Bahl & Gaynor Small Cap Dividend ETF · AMEX:SCDV
Bahl & Gaynor Small Cap Dividend ETF — Bahl & Gaynor — Investor Presentation (September 2024)
25 slides from Bahl & Gaynor Small Cap Dividend ETF's investor presentation, Sep 30, 2024
Slide 1: Dividends Pay Dividends: smig WRAP Small/Mid Cap Income Growth
Dividends smig® WRAP - Small/Mid Cap Income Growth Pay Dividends® Bahl & Gaynor, Inc. 255 East Fifth Street, Suite 2700 Cincinnati, OH 45202 As of September 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 † $52.9B under 104 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 the Russell 2500 Index that has not earned a profit 50% 45.5% Unprofitable Russell 2500 Companies 41.2% 40% 39.7% 37.4% 30% 25.0% 20% 17.6% 10% 9.1% 0% '90 '93 '96 '00 '03 '07 '10 '13 '17 '20 '24 39.7%1 of companies in the Russell 2500 inde
Slide 7: Small/Mid Cap Stock Performance: Profitable vs. Unprofitable
Small/Mid Cap Stock Performance: Profitable vs. Unprofitable as of September 30, 2024 Chart Hypothetical Growth of $100Title Investment (12/31/2004-9/30/2024) 900 800 Profitable Russell 2500 $750 Russell 2500 Cumulative Return Index (Base = 100) 700 Unprofitable Russell 2500 600 $535 500 400 300 200
Slide 8: smig Small/Mid Cap Income Growth Overview
smig® - Small/Mid Cap Income Growth Overview Goals Strategy Bahl & Gaynor’s smig® Unique, fundamental small/mid cap equity strategy focused on high strategy seeks: current and growing income to generate long-term purchasing 1 Income Growth power. 2 Downside Protection Dividends provide tax-favor
Slide 9: Inherent Risk Mitigation
Inherent Risk Mitigation A risk aware investment philosophy that has historically produced competitive risk-adjusted returns relative to the benchmark 1 High & Consistently Growing Income in the Small/Mid Market Cap Range¹ 1 Goals Dividend yield of 2.3% from 40+ stocks, all of which pay a dividend
Slide 10: Investment Process
Investment Process The Bahl & Gaynor smig® strategy invests in high-quality companies that typically produce steady earnings and dividend growth. Bottom-Up Fundamental Fundamental Investment Committee Quantitative Screen Sector Review Security Investigation Review & Implementation Market cap betwe
Slide 11: Income Growth Results – 3Q24
Income Growth Results – 3Q24 Substantial cash flow growth has protected purchasing power History of Actual Dividend Income Earned1 Dividend Yield² smig® 1YR Growth 10.3% smig® Consumer Price Index 2.4% 2.3% smig® 5YR CAGR 6.9% Consumer Price Index 4.2% Russell 2500 smig® 1.4% S/I CAGR³ 8.2% Consumer
Slide 12: Income History
Income History Yield on cost is an important consideration Yield on cost is the annual dividend rate of a security divided by the average cost basis of the investment. It can only grow through owning stocks that increase the dividends they pay over time. The smig® strategy generated $83,454 in i
Slide 13: smig Small/Mid Dividend Analysis
smig® - Small/Mid Cap Income Growth Dividend Analysis1 A harmonic balance between yield and growth Compa ny Na me Agree Realty Corp 1- Y e a r Divide nd G rowth 2.9% 5 - Y e a r Ave ra ge Divide nd G rowth¹ 5.6% Divide nd Y ie ld 4.0% Inc ome P e rc e nta ge 4.9% 10 + Y e a rs of Divide nd Inc re a
Slide 14: YTD 2024 smig WRAP Composite Performance
YTD 2024 smig® WRAP -Small/Mid Cap Income Growth Composite Performance as of September 30, 2024 smig® WRAP & Russell 2500 Performance by Characteristics (12/31/2023 - 9/30/2024) smig® WRAP (Gross) 18.00% smig® WRAP (Net) 15.39% Russell 2500 11.30% Dividend Payers 13.82% Non-Dividend Payers 8.13% 0%
Slide 15: smig WRAP Composite Performance
smig® WRAP -Small/Mid Cap Income Growth Composite Performance as of September 30, 2024 smig® WRAP Performance (Gross and Net) vs. Russell 2500 30% 24% 18% 12% 6% 0% -6% 1Q24 2Q24 3Q24 YTD TTM smig ® WRAP (Gross) 7.62% -1.73% 11.58% 18.00% 31.24% smig ® WRAP (Net) 6.82% -2.46% 10.75% 15.39% 27.38% Ru
Slide 16: Risk-Adjusted Return Results
Risk-Adjusted Return Results Active, differentiated risk adjusted return profile vs. index Risk Adjusted Returns: Sharpe Ratio1 (as of 9/30/2024) Standard Deviation 1.85 13.22% 1 Year 1.59 13.11% 1.04 18.85% 0.33 17.23% 3 Year 0.14 17.35% -0.01 20.88% 0.41 smig® WRAP (Gross) 18.82% 5 Year 0.24 19.06
Slide 17: Long-term focus has provided competitive through-cycle returns
smig® WRAP -Small/Mid Cap Income Growth Composite Performance Long-term focus has provided competitive through-cycle returns relative to benchmark Annualized Return (as of 9/30/2024) 35% 30% 25% 20% 15% 10% 5% 0% 1 Year 3 Year 5 Year 7 Year 10 Year S/I¹ smig ® WR AP (Gross) 31.24% 9.37% 10.21% 10.11
Slide 18: smig WRAP Risk/Reward Analysis
smig® WRAP - Small/Mid Cap Income Growth Risk/Reward Analysis Percentile rankings have indicated a strong risk/reward profile Small/Mid Cap Income Growth WRAP Total Risk/Reward Since Inception1 as of 9/30/2024 More Return More Return 13% Less Risk More Risk 12% Small/Mid Cap Income Growth WRAP (Gros
Slide 19: smig Small/Mid Model Portfolio
smig® - Small/Mid Cap Income Growth Model Portfolio as of September 30, 2024 smig® Sector Allocation History Ru ssel l 2500 1 GICS Sector 4Q’14 4Q’15 4Q’16 4Q’17 4Q’18 4Q'19 4Q'20 4Q'21 4Q'22 4Q'23 3Q '24 3Q'24 Communication Services 2.1% 0.0% 0.0% 1.6% 4.1% 3.2% 1.4% 1.5% 2.2% 2.1% 1.2% 2.6% Consum
Slide 20: smig WRAP Composite Performance
smig® WRAP -Small/Mid Cap Income Growth Composite Performance smig® WRAP - Small/Mid Cap Income Growth versus Russell 2500 Annual & Quarterly Performance smig ® WR AP (Gross) smig ® WR AP (N et) R ussell 2500 3Q 2024 11.58% 10.75% 8.75% 2Q 2024 -1.73% -2.46% -4.27% 1Q 2024 7.62% 6.82% 6.92% 2023 1 3
Slide 21: smig WRAP Platform Composite
smig® WRAP-Small/Mid Cap Income Growth WRAP Platform Composite March 31, 2013 (inception date) - December 31, 2023 “Pure” Benchmark 3 Year Ex-Post Standard Deviation Total Net‡ Gross Return (%) Number of Composite Composite Non-fee Paying Total Firm Total AUA Year Return (%) Return (%) Russell 2500
Slide 22: 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 and Principal. Chief Executive Officer & President. He is He is responsible for portfolio management, responsible for portfolio ma
Slide 23: 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 24: 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 25: 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
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