Bahl & Gaynor Small Cap Dividend ETF · AMEX:SCDV
Bahl & Gaynor Small Cap Dividend ETF — Bahl & Gaynor — Q3 2024 Earnings Presentation
26 slides from Bahl & Gaynor Small Cap Dividend ETF's earnings presentation, Sep 30, 2024
Slide 1: Dividends Pay Dividends - Large Cap Quality Growth WRAP
Dividends Large Cap Quality Growth WRAP 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 104employees 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: Dividends and Capital Appreciation: A powerful combination
Dividends and Capital Appreciation: A powerful combination Dividends have contributed 38% of the S&P 500’s average annual total return from 1925 to 9/30/2024.1 1Source: Ned Davis Research, Inc (Prior to 9/30/2018), FactSet (Post 9/30/2018). Information sourced from third party. Bahl & Gaynor does no
Slide 5: Dividend Policy Matters
Dividend Policy Matters Hypothetical Growth of $100 Investment (6/30/1927-12/31/2023)1 $1.75MM Core Dividend Yield Stocks $ 1 . 64MM Total Equity Market Cumulative Return Index (Base = $100) $1.50MM Non-Dividend Paying Stocks $1.25MM $1.00MM $ 0 . 97MM $0.75MM $0.50MM $ 0 . 42MM $0.25MM $0.00MM 1927
Slide 6: The Low-Beta Anomaly
The Low-Beta Anomaly A historically robust complement to dividends and dividend growth style Sharpe Ratios of Beta-sorted Portfolios¹ Annualized Return and Risk of S&P 500 by Dividend Policy2 (1/31/1990 – 8/31/2024) (1/31/1990 – 9/30/2024) 0.70 12.5% Dividend Growers 0.60 0.57 0.53 11.5% Annualized
Slide 7: Why Dividends?
Why Dividends? Bahl & Gaynor typically invests in high-quality companies that pay growing dividends. We believe a strong dividend policy signals: Earnings power Earnings quality Regular dividends that follow a The ability to pay cash from defined payout ratio are a useful reported earnings points to
Slide 8: Secular Trends in Investor Style Preference
Secular Trends in Investor Style Preference1 Value vs. Growth Relative Total Return (Since Data Inception2 - 9/30/2024) 140 130 S&P 500 Value 124.7 Cumulative Relative Total Return Index S&P 500 Growth 120 110 100 90 80 70 69.6 60 1988 1993 1998 2003 2008 2013 2018 2023 Bahl & Gaynor’s dividend gr
Slide 9: Large Cap Quality Growth Overview
Large Cap Quality Growth Overview Goals Strategy Bahl & Gaynor’s Quality Growth Unique, fundamental equity strategy focused on current income and strategy seeks: accelerated income growth to generate long-term purchasing 1. Accelerated Income Growth power. 2. Downside Protection Dividends provid
Slide 10: Inherent Risk Mitigation
Inherent Risk Mitigation A risk aware investment philosophy that has historically produced competitive risk-adjusted returns relative to the benchmark 1 Current Income & Accelerated Dividend Growth¹ Dividend yield of 1.7%2 from 45+ stocks, all of which pay a dividend. Weighted average one-year d
Slide 11: Investment Process
Investment Process The Bahl & Gaynor Large Cap Quality Growth strategy invests in high-quality dividend-growth companies to form a portfolio that provides current income and accelerated portfolio income growth. Bottom-Up Fundamental Fundamental Investment Committee Quantitative Screen Sector Review
Slide 12: Income Growth Results – 3Q24
Income Growth Results – 3Q24 Strong cash flow growth at enhanced yield History of Actual Dividend Income Earned1 Dividend Yield2 Quality Growth 4.0% 1YR Growth S&P 500 ETF 9.2% Quality Consumer Price Index 2.4% Growth 1.7% Quality Growth 3YR CAGR 8.9% S&P 500 ETF 9.0% Consumer Price Index 4.8% S&P 5
