Assets Under Management: $2.7 Billion
The Relative Value Equity & Balanced approach is long term and risk averse and utilizes a disciplined investment philosophy and process that combines price and intrinsic value. Investment results demonstrate that a portfolio of companies, selling at a relative and significant discount to their fair market value with positive company-specific catalysts, should have the greatest opportunity to consistently outperform the market.
Learn MoreConcentrated Growth Equity & Balanced
The investment process emphasizes high-quality companies that take advantage of business trends, demonstrate competitive strength, and have attractive returns on incremental invested capital. We believe that constructing a portfolio that concentrates investment within these industry-leading companies provides clients with exceptional added value over the long term.
Learn MoreMid Cap Value Equity
The Mid Cap Value process is a fundamental, research-driven approach, which selects companies selling at compressed valuations relative to their intrinsic worth. We believe this approach provides us with securities that have an attractive discount, appreciation potential and a margin of safety that helps to insure the preservation of capital.
Learn MoreSmall Cap Value Equity
Our goal in the Small Cap portfolios is to provide superior risk-adjusted returns and consistently outperform the Russell 2000 Value Index over a full market cycle. We accomplish this by creating portfolios of companies we expect to exceed “street” expectations and that trade at discounts to our in-house calculations of fair value. Our process utilizes a fundamental and research driven approach to identify companies with growth rates well above the average for the value benchmark and price ratios (at purchase) that are noticeably lower than the benchmark’s average.
Learn MoreSmall Cap Growth Equity
Our focus in Small Growth Equiy is is to provide long-term capital appreciation and to outperform the relative benchmarks with less risk over a full market cycle. This style can be categorized as a top-down and fundamental approach to investing in small company growth stocks. We utilize a philosophy of investing in high-quality companies which exhibit rapid growth in earnings and revenue. Significant emphasis is placed on management and their past record of success as well as on companies that have strong financials and superb products and services. This unique approach, coupled with the belief that ongoing personal communication and good service form the foundation for building a successful client relationship, produces consistent time-tested performance.
Learn MoreInternational Value Equity (Separate Account/Commingled Account)
Our international value equity investment approach, which focuses on absolute value and long-term appreciation, distinguishes our portfolios from others. We believe international diversification provides investors with greater opportunity and may reduce overall portfolio risk. We seek value wherever it can be found. Country and industry weightings are residuals of the stock selection process, they do not drive it. This enables the incorporation of the best ideas into every portfolio, subject only to its specific geographic mandate and investment guidelines, which include the in-depth Sierra International Social Screening© process that eliminates those stocks that do not meet our rigorous standards. These screens favor companies that protect human rights, workers’ safety, Labor’s right to collectively bargain, ethical employment standards, and the creation of U.S. jobs through export to the U.S. They also protect against ownership in companies that use child or prison labor, displace American products or workers, or impose unfair trade barriers against the U.S.
Learn MoreInternational Growth Equity
We believe that a well-diversified international equity portfolio which focuses on regions and companies with significant earnings potential, managed within a disciplined process of active asset and sector allocation, will provide long-term capital appreciation. We begin with a top-down approach to regional, country, and currency analysis. This macro analysis is then used to develop sector and theme changes that highlight investment opportunities as well as issues selection. These issues must also pass the in-depth Sierra International Social Screening© process which eliminates those stocks that do not meet our rigorous standards. These screens favor companies that protect human rights, workers’ safety, Labor’s right to collectively bargain, ethical employment standards, and the creation of U.S. jobs through export to the U.S. They also protect against ownership in companies that use child or prison labor, displace American products or workers, or impose unfair trade barriers against the U.S.
