tenure performance report - ut · 2 tenure performance report prepared for tenure 10/1/2018 –...

TENURE PERFORMANCE REPORT PREPARED FOR TENURE 10/1/2018 – 9/30/2019

HASLAM TORCH FUND PREPARED FOR MR. & MRS. JAMES A. HASLAM II

Dear Mr. and Mrs. James A. Haslam, II: During our third reporting period of April 1, 2019 through September 30, 2019, the Haslam Fund’s return was 6.32% with a beta of 0.76. In comparison, the Carroll, LaPorte, and McClain funds returned 4.69%, 8.07%, and 3.33%, respectively. Meanwhile, our benchmark, the weighted average of the S&P 500 and the Barclay’s Aggregate Bond Index, had a return of 6.11%. For the tenure, which begin October 1, 2018 through September 30, 2019, the Haslam Fund’s return was 6.54% with a beta of 0.86. In comparison, the Carroll, LaPorte, and McClain funds returned 2.04%, 5.99%, and -3.50%, respectively. Meanwhile, our benchmark, the weighted average of the S&P 500 and the Barclay’s Aggregate Bond Index, had a return of 5.35%. The past tenure has been tumultuous for markets worldwide. We saw a correction in late 2018 followed by a strong bull market that pushed the S&P 500 over 3000 points. In international markets, the European economy is struggling, and some countries have entered recessions. Britain’s exit from the European Union has been dramatic and not yet finalized. The outcome of those exit negotiations will likely have major economic impacts. In the United States, trade tensions have introduced risk into the markets and played a significant part in the volatility mentioned earlier. The fund continues to watch over these global and local issues and base decisions on research and the overall economic outlook. The fund has looked to scale back on risky investments as the global economy slows. The managers of the Haslam Fund continue to push forward new ideas for successful investments or reasons to liquidate existing investments in order to capture a positive return and surpass overall objectives for the fund. The team is excited to continue to do so during this next year. Thank you for your generosity and continued support of our Haslam Fund Team and the institution that is The Haslam College of Business. Sincerely, Your 2018-2019 Haslam Torch Fund Team

Table of Contents Summary of P3 Economic Outlook…………………………………………………………...1

Summary of Portfolio Performance…………………………………...……………………...2

Relative Fund Performance………………………………………….………………………...3

Summary of Returns………………………………………………….………………………...4

Summary of Weight and Performance………………………...………...……………………5

Portfolio Value Over Time…..………………………………………………………………...6

Portfolio Allocation Over Time…..…………………………………………………………...7

Summary of Actions for the Haslam Fund…………………………………………………...8

Consumer Discretionary Amazon 10 CarMax 11

Consumer Staples Church and Dwight 13 Dollar General 14 Procter & Gamble 15

Industrials Aecom 17 Garrett Motion 18 Honeywell 19 OshKosh 20 Raytheon 21 Resideo Technologies 22 Stanley Black & Decker Pfd. 23

Energy British Petroleum 25 S&P Oil/Gas ETF 26

Financials Bank of America 28 Discover 29 JP Morgan Chase 30 Pinnacle 31 Prudential 32

Alternatives/ETFs Wells Fargo Preferred ETF 34 WisdomTree Floating Rate 35 Vanguard Europe ETF 36

Vanguard Emerging Market 37 WellTower 38

Healthcare Amgen 40 CVS Health Corp. 41 Edward Lifesciences 42 GlaxoSmithKline 43 Merck and Co. 44 Stryker 45

Materials Linde 47 Vulcan Materials 48

Utilities Entergy 50 Southern Company Pfd. 51

Technology Applied Materials 53 Broadcom 54 Cisco Systems 55 IBM 56 Intel 57 Microsoft 58 Salesforce 59

Communication Services Disney 61 Facebook 62 Verizon Pfd. 63

Fund Manager Bios…..……………………………………………………………..………....64

Works Cited…..………………………………………………………………………………...68

Threat of Domestic Slowdown

In the environment of concern over domestic growth slowing, the S&P 500 seemed unaffected by such caution during the third period, showing returns of 6.08%. Attributable to consumer spending, the US economy continued to grow through some uncertainty of the future economic state. As companies became aware of the slowing economic growth, they began to decrease their capital expenditures. However, consumer spending levels remained robust, preventing GDP from experiencing a sharp decline. As opposed to the fund’s previous projections, period three consisted of a growing uncertainty of a deal to take place in the US-China trade war. As controversy pursues between the two powerhouses, spikes in tariffs will continue to emerge. Because of these tariffs, the Federal Reserve issued a 25-basis point rate cut close to the end of period three. Currently, the Federal Reserve is expecting to issue more rate cuts in October and December of this year.

Global Economy The effects of US lead renegotiations of trade policy became increasingly visible in period three; particularly US and China trade negotiations. We assessed that China’s economy showed continued signs of their decade long growth slowdown as the US economy continued to experience steady growth

despite the trade concerns, underpinned by strong employment data. The uncertainty of a deal has clearly impacted perception of long-term domestic growth potential as markets rallied on good news and contracted on negative developments. Brexit is still very much imminent, although recent developments have it very likely of the eventual exit (31 October) being delayed once again. The Fund has assessed the probability of the UK exiting the E.U. with a deal in place as the most likely scenario, however, a clean break from the E.U. is increasing in probability as Parliament continues to reject brokered deals. Overall, our outlook on the economy was cautiously optimistic in the third period and the Fund maintained this throughout. Outlook Although there wasn’t an immediate effect from the growing uncertainty of a trade deal, the fund believes that precautionary actions will begin to surface towards the end of 2019, officially signaling an economic slowdown. As a result, consumers, who kept the GDP in a growing stage during period three, will begin to decrease their spending through the end of the year. The Federal Reserve will attempt to provide a cushion by issuing two more rate cuts, but the fund expects that the GDP will experience a slight decline, officially sparking the first indication of the slowing economy.

Summary of P3 Economic Outlook

Summary of Portfolio Metrics Tenure P1 P2 P3

Return (%) 6.54 -9.39 10.60 6.32

Benchmark Return (%) 5.35 -11.14 11.73 6.11

Beta 0.86 0.88 0.95 0.76

Annualized Sharpe 0.54 -2.61 4.62 1.28

Annualized Treynor 0.09 -0.65 0.62 0.19

Standard Deviation (Daily) 0.01 0.01 0.01 0.01

S&P 500 Total Return (%) 4.25 -13.52 13.65 6.08

Risk-Free Rate Return (%) 1.56 0.40 0.40 0.75

Barclays Aggregate Bond Index Return (%) 10.29 1.63 2.94 5.42

Asset Type

P1 End Value ($)

P1 Allocation

(%) P2 End

Value ($)

P2 Allocation

(%) P3 End

Value ($)

P3 Allocation

Equities 1,015,467.68 74.57 987,457.35 71.55 992,996.98 67.68

Alternatives 235,904.80 17.32 190,213.80 13.78 284,976.41 19.42

Cash 110,467.73 8.11 202,370.39 14.66 189,223.54 12.90

Total Value 1,361,840.21 100 1,380,041.54 100 1,467,196.93 100

Summary of Portfolio Performance

Period One

Period Two

Period Three

Tenure

Beat our Benchmark

Outperform other funds

Generate a positive return

Fund P1 Return

P1 Spread

P2 Return

P2 Spread

P3 Return

P3 Spread

Tenure Return

Tenure Spread

(%) Carroll -10.51 -0.46 8.91 -1.60 4.69 -1.17 2.04 -3.35

Haslam -9.39 1.75 10.60 -1.13 6.32 0.21 6.54 1.19

LaPorte -10.77 -1.15 9.91 -0.67 8.07 1.88 5.99 -0.17

McClain -13.61 -1.36 8.11 -3.82 3.33 -1.62 -3.50 -6.58

Relative Fund Performance

Holding Return P1 (%) Return P2 (%) Return P3 (%) End Weight (%) Tenure Return (%) ACM -18.86 11.96 25.59 1.75 15.00 AET -0.97 - - - -0.97

AMAT -14.77 21.75 26.88 1.46 31.23 AMGN -5.45 -1.60 3.38 2.99 -15.08 AMZN -25.01 18.56 -29.24 3.43 -37.09 AVGO 4.13 19.30 -7.31 1.47 15.11

BAC -15.85 102.66 - - 70.01 BP -16.41 16.90 -10.32 2.16 -12.29

CHD -1.31 8.66 6.27 1.54 13.95 CRM - - -0.05 2.02 -0.05 CSCO -10.26 25.36 -7.19 1.95 4.36 CVS -17.09 -17.13 - - -31.22 DFS -11.92 - - - -11.92 DG - 0.74 33.76 3.20 34.75 DIS - - 1.86 2.41 1.86 ETR 7.21 12.16 24.63 3.58 49.14 EW -12.02 24.91 4.70 3.42 15.06 FB -15.10 - - - -15.10

GSK -3.66 10.62 4.67 2.32 11.30 GTX -10.78 22.67 - - 8.60 HON -20.11 20.91 7.50 2.62 3.65 IBM -23.79 25.51 5.36 1.98 0.39

INTC -0.13 15.10 -2.87 1.97 11.60 JPM -12.78 4.52 17.84 3.87 7.13 KMX -15.99 11.39 - - -6.42 LIN -2.40 12.31 1.16 - 11.78

MRK 8.39 9.57 2.54 2.87 21.67 MSFT -10.79 15.06 18.66 4.76 26.92 OSK -13.56 22.98 1.61 2.25 7.92 PG 11.30 13.98 20.97 2.54 52.96

PNFP -23.09 19.26 - - -8.33 REZI -9.53 -1.26 - - -10.64 RTN -25.38 19.30 8.78 2.67 -3.31 SYK -11.52 26.34 10.03 2.87 22.88 VGK -12.57 5.61 - - -7.72 VMC - - 4.39 2.13 4.39 VWO -5.28 7.61 - - 1.79 WELL - - 25.54 2.35 25.54 XOP -38.56 16.14 -26.69 1.10 -47.62 PJH -3.68 8.51 4.33 2.11 8.78 PSK - 0.51 6.28 6.40 6.82

SOJA 0.16 4.63 4.64 2.37 9.45 SWJ -3.95 9.49 2.69 1.74 7.77

USFR 0.11 0.53 1.00 6.80 1.64 VZA 1.02 0.69 - - 1.71

Summary of Returns

Largest Holdings: Weight (%)

Wisdom Tree Floating Rate 6.80

Wells Fargo Preferred ETF 6.40

Microsoft 4.76

JP Morgan Chase 3.87

Entergy 3.58

Smallest Holdings: Weight (%)

S&P Oil/Gas ETF 1.10

Applied Materials 1.46

Broadcom 1.47

Church & Dwight 1.54

Stanley Black & Decker Pfd. 1.74

Best Tenure Performers: Return (%) Procter & Gamble 52.96 Entergy 49.14 Dollar General 34.75 Applied Materials 31.23 Microsoft 26.92 Worst Tenure Performers: Return (%) S&P Oil/Gas ETF -47.62 CVS -31.22 Facebook -15.10 British Petroleum -12.29 Discover Financial -11.92

Best Period Three Performers: Return (%) Dollar General 33.76 Applied Materials 26.88 Aecom 26.59 Welltower 25.54 Entergy 24.63 Worst Period Three Performers: Return (%) S&P Oil/Gas ETF -26.59 British Petroleum -10.32 Broadcom -7.31 Cisco -7.19 Intel -2.87

Summary of Weight and Performance

Portfolio Value Over Time

Portfolio Allocation Over Time

Summary of Actions for the Haslam Fund

Praxair(PX)/Linde(LIN)Merger•Exchanged225SharesofPXfor225SharesofLIN(10/31/2018)AetnaInc.(AET)/CVSHealthCorp.(CVS)Merger•-322AETShares,Gained269SharesofCVS(11/29/2018)WisdomTreeFloatingRateTreasuryETF(USFR)

•Bought3985Shares(11/29/2018)Church&DwightInc.(CHD)•Bought300Shares(12/7/2018)

DiscoverFinancialServices(DFS)•Sold500Shares(12/7/2018)FacebookInc.(FB)

•Sold115Shares(12/7/2018)VanguardInternationalETF(VWO)

•Sold450Shares(2/8/2019)VanguardFTSEETF(VGK)•Sold440Shares(2/8/2019)MicrosoftCorp.(MSFT)•Bought190Shares(2/8/2019)BankofAmericaCorp.(BAC)

•Sold935Shares(2/8/2019)DollarGeneralCorp.(DG)•Bought295Shares(2/22/2019)GarretMotionInc.(GTX)•Sold22Shares(3/12/2019)WFPFDStockETF(PSK)

•Bought2126Shares(3/12/2019)ResideoTechnologies(REZI)

•Sold37Shares(3/12/2019)PinnacleFinancialPartners(PNFP)

•Sold400Shares(3/29/2019)CVSHealthCorp.(CVS)•Sold554Shares(3/29/2019)Carmaxinc.(KMX)

•Sold500Shares(3/29/2019)AmgenInc.(AMGN)

•Sold123Shares(3/29/2019)TheWaltDisneyCo.(DIS)•Bought271Shares(4/12/2019)WelltowerInc.(WELL)

•Bought380Shares(4/29/2019)AmazonInc.(AMZN)•Sold11Shares(4/29/2019)

EdwardLifeSciences(EW)•Sold172Shares(4/29/2019)

LindePLC(LIN)•Sold225Shares(4/29/2019)VulcanMaterials(VMC)

•Bought207Shares(9/16/2019)SalesForce(CRM)

•Bought200Shares(9/30/2019)

Consumer Discretionary Period Three Analysis: The Consumer Discretionary sector saw moderate gains during the recent period. “Prime Day” gave a boost to the sector and overall consumer spending has held constant. The sector is known to outperform during a bull market, but as increased volatility constrains the market, growth could be limited (22). Although we liquidated a portion of our position in AMZN, our only discretionary holding, we still saw a small gain during the third period.

