Equity

SMID Core SMA

Russell 2500™ Index
Benchmark name
7/1/2007
Inception date
Systematic Edge – Equity Team
Team
$116.1K
Assets under management
Data as of 12/31/2023
SMA overview
Unlocking better outcomes for clients
The SMID Core SMA pursues long-term capital appreciation by investing in small- and mid-cap companies with attractive valuations and strong earnings.

The SMA uses a consistent, risk-controlled approach to core investing.

Key differentiators

  • Favors attractively valued stocks at unsustainably cheap valuations and companies with share buybacks
  • Seeks companies with improving fundamentals, increasing earnings estimate revisions, expanding margins, and free cash flow generation
  • Favors companies with healthy liquidity, strong money flow, and high trading volume

General facts

Weight average market cap

7.76

Dividend yield

1.30%

Quick resources

Performance

Average annual returns Add Minus

Average annual returns

(as of 12/31/2023)
7/1/2007
1M
3M
YTD
1Y
3Y
5Y
10Y
Inception
Composite (Pure Gross)
10.15
12.29
26.61
26.61
13.32
15.72
10.57
7.98
Composite (Net)
9.87
11.44
22.89
22.89
9.98
12.32
7.89
5.88
Russell 2500™ Index
10.72
13.35
17.42
17.42
4.24
11.67
8.36
7.93

One-month, three-month and year-to-date returns are not annualized.

Performance is historical and does not guarantee future results. For more information, please refer to the GIPS composite report found in the documents section.

Please keep in mind that high double-digit returns were primarily achieved during favorable market conditions. You should not expect that such favorable returns can be consistently achieved. A fund's performance, especially for short time periods, should not be the sole factor in making your investment decision.

Calendar year Add Minus

Calendar year

(as of 12/31/2023)
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Fund
26.61
-13.99
33.61
10.78
28.75
-15.90
16.04
10.75
6.30
14.59
Benchmark
17.42
-18.37
18.18
19.99
27.77
-10.00
16.81
17.59
-2.90
7.07

Performance is historical and does not guarantee future results. For more information, please refer to the GIPS composite report found in the documents section.


Performance and volatility metrics Add Minus

Performance and volatility metrics

(as of 12/31/2023)
3 Year 5 Year 10 Year
Alpha 8.72 4.17 25.59
Beta 0.93 0.95 0.94
Downside Market Capture Ratio 85.34 95.71 96.12
Information Ratio 1.51 0.71 0.43
R2 0.91 0.94 0.93
Sharpe Ratio 0.56 0.61 0.51
Standard Deviation 19.68 22.58 18.41
Tracking Error 6.02 5.69 5.12
Upside Market Capture Ratio 114.13 108.32 95.86
Correlation 0.96 0.97 0.96

Composition

Portfolio statistics Add Minus

Portfolio statistics

(as of 12/31/2023)
SMA Benchmark
Number of holdings 52 2468
Top 10 holdings Add Minus

Top 10 holdings

(as of 12/31/2023)
Security
SMA
Merchants Bancorp
2.87%
Fabrinet
2.84%
Builders FirstSource, Inc.
2.82%
PulteGroup, Inc.
2.73%
Boise Cascade Co.
2.70%
nVent Electric plc
2.70%
Customers Bancorp, Inc.
2.64%
Axos Financial, Inc.
2.45%
Allison Transmission Holdings, Inc.
2.40%
Patrick Industries, Inc.
2.37%
Top 10 represents 26.53% of total net assets

Largest company weights are based on market value of the representative account and not necessarily held in all client portfolios. The information shown is not intended to be, nor should it be construed to be, a recommendation to buy or sell an individual security. A list of all holdings from the prior one-year period is available upon request.

Sector allocation Add Minus

Sector allocation

(as of 12/31/2023)
Type
SMA
Benchmark
Cash & equivalents
1.67% -
Communication services
1.49% 2.60%
Consumer discretionary
10.96% 12.86%
Consumer staples
2.26% 3.18%
Energy
7.36% 4.85%
Financials
18.52% 16.61%
Health care
15.84% 12.15%
Industrials
21.55% 19.75%
Information technology
13.10% 12.69%
Materials
2.15% 5.48%
Real estate
3.97% 7.24%
Utilities
1.14% 2.59%

Sector weighting is based on a representative account within the Allspring Global Investments composite and may have changed since the date specified. Percent total may not add to 100% due to rounding.

Documents

Literature Date
Fact Sheet 12/31/2023 Download Download
Our team
Meet the investment team

The team believes company returns are predictable based on quantitative factors. They seek to systematically harvest these factors to generate alpha for their clients.

Contact Us

We look forward to helping you with your investment needs

 

Market Risk: Stock values fluctuate in response to the activities of individual companies and general market and economic conditions. Foreign Investment Risk: Foreign investments may be subject to lower liquidity, greater price volatility and risks related to adverse political, regulatory, market or economic developments. Growth/Value Investing Risk: Securities that exhibit growth or value characteristics tend to perform differently and shift into and out of favor with investors depending on changes in market and economic sentiment and conditions. Focused Portfolio Risk: Changes in the value of a small number of issuers are likely to have a larger impact on a portfolio's net asset value than if the strategy held a greater number of issuers.

Allspring Managed Account Services (the firm) is a unit within Allspring Global Investments and is responsible for the management and administration of the Allspring Funds Management, LLC, retail separately managed account portfolios (wrap portfolios). Allspring Funds Management acts as a discretionary manager for separately managed accounts ("SMA") and as a non-discretionary model provider in a variety of managed account or wrap fee programs (“MA Programs”) sponsored by third party investment advisers, broker-dealers, or other financial services firms (a “Sponsor”). When acting as non-discretionary model provider, Allspring Funds Management responsibility is limited to providing non-discretionary investment recommendations (in the form of model portfolios) to the Sponsor. The Sponsor may use these recommendations in connection with its management of MA Program accounts. In these “model-based” programs, the Sponsor serves as the investment manager and maintains trade implementation responsibility.