U.S. Fundamental Stability & Value (US FSV)

  • U.S. FSV begins with the largest 500 U.S. stocks, eliminates those with the worst through-cycle fundamental stability and highest debt levels, and then invests in the most attractively valued remaining 100 companies based on Distillate Capital’s normalized free cash flow methodology. The portfolio is weighted by free cash flow generation and is rebalanced quarterly.1
  • U.S. FSV is designed chiefly to preserve capital in down markets, but also seeks to keep pace in rising ones.

 

 

More information on our methodology and approach to valuation, quality, and risk are available on the process section of our website.

 


Strategy Performance (as of 12/31/2019):

A copy of our U.S. FSV GIPS Report can be downloaded HERE.

 


Portfolio Characteristics (as of 1/8/2020):


* 2017 performance represents the period from 5/31/17 (inception) to 12/31/2017.

** Since inception performance represents the period from 5/31/17 (inception) to present (the date noted on the chart or table).

1 Due to corporate actions, the actual number of holdings can vary slightly around the target of 100.

2 Data for the S&P 500 reflects the holdings of the IVV ETF. Data for FSV reflects the constituents of a representative composite account. Glossary of terms: Free Cash Flow Yield refers to Distillate’s proprietary cash flow-based valuation metric. It measures a company’s annualized, estimated, adjusted free cash flow over a multi-year period relative to its adjusted enterprise value. P/E is a measure of per share market value compared to FY2 EPS estimates, downloaded from FactSet. It excludes PE ratios less than 0 or greater than 100. Fundamental Stability is a measure of cash flow stability over time, calculated as a regression statistic of cash flow per share against time, and looking back multiple years with actual reported data, and forward multiple years using estimated data.  Leverage is an unadjusted measure of a company’s Net Debt compared to its estimated FY1 Earnings Before Interest Taxes Depreciation & Amortization.

Disclosures: Distillate Capital Partners, LLC (“Distillate”), is a registered investment adviser with United States Securities and Exchange Commission in accordance with the Investment Advisers Act of 1940.

Distillate Capital Partners, LLC (“Distillate”) claims compliance with the Global Investment Performance Standards (GIPS®).  GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.  To receive a GIPS Report and/or our firm’s list of composite/pooled fund descriptions please email your request to info@distillatecapital.com.