High Quality Growth Plus
STRATEGY HIGHLIGHTS
We seek to invest in companies with a demonstrated history of consistent growth and stability in earnings in an effort to outperform over the long term by participating in rising markets and minimizing participation in declining markets. The strategy is managed with a fundamental, bottom up process, seeking to identify high quality growth businesses with dominant franchises that provide competitive advantages, priced below our estimate of intrinsic value.
Key Stats
| Asset Class: | Large Cap Equity |
| Primary Index: | Russell 1000® Growth |
| Inception Date: | January 1, 1992 |
| Strategy Assets: | $484 mm |
| Holdings Range: | 45 - 55 |
| Mkt. Cap at Purchase: | >$3 bn |
| Max Position Sizes: | 5% |
| Sector Constraint: | 30% |
| Max Cash: | 5% |
| 3-Yr Avg. Turnover: | 15% |
LOWER THAN MARKET VOLATILITY |
0.85Beta Relative to Russell 1000® Growth Index |
LONG-TERM PERSPECTIVE |
15%3-Yr Avg. Turnover |
EXPERIENCED TEAM |
24 Yrs
Avg. Industry Experience |
PERFORMANCE ANALYSIS
Composite Performance (%)
as of March 31, 2021
| Quarter | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception | |
|---|---|---|---|---|---|---|
| High Quality Growth Plus (Gross) | 2.80 | 50.39 | 22.74 | 19.93 | 14.63 | 11.22 |
| High Quality Growth Plus (Net) | 2.62 | 49.38 | 21.90 | 19.11 | 13.84 | 10.45 |
| Russell 1000® Growth Index | 0.94 | 62.74 | 22.80 | 21.05 | 16.63 | 10.24 |
Periods greater than one year are annualized. Composite inception date 1/1/92. Composite data is based upon all discretionary institutional accounts eligible for inclusion in the Composite for the periods shown. Performance is calculated in US dollars and reflects the reinvestment of all income and capital gains. Net of fee returns reflect the deduction of the highest applicable annual management fee of 0.70%, applied monthly.
Large Cap Growth Discipline
as of March 31, 2021
Annualized. Based on representative client portfolio. Source: FactSet
PORTFOLIO CHARACTERISTICS
Sector Diversification (%)
as of March 31, 2021
| High Quality Growth Plus | Russell 1000® Growth Index | Over/Under | |
|---|---|---|---|
| Communication Services | 9.3 | 11.9 | -2.6 |
| Consumer Discretionary | 12.0 | 16.5 | -4.5 |
| Consumer Staples | 4.4 | 4.5 | -0.1 |
| Energy | 0.0 | 0.1 | -0.1 |
| Financials | 8.6 | 1.9 | 6.7 |
| Health Care | 14.1 | 13.7 | 0.4 |
| Industrials | 10.0 | 4.7 | 5.3 |
| Information Technology | 29.7 | 44.2 | -14.5 |
| Materials | 7.4 | 0.8 | 6.6 |
| Real Estate | 4.5 | 1.7 | 2.8 |
| Utilities | 0.0 | 0.0 | 0.0 |
Sector Diversification and Top Ten Holdings are based on the equity-only assets of a representative client portfolio managed according to this strategy. Sources: Atlanta Capital, eVestment, FactSet.
Sector Diversification (%)
as of March 31, 2021
Top Ten Holdings
(%) of representative portfolio
| Thermo Fisher Scientific | 4.8 |
| Alphabet CL C | 4.8 |
| Visa CL A | 4.6 |
| Microsoft Corporation | 4.5 |
| Danaher Corporation | 4.3 |
| Facebook CL A | 3.8 |
| Verisk Analytics | 3.6 |
| Mastercard CL A | 3.4 |
| Ecolab | 3.3 |
| Dollar General Corporation | 3.3 |
| TOTAL | 40.5% |
This information is for illustrative purposes only and should not be considered investment advice or a recommendation to purchase or sell any specific security or invest in a specific strategy. It should not be solely relied upon in making a decision to invest in the strategy. The Earnings Growth, Earnings Stability, Portfolio Metrics, Sector Diversification, and Top Ten Holdings are based on the equity-only assets (cash and cash equivalents are excluded) of a representative client portfolio managed according to this strategy; annual turnover is based on the average turnover for the last three calendar years of a representative client portfolio for the strategy. All statistics are subject to change; individual client results may vary. The specific securities identified are not representative of all of the securities purchased, sold or recommended for advisory clients. Actual holdings will vary for each client and there is no guarantee that a particular client’s account will hold any or all of the securities listed. It should not be assumed that any of the securities were or will be profitable. For a complete list of all recommendations made by Atlanta Capital for the High Quality Growth Plus Composite during the preceding 12 months, please contact the Performance Department at 404-876-9411.
As of June 30, 2011, the Russell 1000 ® Growth Index was added as the primary style benchmark for this strategy in order to provide a growth style comparison to clients. The Russell 1000® Growth Index includes those Russell 1000® companies with higher price-to-book ratios and higher forecasted growth values and is a measure of the large cap growth segment of the U.S. equity universe. The S&P 500® Index includes 500 leading companies in leading industries of the U.S. economy and is a measure of large cap U.S. stock market performance. Strategy deviations from the benchmarks may include but are not limited to such factors as active management, exclusion/inclusion of securities held/not held in the index, over/underweighting specific sectors or securities, limitations in market cap, and/or client constraints. Indexes are unmanaged and do not incur management fees, transaction costs or other expenses associated with separately managed accounts. It is not possible to directly invest in an index.
Investing entails risks and includes the possibility of loss. There can be no assurance that Atlanta Capital will achieve profits or avoid incurring losses. Past performance does not predict future results.
Atlanta Capital is part of Morgan Stanley Investment Management, the asset management division of Morgan Stanley.
