OneAscent Enhanced Small and Mid Cap ETF · AMEX:OASC
OneAscent Enhanced Small and Mid Cap ETF — OneAscent Investment Solutions — Corporate Update (July 2023)
45 slides from OneAscent Enhanced Small and Mid Cap ETF's corporate update, Jul 18, 2023
Slide 1: OneAscent Market Update: Q3 2023
OneAscent Market Update: Q3 2023 July 18th, 2023
Slide 2: Today's Speakers
Today’s Speakers Cole Nathan Pearson Willis CFA, CAIA • President, Investment Solutions • Director of Portfolio Strategy • CFA Level III Candidate • Previously CIO of Greenhawk Corporation, a • Previously a Senior Investment Associate for family investment office Eventide Asset Management • 25+ year
Slide 3: You invest because you're called to…
You invest because you’re called to… • provide for your family Your values inspire why you invest. • educate your children • give generously They can also inspire how • prepare for the future you invest. • respond to the unexpected • prioritize what matters most 3
Slide 4: Business impacts the world in powerful ways
Business impacts the world in powerful ways. Investors should consider who a business impacts and how they are impacted.
Slide 5: We assess how a company interacts with every single person
We assess how a company interacts with every single person and every square inch. 5
Slide 6: Our Approach to Values-Based Investing
Our Approach to Values-Based Investing Eliminate Evaluate Elevate companies whose companies to identify companies that products or practices those that meet our make the world a cause harm investment objectives better place 6
Slide 7: Eliminate companies whose products or practices cause harm
Eliminate companies whose products or practices cause harm We seek to avoid profiting from companies whose principal business activities and practices include: Abortion Human rights violations Pornography Predatory lending Adult entertainment Alcohol Tobacco Cannabis Gambling Severe ethics controver
Slide 8: Elevate companies that make the world a better place
Elevate companies that make the world a better place We believe that businesses do well by doing good. Therefore, we seek to identify companies that elevate: Flourishing families Environmental stewardship Sanctity of life Affordable housing Quality healthcare Viewpoint diversity Education access Equ
Slide 9: Allocation Committee Update & Outlook
Allocation Committee Update & Outlook Q1 2023 Nathan Willis, CFA, CAIA Director of Portfolio Strategy OneAscent Investments
Slide 10: Q2 2023 market discussion
Q2 2023 market discussion • Review of markets in Q2 • Navigator process and investment outlook • “What actions should I take in my portfolio?” 11
Slide 11: Q2 returns
Q2 returns Market Returns Ending 6/30/2023 Category 2Q YTD 1 Year US Stocks Ø Stocks continued a strong S&P 500 8.7% 16.9% 18.4% Russell Mid Cap 4.8% 9.0% 13.3% Russell 2000 Index 5.2% 8.1% 11.0% recovery driven by large caps International Stocks MSCI EAFE 3.2% 12.2% 20.5% MSCI Emerging Markets 1.0%
Slide 12: S&P 500 returns broadened in June
S&P 500 returns broadened in June Ø Through May, returns were concentrated in Technology and Communications Ø In June, every sector contributed positive returns Ø YTD returns dominated by tech Source: Bloomberg, 13
Slide 13: Peak Elite - Turnkey Model Performance
Peak Elite - Turnkey Model Performance (as of 6/30/2023) Group/Investment 3 Month YTD 1 Year 3 Year 5 Year Inception Inception Date OneAscent Peak Equity Elite 4.71 10.29 15.67 9.27 7.57 9.01 3/15/2017 Equity Benchmark 5.17 11.49 15.05 11.04 7.10 8.26 OneAscent Peak Growth Elite 3.91 8.89 12.97 7.80
Slide 14: Investors tend to extrapolate, assuming the current YTD 2023 trend will continue
Investors tend to extrapolate, assuming the current YTD 2023 trend will continue Technology +44% Large Cap stocks +16% Mid Cap Stocks +9% Source: Bloomberg (Index values are price return, not total return) 15
Slide 15: Investors extrapolated, assuming the 1999 – March 2000 trend would continue
Investors extrapolated, assuming the 1999 – March 2000 trend would continue Technology +103% Large Cap stocks +22% S&P 500 equal weight +9% Source: Bloomberg 16
Slide 16: Investors extrapolated, assuming the 1999 – March 2000 trend would continue
Investors extrapolated, assuming the 1999 – March 2000 trend would continue Technology -76% Large Cap stocks -41% S&P 500 equal weight – 17% Source: Bloomberg 17