Moving Forward: As we approach the upcoming holiday season, consumer sentiment is not necessarily reflective of recent economic data. Misses in retail sales and inventories seem to have little or no effect on the market. The market may have already priced in the negative data with its push towards less risky investments (22). Even with consumer sentiment being positive and a low unemployment rate, the lack of certainty from investors could potentially slow any upward trend in the consumer discretionary sector. A strong end to the year is possible if trade talks continue to remain positive and the possibility of the Brexit deal increases in likelihood.

Start Value ($): End Value ($): Return (%): S&P Sector Return (%):

Weighting Difference

from S&P (%):

Period One 117,772.46 91,715.28 -22.13 -16.70 -8.92

Period Two 91,443.80 106,166.84 16.10 14.66 -5.25

Period Three 71,230.00 50,341.39 0.63 3.89 -6.77

Tenure 80,120.00 50,341.39 -10.53 .96 -6.77

Amazon (AMZN) Sector: Consumer Discretionary

Start Value ($): End Value ($): Return (%): Dividend Yield (%):

Period One 80,120.00 60,078.80 -25.01 N/A

Period Two 60,078.80 71,230.00 18.56 N/A

Period Three 71,230.00 50,341.39 0.63 N/A

Tenure 80,120.00 50,341.39 -10.53 N/A

Tenure Actions: Sold 11 shares for $21,338.11 on 04/29/2019.

Holding Description:

Amazon Inc. is an e-retailer that provides customers with a broad range of products. Amazon offers products such as: electronics, books, home goods, video streaming services, AWS, etc. The company employs a premium membership model called “Amazon Prime” which offers a variety of perks such as free 2-day shipping, access to a media library, and much more. In 2018, the largest drivers of revenue were online stores, accounting for 52.8% ($122,987M) of revenue, followed by third party seller services accounting for 18.4% ($42,745M) of revenue (1).

Positive Drivers:

Amazon has remained strong as the number one retailer despite increasing competition. Amazon is targeting opportunities for growth through AWS and the continued expansion of subscription-based offerings. Overall revenue through AWS is expected to be 36 billion during 2019 (2, 22). Continuing growth of 3rd party sellers allows for consistent streams of revenue and an even further diversified set of product offerings. Amazon continues to improve its subscription-based service, “Amazon Prime”, and is looking to add the addition of 1-day shipping to narrow the lead time between physical stores and e-retailers (1).

Negative Drivers:

Competition from companies such as Walmart and Alibaba are trying to gain on the competitive advantage that Amazon has created with their supply chain capabilities (2). AWS also faces heavy competition from other cloud services like, Microsoft Azure or Alibaba Cloud, and it is yet to be seen whether the investment in Whole Foods will be successful for the long term. Microsoft has succeeded in winning the government contract for cloud based computing, which will hurt revenues for AWS.

CarMax Inc. (KMX) Sector: Consumer Discretionary

Period One 37,335.00 31,365.00 -15.99 -

Period Two 31,365.00 34,936.84 11.39 -

Period Three - - - -

Tenure 37,335.00 34,936.84 -6.42

CarMax is the largest specialty used car dealer in US CarMax buys, reconditions, and sells used cars and light trucks. Most of their vehicles are less than 10 years, with less than 100,000 miles. They operate through two segments CarMax Sales Operations and CarMax Auto Finance. CarMax Auto Finance finances around 50% of their units sold. Used vehicle sales account for around 80% of total revenue with wholesale vehicles, and services and other products make up the last 20% (1).

Reasons for Selling:

Economic data suggested increasing risk and slowing of the global economy. Upon review of auto sales during recent downturns in the economy, the decision was made to liquidate the position.

Consumer Staples Period Three Analysis: The third period was very strong for the Consumer Staples sector. The S&P returned 8.72%, while our holdings returned an even better, 21.64%. Dollar General led the way for the Haslam Fund during the third period and was closely followed by P&G. During a confident bull market, we would expect Consumer Staples to perform modestly, but given the current levels of uncertainty, investors looked to this sector to hedge their risk.

Moving Forward: Investor uncertainty does not seem to be disappearing anytime soon, and macroeconomic conditions throughout the world are pointing to a recession, thus boosting the sector. Even with the possibility of a trade deal between the US and China, other factors such as Brexit, and current economic conditions throughout Europe, could potentially negate any positive effects of a trade deal. Our overall fund outlook of, “cautiously optimistic,” supports what many other investors are doing by pouring into the Consumer Staples sectors to hedge the potential risk and exposure to riskier investments (22). Overall, the sector is positioned to continue to outperform in the near term given our current outlook.

from S&P (%):

Period One 44,958.20 47,304.00 5.22 5.95 -3.41

Period Two 82,240.30 87,777.50 6.73 11.63 -3.61

Period Three 87,777.50 106,773.30 21.64 8.72 -.21

Tenure 44,958.20 106,773.30 48.63 13.49 -.21

Church & Dwight Co (CHD) Sector: Consumer Staples

Period One 19,989.15 19,728.00 -1.31 -

Period Two 19,788.00 21,369.00 8.66 0.32

Period Three 21,369.00 22,572.00 6.27 0.30

Tenure 19,989.15 22,572.00 13.95 0.62

Tenure Actions: Purchased 300 shares for $19,989.15 on 12/7/2018.

Church & Dwight Co., Inc. produces household, personal care, and specialty care products. CHD’s offerings include contraceptive products, detergents, toothbrushes, shampoos, vitamins, pregnancy test kits, and hair removers. The company sells to consumers through physical locations such as drugstores or supermarkets as well as through online retailers. CHD is the largest producer of sodium bicarbonate; it sells sodium bicarbonate in a variety of applications (e.g. feed additives, medical grade sodium bicarbonate, and food industries) (1).

Positive Drivers:

CHD could be a prime candidate to produce generous returns during an economic slowdown. Most of their products come in at a lower price point that will have a favorable outlook during an economic slowdown. Arm and Hammer products have strong brand power and combined with other products’ offerings that are “value” offerings, the company is positioned well in the event of a recession (1).

Negative Drivers:

Church and Dwight operates in an extremely competitive market, facing competition from companies like P&G. CHD does not control a large market share or have the brand recognition for many of their revenue drivers such as toothpaste and detergent. Organic growth may be hard to sustain with continued pressure from outside competition, forcing strategic use of capital to continue growth (1). The margin for error is slim for a company like CHD and strategic management will be crucial for continued growth.

Dollar General (DG) Sector: Consumer Staples

Period One - - - -

Period Two 34,936.25 35,193.50 0.74 -

Period Three 35,193.50 46,887.30 33.76 0.40

Tenure 34,936.25 46,887.30 34.75 0.40

Dollar General is a chain of discount stores located in the southern, southwestern, midwestern and eastern US DG offers products such as food, cleaning products, pet supplies, and seasonal merchandise. They operate 14,500 stores in 45 states, and the stores are supported by 15 distribution centers throughout the US More than 75% of sales come from consumables and 80% of products have a price of $5 or less (1).

Positive Drivers:

Dollar General has targeted a low-income market in less populated areas. This has allowed them to differentiate from competition and corner a sizeable amount of market share (2). Dollar General’s main customer base is not interested in value sized offerings; rather, they look for discounted absolute price point. Dollar General expanded its physical footprint by opening 900 new stores in 2018. The average basket size at a Dollar General is five items for a total of $12, thus leaving limited room to absorb shipping costs and protecting DG from companies like Amazon. The affordability of product offerings creates a partial shield from the economic cycle and allows DG to perform well during a recession (1).

Negative Drivers:

Companies continue to improve their supply chain, thus increasing the likelihood that competition will be able to absorb shipping costs on less expensive items. Along with competition, tariffs could have an impact on margins as many items are sourced from China. DG’s customer base is more noticeably impacted by macroeconomic factors, such as gas prices, trade policy, and workplace automation (2).

Proctor & Gamble (PG) Sector: Consumer Staples

Period One 24,969.00 27,576.00 11.30 0.78

Period Two 27,576.00 31,215.00 13.98 0.69

Period Three 31,215.00 37,314.00 20.97 0.60

Tenure 24,969.00 37,314.00 52.96 2.07

Tenure Actions: Held.

Proctor & Gamble provides products in the laundry and cleaning, paper, beauty care, food and beverage, and healthcare sectors. Products are sold primarily through grocery stores, drugstores, etc. They are the world’s largest producer of consumer-packaged goods with around 21 of P&G’s products as billion-dollar sellers. Brands include Braun, Crest, Head & Shoulders, Olay, Oral-B, Febreze, and many more. P&G owns and operates 24 manufacturing sites across more than 18 states and territories. They also own and operate around 100 production sites in 38 other countries (1).

Positive Drivers:

P&G has cut from around 100 brands to 65 brands in order to focus on opportunities with best ROI. This will allow for a more concise oversight, which will be spearheaded by the addition of 5 CEO’s controlling oversight on specific products such as health care, beauty, grooming etc. During Q4 pf 2019, the core operating margin was raised 210 basis points; this supports management’s forecast of a 4% growth in organic sales during 2020 (2). P&G has also maintained a steady dividend.

Negative Drivers:

P&G faces stiff competition despite the power of their brand recognition. Balancing 65 brands is no easy task; even with the implementation of more oversight, it remains to be seen if further consolidation is necessary. P&G also has a large international presence. However, the uncertainty of Brexit and economic conditions throughout Europe could cut into top line revenue during the next year (3).

Industrials Period Three Analysis: The Industrial sector includes aerospace and defense, construction & logistics, electrical equipment, and machinery. The fund’s holdings in the Industrials sector are involved in aerospace & defense and machinery. A common theme among these companies is international exposure. The markets internationally will be where much of the revenue growth from traditional industrial goods will be.

Moving Forward: This sector has remained almost flat over the tenure. With mixed economic data, including poor manufacturing data, this sector is one to watch. If the world economy enters into a downturn, the fund will reassess positions within the sector. The China trade tensions have caused uncertainty for industrial producers. If a trade deal goes through, the sector and the fund’s holdings will likely see positive gains.

from S&P (%):

Period One 157,460.98 129,140.59 -17.45 -17.74 1.26

Period Two 129,140.59 149,087.96 16.09 16.63 1.37

Period Three 149,087.96 161,842.88 10.33 1.46 -0.05

Tenure 157,460.98 161,842.88 4.47 -1.52 -0.05

Aecom (ACM) Sector: Industrials

Period One 22,306.78 18,099.50 -18.86 -

Period Two 18,099.50 20,264.61 11.96 -

Period Three 20,264.61 25,653.48 26.59 -

Tenure 22,306.78 25,653.48 15.00 -

Aecom provides consulting, planning, architecture, engineering, construction management, project management, asset management, environmental services, and design build services to both the US government and other customers. Of the above segments, construction services as well as design and consulting services are the most important. Revenue is mainly focused in the US, but roughly 25% is generated from international sources (1). The company’s operations are structured into four reporting sections: Design and Consulting Services, Construction Services, Management Services, and Aecom Capital. The management services segment is planned to be spun off into its own entity (1).

Positive Drivers:

Continuing rate cuts encourage spending on high capital projects such as infrastructure, creating potential for an uptick in sales. Over the next ten years, infrastructure investment in key regions such as the US, China, India, and Europe are projected to rise by 7.8% annually (1). Increasingly severe weather will create a need for rebuilding projects in affected areas. Powerful storms have taken their toll on island nations in the Caribbean, and rising temperatures globally will lead to more frequent powerful storms. With management services being spun off, Aecom will be able to better position itself in line with its strategy.

Negative Drivers:

The continued trade dispute between the US and China has weakened prospects abroad. Economies around the globe are slowing. Despite projected infrastructure spending, a slowing global economy could severely damage sales for Aecom. The companies growing backlog of projects could begin to be looked at as a negative – either the company is inefficient or it is taking on more than it can handle (1). The continued lack of a dividend payment leaves the value of this investment to price appreciation, which elevates risk.

Garrett Motion (GTX) Sector: Industrials

Period One 289.00 271.48 -10.78 4.33

Period Two 271.48 333.02 22.67 -

Tenure 289.00 333.02 8.60 3.53

Tenure Actions: Received 22 shares as Honeywell spin-off. Sold 22 shares for $333.02 on 3/12/2019.

