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ALTRIUS CAPITAL MANAGEMENT, INC. | TOLL FREE 855-ALTRIUS |
WWW.ALTRIUSCAPITAL.COM
International ADR Dividend Income Strategy4th Quarter 2017
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Q4 20172
Altrius Capital Management, Inc. was founded in 1997
Altrius is 100% employee owned
Altrius is an SEC registered investment advisor
The Firm currently manages approximately $348mm in assets and
offers both separately managed account and mutual fund
solutions
Having managed client assets for almost twodecades, Altrius
claims compliance with Global Investment Performance Standards
(GIPS®)
Altrius maintains a 15 year track record in the following
strategies: Global Income, Disciplined Alpha Dividend Income and
Unconstrained Fixed Income
FIRM OVERVIEW
Data as of 12.31.2017
Altrius Highlights
AUM by Product
Unconstrained FixedIncome
Disciplined AlphaDividend Income
International ADRDividend Income
Cash
Chart1
Unconstrained Fixed Income
Disciplined Alpha Dividend Income
International ADR Dividend Income
Cash
AUM by Product
AUM by Product
51.8
24.3
21.7
2.2
Sheet1
AUM by Product
Unconstrained Fixed Income51.8
Disciplined Alpha Dividend Income24.3
International ADR Dividend Income21.7
Cash2.2
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range.
100
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Q4 20173
GIPS VerificationACA Verification Services
ComplianceNational Compliance
Services
TradingMoxy / Advent
AccountingRSM McGladrey
FIRM OVERVIEW
3
Altrius Organization
PORTFOLIO MANAGEMENT
FINANCIAL ADVISORS
OPERATIONS
Zachary Q. Smith, CFAPortfolio Manager
James M. RussoChief Investment Strategist
Joy G. WoodsTrader
Rebecca A. HarmonTrader
Christopher C. Rolf, CFAExecutive Vice President
Tara L. Hughes, CPA CGMAExecutive Vice President
Massimo Paone, AWMAExecutive Vice President
Andrea L. AitkenChief Compliance Officer
Rita A. Hendrick-SmithDirector of Operations
Darrin MercerSr. Operations Analyst
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Q4 20174
Top down economics drive market cycles, market segments, and
ultimately individual security prices.
Total return matters, which includes sources of returns often
overlooked by investment managers and investors, such as
dividends.
Value is critical; the market will reward the intrinsic value
inherent in a security over time.
GLOBAL MACRO DRIVES OUR
INVESTMENT ANALYSIS
TOTAL RETURN DRIVES OUR
PORTFOLIO CONSTRUCTION
VALUE DEFINES OUR
SECURITY SELECTION
FIRM OVERVIEW
Different by Design
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Q4 2017
FIRM OVERVIEW
5
Altrius Value Proposition
*Portfolio Growth of $1,000,000 assumes reinvestment of all
dividendssince inception. All data represented is gross of
fees.
Port
folio
Val
ue
Ann
ual Y
ield
(%)
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
Growth of $1,000,000 Portfolio Annual Yield
International ADR Dividend Income Growth of $1,000,000 and
Dividend Yield*
European Crisis
Oil Sell-off
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Q4 2017
FIRM OVERVIEW
6
Altrius Value Proposition
International ADR Dividend Income Growth of $1,000,000 and
Dividend Income*
*Portfolio Growth of $1,000,000 and Annual Income
assumesreinvestment of all dividends since inception. All data
represented isgross of fees.
Port
folio
Val
ue
Ann
ual I
ncom
e
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
Growth of $1,000,000 Portfolio Annual Income
European Crisis
Oil Sell-off
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Q4 20177
Global macro conditions are the basis for investing; top down
economics drive market cycles, market segments, and ultimately
individual security prices.
Value is critical; we will not pay more for a security than we
believe it is worth, with full confidence that the market will
reward the intrinsic value inherent in the security over time.
