Equity Income Strategy

Fact Sheet Commentary

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.

Strategy Overview

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.

Investment Philosophy

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.

Portfolio Overview

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.

Investment Guidelines

  • 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%
Charles Rinehart
Meet the Portfolio Manager

Charles E. Rinehart, CFA, CAIA

Charles has been with Johnson Investment Counsel since 2007. He is the Chief Investment Officer within Johnson Asset Management and is also a shareholder of the firm. He holds the Chartered Financial Analyst® (CFA®) and Chartered Alternative Investment Analyst (CAIA) designations. Charles started working at Johnson as a University of Cincinnati Student Co-op and is a graduate of UC’s Kolodzik Business Scholars program.

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Fixed Income

We implement our proprietary Quality Yield investment approach across our suite of duration mandates with the objective of outperforming the market while maintaining a focus on downside risk management and comparable volatility.

Equity

Johnson Asset Management offers both enhanced return index capabilities and active equity solutions. We implement a repeatable and disciplined process that seeks to optimize return per unit of risk.

Mutual Funds

Johnson Asset Management’s Fixed Income and Equity solutions are accessible through our competitively priced mutual funds, which we have been providing institutional clients since 2000.

Disclaimer:

Important Information

Johnson Asset Management ("JAM") is a division of Johnson Investment Counsel, Inc. ("JIC"), an SEC-registered investment adviser. Registration does not imply a certain level of skill or training.

This information is provided for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. Any investment decision should be made based on an investor's individual objectives, financial circumstances, and risk tolerance.

All investments involve risk, including the possible loss of principal. Past performance does not guarantee future results.

Portfolio holdings, characteristics, allocations, and investment guidelines are subject to change without notice and may differ for individual client accounts.

For additional information regarding the strategy, including investment objectives, risks, fees, benchmark information, performance disclosures, and composite-related information, please refer to the applicable strategy fact sheet and commentary.