Garrett Motion Incorporated is a spin-off from Honeywell. It operates globally, with a focus on automobile technology. Its products include turbochargers and software for automobiles. It sells mainly to Original Equipment Manufacturers in the automobile space. Ford Motors accounts for 13 percent of revenue (1).

As this company was a spin-off from Honeywell, the team did not elect to buy this security. We received a small amount of shares. Due to the small amount of shares, Garrett Motion had a negligible impact on the fund. The fund preferred the exposure to the Industrials sector with Honeywell itself. When making buy decisions, the fund looks for companies with proven histories. Since Garrett Motion is newly spun off and faces short term uncertainty with management turnover and structural differences, the fund liquidated its position.

Honeywell (HON) Sector: Industrials

Period One 37,772.80 29,991.24 -20.11 0.62

Period Two 29,991.24 36,074.84 20.91 0.51

Period Three 36,074.84 38,408.40 7.50 0.97

Tenure 37,772.80 38,408.40 3.65 1.94

Honeywell International Incorporated manufactures and distributes products for three segments: building control, industrial control, and space and aviation control. They produce a broad range of products, from jet engines to home thermostats. They serve customers engaged in oil & gas refining, paper and pulp production, and fiber optic servicing. The company generates more than 50% of its revenue in the US but has sales worldwide (1). The company is embracing the concept of “internet of things” by shifting to software solutions and including more sensors in its hardware. One example of this is airplane parts using sensors to predict when maintenance will be needed rather than having someone inspect the part (1).

Positive Drivers:

Honeywell has shown strong interest in growth through acquisition in the past few years. These investments could begin to pay off and drive sales for the company. Their aerospace and defense business remains the largest revenue driver with strong growth (1). The digital operations and focus of software show that management is positioning the company to take advantage of new technology in an increasingly connected world. Their software solution can make products safer and more useful, which drives value.

Negative Drivers:

The company operates worldwide, with over 40% of revenue coming in from international sources (1). This could pose a threat as the global economy slows. Of that 40% international sales, Europe is their main consumer. With Brexit likely to impact the entire European market, a favorable resolution could negatively impact sales. Boeing is one of their largest customers, and the 737 Max crisis could negatively impact sales no matter what executives say (1).

Oshkosh (OSK) Sector: Industrials

Period One 30,989.40 26,669.85 -13.56 0.44

Period Two 26,669.85 32,681.55 22.98 0.35

Period Three 32,681.55 32,973.00 1.61 0.71

Tenure 30,989.40 32,973.00 7.92 1.42

Oshkosh Corporation engages in the design, manufacturing, and marketing of emergency vehicles including fire trucks and rescue vehicles plus industrial vehicles such as concrete mixers. It makes auxiliary accessories for use with these vehicles. Almost 80% of sales occurs in the US, so the company has limited exposure internationally. They mainly depend on sales of new vehicles and winning defense contracts to drive sales. The company has performed well financially, with strong revenue growth and an EPS that has nearly doubled in the past two years (1).

Positive Drivers:

They are currently fulfilling a defense contract with the government, with the potential to add on more capacity. Their Fire and Emergency lines have performed well, and analysts expect them to continue to do so (1). The company has a backlog of orders, which help the company plan production more efficiently. Revenue is also driven by vehicle rentals, which have a strong market currently (1).

Negative Drivers:

The cost of inputs for the vehicles have been driven up by trade disputes. With necessary price increases, the company may see revenue suffer coupled with a loss in market share if other companies are able to circumvent the tariff issues. If they continue to pass costs onto customers, they may struggle to gain others. As the global economy slows, the US may suffer as well. In that case, spending on the vehicles that Oshkosh produces could slow.

Raytheon (RTN) Sector: Industrials

Period One 41,332.00 30,670.00 -25.38 0.57

Period Two 30,670.00 36,416.00 19.30 0.52

Period Three 36,416.00 39,238.00 8.78 0.96

Tenure 41,332.00 39,238.00 -3.31 1.85

Raytheon Company serves defense, homeland security, and other government markets by providing technology hardware and services. It provides mission support, communications and intelligence systems, command, and other services to its customers. It makes drones and several missile types plus cyber defense products. The company recently agreed to merge with United Technologies Corp in a landmark deal. Its five business segments include Integrated Defense Systems, Intelligence, Information and Services, Missile Systems, Space and Airborne Systems, and Forcepoint. Revenue in the US accounts for roughly 70% of total sales (1).

Positive Drivers:

The company leans heavily on US defense spending, which will help the company realize solid revenue even through tough economic times. The company has a backlog of orders, which can help the planning of material flows and ordering. The geopolitical tensions in the Middle East and elsewhere drive demand for Raytheon’s products. They continue to innovate and bring new products to the market. The merger with United Technologies will create synergies that can be leveraged into cost cutting measures. The company continues to operate with a high ROIC, which promotes further product research and innovation (1).

Negative Drivers:

The merger with United Technologies takes the company into more markets, some of which may not be as profitable or safe during periods of economic downturn. By merging instead of pursuing joint ventures, the company has entered areas with lower margins (1). This threatens the business as a global slowdown occurs. The merger has not actually happened yet, and problems with it or cold feet by management may result in it not happening, which would sow seeds of distrust in management and open up the door for potential turnover.

Resideo Technologies (REZI) Sector: Industrials

Period One 816.55 760.35 -9.53 2.14

Period Two 760.35 750.77 -1.26 -

Tenure 816.55 750.77 -10.26 2.17

Tenure Actions: Received 37 shares as Honeywell spin-off. Sold 37 shares for $750.77 on 3/12/2019.

Resideo Technologies is a spin-off from Honeywell. This company focuses on “smart home” systems. It focuses on low voltage systems for home control and security (1). This area is highly competitive with other large companies such as Google and Amazon holding market share.

As this company was a spin-off from Honeywell, the team did not elect to buy this security. We received a small amount of shares. As this area is highly competitive, the team felt that it was better to keep money in Honeywell. Due to the small amount of shares, Resideo had a negligible impact on the fund. The fund preferred to sell off its holdings now as the company struggles through its early stages of development. When the company has shown a more complete history of performance, the fund may choose to look at Resideo once more.

Stanley Black and Decker, Inc 5.75% Junior Subordinated Debenture (SWJ) Sector: Industrials

Period One 25,060.00 23,710.00 -3.95 1.52

Period Two 23,710.00 25,700.00 9.49 1.40

Period Three 25,700.00 25,570.00 2.69 2.81

Tenure 25,060.00 25,570.00 7.77 5.62

Stanley Black and Decker Incorporated produces and sells hand tools, power tools, and other related accessories. The company is also diversified into other areas such as security and health solutions. The company sells directly to individual consumers and also to wholesalers or other businesses (1). The three segments of its business are as follows: Tools & Storage, Security, and Industrial. The tools segment is where the company gets a majority of its sales. This Junior Subordinated Debenture has a coupon of 5.75% paid quarterly. The bond was issued at $25 and currently trades at a premium.

Positive Drivers:

Stanley Black and Decker’s gross profit margin is roughly one third of its sales. Even during the financial crisis in 2008, their profit margin remained high (1). With that kind of margin, investors can remain confident that the company has enough capital to cover its coupon payments. As the fears of a recession gain traction, investors may look to find safer investments, and securities such as this can benefit from higher demand driving up price.

Negative Drivers:

This issuance is callable on 11/22/2019 at $25, which would represent a drop in price from its close at the end of period three. The bond is also hovering just above the line separating investment grade and non-investment grade securities (1). If it were to fall under that line, the fund would immediately sell to comply with the investment grade requirement of the fund.

Energy

Period Three Analysis: Period three has seen some decline in the Energy sector. The sector operates on a dynamic supply and demand basis with firms’ health closely tied to Oil and Natural Gas pricing. As prices of crude oil and gas continue fall, so have the returns for this sector in our portfolio. Global oil supply is still high which is keeping commodity pricing low and global production overall, has slowed little. OPEC decided to make cutbacks in Q4 of 2018 in hopes to avoid low oil prices. Cutbacks have continued into Q1, Q2, and Q3 of 2019 with the last agreement made in August. Saudi Arabia, the largest contributor to OPEC, made the largest of these cutbacks agreeing to withhold around 828,000 barrels per day (1). In September 2019 there was a surprising attack to the largest refinery in the world, located in Saudi Arabia, that cut half of its production capabilities. Oil pricing increased for a short period of time and leveled back to the $54-$56 per barrel range. Prices have been somewhat steady at $53-$54 per barrel and $58-$59 per barrel for WTI Oil and Crude Brent respectively. Natural gas pricing has seen less volatility and seems to be stabilizing as we go into the winter months. Global demand for both Oil and Gas is forecasted to slow down overall with possible short-term growth due to winter. Companies are looking to keep conscious of costs moving forward.

Moving Forward: As we go into the winter months there is a possibility for increased demand for natural gas. This could provide short-term growth for the sector. Firms specializing in exploration and production could see increased productivity while volume for midstream firms should stay level or rise. Demand in Q4 for oil remains bearish as global supply is still high even with current cutbacks. Renewables continue to gain traction with growth in areas such as Biofuels, Solar and Wind. Demand for biofuels will increase as we go into 2020 as countries such as China have renewable energy targets to reach. Small solar and wind energy firms, along with traditional energy firms with investments in these segments (BP, ExxonMobil, etc..), continue to see growth as the slow transition to renewables continue. Climate change will continue to be a driving force for firms to adapt to new sources of energy (23).

Start Value ($): End Value ($): Return (%): S&P Sector

Return (%):

from S&P (%):

Period One 69,786.55 50,821.61 -27.27 -24.39 -0.31

Period Two 50,821.61 58,705.26 16.63 14.42 -1.17

Period Three 58,705.26 47,856.67 -16.53% -12.20 -1.26

Tenure 69,786.55 47,856.67 -28.19% -22.06 -1.26

British Petroleum (BP) Sector: Energy

Period One 38,401.30 31,587.36 -16.42 1.61

Period Two 31,587.36 36,418.76 16.90 1.41

Period Three 36,418.76 31,645.67 -10.31 3.24

Tenure 38,401.30 31,645.67 -12.29 6.48

Holding Description: British Petroleum (BP), headquartered in London, UK, is the third largest integrated oil and gas firm in the world with operations in over 78 countries and employs roughly 73,000 people globally (23). BP primarily operates in exploration and production, transporting, refining and marketing oil and natural gas. The firm has recently divested assets in Alaska and has begun to focus on production zones in the North Sea as well as West Texas (Permian Basin) and Northern Louisiana (Haynesville Shale) (24). Apart from seeking and producing traditional energy sourcing it is also diversifying its portfolio by way of investing in renewable and alternative energy sources. In 2008, BP became the first major energy company to invest in biofuels in Brazil. BP’s outlook sees renewable and low carbon energy increasing in demand as climate change pushes companies and countries to invest in different energy sources (23). Positive Drivers: Going into the winter months, BP’s natural gas operations may see increased demand. Demand from industrial and exporting activity is expected to increase for the upcoming winter. Much of this demand is expected to come from the Permian basin in West Texas with some increased demand in the region surrounding the Haynesville Shale (25). OPEC may deliver a further round of cuts in December in hopes to positively affect pricing (26). As the majority of BP’s assets are tied to oil and gas pricing, future increased demand will yield short term growth. BP CEO Bob Dudley has announced he is stepping down. Bernard Looney will take over February 2020 and is expected to continue with BP’s goals to adapt during the expected energy transition (23). Negative Drivers: OPEC is expecting a decrease in oil demand in Asia Pacific and developed areas in the Americas (26). Lower commodity pricing will continue to squeeze margins if demand does not increase. Although Brexit does pose threats for UK, it is likely not going to affect BP’s operations unless regulations are changed as a result of the deal. The trade war between the US and China continues to cast clouded vision on actual global demand which could affect BP’s forecasts.

SPDR S&P Oil & Gas ETF (XOP) Sector: Energy

Period One 31,385.25 19,234.25 -38.56 0.25

Period Two 19,234.25 22,286.50 16.14 0.24

Period Three 22,286.50 16,211.00 -26.69 0.78

Tenure 31,385.25 16,211.00 -47.62 1.40

SPDR S&P Oil & Gas ETF is an exchange traded fund that tracks the Exploration and Production segment of the S&P Energy sector. This ETF aims to provide exposure to companies operating in upstream (Exploration & Production), midstream (Refining & Transportation), and downstream (Marketing & Sales) activities in Oil & Gas. Of its 60 holdings, 73.27% are exploration and production companies, 19.75% are marketing and refining companies and 6.99% are integrated oil and gas companies (27).

Positive Drivers:

The firms with the highest percentage weight in this ETF are midstream firms that are benefitting from increased refining demands of gasoline and other lubricants. As we move into the winter months there will be increased demand from natural gas which should boost operations activities for exploration and production firms. Continued deregulation of how oil and gas is extracted should make it easier for companies to operate and ultimately keep their costs down (28).

