CLIENT ACCESS

Core Equity

As a core equity manager, ZWJ seeks to provide our clients long-term capital appreciation with relatively low volatility. Every equity client's portfolio is individually customized based on our in-depth understanding of the client’s risk tolerance and return objectives. We select only companies we believe will help our clients achieve their financial goals and objectives.

See our current Equity Portfolio Active List.

ZWJ Equity Selection and Management Process

• Screening — Stocks must meet stringent criteria for size and liquidity or they are eliminated.
• Research — Non-eliminated stocks are added to our Research List, separated into economic sectors and carefully analyzed using ZWJ’s proprietary criteria.
• Analysis — Stocks on the Research List are scrutinized for possible inclusion on our Active List.
• Selection — A stock must have the support of a majority of the portfolio managers on our Investment Committee to be added to the ZWJ Active List, a group of no more than 75 stocks from which our portfolio managers construct client portfolios.
• Individual Portfolio Construction — Based on client objectives, the portfolio manager selects approximately 50 stocks from the Active List for inclusion into the client’s portfolio.
• Monitoring — Every client’s portfolio is continually monitored by both the portfolio manager and by the ZWJ investment committee.

General Attributes of a ZWJ Portfolio

• Historical and projected revenue, earnings, and dividend growth rates greater than the market
• Attractive valuation relative to the market
• Low price earnings ratio to growth rate (PEG ratio)
• Low debt to capital
• Diversification
  • Broad exposure across economic sectors
  • Market capitalization from $500 million and up
  • A blended mix with overweightings relative to market outlook to achieve growth and value
  • Approximately 50 equally-weighted positions

Sell Discipline

• Each stock has a target implied value that may change relative to the financial performance of the company. A stock that reaches its implied value is sold from portfolios and removed from the Active List.
• ZWJ may sell a stock if we observe fundamental deterioration, disappointing earnings, imprudent acquisition, management issues or material loss of market share.
• ZWJ establishes sector weights relative to the market. If a target sector weighting is changed, positions within that sector may be added, reduced or sold.
• ZWJ may amend the cash allocation within portfolios. A stock may be sold or reduced to raise cash reserves for investment purposes depending on the client’s specific needs.

Risk Management

Although total return is an important objective, managing multiple risk factors are critical to long-term success. We analyze valuation relative to the market, sector and the company itself to avoid overpaying; we favor less expensive relative valuation.

Company Analysis

• We avoid companies with excessive debt
• We purchase companies with strong profit margins which indicate a competitive advantage
• We purchase companies with long-term track records of revenue, earnings and potential dividend growth
• We purchase companies with attractive projected growth rates
• We focus on solid — even boring — companies, not the stock of the day