Patience is vital; we do not make extreme short term changes in
response to fleeting market events, we invest for the long term and
believe returns are driven by consistency of process.
Total return is our focus; we are committed to total return on
behalf of our investors, digging deep into a company’s fundamentals
to determine its value proposition and opportunities for growth
over the short and long term.
Risk management is required to ensure long term preservation of
capital.
PHILOSOPHY
Altrius Investment Philosophy
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Q4 20178
At Altrius, we believe that global asset allocation valuations
matter. Predicated on this belief, we maintain a series of three
economic scenarios under which the economy may fall at any one
time. By analyzing the valuations inherent in the current economic
scenario, we are better positioned to identify securities at the
sector, industry and individual company level that are best
positioned to add significant value to our portfolio over time.
Source: Advisor Intelligence/Altrius Capital
ECONOMIC SCENARIOS
Bear Base BullS&P 500 at 2674, Barclays Aggregate yield at
2.7%, MSCI Europe Index at 1797, BofA ML High Yield Cash Pay Index
at 5.8%.
Equities Estimate Estimate Estimate
U.S. Equities -8.5% 0.5% 7.6%
Developed Int’l – Europe -8.5% 10.4% 17.6%
REITs -4.7% 1.6% 4.7%
Fixed Income
Investment-Grade Bonds 3.3% 1.9% 1.3%
High-Yield Bonds 1.7% 5.1% 5.4%
TIPS 2.3% 1.1% -0.9%
*Our likely scenario
PHILOSOPHY
Economic Scenario Analysis
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Q4 2017
Demographic trends and geographic demand are derivatives of
global economic growth and serve as drivers for enterprise.
Global Current and Potential Consumption Trends
Source: © 2013 The World Bank: World Development Indicators:
United Nations, World Population Prospects; World Health
Organization, National Health Account database supplemented by
country data; and International Energy Agency. As of 2011 (based on
most recent data available, 2010–2011). Health expenditure (US$),
electric power consumption (kwh), and energy use (kg of oil
equivalent) percentages were calculated by establishing a baseline
expenditure/consumption amount of $9,000, 15,000 kWh, and 8,000 kg,
respectively, and then measuring actual consumption per capita
against the baseline.
United States Brazil India China
PHILOSOPHY
PotentialCurrent
Why Global Matters
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Q4 2017
Sources: Data represented is as of company’s latest 10-K filing
for the period ending 12.31.2016 (*Fiscal year end as of 06.30.2016
for BHP Billiton Ltd. and 09.30.2016 for Siemens AG). Foreign
Revenue is based on Total Revenue –Domestic Revenue. Logos are
trademarks of their respective owners and are used for illustrative
purposes and should not be construed as an endorsement or
sponsorship of Altrius.
Are domestic companies really domestic anymore? While a company
may be headquartered in London or Rio de Janeiro, investing
requires understanding the drivers of a company’s bottom line.
10
A Sampling of Major Int’l Brands with Foreign Revenues Above 50%
of Total Revenues
PHILOSOPHY
Why Global Matters
98% 94%* 93% 87%
87%* 76% 62% 59%
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Q4 2017
Source: © 2013 Ned Davis Research, Inc.
Comparison of S&P 500 Companies’ Returns Cumulative Total
Return for the 20-Year Period Ended 06.30.14
“More Global” represents S&P 500
companies with reported pre-tax income of more than 50% from
foreign operations.
“Less Global” represents S&P 500
companies with reported pre-tax income of less than 50% from
foreign operations.
11
PHILOSOPHY
726.65%
601.43%
More Global Less Global
125 bps
Why Global Matters
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Q4 201712
Source: Based on Schwert (1990) data for 1801–1870, a blend of
Schwert and Siegel (2002) data for 1871–1925, and S&P 500 Index
data since 1926.
Over long time periods dividends have made up a large proportion
of total returns.
200 Year US Equity Return Decomposition
PHILOSOPHY
Why Dividends Matter
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Q4 201713
Source: Federated Advisors
Since Altrius’ inception in 1997, the Firm has been committed to
dividend growth, viewing dividends as a critical component of total
return.