Negative Drivers:

Since the bulk of this ETF is made up of exploration and production companies, the fund has increased risk. Typically, exploration and production specialist companies are risky as investments in upstream activities such as exploration and production are not always successful. ROI for these firms fluctuates depending on how well they can efficiently produce their acquired assets. As oil and gas prices have fallen, so too have profit margins for many of these companies. Furthermore, global oil supply is still high limiting the demand for exploration and production firms. Climate change is continuously provoking traditional oil and gas extraction and production methods, long-term demand for exploration and production companies could see a decline.

Financial Sector

Period Three Analysis: Financials in P3 generally benefited and exceeded growth expectations despite interest rate movements, weaker economic data, and stress tests. Diversified American banks led the pack passing the stress tests in June and continuing their expansion through this low interest rate environment. Many announced increases in their dividends and implemented share buyback programs which enabled these large banks to push the cash flow returned to investors towards new highs (2). The Federal Reserve lowered interest rates at two points this year adjusting the effective rate to the lowest points since the Great Recession. This was implemented as a buffer for slowed growth as a result of trade tensions. These two cuts were priced into the market, and investors are anticipating a third prior to the end of 2019. This has placed downward pressure on the expected future cash flows for lenders.

Moving Forward: There are both positive and negative drivers placing pressure on the financial sector moving forward. Economic slowdowns in Europe, China, and now the US decrease the volume of lending occurring both for commercial and personal purposes. Trading volume is also decreasing as passive investing has become an attractive way to maximize gains while avoiding implied volatility. Though this leads to less revenue from trades and broker-assisted trades, asset management firms are increasing their revenues from their own proprietary funds and model portfolios (2). The use of AI is a main driver for growth in financials moving forward. This enables firms to lower marginal costs while maintaining quality and correcting human error. Robot-advising is decreasing variable costs and increasing revenues for many asset managers (2). Quantum computing is also catching attention in large banks as investment decisions could be made in a fraction of the time. These factors will help determine the future growth potential for financial services moving forward.

from S&P (%):

Period One 174,355.82 151,028.11 -13.38 -13.59 -3.69

Period Two 117,116.86 127,663.99 9.01 7.90 -9.32

Period Three 79,374.09 87,780.27 10.59 8.98 -9.07

Tenure 174,355.82 173,150.88 -0.69 1.61 -9.07

Bank of America (BAC) Sector: Financial

Period One 27,545.10 23,038.40 -15.85 0.61

Period Two 23,038.40 26,361.70 14.43 -

Tenure 27,545.10 26,361.70 -3.79 0.53

Bank of America Corporation remains one of the largest banks in terms of total assets under management in the world (1). They manage over $2 trillion and offer a variety of financial services ranging from commercial banking, personal banking, investment management, and asset management (2). There are over 4,600 locations in the US as well as 16,000 ATMs dispersed across the world. Bank of America Corporation remains a leader both in US banks and multinational banks due to their variety of services and the scale of their operations (2). They have also become a leader in the mobile banking industry with over 26 million active mobile banking users (10).

Although a leader in multinational banks, Bank of America was highly susceptible to global geopolitical risks than our other financial holdings with revenue from international operations in Europe, Asia, and Latin America totaling 11.2% and foreign assets totaling 12.9% (1). With geopolitical risks mounting in Europe with Brexit, and many of these developed economies entering a recession, Bank of America guided lower estimates for these segments than previously expected (2). There is also great uncertainty within the US financial system for several reasons. Slowed growth in the US economy shocked the financial sector and the equity markets, particularly the financial sector. Since Bank of America’s revenues are closely tied to lending and trade transactions, a global economic downturn could be detrimental to the bank’s expected future cash flows. Lastly, large banks are a prime target in the 2020 US presidential election. Many believe that the banks should be more regulated than they are now (2). This enabled the fund to act and determine that Bank of America exceeded our risk tolerance for the financial sector moving forward.

Discover Financial Services (DFS) Sector: Financial

Period One 38,225.00 33,469.86 -11.92 0.60

Period Two - - - -

Tenure 38,225.00 33,469.86 -11.92 0.60

Discover Financial Services operates primarily in credit card issuances and electronic payment services. They also offer a variety of financial services such as personal loans, student loans, certificates of deposits, and money market accounts (1). There are over 25 million Discover-brand card members across the world that are utilized by both consumers and small businesses. Discover also controls the PULSE Network ATM system that’s comprised of over 1.9 million ATMs in 125 countries (1). The firm reaches as many as 185 different countries with its array of financial services.

Reasons for Selling: As a credit card issuer, Discover’s primary revenue streams stem from collecting interest revenue on customer accounts. This accounts for approximately 70% of their revenue (1). Discover benefited from this during the rapid economic expansion from 2015-2018 where consumers were more likely to pay their balances at a healthy rate without paying off their balances at the end of every month. This lowered default risks on outstanding credit card loans. However, at the end of 2018, the US saw its first signal of slowed growth while much of Europe signaled for an imminent recession. In a downturn, Discover would be highly susceptible to increased default risk on their personal and credit card loans (2). Furthermore, student loan issuances have begun to seem riskier due to the rising cost of education and near-stagnant real wage growth (1). Discover is a major issuer of student loans in the US with over $9 billion in student loans on their balance sheet. Though unemployment sat at a low number for 2018, student loan default rates have been steadily increasing despite the economic expansion (2). These risk factors pushed our fund to sell Discover Financial Services.

JPMorgan Chase & Co. (JPM) Sector: Financial

Period One 54,501.72 47,150.46 -12.78 0.82

Period Two 47150.46 48,894.09 4.52 0.79

Period Three 48,894.09 56,844.27 17.84 1.36

Tenure 54,501.72 56,844.27 7.13 2.72

JPMorgan Chase & Co. is one of the largest multinational investment banks in the world by total assets under management with a total exceeding $2.62 trillion (1). Touted for their expertise and excellence amongst American banks, JP Morgan Chase & Co. has developed a strong reputation on Wall Street allowing them to expand into a variety of industries. These industries include investment banking, mortgage lending, credit card issuances, and more. Due to the heavy regulation and technology costs associated with their industry, the firm has developed an expansive scale of operations to mitigate the impact of their expenditures (2).

Positive Drivers:

As of April 2019, the firm was looking to expand and add new bank branches into larger, urban cities where it has lacked a presence (9). Adding these branches will help them compete with existing banks, spur economic growth in the new areas, and grow their ever-expanding network of bank locations. The firm has begun using algorithms for “robot-advising” on their mutual funds. These funds typically require large initial capital outlays but collect revenues through investing the cash sweeps and maintenance fees (2).

Negative Drivers:

JPMorgan Chase and Co. is highly susceptible to an economic downturn. Though this risk always exists when investing in financials, the likelihood that an investor will bear the risk increases when the US economy begins to slow. US GDP growth has decreased, and nearly stalled, to approximately 2% growth quarter-over-quarter. This is far lower than the growth seen in 2018 and anticipated in 2019 by economists. Due to the slowdown, the Federal Reserve has implemented looser monetary policy through lowered interest rates. Investors have seen two rate cuts in 2019 and anticipate at least one more before 2020. On top of the US economic slowdown, a global economic slowdown has slowed lending down internationally. A “no deal” Brexit could negatively impact multinational banks through increased transactions costs, regulation, and slowed lending in Europe (2).

Pinnacle Financial Partners (PNFP) Sector: Financial

Period One 24,060.00 18,440.00 -23.09 0.35

Period Two 18,440.00 21,928.20 19.26 0.29

Tenure 24,060.00 21,928.20 -8.33 0.58

Pinnacle Financial Partners is a lending institution that operates primarily in Nashville, Knoxville, Memphis, and Chattanooga, Tennessee. It serves as a holding company for Pinnacle National Bank (1). Pinnacle Financial Partners offers a variety of financial services such as personal banking services, credit card issuances, and investment services. However, its main source of revenue is earned through interest income on loans to small and medium-sized businesses (1). Pinnacle lends to high-quality, healthy businesses looking to expand their operations through acquiring properties and equipment. Their loan portfolio is primarily comprised of commercial and industrial loans as well as commercial real estate loans. The combined total for these categories is approximately 60% (1).

Pinnacle Financial Partners merged with BNC Bancorp in 2017 in order to increase the scale of their operations reaching new markets in North Carolina, South Carolina, and Virginia (2). The two parties expected the merger to create synergies that would lower costs for the conglomerate over the next decade (1). However, it proved harder for Pinnacle to recognize these synergies moving forward. They have expanded their balance sheet and increased their risk tolerance based on projections made in early 2018 (as many mid-cap lenders did around the same time) before slowed growth became a major concern for investors around the world. With small business optimism based on the NFIB Small Business Optimism Index beginning to dwindle from all-time highs reached in the latter half of 2018, Pinnacle’s loan portfolio appeared riskier than before (1). Moving forward, the team decided that Pinnacle Financial Partners exceeded our risk tolerance and didn’t fit in a portfolio that reflected our economic outlook for the remainder of our tenure into the future.

Prudential Preferred Stock (PJH) Sector: Financial

Period One 30,024.00 28,488.00 -3.68 1.51

Period Two 28,488.00 30,480.00 8.51 1.41

Period Three 30,480.00 30,936.00 4.33 2.79

Tenure 30,024.00 30,936.00 8.78 5.58

Prudential sits amongst the top of their class in the insurance sector in terms of their assets which total over $1.4 trillion (1). The firm specializes in insurance services, but it primarily focuses on life insurance. The firm is the largest life insurer in the US, and they’re one of the largest internationally (2). Prudential’s operations are focused heavily in the US, and 90% of its international revenue is tied to Japan. Diversified financial services also account for 15% of revenue within the firm. The subordinated debentures have a coupon rate of 5.75%, a callable date of December 4, 2017, and a maturity date of December 15, 2052 (1).

Positive Drivers:

A major driver for life insurance is age and developed economies. Prudential has nearly captured both of these attributes with their operations in the US and Japan (1). Prudential has also expanded their investment management operations. One major positive driver for alternatives is the chase for yield as the US economy starts to slow its growth. Investors are looking for alternatives to prepare for losses in the equity markets. Prudential’s steady revenue streams offer lower default risks combined with higher yields. This lowers the price risk and makes its preferred stock a favorable position for yield moving forward (2).

Negative Drivers:

Life insurance trades like a commodity, and this commodity is highly susceptible to bare the downsides of a low interest rate environment (2). With the US projecting further rate cuts in 2019, Prudential has been beaten down due to lowered profit guidance (1). Prudential has also remained stagnant in terms of their life insurance operations due to less room for growth in US and Japan than before (estimated 2-3% annually) (2). Though the risk of default is unlikely, there may be a much more significant price risk for holding their preferred stock in the future.

Alternatives, Fixed Income, ETFs

Period Three Analysis: Alternatives investments became an attractive sector as trade uncertainty hung over the US economy. Investors piled into preferred stock, bond ETFs, and international bonds in order to rebalance equity-heavy portfolios or chase yield in the wake of rising volatility. 10-year treasuries held lower and inverted below short-term treasuries several times throughout P3 due to economic uncertainty though US treasuries remained attractive for investors since they yielded positive interest rates as opposed to the negative interest rates seen in other developed economies. International bonds pushed higher on a chase for yield but slowed their rallies towards the end of P3.

Moving Forward: Looking into the future, alternatives and ETFs will be an attractive sector through a volatile, slowing economy. ETFs provide a method to diversify and gain exposure to different sectors without holding the risk of individual equities. This could be particularly crucial in order to maximize gains while offsetting risk. Corporate credit and preferred stock also provide attractive opportunities to achieve yield as a method for generating positive returns in the wake of a less-attractive equity market. However, there is risk in this as well. As more investors chase yield and exit equities, many of these funds and securities will trade at a premium. A correction in these markets is likely to occur which increases price risk.

Start Value ($): End Value ($): Return (%): S&P Sector

Return (%):

from S&P (%):

Period One 143,196.54 138,481.60 -2.78 N/A N/A

Period Two 228,756.51 231,723.94 1.30 N/A N/A

Period Three 218,646.83 228,155.41 4.35 N/A N/A

Tenure 143,196.54 228,155.41 3.52 N/A N/A

SPDR Wells Fargo Preferred Stock ETF (PSK) Sector: Alternative, ETF

Period One - - - -

Period Two 90,274.91 90,737.69 0.51 -

Period Three 90,737.69 93,884.16 6.28 2.72

Tenure 90,274.91 93,884.16 6.82 2.72

Tenure Actions: Purchased 2,126 shares for $90,274.91 on 3/12/2019.

The SPDR Wells Fargo Preferred Stock ETF is a fund comprised of various fixed income securities with a focus on corporate bonds and preferred stock. These securities are primarily concentrated in the financial sector, holding 62.54% of the funds asset allocation (6). The fund distributes monthly dividends and tracks the Wells Fargo Hybrid and Preferred Securities Aggregate Index.

Positive Drivers:

SPDR funds offer low-cost options to track popular indices with relatively low management fees (12). Moving forward, the fund will benefit from the chase for yield and exposure to high-quality preferred stock as well as increased dividends issued by many large financial institutions (2).

Negative Drivers:

The chase for yield can drive the underlying value of these securities higher causing them to trade at a premium. Assuming an efficient market, it’s possible that there may be a drawback looming. The fund is currently trading at a slight premium, 0.08%, compared to its net asset value, and this may further increase as global economic conditions become more uncertain (6).