Learn MoreGlobal Equity
We believe that our time-tested investment philosophy, built upon a disciplined yet flexible, long-term approach to value-oriented global investing, will provide long-term capital appreciation. To create well-diversified “labor friendly” portfolios, we seek companies that we believe are trading at a discount to what our research indicates the company may be worth. We identify value through rigorous fundamental analysis of a company’s business to determine what we consider its economic worth, based on future earnings, cash flow, or asset value potential. Our global equity portfolio employs social guidelines, including the in-depth Sierra International Social Screening© process, to screen potential investments for compliance with fundamental standards on labor practices, the environment, and human rights.
Learn MoreFixed Income
We believe that superior returns can be consistently achieved by utilizing a conservative but active strategy of investing in high-quality U.S. intermediate securities or longer term securities for total return accounts. We actively manage portfolios comprised of U.S. Treasury, Agency, Mortgage Pass-Through, and Corporate Securities.
Learn MoreHigh Yield Fixed Income
The appropriate alignment of risk and return provides the most favorable opportunity to outperform over a full market cycle while maximizing risk-adjusted returns. Our philosophy dictates the purchase of higher quality credits with more attractive risk-return relationships and we use a disciplined process to narrow the universe of potential securities to those with potentially the best value. Historically, we have outperformed the benchmark over a full market cycle by limiting credit default risk, using a seasoned team of credit specialists with a 10-year track record of top-quartile performance.
Learn MoreRelative Value Equity & Balanced
Sierra Investment Partners, Inc. chose Todd Investment Advisors, Inc., as its exclusive sub-advisor to offer Relative Value Equity & Balanced products to the Taft-Hartley marketplace. The Relative Value Equity approach is long term and risk averse. Investment results demonstrate that a portfolio of companies, selling at a relative and significant discount to their fair market value with positive company-specific catalysts, should consistently outperform the market.Todd Investment Advisors, Inc., based in Louisville, Kentucky, is one of the region's oldest and largest money management firms with assets totaling over $4.7 billion. The current firm was incorporated in 1979 and is a successor to a firm founded and registered with the SEC as a subsidiary of The Boston Company by Bosworth Todd in 1967. In April 1999, Todd was acquired by Fort Washington Investment Advisors, Inc., a subsidiary of The Western and Southern Life Insurance Company.
Relative Value Equity:
Discipline: We use an intrinsic value approach that identifies stocks selling at significant discounts or premiums to their intrinsic value.
Low Risk: Diversification across sectors, industries, and individual securities combined with an emphasis on quality give the portfolio attractive risk characteristics.
Catalyst: Company-specific catalysts signaling improvement in a company’s prospects and positive change in investor expectations should lead to higher returns.
Fixed Income:
We purchase high-quality fixed income securities to generate income, provide safety of principal and liquidity.
Concentrated Growth Equity & Balanced and Mid Cap Value Equity
The investment process emphasizes high-quality companies that take advantage of business trends, demonstrate competitive strength, and have attractive returns on incremental invested capital. We believe that a concentrated portfolio of companies with businesses that generate high returns on incremental invested capital, possess a sustainable competitive advantage, and capitalize on secular trends will provide consistent, superior performance over time. Balanced accounts use high quality intermediate to longer term bonds to generate income and reduce volatility.
Characteristics (versus S&P 500):
- Historic Higher P/E Ratios
- Historic Higher Earnings Growth Rate
- Historic Lower Long-term Debt / Capital
Mid Cap Value Equity
The Mid Cap Value process is a fundamental, research-driven approach, which selects companies selling at compressed valuations relative to their intrinsic worth. We believe this approach provides us with securities that have an attractive discount, appreciation potential and a margin of safety that helps to insure the preservation of capital.
Characteristics: We seek companies with above average profitability, return on invested capital, growth potential, market position, balance sheet and management.
Price: We look for businesses whose securities are selling at a significant discount to our estimation of their intrinsic value.
Value Drivers: Our investments must have either improving fundamentals, a specific catalyst, or a clear strategic plan to unlock value.
