Johnson Equity Income Strategy 

Quality is the foundation of the Johnson approach.  We seek to protect and enhance our clients’ capital by investing in companies with durable competitive advantages and responsible management teams. The Johnson Equity Income strategy consists of quality large stocks with attractive valuations and shareholder friendly capital allocation models. The portfolio is constructed via a fundamental bottom-up approach to research and security selection.

Decoration

The Johnson Equity Income strategy seeks to outperform the S&P 500 over a full market cycle with a disciplined quality framework that provides investors with long-term capital growth, above average shareholder yield and reduced volatility through downside protection.

We believe that the best way to build an all-weather portfolio is to invest in companies that exhibit a favorable combination of quality, valuation, and shareholder yield. Positive shareholder yield is a signal of quality and owning companies with a quality bias is the most consistent method to achieve superior risk-adjusted long-term capital appreciation.

We focus on building a diversified portfolio through a bottoms-up fundamental approach focused on quality businesses that have strong competitive advantages, a healthy and flexible balance sheet, and a track record of prudent capital management.

  • Benchmark: S&P 500
  • Domestic large cap equities with market cap over $2 billion
  • Diversified portfolio of 40-60 securities
  • Deliver shareholder yield greater than the market
  • Maintain lower volatility than the S&P 500
  • Expected annual turnover between 20 - 40%
Fact Sheet
Commentary

Performance Chart

Performance Chart
All data as of 9/30/2024.

Portfolio Sector Weightings

Portfolio Sector Weightings
All data as of 9/30/2024.

Top 10 Holdings

Top 10 Holdings
Source: All data as of 09/30/2024. Source: Table Source: Model holdings are subject to change. There is no assurance that any of the securities shown still remain in the portfolio at the time you received this fact sheet. Actual holdings and percentage allocation in individual client portfolios may vary and are subject to change. The Top Ten Holdings, as well as the other data presented, are as of the period indicated, and should not be considered a recommendation to purchase, hold, or sell any particular security. It should not be assumed that any of the Top Ten Holdings were or will be profitable going forward.

THIS MATERIAL IS INTENDED FOR INSTITUTIONAL CLIENTS.

Johnson Asset Management (JAM) is a division of Johnson Investment Counsel, Inc. (“JIC”), an independent and privately owned Midwestern based investment advisory firm registered with the Securities and Exchange Commission. Johnson Institutional Management manages institutional separate account portfolios for a wide variety of for-profit and nonprofit organizations, public agencies, public and private retirement plans, and personal trusts of all sizes. It may also serve as sub-adviser for mutual funds. JIC’s fees are available upon request and may be found in our Form ADV Part 2A. Performance data quoted herein represents past performance. Past performance does not guarantee or indicate future results. All data is current as of September 30, 2023 unless otherwise noted. Returns and net asset value will fluctuate. To determine if this strategy is appropriate for you, carefully consider the investment objectives, risk factors, and expenses before investing. Individual account management and construction will vary depending on each client's investment needs and objectives. Investments employing JIC’s strategies are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by any Bank or any Bank affiliate, and MAY lose value, including possible loss of principal.  

Johnson Asset Management claims compliance with the Global Investment Performance Standards.

The Johnson Equity Income composite includes all fee paying, fully discretionary, tax-exempt equity portfolios with a minimum of $500,000 and an investment objective of 100% Equity Income.  The gross return of the Johnson Equity Income Fund is included in this composite. The benchmark for this composite is the S&P 500 Index, a broadly diversified large cap equity universe of U.S. companies.

JAM’s policies for valuing portfolios, calculating performance and preparing compliant presentations, as well as a complete list of composite descriptions are available upon request. Please contact our office at 513.389.2770 or 3777 West Fork Road, Cincinnati, OH 45247.

All returns reflect the reinvestment of investment income (dividends and/or interest) and capital gains. Valuations and returns are stated in U.S. dollars. Trade date accounting is used. Portfolio returns are calculated using time weighed return methodology on a monthly basis. Net returns shown reflect gross performance less the highest fee schedule for this strategy.

Actual client returns would also be reduced by brokerage commissions, custodial fees, and other client paid expenses detailed in JIC’s Form ADV Part 2A.