WisdomTree Floating Rate Treasury Fund (USFR) Sector: Alternative, ETF

Period One 100,009.72 99,943.80 0.11 0.17

Period Two 99,943.80 99,943.80 0.53 0.53

Period Three 99,943.80 99,824.25 1.00 1.12

Tenure 100,009.72 99,824.25 1.64 1.82

The WisdomTree Floating Rate Treasury Fund is an ETF that is designed to track short-term government treasury bills (2). These short-term bonds typically have a maturity date of three months. Due to the fund following the floating rate of these securities, it tracks the movements in the yields for these bonds efficiently. The WisdomTree Floating Rate Treasury Fund offers a way to track the Bloomberg US Treasury Floating Rate Bond Index, and it is an effective way to offset general market volatility with yield (1).

Positive Drivers:

Treasury bills are considered the risk-free rate for returns by investors due to their government guarantee. This provides a comfortable avenue to park cash, maintain liquidity, and manage volatility during large swings in the equity markets. Mixed economic data shows that the US is not currently in a recession by definition, but investors are growing more worried (2). Yields are expected to increase along with the Federal Reserve’s plan to expand their balance sheet in the wake of an economic downturn (11).

Negative Drivers:

Despite the mixed economic data, investors have continually been rewarded for buying on short-term drawbacks in the equity markets. Yields have risen for treasury bills, but high-dividend equities, corporate bonds, and preferred stock are likely to provide higher yields in the intermediate term that attracts investors (2).

Vanguard FTSE Europe ETF (VGK) Sector: ETF

Period One 24,736.80 21,392.80 -12.57 1.10

Period Two 21,392.80 22,593.15 5.61 -

Tenure 24,736.80 22,593.15 -7.72 1.04

The Vanguard FTSE Europe ETF offers exposure to developed European countries with lower risk than purchasing the individual equities. The fund tracks the FTSE Developed Europe All Cap Index (1). With a relatively low expense ratio of 0.09%, Vanguard offers a cheaper way to track this index than many of its competitors (2). The high trading volume for the fund also allows for improved liquidity and block liquidity.

Reasons for Selling: The Vanguard FTSE Europe ETF contains a variety of holdings in European companies. Our fund grew more wary of the mounting tensions with Brexit and growing concerns with European recession. Germany was showing increasing signs of slowed growth, Eastern Europe still had not recovered from the Great Recession, and a parliament led by Theresa May was not making progress towards a deal for Brexit. This shifted our outlook on international equities, particularly in Europe, to extremely cautious for the remainder of 2019. We decided to limit our exposure particularly in volatile equities, and selling the Vanguard FTSE Europe ETF followed this theme.

Vanguard FTSE Emerging Market ETF (VWO) Sector: ETF

Period One 18,450.00 17,145.00 -5.28 1.93

Period Two 17,145.00 18,449.31 7.61 -

Tenure 18,450.00 18,449.31 1.79 1.78

The Vanguard FTSE Emerging Markets ETF is an exchange traded fund comprised of equities in diversified emerging markets. The fund primarily consists of large and mid-cap equities in Asia though it has exposure to European, African, and Latin American equities as well (1). Approximately 50% of the fund’s exposure is in Asia with 30% residing in Chinese equities. Over 15% of those companies are banks, 12% in tech, and nearly 7% in oil and gas companies. The fund offers competitive pricing for emerging market exposure with an expense ratio of 0.12% while tracking the FTSE Emerging Markets Index (1).

Reasons for Selling: The Vanguard FTSE Emerging Markets ETF is comprised of a variety of equities in more volatile economies. Developing economies typically grow faster than developed economies in periods of global prosperity, and they typically slow faster during downturns (2). As the global economy slowed in the latter half of 2018, emerging markets saw greater amounts of risk than their safer counterparts. Since this fund is focused in China, it is susceptible to trade tensions between China and the US being passed on to consumers from those economies (2). Since this fund is also exposed to lending institutions and technology companies, a slowing economy poises this fund for more volatility in the intermediate future through the end of 2019 (1). This volatility exceeded our risk tolerance for the remainder of our tenure, so we decided to sell in accordance with our developing risk-off strategy.

WellTower Inc. (WELL) Sector: Alternative

Period One - - - -

Period Two - - - -

Period Three 27,965.35 34,447.00 25.54 1.92

Tenure 27,965.35 34,447.00 25.54 1.92

Tenure Actions: Bought 380 shares for 27,965.35 on 4/29/2019.

WellTower Inc. is a healthcare-based real estate investment trust with a diversified portfolio of over 1,600 in-place healthcare properties (1). The majority of these properties are senior housing facilities, medical offices, and post-acute care offices. As one of the largest healthcare REITs traded publicly in the US WellTower Inc. accrues revenue through resident fees and services as it has shifted from post-acute and acute care facilities to more lucrative senior living facilities. Many of their facilities are concentrated in high-density population areas.

Positive Drivers:

WellTower Inc. is positioned well given the current setting for a late-stage, developed economy. The US population is generally aging as Baby Boomers are retiring which has steadily increased the demand for assisted senior housing facilities across the country. WellTower positions its facilities near more affluent areas and areas with a high population density in order to maximize the occupancy and minimize marginal costs per resident (1). Furthermore, WellTower has begun expanding into the UK and Canada, two more countries with affluent, aging populations (2). WellTower, like many other REITs, offers greater returns to investors with both price appreciation and high dividend payments. This makes WellTower an attractive investment moving forward as a way to capture yield in a volatile market.

Negative Drivers:

WellTower has the advantage of a wealthy, aging population as they shift into senior living facilities. However, this revenue stream may become riskier depending on the direction of the economy. During a downturn, these living facilities are likely to become less popular, and the amount of evictions is likely to increase (2). WellTower is positioned in costly areas which enables them to charge higher rates for their facilities. These locations could be in jeopardy during an economic downturn (2). Lastly, a downturn could make it difficult to remain competitive in this market. Assisted living facilities are often judged by their quality, enabling firms to charge a premium for services. If a downturn occurs, it will be difficult for WellTower to remain competitive with higher prices, and their quality may suffer moving forward (2).

Healthcare Sector

Period Three Analysis: The healthcare sector continues to grow due to the constant 0.4% YoY growth of people 65 and older in the population (1). Health care spending continued to rise during the period as a percentage of GDP. Chinese tariffs created some concern during the period for medical device sales in China, but the effects might not be apparent until next period. A sharp increase in mergers and acquisitions during the period signals an improved capital structure in large health care companies with healthy balance sheets. The global reach for disease and personalized medicine reached new levels as many companies received approval for sales of prescriptions and vaccines in Europe and China.

Moving Forward: Nancy Pelosi’s proposed drug-pricing bill threatens the health care industry tremendously since the decrease in revenue would result in the loss of jobs, capital available for research, and innovation as pharmaceutical companies struggle to sustain profitability. If passed, the bill would require Medicare authorities to negotiate prices directly with drug manufacturers using benchmark prices from six other developed countries who generally have lower prices than the US The durability of health care earnings during economic downturns generally leads to outperformance of the market and provides positive opportunities going forward considering the stagnation of the global economy. National healthcare spending is projected to grow at a rate of 5.5% per year and set to outpace GDP growth by 0.8% per year over the 2018 – 2027 period (4).

from S&P (%):

Period One 332,027.32 312,735.15 -5.81 -9.10 15.85

Period Two 264,886.98 286,236.45 8.64 7.58 4.47

Period Three 233,023.70 242,294.09 4.95 -1.79 0.65

Tenure 353,629.95 454,359.57 29.96 -5.27

Amgen Inc. (AMGN) Sector: Healthcare

Period One 72,551.50 68,134.50 -5.45 0.68

Period Two 44,724.32 43,125.46 -1.60 0.76

Period Three 43,125.46 43,926.77 3.39 1.50

Tenure 72,551.50 67,336.95 -4.94 2.94

One of the world’s leading biotechnology companies, Amgen discovers, develops, manufactures and delivers human therapeutics. Amgen offers products that treat oncology/hematology, cardiovascular, inflammation, bone health, and neuroscience. Sales totaled $1.315 billion in Q4 of 2018 for the company’s best-selling product, a drug that treats Rheumatoid Arthritis called Enbrel (3).

Positive Drivers:

Amgen’s pipeline offers a robust and diversified array of products seeking FDA approval, including 24 in phase one, 3 in phase two, and 5 in phase 3 (3). On August 26th, Amgen entered an agreement with biopharmaceutical company Celgene to acquire global rights to Otezla, a drug approved for the treatment of plaque psoriasis. Otezla presents the largest opportunity for growth with $1.6 billion in sales during 2018 and double-digit growth forecasted over the next 5 years. The drug complements current best-seller Enbrel and holds patent exclusivity in the US until 2028 (1). The deal with Celgene is contingent upon Bristol-Myers Squibb closing their pending merger and should be completed by the end of 2019. On October 18th, Amgen gained FDA approval for the company’s supplemental biologics license application for Nplate, a prescription medicine used to treat adults and children with immune thrombocytopenia (ITP).

Negative Drivers:

The largest threats to Amgen’s success pertain to universal healthcare regulation and pending FDA trials for products in the pipeline. Nancy Pelosi’s proposed legislation to lower drug prices would immediately lower current and expected revenues for pharmaceutical companies. Amgen’s wide range of products seeking FDA approval poses another risk since failed trials create downward pressure from investors and result in the loss of capital invested in research and development (2). Loss of patent exclusivity for Amgen’s aging drugs could harm future cash flows, but this risk is less significant due to the well-diversified line of products offered.

CVS Health Corp. (CVS) Sector: Healthcare

Period One 22,425.20 36,298.08 -17.23 0.39

Period Two 36,298.08 29,802.57 -17.15 0.37

Tenure 22,425.20 29,802.57 -31.22 0.76

Tenure Actions: Sold 554 shares for $53.80 per share on 04/02/2019.

CVS is the nation’s largest drugstore chain and a leading pharmacy benefits provider, with nearly 92 million plan members (1). The company offers pharmacy benefit management services, mail order, retail and specialty pharmacy, disease management programs, and retail clinics. CVS also offers walk-in health services through in-store MinuteClinics located in over 1,100 stores. The company owns and operates 9,900 stores across the US, the Disctrict of Columbia, and Puerto Rico. The Pharmacy Services segment accounts for 72% of revenue, followed by retail and long-term care at 28%.

In late March, it was reported that Centene was acquiring Wellcare Health, a major customer of CVS’s Caremark benefits management system. Because Centene had a competing system to CVS, the business from Wellcare Health would have been lost, thus leading to a decision to sell.

Edwards Lifesciences (EW) Sector: Healthcare

Period One 69,640.00 61,268.00 -12.02 -

Period Two 61,268.00 76,532.00 24.91 -

Period Three 76,532.00 50,139.48 4.70 -

Tenure 69,640.00 50,138.48 15.06 -

Tenure Actions: Sold 228 shares of EW for $29,986.06 on 4/29/2019.

Edward’s Lifesciences is a global leader in patient-focused medical innovations for structural heart disease, as well as critical care and surgical monitoring. It offers products such as tissue replacement heart valves, heart valve repair, hemodynamic monitoring devices, angioscopy equipment, oxygenators, and pharmaceuticals (2). The company’s wide range of products focuses on treating heart disease through catheter-based technologies and surgical procedures.

Positive Drivers:

The Transcatheter Aortic Valve Replacement (TAVR) is forecasted to generate $2.5 billion in revenue for EW during the fiscal year and achieved Q2 earnings growth of 16%. The year-long PARTNER 3 trial for TAVR concluded in September, resulting in significant improvement in patients’ overall physical and mental well-being. The study confirms the decades of research by the industry leader paid off and TAVR’s global reach for victims of structural heart disease will continue to grow. Surgical structural heart and critical care sales totaled $218 million in Q2, a 15% increase from Q2 2018 (1). Edward’s Transcatheter Mitral and Tricuspid Therapies (TMTT) sales for the fiscal year are guided at $40 million, heavily driven by the recent acceptance of commercial sales of the products in Europe. EW estimates the global market value for TMTT will reach $3 billion by 2024 (6). Cardiovascular disease claims 17.9 million lives each year globally and demand continues to grow driven by obesity and the growing elderly population.

Negative Drivers:

The process of achieving FDA approval for products may lead to problems in the future since many heart catheter and valve devices require extensive testing. Another issue stems from lawsuits and recalls of products that were previously approved by the FDA. The SAPIEN 3 Ultra delivery system, a vital component to the TAVR division, was type 1 recalled and may cause death to patients according to the FDA. One of Edward’s catheter products, the EZ Glide cannula, was also recently recalled for 3 cases of separation from the valve connector (6). As organic growth rises in Europe for TAVR products, competition to establish dominance in the market steepens.