Sierra Investment Partners, Inc. chose Pioneer Investment Management, Inc., as its exclusive sub-advisor to offer Concentrated Growth Equity and Mid Cap Value Equity products to the Taft-Hartley marketplace. Pioneer Investment Management, Inc. is a U.S. corporation based in Boston and a Registered Investment Advisor. Together with Pioneer Investment Management Ltd., based in Dublin, Ireland, these firms manage approximately $103 billion, including approximately $21 billion for U.S. investors, under the name Pioneer Investments.
Pioneer Investment Management was founded in 1928 and currently has over $21 billion in assets under management in the U.S. and $81 billion in assets under management for European Investors.
- U.S. base in Boston, MA
- A staff of 288 employees including portfolio managers, research analysts, and operations staff
- 49 investment professionals
- 4 investment professionals dedicated to Concentrated Growth, supported by: 10 Domestic Equity Analysts and 4 Domestic Equity Traders
- 5 investment professionals dedicated to Fixed Income, supported by: 2 Domestic Fixed Income Analysts and 1 Domestic Fixed Income Trader
- Dublin, Ireland
- 67 investment professionals
- Employee ownership exceeds 20%
- A 70-year tradition of independent fundamental research
Small Cap Growth Equity and Small Cap Value Equity
Our focus in Small Growth Equities is to provide long-term capital appreciation and to outperform the relative benchmarks with less risk over a full market cycle. This style can be categorized as a top-down and fundamental approach to investing in small company growth stocks. We utilize a philosophy of investing in high-quality companies which exhibit rapid growth in earnings and revenue. Significant emphasis is placed on management and their past record of success as well as on companies that have strong financials and superb products and services. This unique approach, coupled with the belief that ongoing personal communication and good service form the foundation for building a successful client relationship, produces consistent time-tested performance.
Small Cap Growth Equity Investment Criteria:
- Invest in industries that have exceptional growth over the next 18-24 months
- Average Weighted Market Cap is currently $1.2 billion
- Minimum Market Cap $100 million and Maximum Market Cap $2.0 billion at purchase
- 20% of portfolio can have a Market Cap to $3.0 billion
- Portfolio consists of companies that have average sales and earnings growth in excess of 20%
- Purchase securities at a substantial discount to long-term growth rate
- Invest in niche companies with expanding market share and excess cash flow
Investment Decision Process
Phase 1: Top-Down
- Develop Portfolio Themes by Extensive Review of the Investment Environment, Economic Climate and Market Environment.
- Identify Industries With Exceptional Growth Potential Over Next 18-24 Months.
- Determine Portfolio Risk Profile Based Upon Broad Economic Outlook.
Phase 2: Bottom-up
- Perform Extensive Fundamental Research.
- Identify Companies That Have Sales and Earnings Growth in Excess of 20%.
- Favor Companies That Demonstrate Strong Financials, Excellent Management and Superior Products.
Small Cap Value Objective:
Our goal in the Small Value portfolios is to provide superior risk-adjusted returns and consistently outperform the Russell 2000 Value Index over a full market cycle. We accomplish this by creating portfolios of companies we expect to exceed “street” expectations and that trade at discounts to our in-house calculations of fair value.
Small Cap Value Philosophy
- Fundamental and research driven approach to identifying companies with growth rates well above the average for the value benchmark and price ratios (at purchase) that are noticeably lower than the benchmark’s average.
- Identify companies that exhibit superior business models with good growth potential
- Identify operating and competitive characteristics that provide downside protection
- Favor companies that produce positive earnings surprises which result in multiple expansion
- Attractive valuations in favor of stocks with PE multiples lower than the earnings growth rate
Portfolio Structure
- Concentrated portfolio of 40 to 60 securities
- Minimum market cap of $100 million; maximum market cap of $2.5 billion
- Broadly diversified by industry and sector
- Turnover range of 25-40%
- Fully invested
Sierra Investment Partners, Inc. chose Transamerica Investment Management, LLC* because of its proven Small Cap Growth and Small Cap Value investment process.