PERCEPTION
Dividends4.2%
Capital Appreciation
5.6%
DividendYield4.2%
DividendGrowth
4.4%
ValuationChanges
1.2%
REALITY
PHILOSOPHY
Why Dividends Matter
Chart1
Dividends
Capital Appreciation
Column1
0.042
0.056
Sheet1
Column1
Dividends4%
Capital Appreciation5.60%
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range.
Chart1
Valuation Changes
Dividend Yield
Dividend Growth
Column1
0.012
0.042
0.044
Sheet1
Column1
Valuation Changes1.20%
Dividend Yield4.20%
Dividend Growth4.40%
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range.
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Q4 201714
PHILOSOPHY
Why Dividends Matter
Dividend Cutters or Eliminators
Non-dividend-paying Stocks
Dividend Payers w/ No Change
Dividend Growers & Initiators
-3%
0%
3%
6%
9%
12%
10% 15% 20% 25% 30%
Ave
rage
Ann
ualiz
ed T
otal
Ret
urn
Annualized Standard DeviationLower Risk Higher Risk
Low
er R
etur
nH
ighe
r Ret
urn
Dividend Payers Risk/Reward01.31.1972 to 12.31.2015
Source: © 2016 Ned Davis Research, Inc. Non-dividend-paying
Stocks represents non-dividend-paying stocks of the S&P
500Index; Dividend Payers w/ No Change represents all
dividend-paying stocks of the S&P 500 Index that maintained
their existingdividend rate and reflects the reinvestment of all
income. The S&P 500 Geometric Equal-Weighted Total Return Index
is calculatedusing monthly equal-weighted geometric averages of the
total returns of all dividend-paying stocks and non-dividend-paying
stocks.
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Q4 201715
Agency Dilemma
Dividends help reduce problems arising from asymmetric
information and conflicts of interest between investors and
company
management.
Management(Agent)
Investor(Principal)
Signaling
Company management makes decisions about dividend policies using
internal
forecasts; a stable and rising dividend can signal superior
future return potential.
*Source: Convergence Investment Partners
High-Dividend Stocks vs Russell 1000Cumulative Returns
Comparison*
Reliability
Earnings & cash flows can be manipulated while dividends are
a more certain measure
of the return-generating capacity of a business model; academic
research has
found that dividends provide information about the quality of
earnings1.
1 “What do dividends tell us about earnings quality”, Douglas
Skinner, Chicago Booth School of Business
PHILOSOPHY
Why Dividends Matter
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Q4 201716
Source: “What if the Market is Revaluing Dividends”, Fidelity
Asset Management, March 2012
PHILOSOPHY
Why Dividends Matter
In low interest rate environments, investors substitute toward
dividend-paying stocks, resulting in higher multiples for higher
payout ratios.
Multiples At Different Payout Ratios Multiples on Distributed
Versus Undistributed Earnings
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Q4 201717
PHILOSOPHY
A History of Above Average Dividends
Altrius has consistently delivered a higher dividend yield than
the MSCI EAFE index since inception.
International ADR Dividend Income vs. MSCI EAFE Dividend
Yield
Source: Morningstar
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Altrius Int'l ADR DI MSCI EAFE
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Q4 2017
Source: Siegel, Jeremy, Future for Investors (2005), with
updates through 2012
Each stock in the S&P 500 is ranked from lowest to highest
by price to earnings ratio on December 31st of every year and
placed into “quintiles” (baskets of 100 stocks). The stocks in each
quintile are weighted by their market capitalization. The
price/earnings ratio is defined as each stock’s net income per
share divided by its stock price as of December 31st of that year.
Past performance does not guarantee future results.
