Bahl & Gaynor Small Cap Dividend ETF · AMEX:SCDV
Bahl & Gaynor Small Cap Dividend ETF — Bahl & Gaynor Investment Counsel — Q4 2023 Earnings Presentation
25 slides from Bahl & Gaynor Small Cap Dividend ETF's earnings presentation, Dec 31, 2023
Slide 1: Dividends Pay Dividends - smig WRAP Small/Mid Cap Income Growth
Dividends smig® WRAP - Small/Mid Cap Income Growth Pay Dividends® Bahl & Gaynor Investment Counsel, Inc. 255 East Fifth Street, Suite 2700 Cincinnati, OH 45202 As of December 31, 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 † $47.4B under 90 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% 38.7% 30% 25.0% 20% 17.6% 10% 9.1% 0% '90 '93 '96 '99 '02 '05 '08 '11 '14 '17 '20 '23 ▪ 38.7%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 December 31, 2023 ChartInvestment Hypothetical Growth of $100 Title (12/31/2004-12/31/2023) 700 $635 Profitable Russell 2500 600 Russell 2500 Cumulative Return Index (Base = 100) Unprofitable Russell 2500 500 $481 400 300 200 100 $10
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 2.6% 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 – 4Q 2023
Income Growth Results – 4Q 2023 Substantial cash flow growth has protected purchasing power History of Actual Dividend Income Earned1 Dividend Yield² smig 1Y Growth 6.6% CPI 3.4% smig® 2.6% smig 5Y CAGR 6.3% CPI 4.1% Russell 2500 smig 1.5% S/I CAGR³ 8.1% CPI 2.9% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% CA
Slide 12: Income History: Yield on cost is an important consideration
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 $77,591 in
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 1- Y e a r Divide nd 5 - Y e a r Ave ra ge Divide nd Y ie ld Inc ome 10 + Y e a rs of 10 Dividend increases from portfolio G rowth Divide nd G rowth¹ P e rc e nta ge Divide nd Inc re a s
Slide 14: 2022 smig WRAP Composite Performance
2022 smig® WRAP -Small/Mid Cap Income Growth 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-Dividen
Slide 15: 2023 smig WRAP Composite Performance
2023 smig® WRAP -Small/Mid Cap Income Growth Composite Performance A favorable period for non-dividend paying and low-quality companies 2023 smig® WRAP & Russell 2500 Dividend Tranche Performance smig® WRAP (Gross) 13.81% smig® WRAP (Net) 10.46% Russell 2500 17.42% Dividend Payers 16.22% 19.33% Non-
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 12/31/2023) Standard Deviation 0.52 16.33% 1 Year 0.32 16.13% 0.56 21.74% 0.30 17.27% 3 Year 0.12 17.46% 0.09 20.15% 0.45 19.17% 5 Year 0.28 19.39% 0.42 23.04% 0.40
Slide 17: smig WRAP Composite Performance
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 12/31/2023) 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1 Year 3 Year 5 Year 7 Year 10 Year S/I¹ smig ® WR AP (Gross) 13.81% 7.75% 10
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 12/31/2023 13% More Return More Return Less Risk More Risk 12% 11% Small/Mid Cap Income Growth WRAP
Slide 19: smig - Small/Mid Model Portfolio
smig® - Small/Mid Cap Income Growth Model Portfolio as of December 31, 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 4Q'23 4Q'23 Communication Services 0.0% 2.1% 0.0% 0.0% 1.6% 4.1% 3.2% 1.4% 1.5% 2.2% 2.1% 2.2% Consumer Disc
Slide 20: smig WRAP Small/Mid 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 2023 1 3 .8 1 % 1 0 .4 6 % 1 7 .4 2 % 4Q 2023 11.17% 10.34% 13.35% 3Q 2023 -4.52% -5.23% -4
Slide 21: 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 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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