Transamerica Investment Management, LLC
Headquartered in Los Angeles, CA
A staff of 43 employees including portfolio managers, research analysts, traders, and administrative staff
- 13 investment professionals
- Average investment experience of 25 years
- Team management
Majority private ownership
Strong financial position
*On May 19, 2005 Transamerica Investment Management, LLC and Westcap Investors, LLC announced the signing of an agreement to acquire Westcap Investors, LLC. This transaction was completed on August 4, 2005.
International Value Equity (Separate Account/Commingled Account) & Global Equity
Our international value equity investment approach, which focuses on absolute value and long-term appreciation, distinguishes our portfolios from others. We believe international diversification provides investors with greater opportunity and may reduce overall portfolio risk. We seek value wherever it can be found. Country and industry weightings are residuals of the stock selection process, they do not drive it. This enables the incorporation of the best ideas into every portfolio, subject only to its specific geographic mandate and investment guidelines, which include the in-depth Sierra International Social Screening© process that eliminates those stock that do not meet our rigorous standards. These screens favor companies that protect human rights, workers’ safety, Labor’s right to collectively bargain, ethical employment standards, and the creation of U.S. jobs through export to the U.S. They also protect against ownership in companies that use child or prison labor, displace American products or workers, or impose unfair trade barriers against the U.S.
International Value Investment Philosophy:
We identify value through rigorous fundamental analysis of a company’s business to determine what we consider its economic worth based on future earnings, cash flow, or asset value potential.
Security prices can fluctuate more widely than underlying security values. In our opinion, market efficiencies should recognize and correct these security prices over time.
We seek companies that we believe are trading at a discount to what our research indicates the company may be worth.
Global Equity
- We seek companies that we believe are trading at a discount to what our research indicates the company may be worth.
- Security prices can fluctuate more widely than underlying security values.
- In our opinion, market efficiencies should recognize and correct these security prices over time.
- We identify value through rigorous fundamental analysis of a company’s business to determine what we consider its economic worth based on future earnings, cash flow, or asset value potential.
Sierra Investment Partners, Inc. chose Templeton as its exclusive sub-advisor for the international value and Global Equity Strategies. Templeton has one of the longest global investment track records in the world, with $245.9 billion under management. For more than 60 years Templeton has been managing assets globally with portfolio managers and analysts strategically located in offices throughout the world.
- 1940 – Sir John Templeton founded the Templeton organization
- 1954 – Templeton introduces its first global equity mutual fund: Templeton Growth Fund
- 1992 – Templeton was acquired by Franklin Resources, Inc. to create Franklin Templeton
DISCIPLINED INVESTMENT PROCESS – Consistent adherence to the investment philosophy and principles of Sir John Templeton*.
EXPERIENCED TEAM – The depth, experience and analytical capabilities of our global research team are key to the Templeton process. Our global equity portfolio management team has an average of more than 15 years investment experience and an average of eight years tenure with the firm.
CLEAR FOCUS – Investment management and research is our only business.
*The Templeton investment products follow the investment management principles established by its founder and former chairman, Sir John Templeton, who is no longer affiliated with the Templeton organization, and has not been since 1992.
International Growth Equity
We believe that a well-diversified international equity portfolio which focuses on regions and companies with significant earnings potential, managed within a disciplined process of active asset and sector allocation, will provide long-term capital appreciation. We begin with a top-down approach to regional, country, and currency analysis. This macro analysis is then used to develop sector and theme changes that highlight investment opportunities as well as issues selection. These issues must also pass the in-depth Sierra International Social Screening© process which eliminates those stocks that do not meet our rigorous standards. These screens favor companies that protect human rights, workers’ safety, Labor’s right to collectively bargain, ethical employment standards, and the creation of U.S. jobs through export to the U.S. They also protect against ownership in companies that use child or prison labor, displace American products or workers, or impose unfair trade barriers against the U.S.
