SMID Cap Core Equity Strategy 

Quality is the foundation of the Johnson Asset Management investment approach – we believe that high-quality companies will outperform over the long run.  The SMID Cap Core Equity strategy is comprised of high-quality small and mid cap stocks with favorable valuation and momentum characteristics.  The team performs fundamental bottom-up research aided by a proprietary quantitative assessment to construct a portfolio that seeks to consistently outperform its benchmark over a full market cycle with downside protection and reduced volatility.

Decoration

The Johnson SMID Cap Core Equity strategy seeks to consistently outperform the Russell 2500 Index over a full market cycle with downside protection and reduced volatility.  We utilize a disciplined portfolio construction framework relying on fundamental bottom-up research aided by our proprietary quantitative assessment.

Historical evidence supports our belief that high-quality companies outperform over the long run with reduced volatility and greater downside protection in turbulent markets.  In addition, combining quality with valuation and momentum factors can improve investment results, leading to higher batting averages and superior risk-adjusted returns over time.  Finally, supporting our fundamental bottom-up research with quantitative analysis results in a more disciplined investment process, superior risk management, and more consistent performance.

Starting from a market cap range of $400M-$20B, our team constructs a diversified portfolio of 70-90 small & mid cap stocks utilizing a disciplined, multi-step investment process designed to manage risk and generate alpha.  With a focus on quality, our portfolio is expected to outperform the Russell 2500 over a full market cycle with downside protection and reduced volatility.

Fact Sheet
Commentary

Performance

Performance
All data as of 9/30/2024.

Portfolio Sector Weightings

Portfolio Sector Weightings
All data as of 9/30/2024. Source: SOURCE: INDEX DATA SOURCED FROM FACTSET

Top Ten Holdings

Top Ten Holdings
All data as of 9/30/2024. Source: Table Source: Model holdings are subject to change. There is no assurance that any of the securities shown still remain in the portfolio at the time you received this fact sheet. Actual holdings and percentage allocation in individual client portfolios may vary and are subject to change. The Top Ten Holdings, as well as the other data presented, are as of the period indicated, and should not be considered a recommendation to purchase, hold, or sell any particular security. It should not be assumed that any of the Top Ten Holdings were or will be profitable going forward.

Johnson Asset Management (JAM) is a division of Johnson Investment Counsel, Inc. (“JIC”), an independent and privately owned Midwestern based investment advisory firm registered with the Securities and Exchange Commission. Johnson Asset Management manages institutional separate account portfolios for a wide variety of for-profit and nonprofit organizations, public agencies, public and private retirement plans, and personal trusts of all sizes. It may also serve as sub-adviser for mutual funds. JIC’s fees are available upon request and may be found in our Form ADV Part 2A. Performance data quoted herein represents past performance. Past performance does not guarantee or indicate future results. All data is current as of March 31, 2023 unless otherwise noted. Returns and net asset value will fluctuate. To determine if this strategy is appropriate for you, carefully consider the investment objectives, risk factors, and expenses before investing. Individual account management and construction will vary depending on each client's investment needs and objectives. Investments employing JIC’s strategies are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by any Bank or any Bank affiliate, and MAY lose value, including possible loss of principal.

Johnson Asset Management claims compliance with the Global Investment Performance Standards (GIPS). A complete list of firm composites and performance results and the policies for valuing portfolios, calculating performance, and preparing GIPS compliant presentations are available upon request by calling 513-389-2770. 

Composite: The Johnson SMID Cap Core Equity Composite was created on January 1, 2013, and includes all of JIC’s fee paying, fully discretionary institutional equity portfolios with a minimum of $1,000,000 and an investment objective of small and mid-cap equities. The benchmark for this composite is the Russell 2500, a broadly diversified mid and small cap equity universe of U.S. companies. Eligible new portfolios are included in the composite the first full month after being deemed fully invested. The returns from terminated portfolios are included prior to the date of termination. Effective January 2010, a portfolio will be temporarily removed from this composite if it experiences a net inflow or outflow of cash of 30% or more during a one-month period. Other than the futures contracts that are utilized to replicate the S&P 500, no leverage is used in the Composite portfolios. Portfolios in this composite include cash, cash equivalents, investment securities, interest and dividends. The U.S. dollar is the base currency. 

All returns reflect the reinvestment of investment income (dividends and/or interest) and capital gains. Valuations and returns are stated in U.S. dollars. Trade date accounting is used. Portfolio returns are calculated using time weighed return methodology on a monthly basis. Net returns shown reflect gross performance less the highest fee schedule for this strategy. The highest investment management fee schedule for this strategy is 1.00%. Actual client returns could also be reduced by brokerage commissions, custodial fees, and other client paid expenses detailed in JIC’s Form ADV Part 2A.