Bahl & Gaynor Small Cap Dividend ETF · AMEX:SCDV
Bahl & Gaynor Small Cap Dividend ETF — Bahl & Gaynor Investment Counsel — Investor Presentation (September 2023)
26 slides from Bahl & Gaynor Small Cap Dividend ETF's investor presentation, Sep 30, 2023
Slide 1: Dividends Pay Dividends - smig Small/Mid Cap Income Growth WRAP
Dividends smig® - Small/Mid Cap Income Growth WRAP Pay Dividends® Bahl & Gaynor Investment Counsel, Inc. 255 East Fifth Street, Suite 2700 Cincinnati, OH 45202 As of September 30, 2023 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 † $44.9B under 88 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 52 years experience 33 years experience 24 years ex
Slide 4: The Small Cap Dividend Advantage
The Small Cap Dividend Advantage Historical total return advantage Hypothetical Growth of $100 Investment (6/30/1927-12/31/2022)1 Cumulative Return Index (Base = 100, Logarithmic) 100,000,000 $15.42MM 10,000,000 Small CapMid-DividendYield Small Stocks Total EquityMarket 2 $3.43MM 1,000,000 $0.77MM 1
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% 9.8% Volatility 21.3% 28.7% 18.6% Beta 1.03 1.34 1.00 Sharpe Ratio 0.54 0.4 0.43 Annual Alpha 3.
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% 37.4% 38.2% 30% 25.0% 20% 17.6% 10% 9.1% 0% '90 '93 '96 '99 '02 '05 '08 '11 '14 '17 '20 '23 38.2%1 of companies in the Russell 2500
Slide 7: Small/Mid Cap Stock Performance: Profitable vs. Unprofitable
Small/Mid Cap Stock Performance: Profitable vs. Unprofitable as of September 30, 2023 Hypothetical Growth of Chart Title $100 Investment (12/31/2004-9/30/2023) 700 Profitable Russell 2500 600 Russell 2500 Cumulative Return Index (Base = 100) $565 Unprofitable Russell 2500 500 $424 400 300 200 100 $8
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 2.9% 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 – 3Q 2023
Income Growth Results – 3Q 2023 Substantial cash flow growth has protected purchasing power History of Actual Dividend Income Earned1 Dividend Yield² smig 1Y Growth 6.0% CPI 3.7% smig® 2.9% smig 5Y CAGR 6.7% CPI 4.0% Russell 2500 smig 1.7% S/I CAGR³ 8.0% CPI 3.0% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% *M
Slide 12: Income History: Yield on cost
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 $75,631 in
Slide 13: smig Small/Mid Cap Income Growth Dividend Analysis
smig® - Small/Mid Cap Income Growth Dividend Analysis1 A harmonic balance between yield and growth 1- Y e a r Divide nd 5 - Y e a r Ave ra ge Inc ome 10 + Y e a rs of 7 Dividend increases from portfolio Compa ny Na me G rowth Divide nd G rowth¹ Divide nd Y ie ld P e rc e nta ge Divide nd Inc re a se
Slide 14: smig WRAP Composite Performance
smig® WRAP Composite Performance as of September 30, 2023 smig® WRAP Performance (Gross and Net) vs. Russell 2500 10% 5% 0% -5% -10% -15% -20% 2022 1Q '23 2Q '23 3Q '23 YTD smig ® WR AP (Gross) -11.01% 3.05% 4.04% -4.52% 2.37% smig ® WR AP (N et) -13.63% 2.29% 3.27% -5.23% 0.10% R ussell 2500 -18.37
Slide 15: 2022 smig WRAP Composite Performance
2022 smig® WRAP Composite Performance A favorable period for dividend-paying and high-quality companies 2022 smig® WRAP & Russell 2500 Dividend Tranche Performance smig® WRAP (Gross) -11.01% smig® WRAP (Net) -13.63% Russell 2500 -18.37% Dividend Payers -9.73% Non-Dividend Payers -28.18% S&P B+ or Be
Slide 16: YTD smig WRAP Composite Performance
YTD smig® WRAP Composite Performance A favorable period for non-dividend paying and low-quality companies YTD smig® WRAP & Russell 2500 Dividend Tranche Performance smig® WRAP (Gross) 2.37% smig® WRAP (Net) 0.10% Russell 2500 3.59% Dividend Payers 2.66% Non-Dividend Payers 5.34% S&P B+ or Better -0.
Slide 17: Risk-Adjusted Return Results
Risk-Adjusted Return Results Active, differentiated risk adjusted return profile vs. index Risk Adjusted Returns: Sharpe Ratio1 (as of 9/30/2023) Standard Deviation 0.41 17.01% 1 Year 0.21 17.26% 0.31 20.00% 0.45 17.36% 3 Year 0.26 17.60% 0.31 20.78% 0.16 19.79% 5 Year 0.00 20.06% 0.12 23.26% 0.39 1
Slide 18: smig WRAP Performance
smig® WRAP Performance Long-term focus has provided competitive through-cycle returns relative to benchmark Annualized Return (as of 9/30/2023) 14% 12% 10% 8% 6% 4% 2% 0% 1 Year 3 Year 5 Year 7 Year 10 Year S/I¹ smig ® WR AP (Gross) 12.02% 9.83% 5.01% 8.44% 9.57% 10.06% smig ® WR AP (N et) 8.72% 6.5
Slide 19: 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 9/30/2023 12% More Return More Return Less Risk More Risk 11% 10% Small/Mid Cap Income Growth WRAP
Slide 20: smig Small/Mid Cap Income Growth Model Portfolio
smig® - Small/Mid Cap Income Growth Model Portfolio as of September 30, 2023 smig® Sector Allocation History Ru ssel l 2500 1 Sector 4Q’13 4Q’14 4Q’15 4Q’16 4Q’17 4Q’18 4Q'19 4Q'20 4Q'21 4Q'22 3Q'23 3Q'23 Communication Services 0.0% 2.1% 0.0% 0.0% 1.6% 4.1% 3.2% 1.4% 1.5% 2.2% 2.5% 2.1% Consumer Dis
Slide 21: smig WRAP Small/Mid Cap Income Growth 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 2023 -4.52% -5.23% -4.78% 2Q 2023 4.04% 3.27% 5.22% 1Q 2023 3.05% 2.29% 3.39% 2022 - 1
Slide 22: smig WRAP Platform Composite
smig® WRAP-Small/Mid Cap Income Growth WRAP Platform Composite March 31, 2013 (inception date) - December 31, 2022 “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 23: 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 24: 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 25: 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 26: 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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