Sierra Investment Partners, Inc. chose Franklin Global Advisers, as its exclusive sub-advisor for International Growth Equity.
Investment Platform
- Franklin Global Advisers with $122.1 billion in assets under management, combines the expertise of the Franklin Advisers, Inc., and Fiduciary Global Advisors (formerly Fiduciary Trust Company International) equity teams (with origins dating back to 1947 and 1931, respectively).
- Comprehensive global investment platform encompasses a broad range of investment disciplines.
- Experienced portfolio managers apply proven investment philosophies within a defined framework of risk control and oversight.
- Specialist portfolio managers benefit from perspective gained through collaboration among diverse investment teams.
Team
- Senior investment professionals average more than 21 years of experience.
- More than 60 investment professionals focused on research and portfolio management across sectors, styles, geographies, and market capitalization.
- Dedication to fundamental, bottom-up research lies in the foundation of all aspects of investment activities.
Culture
- Fundamental research conducted by experienced specialists.
- Collaborative environment balances autonomy with rigorous debate and accountability.
Approach
- Disciplined bottom-up research supports a long-term, robust, and flexible investment process.
- Equity and fixed income teams work together for additional insights on companies.
FGA International Investment Philosophy
We search for companies with sustainable business models across all industry groups, investing primarily in companies that have higher expected revenue and earnings growth than their peers.
Our focus on return on equity, free cash flow, and the creation of shareholder value underpins our search for quality.
Our fundamental analysis includes an understanding of valuation, as we prefer companies that are trading at attractive valuations relative to their peers.
Investment Strategy
- Concentrated bottom-up growth product with 40–60 holdings
- Diversified, benchmark agnostic portfolio with limited overlap of economic exposures
- Lower turnover strategy (~40% p.a.) focused on mid-and large-cap companies
Fixed Income
We believe that superior returns can be consistently achieved by utilizing a conservative but active strategy of investing in high-quality U.S. intermediate securities or longer term securities for total return accounts. We actively manage portfolios comprised of U.S. Treasury, Agency, Mortgage Pass-Through, and Corporate Securities.
Sierra Investment Partners, Inc. has an exclusive sub-advisor agreement with PMG Advisors, an investment firm headquartered in West Conshohocken, PA, managing over $1 billion in assets for Fixed Income.
PMG Advisors
- Portfolio managers who have 25 years of investment experience.
- Conservative fixed income styles.
- Three distinct products tailored to suit the needs of the jointly-managed marketplace.
- High quality, liquid portfolios.
- Excellent historical long-term performance record.
Fixed Income Characteristics:
- Historically Higher Returns with Less Risk
- Lower Volatility
- Comparable Market Quality and Yield
Our Investment Style:
We believe superior returns can be consistently achieved by utilizing a conservative but active strategy of investing in high quality U.S. intermediate securities or longer term securities for total return accounts. We actively manage portfolios comprised of U.S. Treasury, Agency, Mortgage, Pass-Through, and Corporate Securities.
High Yield Fixed Income
In the High Yield Fixed Income arena, Sierra chose Fort Washington Investment Advisors as its exclusive sub-advisor. Sierra performs the marketing function and monitors the investment process performed by Fort Washington Investment Advisors.
Philosophy:
We believe that the most appropriate risk-return scenario within the High Yield market exists in the higher quality, less volatile segments. Further, we believe that focus on these segments can also produce attractive absolute returns. We believe these results are best achieved by focusing on:
- Higher quality credits with lower default risk
- Mature sectors that can weather a full cycle
Objective:
Outperform over a full market cycle by protecting principal and providing a stable level of income with a favorable upside and downside capture experience
Fort Washington Investment Advisors
- Founded in 1990
- $27.4 billion in assets under management*
- 55 investment professionals
- 73% hold a CFA and/or advanced degree
Key Strengths
- Client-focused
- Investment oriented
- Multi-strategy
- Disciplined, focused, collegial teams