From Nuveen Investments

Strategies

Santa Barbara Asset Management Investment Offerings

We seek to outperform the index while experiencing less volatility and provide better downside protection* through a broadly diversified portfolio that maintains high active share.

*There is no assurance that downside protection will be achieved

Dividend Growth

A broadly-diversified portfolio of mid- to large capitalization dividend-paying equities that seeks superior risk-adjusted returns from long-term investment in companies with the fundamentals to sustain future dividend growth and capital appreciation.


Investment Process

Broad Domestic Equity Market

Santa Barbara considers the entire domestic equity market

Preliminary Screen
  • US-Listed (Either Domestic or ADR Program)
  • Market Capitalization > $3B USD and Liquid
  • Eliminate MLPs and Business Development Companies
Minimum Characteristics
  • Projected Dividend Growth Must Be > 0%
  • Individual Beta Must Be < 1.5
  • Individual Yield Must Be > 1%
Relative Comparison

Santa Barbara prioritizes research by identifying companies that exhibit an attractive combination of these key metrics relative to their respective industry and markets.

Typical Company Tradeoff Growth Beta Yield  
  Company A 20% 1.2 3.3%
  Company B 30% 0.7 1.3%
  Company C 2% 0.6 5.2%
  Company D 3% 1.4 1.2% Santa Barbara avoids low yielding companies with slow dividend growth
  S&P 500 7% 1.0 2.0%
Benchmark
  • S&P 500 Index (Primary)
  • Russell 1000 Index (Secondary)
Investment Vehicles
  • Mutual Fund
  • Separately Managed Account
  • Institutional Account

QUARTERLY COMMENTARY

SEPARATELY MANAGED ACCOUNT FACT SHEET


Strategy

Initial Investable Universe $3B+
Sectors Represented All
Number of Holdings 30–60
Position Weight

(Approximately Equal Weighted at Cost)

1–3%
Individual Holding Exposure 5% Maximum
Sub-Sector/Industry Exposure 25% Maximum
Non-US Exposure 25% Maximum
Expected Turnover 15–40%
Anticipated Time Horizon 3–5 Years

International Dividend Growth

A broadly-diversified portfolio of international dividend-paying equities that seeks superior risk-adjusted returns from long-term investment in companies with the fundamentals to sustain future dividend growth and capital appreciation.


Investment Process

Broad International Equity Market

Santa Barbara considers the international equity market

Preliminary Screen
  • Market Capitalization > $3B USD and Liquid
Minimum Characteristics
  • Projected Dividend Growth Must Be > 0%
  • Individual Beta Must Be < 1.5
  • Individual Yield Must Be > 1%
Relative Comparison

Santa Barbara prioritizes research by identifying companies that exhibit an attractive combination of these key metrics relative to their respective industry and markets.

Typical Company Tradeoff Growth Beta Yield
  Company A 20% 1.2 3.3%
  Company B 30% 0.7 1.3%
  Company C 2% 0.6 5.2%
  Company D 3% 1.4 1.2% Santa Barbara avoids low yielding companies with slow dividend growth
  MSCI EAFE Index 7% 1.0 3.1%
Benchmark
  • MSCI EAFE Index
Investment Vehicles
  • Mutual Fund
  • Separately Managed Account
  • Institutional Account

QUARTERLY COMMENTARY

SEPARATELY MANAGED ACCOUNT FACT SHEET


Strategy1

Initial Investable Universe $3B+
Sectors Represented All
Number of Holdings 30–60
Position Weight

(Approximately Equal Weighted at Cost)

1–3%
Individual Holding Exposure 5% Maximum
Sub-Sector/Industry Exposure 25% Maximum
Individual Country Exposure 30% Maximum
Emerging Market Exposure 10% Maximum
Expected Turnover 15–40%
Anticipated Time Horizon 3–5 years


1The strategy is available in both a local currency non-U.S. ordinary shares (ORD) format and an American Depositary Receipt (ADR) format.

Global Dividend Growth

A broadly-diversified portfolio of global dividend-paying equities that seeks superior risk-adjusted returns from long-term investment in companies with the fundamentals to sustain future dividend growth and capital appreciation.