© Jeremy J. Siegel
Growth of $1000: Cumulative Returns by P/E Ratio 1957-2012
18
PHILOSOPHY
Why Value Matters
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Q4 2017
40
50
60
70
80
90
100
110
120
Con
sum
er S
entim
ent I
ndex
19
Why Value Matters
Source: University of Michigan, FTSE Russell.*The Russell 3000
is a total market index, which assumes all cash distributions are
reinvested. Peak is defined as highest index value before a series
of lower lows, while trough is defined as lowest index value before
a series of higher highs. Shaded areas indicate US recessions.
At Altrius, we often view crisis as an opportunity and invest
when others won’t, allowing us to capitalize on potential upside
performance.
Stock Returns During Periods of Uncertainty
May 1980:+32.0%
Jan. 2000:-4.5%
Mar. 2003:+38.1% Oct. 2005:
+16.5%
Jan 2004:+6.4%
Nov. 2008:+28.4%
Jan 2007:-2.2%
Oct. 1990:+33.9%
Mar. 1984:+19.6%
Aug. 2011:+20.0%
Sentiment cycle peak and subsequent 1-yr Russell 3000*
return
Sentiment cycle trough and subsequent 1-yr Russell 3000
return
PHILOSOPHY
Jan 2015:-4.8%
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Q4 201720
PROCESS
Altrius Investment Philosophy
A process designed to outperform driven by total return:
GLOBAL MACRO TOP DOWN PERSPECTIVE
DRIVES INITIAL UNIVERSE
Top down strategy employed to identify the most compelling
geographic, industry
and/or sector set:
National GDP Growth
Demographics- Where is the Growth?
Durable Businesses Exploiting Growth
Demand Changes: What’s growing, moving, slowing?
Bottom up process seeks to identify companies selling below
their
intrinsic value:
Seek high-yielding, durable businesses
Screen P/E ratio, the ‘real’ earnings of a company
Seeking companies generally selling for
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Q4 201721
CLASSIC VALUE30-50%
PERSISTENT EARNERS30-50%
Well-established companies with dependable revenue growth,
reliable earnings and healthy
dividend appreciation, priced below their historical
valuations.
Persistent Earners: Nestlé SA, Unilever NV, British American
Tobacco PLC
Financially sound companies selling at economical valuations
relative to their earnings power which demonstrate a commitment to
sound, above average
dividends over the long term.Classic Value: Total SA,
GlaxoSmithKline PLC,
AstraZeneca PLC
Companies that sell at significant discounts to their intrinsic
value due to market
inefficiencies driven by irrational
sell-offs.Distressed/Contrarian: BHP Billiton Limited,
Telefónica
SA, Lloyds Banking Group PLC
DISTRESSED/CONTRARIAN0-15%
Further fundamental analysis is designed to determine which
companies are increasing top line revenue growth, earnings and
dividend payments. We target a portfolio of 25-50 companies
that
fall into three value categories: Distressed/Contrarian, Classic
Value and Persistent Earners.
PROCESS
Altrius Investment Process
Chart1
Contrarian Distressed
Classic Value
Persistent Earners
Security Allocation
20
40
40
Sheet1
Security Allocation
Contrarian Distressed20
Classic Value40
Persistent Earners40
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Q4 201722
Benchmarks MSCI EAFE Value Index;S&P Int’l Dividend
Opportunities TR Index
Number of Holdings 25-50
Average Market Cap $30 - $70B
Minimum Market Cap $2B
Max Position Size 5%
Turnover 15 - 30%
PORTFOLIO CONSTRUCTION
Portfolio Construction Guidelines
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Q4 201723
PORTFOLIO ANALYTICS
Geographic Diversification
International ADR Dividend Income Geographic Exposure
Europe Developed, 36%
United Kingdom, 30%
North America, 12%
Japan, 8%
Africa/Middle East, 7%
Australasia, 4%
Asia Developed, 4%
Latin America, 0%
Europe Emerging, 0%
Asia Emerging, 0%
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Q4 201724
PORTFOLIO ANALYTICS
Geographic Diversification
International ADR Dividend Income Geographic Exposure*
*Annual sector allocation data is reported as of 12.31 of the
respective year since 01.01.2013. 2017 data is reported as of
12.31.2017.