Slide 13: Model Portfolio Dividend Analysis
Large Cap Quality Growth Model Portfolio Dividend Analysis† An emphasis on current income and accelerated dividend growth AbbVie Inc Company Name Accenture PLC Ireland Class A Air Prods & Chems Inc 1-Year Dividend Growth 4.7% 14.7% 1.1% 5-Year Average Dividend Growth¹ 7.7% 13.1% 8.8% Dividend Yield
Slide 14: Income History
Income History Yield on Cost is an important consideration Yield on cost is the actual dividend income earned divided by the initial investment specified at the starting date. It can only grow through owning stocks that increase the dividends they pay over time. The Large Cap Quality Growth stra
Slide 15: WRAP Performance
Large Cap Quality Growth WRAP Performance As of September 30, 2024 Large Cap Quality Growth WRAP Performance (Gross & Net) versus S&P 500 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% July August September 3Q24 Quality Growth WRAP (Gross) 2.60% 4.37% 1.16% 8.33% Quality Growth WRAP (Net) 2.60% 4.37% 0.41% 7.52% S&P
Slide 16: 2024 WRAP Composite Performance
2024 Large Cap Quality Growth WRAP Composite Performance Dividend-paying and equal-weight stocks gained momentum in 3Q2024 Quality Growth WRAP & S&P 500 Dividend Tranche Performance 8.33% Quality Growth WRAP (Gross) 3Q24 YTD 2024 23.48% 7.52% Quality Growth WRAP (Net) 20.74% 5.89% S&P 500 Index 22.0
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 9/30/2024) Standard Deviation 9.32% 3.24 9.31% 2.82 1 Year 11.43% 2.57 1.74 12.21% 16.30% 0.68 16.51% 0.47 5 Year 17.89% 0.75 0.45 18.28% 13.94% 0.81 0.57 14.16% 10
Slide 18: WRAP Composite Performance
Large Cap Quality Growth WRAP Composite Performance Long-term focus has provided competitive through-cycle returns relative to style proxies and benchmark Annualized Return (as of 9/30/2024) 40% 35% 30% 25% 20% 15% 10% 5% 0% 1 Year 5 Year 10 Year 15 Year 20 Year 25 Year S/I¹ Qua li t y Gr o wt h WRA
Slide 19: WRAP Risk/Reward Analysis
Large Cap Quality Growth WRAP Risk/Reward Analysis Percentile rankings have indicated a strong risk/reward profile 1 Quality Growth WRAP Total Risk/Reward 12/31/1999 - 9/30/2024 11% More Return More Return Less Risk More Risk 10% 9% Quality Growth WRAP (Gross) Rate of Return S&P 500 Dividend Payers
Slide 20: Large Cap Quality Growth Model Portfolio
Large Cap Quality Growth Model Portfolio as of September 30, 2024 Quality Growth Sector Allocation History S&P 500 Sector 4Q14 4Q15 4Q16 4Q17 4Q18 4Q19 4Q20 4Q21 4Q22 4Q23 3Q24 3Q24 Communication Services - - - - 2.2% 2.2% 3.0% 1.7% 0.0% 0.0% 1.4% 8.9% Consumer Discretionary 9.8% 12.0% 10.7% 9.0% 5.
Slide 21: WRAP Composite Performance
Large Cap Quality Growth WRAP Composite Performance Large Cap Quality Growth WRAP versus S&P 500 and Other Indices Annual & Quarterly Quality Growth WRAP Quality Growth WRAP S&P 500 Equal Weight S&P 500 Russell 1000 Value Performance (Gross) (Net) 3Q 2024 8.33% 7.52% 5.89% 9.60% 9.43% 2Q 2024 2.87%
Slide 22: WRAP Platform Composite
Large Cap Quality Growth WRAP Platform Composite June 30, 1990 (inception date) - December 31, 2023 “Pure” Benchmark Total Net Gross Benchmark Return (%) Composite 3 Year Ex-Post Standard Deviation Composite Non-fee Total Firm Total Return Return Return (%) Russell 1000 Number of Dispersion Russell
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