GlaxoSmithKline (GSK) Sector: Healthcare

Period One 31,975.32 30,415.16 -3.66 1.28

Period Two 30,415.15 33,264.84 10.62 1.15

Period Three 33,264.84 33,973.28 3.67 2.48

Tenure 31,975.32 33,973.28 11.30 4.91

GlaxoSmithKline PLC is a research-based pharmaceutical company that engages in the creation, discovery, development, manufacture, and marketing of pharmaceutical products, vaccines, over-the-counter medicines, and health-related consumer products. GSK creates and distributes products for infections, depression, skin conditions, asthma, heart and circulatory disease and cancer. It operates through three main segments: Pharmaceuticals, Vaccines, and Consumer Healthcare.

Positive Drivers:

GSK’s increasing dividend yield and low beta appeal to investors searching for a safe company with a wide range of products. Substantial research focus and internal program funding dedicated to cancer treatment has increased the assets in GSK’s Oncology pipeline to 16, double from last year. The acquisition of Tesaro in January gave GlaxoSmithKline global rights to Zejula, a drug being investigated as a possible treatment to lung, breast, prostate, and ovarian cancer. GSK has experienced multiple positive developments in its HIV pipeline this year, a disease with 38 million victims worldwide (5). The company gained EU approval in July and FDA approval in April for Dovato; the first FDA-approved two-drug, fixed-dose, complete regimen for HIV-infected adults who have never received treatment for HIV. The future looks extremely promising for GSK as the company announced the divesture of 80 less profitable programs and a pivotal refocus of R&D towards the immune system, human genetics, and advanced technologies.

Negative Drivers:

GlaxoSmithKline faces competition from generic versions of the best-selling asthma drug Advair. The pharmaceuticals segment of the company experienced a 1% decrease in Q2 sales due to competition from Mylan’s generic version of Advair (1). Nancy Pelosi’s drug-pricing bill threatens the profitability of pharmaceutical products, especially those that required significant capital and time invested before reaching the market. Recalls and failed FDA trials add increased risk from downward pricing pressure.

Merck and Co. (MRK)

Sector: Healthcare

Period One 35,470.00 38,205.00 8.39 0.63

Period Two 38,205.00 41,585.00 9.57 0.66

Period Three 41,585.00 42,090.00 2.54 1.31

Tenure 35,470.00 42,090.00 21.66 2.60

Merck & Co., Inc. is a global health care company that delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. The company offers therapeutic agents to treat numerous diseases including cardiovascular diseases, type 2 diabetes, asthma, nasal allergy, allergic rhinitis, chronic hepatitis C virus, HIV-1 infection, fungal infections, hypertension, arthritis, inflammatory diseases, osteoporosis, and fertility diseases (2). It also provides neuromuscular blocking agents, cholesterol modifying medicines, anti-bacterial, and vaginal contraceptive products. The Company has operations in pharmaceutical, animal health, and consumer care.

Positive Drivers:

Merck’s pipeline consists of 12 products in phase 2 of development and 21 products in phase 3. Most of these products belong to the oncology pipeline, headlined by Keytruda, a prescription approved for the treatment of 20 different cancer indications across 12 tumor types (7). On September 11th, the FDA granted Merck’s prospective lung cancer treatment tepotinib the break though designation. The ground-breaking results from the VISION study were presented at the 2019 American Society of Clinical Oncology (ASCO) Annual Meeting (1). Lung cancer is the most common type of cancer worldwide, with 2 million cases diagnosed annually. Merck’s current research and development strategy promises a future of sustainable growth if the company can pass a significant portion of the pipeline through FDA regulations (3).

Negative Drivers:

Nancy Pelosi’s plan to cut drug prices puts best-selling drug Keytruda and diabetes medicine Januvia at risk. After Pelosi announced the bill, MRK lost $14 billion in market value (1). Keytruda generated $7 billion in revenue for Merck in 2018, but the company’s most important asset faces competition from Bristol Myers Squibb as the giants battle for superiority. Merck’s anti-baldness medicine Propecia caused persistent sexual dysfunction and is the subject of 1,100 lawsuits against the company (7).

Stryker Corp. (SYK) Sector: Healthcare

Period One 34,647.60 30,566.25 -11.52 0.30

Period Two 30,566.25 38,516.40 26.34 0.26

Period Three 38,516.40 42,178.50 10.03 0.48

Tenure 34,647.60 42,178.50 22.88 1.04

Stryker Corp. is a medical technology company that develops, manufactures, and markets specialty surgical and medical products. The company operates in three primary segments: Orthopaedics, MedSurg, and Neurotechnology and Spine. SYK’s products and services include implants, biologics, surgical, neurologic, ear, nose, and throat and interventional pain equipment, endoscopic, surgical navigation, communications and digital imaging systems, as well as patient handling and emergency medical care. The company sells its products to doctors, hospitals, and other healthcare facilities through company-owned subsidiaries and branches, as well as third-party dealers and distributors in approximately 80 countries (8).

Positive Drivers:

Stryker’s largest segment, the Neurotechnology and spine division, continues to grow following the acquisition of Mobius Imaging and GYS Tech. The acquisition gives SYK’s spine division immediate entry into the intra-operative imaging segment, a huge leap for the department that saw 18.9% growth in Q2 before the deal (1). The Mako robotic system, a system utilized during total knee and hip replacements, has gained approval for commercial sales in China and Japan. The premier device for orthopedic procedures, the Mako robotic system has been widely adopted by surgeons and saw an 80% YoY increase in total knee repair utilization for Q2. Stryker’s diverse range of products protects the company’s cash flow during economic downturn.

Negative Drivers:

Competition from robots similar to the Mako pose a threat in the future, as companies like Zimmer Biomet attempt to re-create the prototype and steal market share (2). Since a significant portion of revenue comes from medical device sales, an increased risk of obsolescence forces the company to constantly update technologies. Universal Medicare legislation proposed by democratic candidates could potentially affect third-party reimbursement streams. The on-going tariff war with China affects profitability for medical device sales, especially for the recently approved Mako robot system.

Materials

Period Three Analysis: The Materials sector includes chemical production, construction materials, containers and packaging, forest and paper products, iron and steel, and mining. The fund has limited exposure to this sector. The one holding is mostly involved with construction materials. This sector has struggled somewhat due to ties with US manufacturing and tariffs raising costs. With record highs and growth in the markets, this sector has underperformed in the past year.

Moving Forward: This sector stands to benefit from any US infrastructure bill. Tariffs have hurt this sector, especially in the metal industry. Tariffs on steel have squeezed margins. If the United States and China were to come to an agreement on a trade deal, this sector would stand to gain from a potential economic boom as a result. The manufacturing data has not been favorable recently, so an improvement domestically could help bring the materials sector back in line with top performers.

from S&P (%):

Period One 36,164.25 35,109.00 -2.40 -12.81 0.11

Period Two 35,109.00 39,584.00 13.30 9.19 0.11

Period Three 39,584.00 31,306.68 -20.91 3.46 -0.60

Tenure 36,164.25 31,306.68 -14.34 -0.61 -0.60

Linde (LIN) Sector: Materials

Period One 36,276.00 35,109.00 -2.71 0.53

Period Two 35,109.00 39,584.25 13.31 0.50

Period Three 39,584.25 40,043.10 1.12 -

Tenure - - - -

Linde plc is a global provider of industrial gases, chemicals, and engineering services. During this tenure, Linde merged with Praxair to form a global giant in industrial supply (1). The fund’s stake in Linde was sold on 4/29/2019.

Reasons for Selling: The materials sector has underperformed and holds significant downside risks due to tariffs and the potential for economic downturn. With these two risk factors working in conjunction, the team felt that selling Linde would help move the fund to a less risky position.

Vulcan Materials (VMC) Sector: Materials

Period One - - - -

Period Two - - - -

Period Three 29,990.97 31,306.68 4.39 -

Tenure 29,990.97 31,306.68 4.39 -

Tenure Actions: Bought 207 shares for $29,990.97 on 9/16/19.

Vulcan Materials Co. produces and delivers construction materials, often called aggregates, to customers in the United States, Mexico, and the Bahamas. The materials typically are used for infrastructure (1). The company operates in the following segments: Aggregates, Asphalt Mix, Concrete, and Calcium. Of those four, the aggregates segment brings in about 75% of revenue (1). The company has spoken of mergers with their largest competitor, Martin Marietta, but anti-trust concerns stalled talks.

Positive Drivers:

Vulcan Materials Company has benefitted from strong infrastructure spending. It will continue to do so as long as infrastructure projects get approval for legislators. The company is focused on operating in areas of high growth, where infrastructure projects will be needed most. They focus on positioning themselves in areas with the highest growth in population, households, and employment (1). This has led to consistent growth in revenue over the past 5 years. With correct positioning, Vulcan can maintain revenues even during economic uncertainty.

Negative Drivers:

Vulcan Materials is at least partially susceptible to economic downturns. It relies on infrastructure projects, and those may not be approved as readily in a downturn (1). With the oil market susceptible to global shocks there are risks of rising transportation costs. The company may struggle to expand further as it exhausts the obvious choices of location and has to enter areas of slower growth in order to keep expanding. That scenario would squeeze margins slightly.

Utilities

Period Three Analysis: This sector is comprised of firms that provide electric, gas, water and other utilities. Firms typically have monopolistic type effects on the areas in which they operate. Due to this, local governments regulate prices that firms can charge their customers. The utilities sector of the S&P 500 has performed well over the last year experiencing an 18.71% growth year to date (29). Electric and renewable utility companies have realized growth over the last period. As the production of energy continues to transform, firms that produce energy by way of nuclear and renewable methods continue to grow. Recent developments of wind power interest have firms looking to grow wind energy operations along the northeastern coast. Firms continue to make efforts to update their infrastructure by raising spending budgets to take advantage of tax changes in 2018. Due to low natural gas prices coupled with these corporate tax law changes and low fixed costs have allowed companies to grow profits (1).

Moving Forward: As natural gas prices continue to stay low, firms should be able to continue to realize better profits. There is an expected increase in natural gas demand for the US as we move into winter months which may cut into firms’ profits if gas prices rise. Utility companies are continuously making efforts to move away from energy sourcing from commodities such as coal and moving toward more efficient and renewable energies such as wind. Since utility companies are regulated by local governments to keep prices at fair levels for customers, advancements in efficiency and lowering fixed costs should yield growth for companies that are focusing on updating their infrastructure. If the government can keep up with the technological efficiencies from updated infrastructures, company profits should be realized (30).

from S&P (%):

Period One 69.883.11 71,636.29 2.51 0.49 3.69

Period Two 71,636.29 76,936.61 8.18 9.88 2.25

Period Three 76,936.61 87,221.92 15.75 11.29 0.04

Tenure 69,883.11 87,221.92 30.05 22.29 0.04

Entergy Corp. (ETR) Sector: Utilities

Period One 36,265.11 38,473.29 7.21 1.06

Period Two 38,473.29 42,746.61 12.16 0.95

Period Three 42,746.61 52,459.92 24.63 1.55

Tenure 36,265.11 52,459.92 49.14 3.10

Holding Description

Entergy Corp. is a utility company serving customers in the states of Arkansas, Louisiana, Mississippi and Texas. The firm owns and operates 40 plants that have the capacity to generate 30,000 megawatts of electricity. Entergy Corp.’s plants operate by sourcing energy from commodities such as; coal, natural gas, oil. However, it also generates power using hydroelectric, solar and nuclear plants. The company boasts $11 billion in annual revenue and plans to invest $2.6 billion in power generation (31).

Positive Drivers:

Entergy is making an aggressive emissions reduction goal to reduce its emissions from operations by 2030. It is currently beating its goal by 8% (31). Low pricing for commodities such as natural gas and coal should allow Entergy to continue to see better profits while maintaining low service prices for its customers. Entergy owns 8 nuclear plants. As of now this is the most efficient energy source. Although there are high initial costs to building such plants, the investment will pay dividends in the long run.

Negative Drivers:

Local governments that regulate pricing and other operational activities may be slow to learn how technological advancements increase efficiencies for the company. This may lead to bad price regulations or perhaps an unnecessary cap to growth. Entergy is also still exposed to commodity pricing when dealing with coal, gas and oil. The winter season may increase pricing across for all commodities which could decrease Entergy’s profit margins as pricing is highly regulated.

Southern Company Pfd. (SOJA) Sector: Utilities

Period One 33,618.00 33,163.00 0.16 1.53

Period Two 33,163.00 34,190.00 4.63 1.48

Period Three 34,190.00 34,762.00 4.64 2,92

Tenure 33,618.00 34,762.00 9.45 5.84

Southern Company Pfd. is a Jr subordinated bond with a maturity date of 10/15/2075 that is issued by The Southern Company. The Southern Company is a public utility holding company headquartered in Atlanta, Georgia that operates 7 regulated utilities that serve 9 million people throughout 6 states. The company primarily operates in energy generation, natural gas storage and distribution as well as fiber optics and telecommunications services. The company recently merged with AGL Resources creating America’s largest US electric and gas utility company. As of now, The Southern Company is the second largest utility company in the US and has increased its generating capacity to 44,000 megawatts (32).

Positive Drivers:

As natural gas demand increases through the winter months due to extra heating needs, the company should experience short-term increases in profits. The Southern Company is continually finding innovative and more efficient ways to provide clean energy. It is currently investing in research and working closely with federal regulators to grow its nuclear energy segment. As nuclear is the most efficient low carbon energy producer today, The Southern Company is looking to increase its nuclear operations to add value and efficiency to its energy mix (32).

