AWM Growth Composite® Strategy Factsheet Q3 2020
Objective and Strategy
Avitas Wealth Management (AWM) Growth seeks to above average and sustainable rates of revenue and Team deliver long-term total return on capital, primarily earnings growth. through capital appreciation. Investments are selected with a bottom-up analysis of Russell Evans, CIMA, Portfolio Manager The AWM Growth Composite includes all discretionary securities’ fundamentals and technical indicators, Investment Strategist portfolios that invest primarily in companies across examining factors such as revenue and earnings mega, large, mid and small market capitalizations, growth, profitability, and valuation as well as exposure Peter Lee, CFA, Portfolio Manager domiciled both in the United States and internationally, to key thematic trends. Director of Research and Analytics and believed to have significant potential for capital appreciation. A top-down view of global macroeconomic conditions Avitas Wealth Management, LLC drives both sector and geographic allocations. 1901 Avenue of the Stars, Suite 1901 AWM Growth seeks to invest in companies across all economic sectors that are growth leaders among their During times of heightened volatility, cash or highly Los Angeles, CA 90067 industry peers. Growth leaders have the potential for liquid fixed income securities may be tactically utilized (424) 371 9010 to preserve capital. Email: [email protected] Performance Characteristics
Composite Return Analysis Pure Gross Net1 Primary Benchmark2 Secondary Benchmark3
Quarter 12.23% 11.90% 10.27% 8.93% Year To Date 14.15% 13.10% 14.49% 5.57% One Year 24.12% 22.60% 24.36% 15.15% Three Year* N/A N/A N/A N/A Five Year* N/A N/A N/A N/A Since Inception (1/1/2018)* 14.08% 12.68% 14.17% 10.84% Positive Periods Since Inception 8 8 8 Negative Periods Since Inception 3 3 3
1Net of maximum 1.25% Wrap fee 275% S&P 500 Growth / 10% Russell 2000 Growth / 15% MSCI EAFE Index 3S&P 500 Total Return *Returns greater than 1 year are annualized
BEST PERFORMERS WORST PERFORMERS
3Q20 Strategy 3Q20 3Q20 Strategy 3Q20 Strategy Highlights Security Name Security Name Return Contribution Return Contribution • Invest in companies with growth potential above their industry peers ZOOM VIDEO LEMONADE INC -34.0% -0.3% COMMUNICATIONS-A 85.4% 1.3% • Combine top-down thematics with bottom-up research ELI LILLY & CO -9.4% -0.2% • Aims to provide exposure to trending securities ROKU INC 62.0% 1.3% exhibiting positive momentum characteristics ROCKET COS SQUARE INC - A 54.9% 0.7% INC-CLASS A -24.8% -0.2% • AWM Growth stock selection methodology originated in 1995 UNITED PARCEL AMERICAN TOWER SERVICE-CL B 50.8% 0.7% CORP -6.1% -0.1%
NVIDIA CORP 42.5% 0.6% NORDSTROM INC -14.5% -0.1% Strategy Structure
LARGEST 10 POSITIONS SMALLEST 10 POSITIONS • Typically holds 40-60 securities Security Name Weight Security Name Weight • Initial investments range from 0.25% to 3.75% of portfolio ADOBE INC 3.9% PELOTON INTERACTIVE INC-A 1.0% • May invest in all 11 GICS economic sectors AMAZON.COM INC 3.5% SOUTHWEST AIRLINES CO 1.0% • Investments may include ETFs, ETNs, ADRs, & foreign ordinaries in the OTC market MASTERCARD INC - A 3.2% TESLA INC 1.0% • Top 10 holdings may be greater than 30% ROKU INC 3.0% ZSCALER INC 1.0% of net assets
• Turnover range 25-50% annually SHOPIFY INC - CLASS A 2.8% ACTIVISION BLIZZARD INC 0.9%
UNITEDHEALTH GROUP INC 2.7% LAS VEGAS SANDS CORP 0.9% Best/Worst Performers, Top/Bottom Ten Positions, and Positive/ Negative Quarters are presented as supplemental information. DANAHER CORP 2.6% KEURIG DR PEPPER INC 0.9% Source: Bloomberg & Model Account. Performers & Positions information should not be deemed a recommendation to buy or sell ZOOM VIDEO COMMUNICATIONS-A 2.6% SONOS INC 0.8% the securities. For comparison purposes, the AWM Growth composite is measured against a blended benchmark of 75% S&P NVIDIA CORP 2.3% SLACK TECHNOLOGIES INC- CL A 0.8% 500 Growth / 10% Russell 2000 Growth / 15% MSCI EAFE Index. You cannot invest directly in an index. A complete description of Avitas’ AMERICAN TOWER CORP 2.1% ROCKET COS INC-CLASS A 0.7% performance calculation methodology, including a complete list of each security that contributed to the performance of this Avitas Total 28.6% Total 8.8% composite is available upon request. Strategy Characteristics About Avitas Wealth Management Avitas Wealth Management is a boutique asset earns their trust and is just as committed to their distractions and conflicts and add back the one manager and wealth advisory firm for select success as they are. An advisor who will guide thing you really want – their own wealth, totally multigenerational families. We provide Institutional their family through every financial decision, organized. We are not driven by sales Style Portfolio Management, Financial Planning, standing by their side for a lifetime. That is the commissions or hidden incentives. A relationship Total Wealth Organization®, and exclusive access kind of advisor Avitas is built to be. Your advisor with Avitas is unlike any financial advisor to Private Equity Managers. for life. relationship you may have experienced. Our clients want an independent advisor who sees For more than twenty years, the founders of Avitas the world through the same lens they do. One who have followed one simple idea: To remove
