NOTICE: 2019 Capital Gains Available. View PDF here.

Fund Goal

When designing our Mid Cap Core Equity fund, we realized that stock investors may find the best long-term return potential from companies overlooked by Wall Street analysts. We believe the mid-cap stock universe doesn’t always receive the broad attention its larger and smaller siblings receive. Nevertheless, these overlooked stocks may represent the market’s “sweet spot,” exhibiting attractive characteristics of large and small companies. For example, mid-cap companies typically have successfully emerged from the small-cap universe with many qualities that rival their large-cap counterparts, including experienced management teams, robust market presence, broad sales and distribution networks, and access to capital markets. At the same time, similar to the benefits driving their small-cap brethren, many mid-cap companies still may benefit from their founding entrepreneurial spirit, which can speed up decision-making and potentially fuel rapid growth. Furthermore, mid-cap companies are often acquisition targets, eyed by larger companies seeking to grow market share, offer new products, or enter new markets.

Cavanal Hill Investment Management has been managing mid-cap stock portfolios for more than 10 years via its Mid Cap Core Quantitative Equity Strategy. Effective December 31, 2016, this strategy became available to mutual fund investors as the Cavanal Hill Mid Cap Core Equity Fund.

Process

Cavanal Hill’s Mid Cap Core Equity Fund employs a quantitative approach that utilizes our best ideas for selecting stocks while also keeping a watchful eye on risk management.

Our data-driven research provides us with guidelines for the investment themes which, we believe have a better chance of success over the long term and which ones work more reliably in a given set of circumstances. This research, combined with constant monitoring of the economic landscape and the sophisticated analytics, gives us the ability to build a portfolio that we believe is suited not only to what the market finds important today, but also to what it may value tomorrow.

This process not only guides us in selecting individual stocks, it is also a key element of managing the funds’ overall risk. Further, it provides a broader view of what’s going on in the market, where we believe the best ideas are coming from now, and where we should be looking in the future. Overall, having a process that can potentially successfully navigate the market’s twists and turns is essential to generating better risk-adjusted outcomes over the long run.

Market Concerns

Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The value of the Fund’s investments may decline due to an increase in interest rates. In general, the longer a security’s maturity, the greater the interest rate risk. The Fund’s yield may decrease due to a decline in interest rates. International investing involves increased risk and volatility. Mid- and small-cap companies may be more vulnerable to adverse business or economic developments.

Morningstar Ratings

Overall Morningstar rating out of 365 US OE Fund Mid-Cap lend (for the overall period ending 3/31/2020, Institutional Shares)

Rating
Overall Morningstar Rating
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Cavanal Hill Mid Cap Core Fund was rated against the following numbers of US OE Fund Mid-Cap Blend over the following time periods: 365 funds in the last three years. Past performance is no guarantee of future results.
Show More

Morningstar Rankings

Category: US OE Fund Mid-Cap Blend (as of 3/31/2020)

RankPercentile
1 Year54/40417
3 Year76/36527

Rankings are for Institutional Class and are based on total return excluding sales charges, independently calculated and not combined to create an overall ranking. For periods not shown, Morningstar does not provide rankings based on synthetic performance.

Morningstar rankings are based on a fund's average annual total return relative to all funds in the same Morningstar category. Fund performance used within the rankings, reflects certain fee waivers, without which, returns and Morningstar rankings would have been lower. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100.

© 2020 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Show More

Lipper Leaders Designation

  • 5
    Total Return
    Lipper Leader
    Total Return
    (A and Institutional Shares)
  • 5
    Consistent Return
    Lipper Leader
    Consistent Return
    (A and Investor Shares)
  • 5
    Expense
    Lipper Leader
    Expense
    (Institutional Shares)

Lipper Rankings

Category: Lipper Mid-Cap Core Funds (as of 3/31/2020)

RankPercentile
1 Year36/35311
3 Year61/32819
Rankings are for Institutional Class and are based on average annual total returns, but do not consider sales charges.The Lipper ratings for Expense identify a fund that has successfully managed to keep its expenses low relative to its peers and within its load structure. Lipper ratings for Total Return reflect the funds' historical total return performance relative to its peers. Lipper ratings for Consistent Return identify a fund that has provided relatively superior consistency and risk-adjusted returns when compared to a group of similar funds, which achieve high ratings for Consistent Return, may be the best fit for investors who value a fund's year-to-year consistency relative to other funds in a particular peer group. The Lipper Mutual funds Average is an equally weighted average of the mutual funds within their respective Lipper classification, adjusted for reinvestment of capital gains distributions and income dividends. Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperweb.com. Thomson Reuters Copyright 2020, all rights reserved.
Show More

Fund Information as of 4/30/20

Class AClass CInvestorInstitutional
Net Asset Value$9.86$9.65$9.81$9.81
SymbolAAWVXACWVXAPWVXAIWVX
CUSIP14956P48914956P47114956P46314956P455
Inception12/30/1612/30/1612/30/1612/30/16
Gross Expense Ratio6.24%27.23%5.32%7.35%
Net Expense Ratio1.06%1.81%1.06%0.81%

Fund Statistics as of 3/31/20

Total Net Assets$823,274
Number of Holdings134
Turnover Ratio73.38%
Trailing 4 Quarters P/E Ratio16.4x
Mean (Average) Market Capitalization$15.5 bil.

Currently, contractual fee waivers are in effect from December 26, 2019 through December 31, 2020.

Show More