Bahl & Gaynor Small Cap Dividend ETF · AMEX:SCDV
Bahl & Gaynor Small Cap Dividend ETF — Bahl & Gaynor — Q2 2024 Earnings Presentation
24 slides from Bahl & Gaynor Small Cap Dividend ETF's earnings presentation, Jun 30, 2024
Slide 1: Dividends Pay Dividends - Small Cap Quality Growth WRAP
Dividends Small Cap Quality Growth WRAP Pay Dividends® Bahl & Gaynor, Inc. 255 East Fifth Street, Suite 2700 Cincinnati, OH 45202 As of June 30, 2024 W: www.bahl-gaynor.com
Slide 2: Bahl & Gaynor Overview
Bahl & Gaynor Overview We are guided by the philosophy that Dividends Pay Dividends®. Bahl & Gaynor views its employee ownership structure as an extremely effective retention tool for promoting team stability and investment process execution. Assets The Team Our Firm † $49.6B under 100 employees 100
Slide 3: Investment Committee
Investment Committee Generalist Industrials & Transportation Consumer Staples Vere W. Gaynor - Emeritus Charles A. Pettengill, CFA Peter M. Kwiatkowski, CFA J. Eric Strange, CFA Hired: June 1990 Hired: May 1997 Hired: January 2019 Hired: April 2019 53 years experience 34 years experience 25 years ex
Slide 4: The Small Cap Dividend Advantage
The Small Cap Dividend Advantage Historical total return advantage Hypothetical Growth of $100 Investment (6/30/1927-2/29/2024)1 Cumulative Return Index (Base = 100, Logarithmic) 100,000,000 $17.67MM 10,000,000 Small CapMid-DividendYield Small Stocks Total EquityMarket 2 $3.83MM 1,000,000 $0.97MM 10
Slide 5: The Small Cap Dividend Advantage
The Small Cap Dividend Advantage Value added to core large equity exposure Risk Adjusted Returns & Characteristics Since 1927 (1) Small Mid Divs Small Stocks Total Equity Market Annual Return 13.3% 11.6% 10.0% Volatility 21.3% 28.7% 18.5% Beta 1.03 1.34 1.00 Sharpe Ratio 0.54 0.40 0.43 Annual Alpha
Slide 6: The Rise of Unprofitable Index Constituents
The Rise of Unprofitable Index Constituents Percentage of Russell 2000 Growth Index that has not earned a profit 60% Unprofitable Russell 2000 Growth Companies 54.8% 50% 44.9% 46.4% 39.4% 39.7% 40% 30% 28.0% 21.2% 20% 21.9% 10% 10.2% 0% 1989 1993 1996 2000 2003 2007 2010 2013 2017 2020 2024 ▪ 46.4%1
Slide 7: Small Cap Quality Growth Overview
Small Cap Quality Growth Overview Goals Strategy Bahl & Gaynor’s Small Cap ▪ Conservative, small cap growth strategy emphasizing high-quality, Quality Growth strategy dividend-paying stocks. seeks: ▪ Alpha-seeking, index-agnostic approach with 96.3% active share.1 ▪ Price Appreciation ▪ Trailing-twe
Slide 8: Inherent Risk Mitigation
Inherent Risk Mitigation A risk aware investment philosophy that has historically produced competitive risk-adjusted returns relative to the benchmark 1 Long-Term Capital Appreciation through Risk-Adjusted Returns, Since Inception1 1 Goals ▪ Gross/net beta of 0.78 / 0.78 vs. the Russell 2000 Growth
Slide 9: Investment Philosophy: Dividends & Quality
Investment Philosophy: Dividends & Quality ▪ Since 1990, Bahl & Gaynor has pursued a unified philosophy across strategies that seeks to invest in high quality businesses with underappreciated capabilities aiming to compound capital and grow dividends over time ▪ Long-horizon strategy seeks to capita
Slide 10: Investment Process
Investment Process B&G Vertical Investment Research Process Bottom-Up Fundamental Investment Process Quantitative & Portfolio Analytic Process Creative Strategic Analysis ✓ Security Screening ✓ Core Economic Biz Model ✓ Industry Structural Learning ✓ Level 1: Investable Universe ✓ Competitive Resour
Slide 11: YTD 2024 WRAP Performance
YTD 2024 Small Cap Quality Growth WRAP Performance A favorable period for profitable companies Russell 2000 Performance by Characteristics (12/31/2023 - 6/30/2024) Small Cap WRAP Growth (Gross) Small Cap Quality Growth WRAP (Gross) 4.45% Small Cap WRAP Growth (Net) Small Cap Quality Growth WRAP (Net
Slide 12: WRAP Performance as of June 30, 2024
Small Cap Quality Growth WRAP Performance as of June 30, 2024 Small Cap Quality Growth WRAP Performance (Gross and Net) versus Russell 2000 Growth and Russell 2000 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% 1Q24 2Q24 YTD TTM Small Cap (Gross) 8.86% -4.05% 4.45% 10.24% Small Cap (Net) 8.05% -4.77% 2.90% 6.99
Slide 13: 2022 versus 2023 WRAP Performance
2022 versus 2023 Small Cap Quality Growth WRAP Performance A clear market bifurcation Small Cap Quality Growth WRAP and Russell 2000 Performance by Characteristics 2022 versus 2023 Small Cap Quality Growth WRAP (Gross) Small Cap Growth WRAP (Gross) -13.23% 19.28% Small Cap Quality Growth WRAP (Net)
Slide 14: WRAP Performance: Annualized Return
Small Cap Quality Growth WRAP Performance Annualized Return (as of 6/30/2024) 15% 13% 10% 8% 5% 3% 0% 1 Year 5 Year 10 Year 15 Year S/I¹ Sm a ll Ca p WRA P (Gr oss) 10.24% 9.08% 9.51% 13.15% 10.12% Sm a ll Ca p WRA P (Net ) 6.99% 5.87% 6.28% 9.82% 6.87% Russell 2 0 0 0 Gr owt h 9.14% 6.17% 7.39% 11.