Portfolio Construction

Investment Universe
  • Leveraging our fundamental research
    • Dividend Growth Portfolio Holdings
    • International Dividend Growth Portfolio Holdings
Aggregate Portfolio Guidelines
  • Dividend Growth: Greater than MSCI World Index
  • Beta: Lower than MSCI World Index
  • Dividend Yield: Greater than or equal to MSCI World Index
  • Number of Holdings: 30-60
  • Expected Turnover: 15-40%
  • Anticipated Time Horizon: 3-5 years
Diversified Portfolio Construction & Risk Management

Santa Barbara seeks to balance risk across dividend growth, company betas, dividend yields, sectors and countries.

Global Dividend Growth Portfolio2

A diversified global portfolio constructed to best achieve our targeted guidelines versus the MSCI World Index.

2The strategy is available in both a local currency non-U.S. ordinary shares (ORD) format and an American Depositary Receipt (ADR) format.

Benchmark
  • MSCI World Index
Investment Vehicles

QUARTERLY COMMENTARY

SEPARATELY MANAGED ACCOUNT FACT SHEET

Select Dividend Growth3

Leveraging our fundamental research, Select Dividend Growth draws from our domestic and international strategies, while optimizing the risk/reward profile to construct a concentrated portfolio of dividend-paying equities that have the fundamental strength for future dividend growth and capital appreciation.

3Effective March 1, 2017, Hai Vu was added as a portfolio manager for the Select Dividend Growth strategy, joining James Boothe as co-portfolio manager.


Portfolio Construction

Investment Universe
  • Leveraging our fundamental research
    • Dividend Growth Portfolio Holdings
    • International Dividend Growth Portfolio Holdings
Company Evaluation

Analysts evaluate each company’s fundamentals and ranks for potential alpha generation considering:

  • Current Valuation
  • Forward Growth
  • Risk/Return Trade-Off
Active Portfolio Construction

Portfolio Managers review analysts’ recommendations by:

  • Assessing Each Analyst Ranking
  • Considering Existing Sector Positions
  • Evaluating Portfolio to Current Market Dynamics
Select Dividend Growth Portfolio

An opportunistic concentrated portfolio seeking to outperform the MSCI World Index.

 

Benchmark
  • MSCI World Index
Investment Vehicles
  • Separately Managed Account
  • Institutional Account

QUARTERLY COMMENTARY

Glossary

The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the large and mid-cap equity market performance of developed markets.

The MSCI EAFE Index is a free float-adjusted market capitalization weighted index designed to measure developed market equity performance, excluding the U.S. and Canada.

The S&P 500® is a market weighted index of 500 stocks that are traded on the NYSE, AMEX, and NASDAQ.

Risks and Other Important Considerations

This information should not be relied upon as investment advice, recommendations, offers or solicitation of any particular security, asset class, fund, strategy, or investment product. Investing entails risk, including the possible loss of principal. There can be no assurance that any investment or asset class will provide positive performance over any period of time. Dividend yield is one component of performance and should not be the only consideration for investment. Dividends are not guaranteed and will fluctuate. Equity investments such as large-cap stocks are subject to market risk or the risk of decline in response to adverse company news, industry developments, or a general economic decline. Investments in small- and mid-cap companies are subject to greater volatility. Non-U.S. investing presents additional risks such as the potential for adverse political, currency, economic, social or regulatory developments in a country including lack of liquidity, excessive taxation, and differing legal and accounting standards. Past performance does not guarantee future results.

The statements contained herein reflect the opinions of Santa Barbara Asset Management, LLC (“Santa Barbara”) as of the date written. Certain statements are forward looking and/or based on current expectations, projections, and information currently available to Santa Barbara. Such statements may or may not be accurate over the long-term. While we believe we have a reasonable basis for our comments and we have confidence in our opinions, actual results may differ from those we anticipate. We cannot assure future results and disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise. Statistical data was taken from sources which we deem to be reliable, but their accuracy cannot be guaranteed.

Santa Barbara Asset Management, LLC is a registered investment adviser and an affiliate of Nuveen, LLC.

Contact Us

Singular Focus. Unwavering Approach. Compelling Results.*

* Santa Barbara Performance Results