-30%
-20%
-10%
0%
10%
20%
30%
Europe Emerging, 0%
North America, +11%
Asia Emerging, -1%
Europe Developed, -8%
Asia Developed, -1%
Latin America, 0%
Africa/Middle East, +6%
Australasia, -3%
United Kingdom, +12%
Japan, -16%
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Q4 201725
PORTFOLIO ANALYTICS
Sector Diversification
International ADR Dividend Income Sector Allocation*
*Sector allocation data is reported quarterly since
01.31.2013.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Real Estate, 0%
Consumer Cyclical, 6%
Industrials, 7%
Financial Services, 31%
Technology, 2%
Communication Services, 4%
Utilities, 0%
Basic Materials, 12%
Consumer Defensive, 11%
Healthcare, 17%
Energy, 11%
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Q4 201726
PORTFOLIO ANALYTICS
Sector Diversification
International ADR Dividend Income Sector Allocation vs MSCI
EAFE*
*Annual sector allocation data is reported as of 12.31 of the
respective year since 01.01.2013.
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
Consumer Defensive, 0%
Technology, -5%
Basic Materials, +3%
Communication Services, -1%
Real Estate, -4%
Healthcare, +7%
Industrials, -6%
Utilities, -3%
Consumer Cyclical, -6%
Financial Services, +10%
Energy, +6%
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Q4 201727
BenchmarkMSCI EAFE Value Index;S&P Int’l Dividend
Opportunities TR Index
Trailing P/E 17.11
Dividend Yield (TTM) 4.17%
Price/Book 1.40
Standard Deviation (sinceinception*) 14.15
Alpha (annualized, since inception) 0.62
Beta (since inception) 0.84
Sharpe Ratio (annualized, since inception) 0.53
PORTFOLIO ANALYTICS
As of 12.31.2017
Portfolio Analytics
* Since inception statistics for the time period: 06.01.2010 to
12.31.2017
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Q4 201728
ACCOUNT FORMAT SEPARATELY MANAGED ACCOUNT
INSTITUTIONAL ACCOUNT MINIMUM $1,000,000
MANAGEMENT FEE < $25M 55 BP
MANAGEMENT FEE > $25M 50 BP
PORTFOLIO ANALYTICS
Management Fee Structure
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Q4 201729
Portfolio Analytics:
PERFORMANCE
0%
5%
10%
15%
20%
25%
YTD 12.31.2017 1 Year 3 Year 5 Year Since
Inception06.01.2010
Altrius (Net)
Altrius (Gross)
MSCI EAFE ValueNRS&P Intl DividendOpportunities TR
PERIOD YTD12.31.2017 1 YEAR 3 YEAR 5 YEARSince
Inception
Altrius (Net) 22.15 22.15 4.37 3.18 5.81
Altrius (Gross) 23.51 23.51 5.54 4.34 6.99
MSCI EAFE Value NR 21.44 21.44 6.35 6.95 7.55
S&P Intl Dividend Opportunities TR 20.43 20.43 5.38 4.21
5.37
International ADR Dividend Income
As of 12.31.2017
Chart1
YTD 12.31.2017YTD 12.31.2017YTD 12.31.2017YTD 12.31.2017
1 Year1 Year1 Year1 Year
3 Year3 Year3 Year3 Year
5 Year5 Year5 Year5 Year
Since Inception 06.01.2010Since Inception 06.01.2010Since
Inception 06.01.2010Since Inception 06.01.2010
Altrius (Net)
Altrius (Gross)
MSCI EAFE Value NR
S&P Intl Dividend Opportunities TR
0.2215
0.2351
0.2144
0.2043
0.2215
0.2351
0.2144
0.2043
0.0437
0.0554
0.0635
0.0538
0.0318
0.0434
0.0695
0.0421
0.0581
0.0699
0.0755
0.0537
Sheet1
Altrius (Net)Altrius (Gross)MSCI EAFE Value NRS&P Intl
Dividend Opportunities TR
YTD 12.31.201722.15%23.51%21.44%20.43%
1 Year22.15%23.51%21.44%20.43%
3 Year4.37%5.54%6.35%5.38%
5 Year3.18%4.34%6.95%4.21%
Since Inception 06.01.20105.81%6.99%7.55%5.37%
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Q4 201730
Contrary to CAPM efficient market claims, high risk is often not
associated with high reward
Empirical Returns by Volatility QuintileVa
lue
of $
1 In
vest
ed in
196
8
Source: Benchmarks as Limits to Arbitrage: Understanding the Low
Volatility Anomaly; Financial Analyst Journal Volume 67, 2011
RISK MANAGEMENT
The Value of Risk-Adjusted Returns
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Q4 201731
At Altrius we employ a structured risk management perspective
throughout our security selection, monitoring, and sell process. By
maintaining a data driven, facts oriented investment management
process we avoid the bias that can often result in poor risk
management decisions.
