing growth in China, Brexit issues, partial US government shutdown due to budget stalemate and tightening Fed Policy. More sell-side analysts have been lowering corporate earnings and revenue estimates for 2019 versus three months ago. The strategy had favorable contributions from multi-factor stock ranking models, including biases towards stocks with more attractive fundamentals and positive estimate trends. Although the strategy benefitted from underexposures to Apple (AAPL -11.7%) or Amazon (AMZN, -11.1%), it was negatively impacted from relatively higher exposures to stocks with lower market capitalizations. In the broad market selloff, the average stock in Russell 1000 Growth Index underperformed with total return of -9.6%. Industry group biases had relatively neutral impact on performance, including relative overweightings in materials/consumer staples offset by underweightings in communication services/consumer discretionary stocks. The strategy reflected stock selection outperformance in four of nine sectors. The most positive relative contributions were in the information technology and communication services sectors. The most negative relative contributions were in the finnacials and consumer staples sectors.

 

Outlook

The latest estimate of 3rd Quarter GDP at 3.4% reflected positive gains in personal consumption expenditures, private inventories, nonresidential fixed investments and government spending. Domestic economic growth has been supported by favorable trends in business/consumer sentiment, high employment and deregulation. Slowing global growth, trade tariffs, widening credit spreads and lower housing activity are potential risks for economic growth and capital markets. The significant market decline in the fourth quarter has resulted in increased opportunities to purchase attractive stocks with lower valuations. Currently, our industry group indicators target overweightings in materials/financials/industrials and underweightings of consumer discretionary/information technology sectors, respectively.


Facts & Documents

Facts

Fund Domicile: Luxembourg

Management Fee: 0.75% p.a. for I shares

Fund Type: UCITS SICAV

Fund Launch: 12 January 2018

Base Currency: USD

Depositary, Administrator, Transfert Agent: BNP Paribas Securities Services (LU)

Dealing: Each day with a 1-day notice

Cut-off time: 12 pm CET

Management Company: Alma Capital Investment Management

Investment Manager: Glenmede Investment Management LP (US)

Fund Managers: Vladimir de Vassal , Paul T Sullivan Alexander R. Atanasiu

Countries where the fund is registered:
Luxembourg, France

Documents

SICAV ALMA CAPITAL INVESTMENT FUNDS
  1. ACIF Prospectus
KIIDS Other sub-funds and other languages
available upon request