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Large Cap Value
Cohen & Steers Large Cap Value Strategy invests primarily in dividend-paying common stocks of large capitalized companies. We believe businesses with sustainable cash flow and a record of strong dividend growth offer more attractive capital appreciation and income potential with relatively less volatility than other equity strategies. Our large cap value investment team has an average of 13 years of investment experience.
Objective
The objective of the Strategy is to generate a combination of capital appreciation and dividend income with a goal of outperforming the U.S. large cap equity market.
Investment approach
We use a proprietary, bottom-up research process to identify attractive companies with strong dividend growth potential and a demonstrated history of favorable dividend policies. We favor quality companies that are “undervalued” relative to the broader market. We will not invest in a company simply because it is “cheap”. Rather, our investment team seeks securities of large, liquid companies that we believe offer the best combination of relative value and dividend growth.
Key considerations in identifying relative value:
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Attractive and sustainable long-term growth rates
- A demonstrated record of dividend growth
- Low valuations relative to their long term growth prospects
Portfolio characteristics
Cohen & Steers Large Cap Value portfolios typically invest in a portfolio of dividend-paying common stocks, including REITs and preferred securities.
- Predominantly large cap stocks (>$10 billion market cap)
- Highly diversified -- typically 60 –75 securities
- 75% “core value” securities (time horizon three-to-five years)
- 25% “opportunistic” securities (time horizon less than three years)
- Sector weights may differ significantly from the benchmark
- Low turnover (historically about 20% per year)
- Maximum security weight of 3%
Team
Richard Helm, CFA, senior vice president, is the senior portfolio manager for Cohen & Steers Large Cap Value portfolios. He leads a team of four analysts located in Seattle, who conduct bottom-up fundamental research on a wide range of sectors, including consumer, energy, financial, healthcare, and industrial sectors. Mr. Helm and his team also work closely with Cohen & Steers’ real estate, utilities and preferred securities teams to utilize the extensive research the firm generates in these sectors.
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