As an added risk management component to our investment process,
we create worst case and best case scenarios for evaluating market
opportunities and risk.
We do not hesitate to sell securities that we believe are ‘at
risk’ based on fundamental factors; we remain agile and focused on
our portfolio holdings at all times, prepared to sell securities
that are not performing or for which we believe we have identified
better candidates to maximize portfolio return and to minimize
portfolio risk.
Companies that cut their dividend are almost always an automatic
sell.
Valuations that exceed 20x earnings become too pricey and
typically result in a sell.
RISK MANAGEMENT
Risk Management & Sell Discipline
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Q4 201732
DISCLOSURE
Altrius International ADR Dividend Income Composite
PerformanceMay 31, 2010 – December 31, 2017
YearGross
Return %
Net Return
%
Benchmark MSCI EAFE
Value NR Return
%
Composite 3-Yr
St Dev %
Benchmark MSCI EAFE
Value NR3Yr
St Dev %
# of Portfolios
Composite Dispersion
%
TotalComposite
Assets
Percent ofFirm
Assets
2010 23.80 23.08 19.67 N/A N/A 103 N/A 7,992,038 9.69
2011 (2.14) (3.27) (12.17) N/A N/A 101 0.62 10,051,518 8.082012
11.44 10.19 17.69 N/A N/A 105 0.58 9,923,562 7.352013 16.46 15.20
22.95 14.63 17.45 117 0.44 15,508,454 8.892014 (9.67) (10.68)
(5.39) 13.01 14.32 128 0.52 22,637,241 11.962015 (11.77) (12.73)
(5.68) 13.96 13.59 114 0.62 18,366,384 10.002016 7.88 6.67 5.02
13.97 13.49 133 0.81 27,156,259 10.162017 23.51 22.15 21.44 13.40
12.83 141 0.79 38,708,424 11.11
Composite Overview
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Q4 201733
Performance ReportingAltrius Capital Management, Inc. (Altrius)
claims compliance with the Global Investment Performance Standards
(GIPS®) and has prepared
and presented this report in compliance with the GIPS®
standards. Altrius has been independently verified for the periods
January 31, 2001 –December 31, 2016 by ACA Verification Services.
The verification reports are available upon request. Verification
assesses whether (1) the firm hascomplied with all the composite
construction requirements of the GIPS® standards on a firm-wide
basis and (2) the firm’s policies and procedures aredesigned to
calculate and present performance in compliance with the GIPS®
standards. Verification does not ensure the accuracy of any
specificcomposite presentation.
The Firm is defined as Altrius Capital Management, Inc.
(Altrius), registered investment advisors with the Securities and
Exchange Commission.Altrius was founded in 1997 and manages equity,
fixed-income and balanced portfolios for high net worth individuals
and families.
Composite CharacteristicsThe International ADR Dividend Income
strategy is a subaccount from the Altrius Global Income Composite.