Slide 17: Investors extrapolated, assuming the 1999 – March 2000 trend would continue
Investors extrapolated, assuming the 1999 – March 2000 trend would continue ? Technology -50% ? Large Cap stocks -28% ? S&P 500 equal weight -10% Source: Bloomberg 18
Slide 18: Navigator Outlook: July 2023
Navigator Outlook: July 2023 VALUATION ECONOMY SENTIMENT TECHNICAL NEGATIVE SLIGHTLY NEUTRAL SLIGHTLY POSITIVE NEGATIVE POSITIVE The statements contained in this presentation are the opinions of OneAscent Investment Solutions, LLC and data available at the time of publication, and is not intended to
Slide 19: Navigator Outlook: July 2023
Navigator Outlook: July 2023 VALUATION ECONOMY SENTIMENT TECHNICAL NEGATIVE SLIGHTLY NEUTRAL SLIGHTLY POSITIVE NEGATIVE POSITIVE The statements contained in this presentation are the opinions of OneAscent Investment Solutions, LLC and data available at the time of publication, and is not intended to
Slide 20: Manufacturing data indicates the economy is perilously close to a recession
Manufacturing data indicates the economy is perilously close to a recession Institute for Supply Management Purchasing Managers Index (recessions are shaded Red) Source: Bloomberg, Institute for Supply Management 21
Slide 21: US economic data has been better than expectations in 2023
US economic data has been better than expectations in 2023 Citigroup Economic Surprise Index Better Worse [Source: Bloomberg, Citigroup 22
Slide 22: Navigator Outlook: July 2023
Navigator Outlook: July 2023 VALUATION ECONOMY • Potential recession • Data is improving • Earnings estimates are going up SENTIMENT TECHNICAL NEGATIVE SLIGHTLY NEUTRAL SLIGHTLY POSITIVE NEGATIVE POSITIVE The statements contained in this presentation are the opinions of OneAscent Investment Solution
Slide 23: Navigator Outlook: July 2023
Navigator Outlook: July 2023 VALUATION ECONOMY • Potential recession • Data is improving • Earnings estimates are going up SENTIMENT TECHNICAL NEGATIVE SLIGHTLY NEUTRAL SLIGHTLY POSITIVE NEGATIVE POSITIVE The statements contained in this presentation are the opinions of OneAscent Investment Solution
Slide 24: The S&P 500 advance/decline indicates market performance has broadened
The S&P 500 advance/ decline indicates market performance has broadened S&P 500 S&P 500 Advance/ Decline line Source: Bloomberg 25
Slide 25: Stock markets remain in a positive trend, above their moving averages
Stock markets remain in a positive trend, above their moving averages S&P 500 Index MSCI EAFE Index Russell 2500 Index Dotted lines indicate index 200 day moving average Source: Bloomberg 26
Slide 26: The S&P 500 Technology sector faces a psychological barrier at 2021 highs
The S&P 500 Technology sector faces a psychological barrier at 2021 highs S&P 500 Information Technology Index Source: Bloomberg 27
Slide 27: Navigator Outlook: July 2023
Navigator Outlook: July 2023 VALUATION ECONOMY • Banking crisis fallout • Manufacturing and services sectors decline • Margin pressures cut earnings estimates SENTIMENT TECHNICAL • Market Breadth has improved • Stocks remain in a positive trend • Technology faces near-term resistance NEGATIVE SLIGHT
Slide 28: Navigator Outlook: July 2023
Navigator Outlook: July 2023 VALUATION ECONOMY • Banking crisis fallout • Manufacturing and services sectors decline • Margin pressures cut earnings estimates SENTIMENT TECHNICAL • Market Breadth has improved • Stocks remain in a positive trend • Technology faces near-term resistance NEGATIVE SLIGHT
Slide 29: Stocks often gain when investor sentiment turns from negative to positive
Stocks often gain when investor sentiment turns from negative to positive S&P 500 Index AAII Bullish % - Bearish % Source: Bloomberg, American Association of Individual Investors 30
Slide 30: Navigator Outlook: July 2023
Navigator Outlook: July 2023 VALUATION ECONOMY • Banking crisis fallout • Manufacturing and services sectors decline • Margin pressures cut earnings estimates SENTIMENT TECHNICAL • Investor Sentiment has turned positive • Short-term indicators are neutral or negative • Consumer Sentiment has turned
Slide 31: Navigator Outlook: July 2023
Navigator Outlook: July 2023 VALUATION ECONOMY • Banking crisis fallout • Manufacturing and services sectors decline • Margin pressures cut earnings estimates SENTIMENT TECHNICAL • Investor Sentiment has turned positive • Short-term indicators are neutral or negative • Consumer Sentiment has turned