STRATEGY CHARACTERISTICS Size Distribution
64.1% Market AWM Blended S&P 58.9% Strategy AUM $21.5 MM Capitalization Growth Benchmark* 500 51.3% Mega 9.5% 27.7% 24.1%
Composite AUM $17.1 MM Large 58.9% 51.3% 64.1% 27.7% 24.1% 15.2% Mid 15.2% 11.7% 11.3% 11.7%11.3% 9.5% 9.1% Minimum Account Size $100,000 Small 0.8% 9.1% 0.3% 0.8% 0.3% Source: Bloomberg & Model Account * S&P 500 Growth - 75% Mega Large Mid Small Market cap categorization is proprietary to Avitas. Russell 2000 Growth - 10% Number of Holdings 53 Mega: Greater than $500 Billion, MSCI EAFE Index - 15% Large: $25 Billion to $500 Billion, Mid: $5 Billion to $25 Billion, Small: Less than $5 Billion Dividend Yield 0.88% Geographic Distribution
AWM Blended S&P Geography Growth Benchmark 500 Strategy Guidelines Domestic* 96.1% 84.7% 99.5% AWM Growth • Market capitalization $500 million or greater International 3.9% 15.3% 0.5% Distribution • Source: Bloomberg & Model Account Maximum equity position size is 15% *Domestic includes allocation to cash or cash equivalents • Sector weight maximum 200% of the benchmark • Investments not limited to securities in Benchmark indices Sector (GICS) Weightings • Maximum 30% allocation to foreign securities
• Seek tax-efficient management AWM Blended S&P Sector Growth Benchmark! 500! Communication Services 11.6% 10.3% 10.8%
1 Size, Geographic, and Sector data for indexes related to Consumer Discretionary 11.8% 14.4% 11.5% Blended Benchmark and S&P 500 sourced from index-based Consumer Staples 4.0% 5.4% 7.0% exchange traded funds (ETFs). • S&P 500 Growth - iShares S&P 500 Growth ETF Energy 0.0% 0.8% 2.1% (Symbol: IVW) Financials 2.7% 6.1% 9.7% AWM Growth • Russell 2000 Growth - iShares Russell 2000 Growth ETF Health Care 10.3% 13.2% 14.2% Sector (GICS) (Symbol: IWO) Weighting • MSCI EAFE Index - iShares MSCI EAFE ETF (Symbol: EFA) Industrials 6.2% 8.8% 8.3% • S&P 500 - iShares S&P 500 ETF (Symbol: IVV) The selected ETFs are believed to closely approximate the actual Information Technology 33.2% 33.9% 28.1% indices used in the benchmarks but may deviate from them. Materials 1.0% 3.1% 2.6% Real Estate 3.6% 2.6% 2.6% Utilities 0.0% 1.2% 3.0% Cash 15.6% 0.3% 0.2% Notes Source: Bloomberg & Model Account
Avitas Wealth Management, LLC (‘‘Avitas’’) claims Pure gross returns are shown as supplemental Avitas Wealth Management, LLC is an independent compliance with the Global Investment Performance information and stated gross of all fees and registered investment adviser. GIPS® is a registered Standards (GIPS®). transaction costs; net returns are reduced by the trademark of CFA Institute. CFA Institute does not highest all-inclusive bundled fee of 1.25%, applied Strategy AUM includes all assets managed in the endorse or promote this organization, nor does it monthly. Composite returns reflect the reinvestment Growth strategy, including accounts that were omitted warrant the accuracy or quality of the content of dividends and capital gains. Valuations are from the composite performance calculation as of the contained herein. computed and performance is reported in US dollars. valuation date, as outlined in Avitas' GIPS Policy Past performance is not indicative of future results. Manual. The AWM Growth Composite includes all discretionary Dividend Yield is the weighted average trailing twelve portfolios that invest primarily in equities of large US months (TTM) dividend yield of Strategy holdings as companies believed to have significant potential for of the calculation date. The Dividend Yield does not capital appreciation. The composite may also invest indicate actual dividends received over TTM, nor imply in smaller firms and businesses domiciled future dividend payouts over the next year. internationally. Under certain market conditions, the A complete GIPS Composite Report is available upon composite may invest in cash or equivalents, as well request at (424) 371-9010 or [email protected]. as highly liquid fixed income securities.
Avitas Wealth Management, LLC 1901 Avenue of the Stars, Suite 1901 (424) 371 9010 Los Angeles, CA 90067 Email: [email protected]