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 31/10/2018

Portfolio Characteristics

as of 31/10/2018
Main indicators Fund Index
No. of securities 69 545
Projected P/E Ratio 16.9x 21.1x
Price/ Normal Earnings 20.5x 25.2x
Price / Book 5.5x 6.7x
Price/ Sales 2.1x 3.0x
Projected EPS Growth 13.4x 13.5x
Weighted Average Market Cap ($ bn) 136.1 276.5
Median Market Cap ($ bn) 27.6 11.7
Active share (%) 73.0 -

Top 10 Position Details

as of 31/10/2018
Security name Sector % AUM
Visa Inc - Class A shares Information Technology 2.67
Boeing Co/The Industrials 2.66
Mastercard Inc- A Information Technology 2.72
Apple Inc Information Technology 2.63
Microsoft Corp Information Technology 2.54
Vmware Inc - Class A Information Technology 2.52
Humana Inc Health Care 2.51
Paypal holdings Inc - W/I Information Technology 2.47
Dollar General Corp Consumer Discretionary 2.32
Unitedhealth Group Inc Health Care 2.30

Investment Manager's Commentary

as of 31/10/2018

Market Review and Outlook

In October 2018, S&P 500 and Russell 1000 Growth Indexes posted total returns of -6.8% and-8.9%, respectively. The Russell 1000 Growth Index had its most negative monthly return in ten years (since October 2008). There was investor fear that the earnings growth cycle may have peaked, rising interest rates and potential economic risks from escalation of trade tariffs. The strategy had positive contributions from multi-factor stock ranking models, including biases towards stocks with lower valuations. The strategy had mixed effects from relative under exposures to large technology/ internet companies, including Apple (AAPL, -3.0%), Microsoft (MSFT, -6.6%) and Amazon (AMZN, -20.2%). The average stock in Russell 1000 Growth Index underperformed with a total return of -9.3%. Industry group biases had favorable effects from relative overweighting in financials and underweighting in consumer discetionary stocks. The strategy reflected stock selection out performance in four of ten sectors. The most positive relative contributions were in the consumer discretionary and healthcare sectors. The most negative relative contributions were in the materials and real estate sectors.

 

Outlook

The advance U.S. real GDP estimate for 3rd Quarter was +3.5% versus +4.2% for 2nd Quarter 2018. The 3rd GDP reflected positive gains in personal consumption expenditures, private inventories, nonresidential fixed investments and government spending. Residential fixed investments and exports were detractors. About 75% of S&P 500 companies have reported 3rd Quarter 2018 results with 78% positive earnings and 61% positive revenue surprises, respectively. Many economists project real GDP growth of 2%-3% through first half 2019. Domestic economic growth is supported by favorable trends in business/consumer sentiment, high employment and deregulation. Trade tariffs and rising interest rates are potential risks for economic growth and capital markets. Currently, our industry group indicators target overweightings in financials/materials/utilities and underweighting of consumer discretionary 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