Slide 15: Risk-Adjusted Return Results
Risk-Adjusted Return Results Active, differentiated risk adjusted return profile versus the index Risk Adjusted Returns: Sharpe Ratio1 (as of 6/30/2024) Standard Deviation 17.59% 0.25 17.47% 0.07 1 Year 23.22% 0.14 0.19 22.32% 0.35 19.46% 0.18 19.63% 5 Year 0.16 23.77% 0.20 Small Cap WRAP (Gross) 23
Slide 16: WRAP Risk/Reward Analysis
Small Cap Quality Growth WRAP Risk/Reward Analysis: Percentile rankings have indicated a strong risk/reward profile Small Cap Quality Growth WRAP Total Risk/Reward Since Inception¹ as of 6/30/2024 More Return More Return 11% Less Risk More Risk Small Cap Quality Growth Wrap (Gross) 10% Rate of Retur
Slide 17: Holdings as of 6/30/2024
Small Cap Quality Growth Holdings as of 6/30/2024 Company Name AAON AAON Inc AVNT Avient Corp AVT Avnet Inc BCPC Balchem Corp BWXT BWX Technologies Inc CHE Chemed Corp CPK Chesapeake Utilities Corp CSGS CSG Systems International Inc CW Curtiss-Wright Corp ENSG Ensign Group Inc/The EVR Evercore Inc F
Slide 18: Small Cap Growth Model Portfolio
Small Cap Growth Model Portfolio as of June 30, 2024 Sector Allocation History R2000G R2000 GICS Se ct o r 1 4 Q’1 4 4 Q’1 5 4 Q’1 6 4 Q’1 7 4 Q’1 8 4 Q' 1 9 4 Q' 2 0 4 Q' 2 1 4 Q' 2 2 4 Q' 2 3 2 Q' 2 4 2 Q' 2 4 2 Q' 2 4 Communication Services 1.9% 3.2% 0.0% 0.4% 2.6% 2.3% 0.6% 0.7% 1.8% 1.3% 1 .4 %
Slide 19: WRAP Performance vs. Russell 2000 Growth and Russell 2000
Small Cap Quality Growth WRAP Performance Small Cap Quality Growth vs. Russell 2000 Growth and Russell 2000 Annual & Quarterl y Sm al l C ap Qual ity Grow th Sm al l C ap Qual ity Grow th Russel l 2000 Grow th Russel l 2000 P erform ance WRAP ( Gross) WRAP ( Net) 2Q24 -4.05% -4.77% -2.92% -3.28% 1Q2
Slide 20: WRAP Platform Composite
Small Cap Quality Growth WRAP Platform Composite December 31, 2005 (inception date) - December 31, 2022 “Pure” Benchmark Total Net† Gross Return (%) Benchmark 3 Year Ex-Post Standard Deviation Composite Non-fee Total Firm Total Return Return Russell 2000 Return (%) Number of Composite Russell 2000 A
Slide 21: Trusted Investment Partners
Trusted Investment Partners Vere W. Gaynor Robert S. Groenke Mr. Gaynor is Co-Founder, Director Mr. Groenke is Portfolio Manager & Principal, Emeritus, Portfolio Manager & Principal. He Chief Executive Officer & President. He is is responsible for portfolio management, responsible for portfolio mana
Slide 22: Trusted Investment Partners
Trusted Investment Partners Charles A. Pettengill Edward A. Woods Mr. Pettengill is Portfolio Manager & Principal, Mr. Woods is Portfolio Manager & Principal, Board Chairman. He is responsible for portfolio Board Director. He is responsible for management, investment research of the portfolio manage
Slide 23: Trusted Investment Partners
Trusted Investment Partners Eleanor K. Moffat Christopher M. Rowane Mrs. Moffat is Portfolio Manager & Principal. Mr. Rowane is Portfolio Manager & Principal. She is responsible for portfolio management, He is responsible for portfolio management, investment research of the consumer investment resea
Slide 24: Disclosure
Disclosure Investment advisory services provided through Bahl & Gaynor Investment Counsel (“B&G”), a federally registered investment adviser under the Investment Advisers Act of 1940. Registration does not imply Information or a certain level of skill or training. More information about B&G can be f