Slide 32: S&P 500 valuation has moved well above its long-term average
S&P 500 valuation has moved well above its long-term average } 95% Source: JPMorgan Guide to the Market, FactSet, FRB, Refinitiv Datastream, Robert Shiller, Standard & Poor’s, Thomson Reuters, J.P. Morgan Asset Management. Price-to-earnings is price divided by consensus analyst estimates of earnings
Slide 33: Corporate Bond yields are attractive relative to stocks
Corporate Bond yields are attractive relative to stocks – especially US large caps Stock market earnings yield and Corporate Bond yield Source: Bloomberg Estimates, OneAscent Investment Solutions Stock market earnings yield is the inverse of the P/E ratio. Corporate bond market yield is Bloomberg BA
Slide 34: Apple has grown larger than the entire Russell 2000 small cap index
Apple has grown larger than the entire Russell 2000 small cap index Apple Market Capitalization Russell 2000 Market Capitalization Source: Bloomberg 35
Slide 35: Navigator Outlook: July 2023
Navigator Outlook: July 2023 VALUATION ECONOMY • US Stocks are expensive • Banking crisis fallout • Apple worth more than Russell 2000 • Manufacturing and services sectors decline • Bonds are attractive again • Margin pressures cut earnings estimates SENTIMENT TECHNICAL • Investor Sentiment has turn
Slide 36: Navigating through a wide range of possibilities
Navigating through a wide range of possibilities Source: Bloomberg Wall Street Forecasters, Blindsided by Tech Stock Rally, Divided on 2023 Outlook - Bloomberg 37
Slide 37: The Wall Street Journal Forecast
The Wall Street Journal Forecast Source: Wall Street Journal If You Find the Economy Confusing, Don’t Worry: It Is - WSJ 38
Slide 38: Reviewing positives and negatives
Reviewing positives and negatives Positives Negatives Technical indicators are improving; the rally may have slowed bank Higher interest rates and reduced banklending lendingmay maycause cause further to run as the market broadens. further economic slowdown and stock declines. Investor and consumer
Slide 39: Thinking about portfolio allocations
Thinking about portfolio allocations America's Retirees: Portfolio Stock Holdings 80% 70% 60% 50% 40% 30% 20% 10% 0% Vanguard 55+ Fidelity 65-69 2011 2011 allocation allocation 2023 2023allocation allocation Source: Wall Street Journal America’s Retirees Are Investing More Like 30-Year-Olds - WSJ 40
Slide 40: Thinking about portfolio allocations: Don't follow the crowd
Thinking about portfolio allocations Don’t follow the crowd America's Retirees: Portfolios Stock Holdings 80% Do manage risk. Think about: 70% Ø Diversifying your stocks ü International 60% ü Mid and small cap 50% 40% 30% ü Value stocks 20% Ø Keeping your bonds 10% Ø Adding alternative assets 0% Van
Slide 41: Asset Allocation – July 2023
Asset Allocation – July 2023 CONSERVATIVE AGGRESSIVE Equity 20% 40% 60% 80% 95% US Large Cap 3.8% 8.1% 12.5% 17.5% 22.5% US SMID 10.3% 18.9% 27.5% 34.5% 36.5% Developed 6.0% 9.8% 15.0% 21.0% 27.0% Emerging Markets - 3.2% 5.0% 7.0% 9.0% Fixed Income 80% 60% 40% 20% 5% Government Bonds 23.4% 18.4% 13.
Slide 42: Learn more about our solutions
If you’d like to learn more about our solutions, visit us at investments.oneascent.com or email us at info@oneascent.com Asset Allocation – Q2 2022 Allocation Fact Sheets Investment Dashboard Commentary Follow ONEASCENT on: Contact Us: investments.oneascent.com info@oneascent.com 205-847-1343 43
Slide 43: Important Disclosures
Important Disclosures OneAscent Investment Solutions LLC (“OneAscent”) was formed in March 2017, and manages a variety of equity, income and balanced asset strategies for client accounts. OneAscent is an investment adviser registered with the United States Securities and Exchange Commission. Registr
Slide 44: Important Disclosures
Important Disclosures Turnkey Model Performance: Performance information for the attached strategy is calculated using model performance and is based on the portfolio allocation data since inception. The strategy has not materially changed since inception. Model performance is net of any fees on the
Slide 45: Get Connected
Get Connected: investments.oneascent.com info@oneascent.com 205-847-1343
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