The composite and subaccount were
created in December 2010 with a performance inception date of
May 31, 2010. The subaccount strategy seeks long term capital
appreciation andincome by investing at least 80% of its assets in a
diversified portfolio of income-producing equity securities paying
higher than average dividends. 30-50International ADR positions are
chosen from a universe of stocks with market capitalizations
generally greater than $10 billion.
Accounts are included on the last day of the month in which the
account meets the composite definition. Accounts no longer under
management arewithdrawn from the composite on the first day of the
month in which they are no longer under management. Closed account
data is included in thecomposite as mandated by the standards in
order to eliminate a survivorship bias.
DISCLOSURE
Disclosure
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Q4 201734
BenchmarkThe benchmarks are the MSCI EAFE Value NR Index, the
S&P International Dividend Opportunities and US OE Foreign
Large Value.
The volatility of the indices may be materially different from
that of the performance composite. In addition, the composite’s
holdings may differ significantly from the securities that comprise
the indices . The indices have not been selected to represent
appropriate benchmarks to compare the composite’s performance, but
rather are disclosed to allow for comparison of the composite’s
performance to those of well-known and widely recognized indices.
Economic factors, market conditions, and investment strategies will
affect the performance of any portfolio, and there are no
assurances that it will match or outperform any particular
benchmark.
Performance CalculationsValuations and returns are computed and
stated in U.S. dollars. Results reflect the reinvestment of
dividends and other earnings.Gross of fee return is net of
transaction costs and gross of management and custodian fees.
Net-of-fees returns are calculated using actual
management fees that were paid and are presented before
custodial fees and but after management fees and all trading
expenses. Returns can be net orgross of withholding taxes,
depending on how taxes are recorded at the custodian. Some accounts
pay fees outside of their accounts; thus, we enter a non-cash
transaction in the performance system such that we can calculate a
net of fees return. Prior to 1/1/10, cash was allocated to
carve-out segments on apro-rata basis based on beginning of period
market values. Beginning 1/1/10, carve-out segments are managed
separately with their own cash balance.Carve-out accounts represent
100% of composite assets for periods prior to 1/1/10.
The standard management fee for the Altrius International ADR
Dividend is 1.40% per annum on the first $500,000 USD, 1.00% per
annumon the next $500,000 and 0.80% per annum thereafter.
Additional information regarding Altrius Capital Management and
Altrius InstitutionalAsset Management fees are included in its Part
II Form ADV.
Internal dispersion is calculated using the asset-weighted
standard deviation of all accounts included in the composite for
the entire year; it is notpresented for periods less than one year
or when there were five or fewer portfolios in the composite for
the entire year. The three-year annualized standarddeviation
measures the variability of the composite and the benchmark (MSCI
EAFE Value Index) returns over the preceding 36-month period.
There are no non-fee paying accounts in our composites. When a
security is purchased or sold, the principal amounts tied to the
transaction are netof trading costs; therefore the calculation and
market values represent amounts net of trading costs. Dispersion is
calculated using Asset WeightedStandard Deviation, gross of fees.
Policies for valuing portfolios, calculating performance, and
preparing compliant presentations are available uponrequest. A
complete list and description of firm composites is available upon
request.
* Past performance does not guarantee future results. The
information provided in this material should not be considered an
offer nora recommendation to buy, sell or hold any particular
security.
DISCLOSURE
Disclosure
-
Q4 201735
Worldwide:
Raleigh:
New Bern:
New Jersey:
Contact Information
Toll Free: 855-ALTRIUSEmail Address:
[email protected]
Altrius Capital Management51 JFK Parkway, First Floor WestShort
Hills, NJ 07078Phone: 201-399-0580
Altrius Capital Management4819 Emperor Blvd., Suite 400Durham,
NC 27703Phone: 919-746-7977
Altrius Capital Management1323 Commerce DriveNew Bern, NC
28562Phone: 252-638-7598Fax: 252-635-6739
mailto:[email protected]
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