Negative Drivers:

As natural gas distribution is a large part of The Southern Companies’ energy mix, making up 44%, it is susceptible to commodity pricing and regulatory caps that could squeeze its profit margins should the price of gas increase. Coal power generation is also another large portion making up 23% of the company’s energy mix (1). Although coal is relatively cheap globally, it is still another commodity that has price fluctuations. Renewable energy sources have been a focus for the company. Although it has made progress in adding renewable plants to its energy mix, these are by far its least efficient sources. Should the technology not become more efficient for renewables, the company may not get the best return on their investment in the long run.

Technology

Period Three Analysis: The Technology sector continued to build off the rebound period of period two. Coinciding with the increase in consumer spending, the Technology Sector generated a 22.19% return, up from about 19% the previous period. Although there is growing uncertainty of a trade deal, the sector still experienced large extensive growth. As uncertainty is prolonged, the sector faces more pressure from the sharply declining global economy.

Moving Forward: The global economy’s outlook has gotten worse as period three continued. Countries all over the world began experiencing the effects of the US and China trade war. Because of this, the Technology sector is expected to begin feeling the effects moving forward. Due to the declining economic state, many companies have drastically reduced their capital expenditures to prepare for the slowdown, thus, reducing their technological innovations. Therefore, the sector is at risk of becoming stagnant in the near future, causing investors to become cautious.

from S&P (%):

Period One 156,489.28 139,748.08 -11.81 -18.85 -8.92

Period Two 139,748.08 189,321.26 19.04 19.29 -7.48

Period Three 189,321.26 229,070.12 22.19 7.28 -6.32

Tenure 156,489.28 229,070.12 49.30 6.38 -6.32

Applied Materials Inc (AMAT) Sector: Technology

Period One 16,619.50 14,078.20 -14.77 0.61

Period Two 14,078.20 17,053.80 21.75 0.50

Period Three 17,053.80 21,457.00 26.88 0.84

Tenure 16,619.50 21,457.00 31.23 1.64

Applied Materials Inc. is the world’s leader in semiconductor equipment & materials, headquartered in Santa Clara, California. Their materials engineering solutions are used to produce almost every technological chip in the world (1). Along with that, Applied has an incredibly diversified product segment reach due to the growing global technological advances. The only technological process Applied is not producing in is lithography. Most of their sales comes outside of the United States, totaling at 91.1% of total sales while only 8.9% comes from the United States. Their fastest growing geographical segment is China, increasing from 15.9% of total sales in 2017 to 29.6% in 2018, becoming Applied’s biggest market. In addition, 84.9% of the total revenue stems from Asia (13).

Positive Drivers:

Applied is currently ahead of the trend in AI and Big Data as data generation is increasing exponentially each year. As this trend has continued to grow each year, they have continued to express revenue and company growth. Moving forward, revenue is expected to grow double digit percentages through 2023 (2). As data generation continues to grow, Applied will evolve their current hardware computing to create lower cost and power chips that will be better accessible for AI with a large amount of storage. The emerging importance of customer collaboration will bring consistent technological advances.

Negative Drivers:

Since Applied’s main industry is semiconductors, the cyclical consumer demand of devices that require chips jeopardizes the company (2). Since they are spread so thin among a large variety of products, the cycle’s highs and lows will have a stronger financial effect on a company like Applied’s equipment sales, which takes up 78.2% of total revenue (13).

Broadcom (AVGO) Sector: Technology

Period One 19,244.94 19,833.84 4.13 1.04

Period Two 19,833.84 23,455.38 19.30 0.88

Period Three 23,455.38 21,533.46 -7.31 0.96

Tenure 19,244.94 21,533.46 15.11 2.88

Broadcom is the result of the Broadcom and Avago merger in 2016 (1). Before the merger, Broadcom was one of the global leaders in networking semiconductors, broadband, and wireless connection chips while Avago was a key player in radio filters for smartphones (2). This merger created one of the strongest semiconductor companies in the world. Broadcom’s product segments are wired infrastructure, wireless communications, enterprise storage, and industrial products. Wired infrastructure and wireless communications take up 73% of total revenue (14).

Positive Drivers:

Broadcom holds the top two leaders in smartphone manufacturers as customers in Apple and Samsung. Therefore, as these companies continue to expand in competition with each other, Broadcom will continue to generate revenues from this segment, which currently takes up about 30% of current revenues (2). In addition, the nearing emergence of 5G devices will generate future growth for Broadcom as they create a stronger product to be a leader in 5G as well.

Negative Drivers:

The cyclical semiconductor industry affects all companies that play in this market. In addition, Broadcom doesn’t grow organically, a lot of its growth comes from Mergers & Acquisitions. Therefore, they face the risk of a merger not working out for the best of the company. Regarding smartphones, about 30% of total revenues comes from Apple and Samsung (2). Therefore, if these companies change their product make up and no longer use these radio filters and Wi-Fi chips, Broadcom could have a huge negative financial impact.

Cisco (CSCO) Sector: Technology

Period One 28,217.00 25,131.40 -10.27 0.68

Period Two 25,131.40 31,314.20 25.36 0.76

Period Three 31,314.20 28,657.80 -7.19 1.30

Tenure 28,217.00 28,657.80 4.36 2.75

Cisco is the largest supplier of hardware and software for the internet network market (2). Within this market, Cisco is one of the leaders in switches, routers, firewalls, and other networking products. Infrastructure platforms are Cisco’s largest product category with 57% of total revenue (15). Although this is the main product segment, Cisco’s R&D expands through all sections, costing them over $6 billion in R&D each year over the last three years (2). Outside of products, Cisco’s services sector holds 26% of total revenue (15). Recently, Cisco launched Customer Experience in the services division to provide technical support and advanced services.

Positive Drivers:

Cisco differentiates themselves from other companies within this industry due to their adaptability and willingness to change. Cisco has its current position within this market not solely because of the products they offer, but the strategy they employ to continue to push the needle in becoming a better technological company moving forward (15). This will be evident with the growth of their security segment. As technology continues to advance, so will the need for security. Since Cisco already has a strong name within the technological world, albeit security, infrastructure, or hardware, as technology continues to develop, customers will have a familiar name they are more likely to go to because they know the company is reliable and effective.

Negative Drivers:

As advanced technology becomes mainstream, customers may not need to use assistance services to correctly operate the growing technology, causing Cisco’s service demand to decrease as consumers grow. On top of that, other advanced companies can easily enter Cisco’s diverse market reach and begin to take away from Cisco’s current position. Arista Networks developed a solution to infrastructure that is easier than Cisco’s. One of their main products, switches, could be adopted by Amazon if they chose to penetrate that market (2). If this were to happen, Amazon would charge a lower price, taking Cisco’s switches out of the market.

IBM (IBM) Sector: Technology

Period One 30,242.00 22,734.00 -23.79 1.38

Period Two 22,734.00 28,220.00 25.51 1.11

Period Three 28,220.00 29,084.00 4.21 1.11

Tenure 30,242.00 29,084.00 -0.68 3.27

IBM is an IT company headquartered in Armonk, New York that is involved with services, software, and hardware across the world. IBM has an incredibly large customer base, many customers have been their customers for decades, as they have been the core company dealing with IT hardware and software over the past few decades. IBM is the global leader in Artificial Intelligence, Blockchain, Hybrid Cloud, Enterprise Services, Enterprise Security, and Enterprise Systems (16). Along with these segments, IBM currently has the top two fastest supercomputers in the world.

Positive Drivers:

IBM is growing in their services sector and it took a huge leap in fiscal year 2018 (2). This segment is expected to continuously grow over the next few years following the success in 2018. Moving on, IBM has continuously developed themselves through IBM Cloud to expand their current cloud abilities. Along with that, they have made acquisitions to set the company up for continued growth by mitigating the weaknesses these acquisitions fill. They have created valuable partnerships with some of the top companies in the world that are in current growing stages of their business cycle (16). Therefore, IBM is looked at as a key resource to assist this growth.

Negative Drivers:

IBM is currently behind other companies in some of their smaller product lines such as IaaS and PaaS, which are key in the development of cloud-based technology. Regarding competition, as key competitors such as Oracle and Cisco grow, the Systems segment of IBM could see negative trends in the future. While IBM has a strong footprint within the hardware market, companies that use x86 servers could possibly cause customers to switch from IBM to these x86 based servers (2).

Intel Corporation (INTC) Sector: Technology

Period One 26,482.40 26,280.80 -0.13 0.64

Period Two 26,280.80 30,072.00 15.10 0.59

Period Three 30,072.00 28,856.80 -2.87 1.22

Tenure 26,482.40 28,856.80 11.60 2.42

Intel is a world leading designer and manufacturer of chips for the growing cloud technologies headquartered in Santa Clara, California. Intel is strong in four key segments in the cloud services market: computing, networking, data storage, and communications solutions. Intel’s largest market is the client computing group which accounts for 52% of Intel’s total revenue. The data center group is the next biggest market with 32% of total revenues (17).

Positive Drivers:

Intel’s adaptability to changing technologies has continued to allow them to gain leverage within their market. They initiated the x86 microprocessors, placing them as the leader as this service continues to expand in the future (2). Originally, Intel’s central market was the personal computer. However, currently as the demand for personal computers has declined dramatically, Intel can move into other, growing markets within cloud computing and data centers.

Negative Drivers:

The cyclical industry can put a hamper on future profitability for the company from moving into new markets. Regarding PCs, they are experiencing tight competition from AMD that could begin to potentially gain market share within the PC market on Intel. Since the demand for semiconductors are growing, this market is rapidly growing with new entrants. Therefore, if Intel doesn’t stay on top of their services, they could lose market power within this industry as well (2).

Microsoft Corporation (MFST) Sector: Technology

Period One 35,683.44 31,689.84 -10.79 0.45

Period Two 31,689.84 59,205.88 15.07 0.39

Period Three 59,205.88 69,793.06 18.66 0.66

Tenure 35,683.44 69,793.06 26.92 1.20

Microsoft is a key driver in many facets of software development and is headquartered in Redmond, Washington. Microsoft is broken up into three main operating segments: Productivity and Business Processes, Intelligent Cloud, and Personal Computing. Microsoft’s biggest segment is Personal Computing with 36.3% of total revenue, followed by Productivity and Business Processes at 32.7%, and Intelligent Cloud at 31%. The Personal Computing segment consists of Windows, Surface, PC, and Xbox. Productivity and Business Processes includes Office 365, Skype, and LinkedIn. Intelligent Cloud has SQL and Windows Servers (18).

Positive Drivers:

Microsoft is currently preparing for the future of technology with cloud services. Along with that, they are attempting to get ahead on AI as well, offering solutions and data. The growth of the Internet of Things will also be great for Microsoft as they can use the data they have for everyday customers to get a better understanding of how IoT can positively affect customer’s lives (18).

Negative Drivers:

The rapidly growing cloud market has several companies fighting to become the leader of the emergence of this market for the future. Therefore, if another company effectively takes the market leader position, Microsoft could be in jeopardy as this industry continues to take over technology (2).

Salesforce (CRM) Sector: Technology

Period One - - - -

Period Two - - - -

Period Three 29,701.93 29,688.00 -0.05 0.00

Tenure 29,701.93 29,688.00 -0.05 0.00

Salesforce is the global leader in cloud-based customer relationship management company headquartered in San Francisco, California. Salesforce has several segments: Sales Cloud, the company’s main CRM, Service Cloud for customer support services, Marketing Cloud to assist with online marketing campaigns, Commerce Cloud for e-commerce and Salesforce Platform to assist with building applications. Sales Cloud and Service Cloud are the strongest segments at 36.6% and 29.6% respectively (19). All these segments are centered around customer relationship management to not only acquire but retain customers for long term company growth.

Positive Drivers:

As more companies begin to adapt digital segments within their company, Salesforce will continue to expand their customer reach and generate increased profits across their segments (2). This increase in available customers will continue to increase revenues as the company continues to grow and possibly emerge into new customer service segments.

Negative Drivers:

Salesforce’s efficiency is stemmed only from its revenue. Therefore, if a segment or segments continue to slow in growth, this could have an adverse effect on the company’s future valuation (2). In addition, Salesforce has done a lot of organic growth. However, they are in the acquisition stage of their company growth cycle to pursue a greater reach of customers. Because of this, they are willing to make large investments to continue to expand. On the other hand, if one of these large acquisitions doesn’t work for the company, there will be a financial impact.

Communications Services

Period Three Analysis: The Communications Services sector consists of advertising and marketing, cable and satellite, media, entertainment, broadcasting, and telecommunications. Within our holding, Disney spreads between the advertising, media, entertainment, and broadcasting segments. After purchasing 271 shares of Disney in early period three at $128.78 per share, the holding has fluctuated around the same value. At the close of period three, there was a 0.8% increase in price per share from $128.78 to $129.86 which generated a return of 1.86%.

