Equity Income

Overview

The Phocas Equity Income strategy invests in common, preferred and convertible preferred equities augmented with non-core equity and fixed income securities and utilizes the S&P U.S. Preferred Stock Index® as a benchmark.

Philosophy

Phocas believes that active managers investing in preferred securities should allocate 2/3 of their portfolio to core positions in order to generate a stable and high level of current income for investors while sufficiently managing risk.

Portfolio

Portfolios typically include between 100 – 200 securities using a core/satellite approach. The portfolio is diversified across sectors.

Research

Investment process combines the fundamental research methodologies utilized in the Phocas Small Cap Value strategy and the Phocas REIT strategy.

Results

The strategy can be characterized as bottom-up and does not utilize macroeconomic forecasting. The Phocas team strives to add performance through security selection and to generate above average current income versus the broader equity markets with lower volatility over time.

Due Diligence

Equity Income

Performance

Annualized Returns (%) As of 9/30/17 YTD 1 Yr 3 Yrs. 5 Yrs. 10 Yrs. Inception
Phocas Small Cap Value Fund (net) 6.01% 19.37% 10.80% 15.28% 8.85% 8.93%
Russell 2000 Value TR 5.68% 20.55% 12.12% 13.27% 7.14% 6.73%
Calendar Year Returns (%) 2017 2016 2015 2014 2013 2012 2011 2010 2009
Phocas Small Cap Value (net) 0% 24.07% -3.84% 7.82% 46.96% 10.12% -5.53% 30.17% 24.87%
Russell 2000 Value TR 0% 31.74% -7.47% 4.22% 34.52% 18.05% -5.50% 24.50% 20.58%

Performance %

Time Period: 5/1/2006 to 9/30/2017

Data presented reflects past performance, which is no guarantee of future results. Net performance shown reflects the deduction of annual investment management fees of 1.00% of assets under management. Performance returns may reflect the effect of material economic and market factors not anticipated by Phocas. Clients’ returns will be reduced by advisory fees and other expenses incurred in the management of the client’s account.