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Strategic Growth

Strategic Growth

Process and Philosophy: Quality – Discipline – Focus:

The Strategic Growth Strategy is a product of a rigorous investment process designed to identify and invest exclusively in high quality, advantaged and growing companies, primarily with a mix of secular and accelerating growth profiles with some cyclical growth profiles included when their cycles and valuations warrant. The team first identifies a business characterized by their ability to generate predictable growth and cash flow. They then apply a thorough valuation methodology to portfolio candidates using discounted cash flow and scenario-based analysis to determine optimal entry points based on probabilities of achieving return targets as well as consideration of downside risks. The team’s accumulated understanding of the fundamental factors that they believe drive long-term intrinsic value growth of a company along with their focus on understanding end market exposures, provide them with the conviction to meaningfully allocate capital to each portfolio position. The result is a deliberately diversified portfolio of 35-45 investment opportunities in which the team has high conviction.

The Strategic Growth Strategy is designed to provide long-term growth of capital and may be appropriate for investors seeking a permanent allocation to large cap growth equities. The strategy provides investors with access to companies that the investment team believes have structural, competitive, and economic advantages relative to competitors and are also priced at attractive valuations. This scenario has the potential to produce favorable relative returns over time.

Strategic Growth: Portfolio Composition

    • Each separate account owns 35-45 individual securities that represent our highest conviction opportunities for long term capital appreciation.
    • Portfolio is prudently diversified across end markets based on the underlying fundamentals of the businesses owned versus the traditional sector weights of the Russell 1000 Growth index.
    • Securities are purchased initially in 1.5% – 2% positions and allow for maximum position sizes up to 5% at cost. High active share emphasized.
    • Targeting long term (+3 years) investment theses – portfolios have historically produced turnover of 40-60% per year.

©Franklin Street Advisors, Inc., and Franklin Street Trust Company, All Rights Reserved. 1450 Raleigh Road, Suite 300, Chapel Hill, NC 27517 · 1-877-489-2600 • Important Disclosures

Franklin Street Advisors, Inc., is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply any level of skill or training. Additional information about the advisory services offered by Franklin Street Advisors, Inc., is available upon request and also on the SEC’s website at www.adviserinfo.sec.gov.

Franklin Street Trust Company is a non-depository trust company chartered by the State of North Carolina and regulated by the North Carolina Office of the Commissioner of Banks. Neither Franklin Street Advisors, Inc., nor Franklin Street Trust Company is FDIC-insured, but both are wholly-owned, indirect subsidiaries of Fifth Third Bank, National Association and Fifth Third Bancorp.

Franklin Street Partners is a dba for Franklin Street Advisors, Inc., and Franklin Street Trust Company, which includes references to our former parent entity, Franklin Street Partners, Inc.

Investment Products Are: Not a Deposit | Not FDIC Insured | Not Insured By Any Federal Government Agency | Not Bank Guaranteed | May Lose Value