Moving Forward: Even though the sector experienced growth in period three, the fund has a speculative outlook on this sector due to the dwindling economic landscape. As consumer spending is expected to decrease in response to the economic slowdown, the entertainment, broadcasting, cable, advertising segments are expected to be negatively impacted. Because of this, the fund is moving forward with a cautious outlook on the Communications Services sector.

from S&P (%):

Period One 18,912.90 - -100.00 -13.71 -8.92

Period Two - - - 12.21 -7.48

Period Three - 35,316.72 100.00 7.28 -7.95

Tenure 18,912.90 35,316.72 87.99 4.55 -7.95

The Walt Disney Company (DIS) Sector: Communication Services

Period One - - - -

Period Two - - - -

Period Three 34,904.33 35,316.72 1.86 0.68

Tenure 34,904.33 35,316.72 1.86 0.68

Disney is an entertainment company through Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive Media. Media Networks includes cable and television networks and is the biggest segment within Disney as it takes up 41.2% of total revenue. Parks and Resorts is next with 34.1% of total revenue with Disney parks and cruises held all over the world. Studio Entertainment consists of live plays and animated movies and accounts for 16.8% of total revenue. Finally, Consumer Products and Interactive Media consists of trade names and games used in mobile apps (20).

Positive Drivers:

As Disney has expanded parks into new geographic territories over recent years, these parks will begin to pick up visitation in the future as they become more settled (2). As Disney continues to introduce new technology within the Consumer Products and Interactive Media segment, subscribers will continue to increase globally.

Negative Drivers:

All of Disney’s current segments are volatile based on the economy. If the economy weakens, customers are less likely to visit the parks and resorts. As paid television service costs increase, customers may begin to cancel memberships. Since ESPN has the highest fees of all basic channels, this will affect Disney’s Media Networks segment because of declining customers for ESPN (2). In addition, although Disney is known for making great movies, this market is still volatile, depending on consumer buy in. A small decrease in any of these segments will decrease Disney’s total revenue.

Facebook, Inc. (FB) Sector: Communications Services

Period One 18,912.90 16,056.89 -15.10 -

Period Two - - - -

Tenure 18,912.90 16,056.89 -15.10 -

Facebook is the biggest social network in the world with over 2 billion active users. Moving from just a social network site, Facebook added Facebook Watch, WhatsApp, Messenger, and an acquisition of Instagram. Revenue from advertisements creates more than 90% of total revenue (21).

During recent years, Facebook has often been in the news for the wrong reasons. From the Cambridge Analytica scandal to countless others, Facebook was a high risk security, and team opted to sell Facebook to decrease risk.

Verizon Communications, Inc. PFD (VZA) Sector: Communications Services

Period One 50,820.00 50,600.00 1.89 1.46

Period Two 50,600.00 50,000.00 0.69 1.48

Tenure 50,820.00 - 1.71 2.94

Tenure Actions: Called on 3/11/2019.

Verizon Communications is a telecommunications company, providing the market-leading wireless cell service in the United States. This preferred stock paid an annual dividend of 5.75%, with a maturity date in 2054. In March 2019, this was called, and the team received a redemption payout of $50,000.

Fund Manager Bios

Al Bertram Al is a first year MBA Candidate concentrating in Finance. He is currently a GTA in the Supply Chain department tasked with aiding students with the handling of their spreadsheet data. He received his undergraduate degree in Geology from the University of Tennessee and soon after started his career as a Wellsite Geologist for Nabors Industries. His background has primarily been in the Service Sector of Oil & Gas interning and working for different exploration companies including Geokinetics and CGG. Al is now transitioning from an operational role in Oil & Gas to a financial one interested in renewable energy investments from large operators as well as market analysis for the future of the industry. Upon graduation from his MBA program in December 2020, he will

seek to either return to the Energy Sector or explore opportunities in the financial landscape of the industry. He was accepted to the Haslam Torch Fund in August 2019 and will be covering the Energy and Utilities sectors. Mark Holland Bushong

Mark is a second year MBA candidate and possesses a deep interest in global markets. He has covered the Industrial sector for the Haslam Torch Fund since 1 October 2018. He recently completed a 12-week internship at Nissan Group of North America, during which he executed duties as an intern within the Capital Markets Team. He received front-row exposure to the deal-making processes associated with tapping into the US debt market by selling asset-backed securities, corporate bonds, and daily commercial paper. He also gained experience in identifying favorable scenarios during which to lock-in interest rate and cross-currency swaps. His overarching research project for the internship

involved analyzing the European Bond Market and identifying arbitrage scenarios for the firm to significantly save on debt interest expense. He will enjoy finishing his final semester in business school and is excited for full-time, finance, career opportunities at either Raytheon, Bank of America, or Bridgestone Americas.

Hunter Gregg Hunter is currently a senior majoring in Finance with a collateral in Accounting. During the summer of 2018, Hunter worked for First Tennessee Bank in the Business Banking Department as an intern primarily assessing credit risk for commercial lending clients. This past summer, Hunter worked under a portfolio manager as an intern for First Tennessee Bank's Private Client Department, where he assisted in the analysis and research of equities and fixed-income securities for portfolios of institutional clients. On campus, Hunter is a member of the Kappa Sigma fraternity, Tennessee Capital Markets Society and the University of Tennessee

Investment Group. Upon graduation in May of 2020, Hunter hopes to start a career in equity research or investment management. Brandon Messing

Brandon is a senior Finance major with a collateral in Accounting. This fall is his first semester with the Haslam fund, where he will be covering the consumer staples and consumer discretionary sectors. During his time at UT, he has been a member of the Dean’s list 5 semesters and has become a member of Tennessee Capital Markets Society and The Society for Collegiate Leadership & Achievement. This past summer, Brandon was a summer analyst at Bank of America Merrill Lynch in Phoenix, Arizona. While with BAML, Brandon contributed to improvement of the customer-to-client process and completed a capstone project centered around enhancement of revenue-driving processes. Upon graduation in May of 2020, Brandon is

looking to continue his career in the finance industry.

Jinan Nance Jinan is currently a first year full-time MBA candidate with a concentration in Finance at the University of Tennessee. Jinan joined the Haslam Fund in August 2019 and will cover the Technology and Communications sectors. He is a member of the National Black MBA Case Competition Team, the Big Orange Consulting Club, and a Graduate Teaching Assistant in the Marketing Department. His previous experience entailed studying economic and financial trends, their effect on the company and industry, researching potential companies for merger & acquisition targets, and developing forecasts based on historical. He graduated from the University of Alabama Birmingham with major in Economics and a minor in Management. After his athletic career was cut

short due to health issues, he redirected his focus to becoming a business professional. After interning through his senior year of college at Motion Industries, he was offered a full-time position as a Market Research Analyst. Alex Owens

Alex is a senior undergraduate student majoring in finance with a concentration in economics at the University of Tennessee, Knoxville. He joined the Haslam Torch Fund in spring 2019, and he currently oversees the Financial, Real Estate, and Alternatives sectors for his team. On campus, he is a teaching assistant for Bloomberg Basics and co-president of the Tennessee Capital Markets Society. Alex was born in the greater Washington D.C. area but moved to Knoxville and fell in love with the city before enrolling at UTK. During the summer of 2019, he was

an intern for PulteGroup where he contributed primarily to their strategic marketing and finance departments. This fall, he is interning at Proffitt & Goodson supporting their private wealth management team. After graduation in May 2020, Alex intends to begin a career in equity research or private wealth management.

Hazen Page

Hazen is currently a senior pursuing a Bachelor’s degree in both Finance and Supply Chain Management at the University of Tennessee, Knoxville. Hazen joined the Haslam Fund in January 2019. In his first semester on the fund, he worked with the Energy and Utilities sectors. During his second, he will manage the Industrials and Materials sectors. He is a member of the Smith Global Leadership Scholars honors program in the Haslam College of Business. During his senior year, he will write a thesis focused on building an

indexing method to quantify energy leapfrogging potential in developing countries. He will also be working with the UT Investments office as an Endowment Intern. In this role he will research money managers provided by the endowment's consultant. He is from Memphis, TN, and enjoys both playing and watching basketball. Upon graduation in May 2020, Hazen hopes to work in some capacity with the financial and energy industries. Harrison Stover

Harrison is currently a second year full-time MBA candidate, concentrating in Finance, at the University of Tennessee, Knoxville. As a member of the Haslam Fund for nearly a year, Harrison has held the responsibility of covering the Information Technology and Communications Services sectors for the fund. On campus, he has served as a graduate teaching assistant for Bloomberg training, as well as an SEC Case Competition Ambassador. Prior to starting the MBA program, Harrison grew up outside Nashville, TN, and received a Bachelor of Science in Biomedical Engineering from Mississippi State University in May 2018. During the summer of 2019, he was an intern at Change Healthcare, a healthcare technology company in Nashville, where he contributed to the finance team’s financial

modeling and free cash flow projections during the period in which the firm went public. Harrison hopes to begin a corporate finance career within the healthcare, technology, or sports industries after graduation in December 2019.

Works Cited

1) “Bloomberg Professional Services | Bloomberg Finance LP.” Bloomberg.com, Bloomberg Terminal | www.bloomberg.com/professional/

cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/Downloads/ForecastSummary.pdf

https://www.jpmorganchase.com/corporate/investor-relations 10) “Investor Relations.” | Investor Relations | Bank of America http://investor.bankofamerica.com 11) “Fund Overview” | Fact Sheet | WisdomTree Floating Rate Treasury Fund |

https://www.wisdomtree.com/etfs/fixed-income/usfr 12) “Fund Overview” | Fact Sheet | SPDR Wells Fargo Preferred Stock ETF

https://us.spdrs.com/en/etf/spdr-wells-fargo-preferred-stock-etf-PSK 13) “Investor Relations.” | Investor Relations | Applied Materials, ir.appliedmaterials.com/ 14) “Investor Relations.” | Investor Relations | Broadcom, investors.broadcom.com/. 15) “Investor Relations.” | Investor Relations | Cisco, investor.cisco.com/. 16) “Investor Relations.” | Investor Relations | IBM, ibm.com/investor/ 17) “Investor Relations.” | Investor Relations | Intel, intc.com/investor-relations 18) “Investor Relations.” | Investor Relations | Microsoft, microsoft.com/en-us/investor 19) “Investor Relations.” | Investor Relations | Salesforce, investor.salesforce.com/. 20) “Investor Relations.” | Investor Relations | Disney, thewaltdisneycompany.com/investor-relations 21) “Investor Relations.” | Investor Relations | Facebook, investor.fb.com 22) “Wall Street Journal.” | WSJ | Wall Street Journal, wsj.com 23) “Investor Relations.” | Investor Relations | BP, bp.com/en/global/corporate/investors.html 24) “BP acquisition pumps $10.5B into Texas oil plays” |Houston Chronicle |

houstonchronicle.com/business/article/BP-acquisition-pumps-10-5B-into-Texas-oil-plays-13109183.php

25) “Natural Gas Market 2019-2020 Winter Outlook”, | Natural Gas Supply Association ngsa.org/download/analysis_studies/FINAL-NGSA-EVA-2019-2020-Winter-Outlook.pdf

26) “OPEC cuts oil demand growth forecast for a third consecutive month”, | Natural Gas Supply Association | cnbc.com/2019/10/10/oil-prices-opec-downgrades-2019-oil-demand-growth-forecast.html

27) “Fund Overview” | Fact Sheet |S&P Oil & Gas Production ETF, us.spdrs.com/en/etf/spdr-sp-oil-gas-exploration-production-etf-XOP

28) “Trump Loosens Methane Standards In A Win For Oil & Gas Industry” | Energy | www.forbes.com/sites/arielcohen/2019/09/04/trump-loosens-methane-standards-in-a-win-for-oil-gas-industry/#17b5387040c1

29) Sector Performance | Utilities | eresearch.fidelity.com/eresearch/markets_sectors/sectors/sectors_in_market.jhtml?tab=learn&sector=55

30) “2019 Power and Utilities Industry Outlook”, | Deloitte | deloitte.com/us/en/pages/energy-and-resources/articles/power-and-utilities-industry-outlook.html

31) “Investor Relations.” | Investor Relations | Entergy, cdn.entergy.com/userfiles/docs/UtilityoftheFuture.pdf

32) “Investor Relations.” | Investor Relations | The Southern Company, southerncompany.com/about-us/our-business/merger.html

tenure performance report - ut · 2 tenure performance report prepared for tenure 10/1/2018 –...

Documents

peter haslam fox : white

date prepared - bme.boun.edu.tr · utkan demirci curriculum...

consistent neural activity patterns represent personally...

volume 1 bill haslam, governor · state of tennessee the...

natalie l. haslam music center

haslam lake and lang creek - powell river community...

nicky haslam for oka

service in the retention, tenure and promotion process ·...

fiske haslam four basic bonds 2005

bill haslam beth harwell

craig haslam

w. e. haslam - style in singing

14-562 brief of haslam

mcclain - haslam college of business

the well prepared candidate a workshop on tenure and...

michael c. haslam: research statement - york...

00 smith haslam prelims - us.sagepub.com

richard haslam - hsbc - september 26th

haslam chart pdf

advertiser juliet haslam