To pursue its objective, under normal circumstances, the Fund invests at least 80% of its net assets in a diversified portfolio of common stocks of Mid Cap U.S. companies that demonstrate governance diversity and leadership.
Cavanal Hill's Mid Cap Diverse Leadership 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 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.
The portfolio management team's final investment secletion process continues to favor companies with strong governance, diversity and leadership ESG screening criteria rankings relative to industry peers. The risk ratings, combined with qualitative analyses, of key governance, diversity and leadership performance indicators are given more or less relative weight compared to the broader range of potential assessment categories.
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.
Loss of money is a risk of investing in the Fund. In addition, the principal risks of investing in the Fund, which could adversely affect the Fund’s net asset value, yield or total return are: The market value of a security may move up and down, sometimes rapidly and unpredictably. The risk that the stocks of mid-capitalization companies often have greater price volatility, lower trading volume, and less liquidity than the stocks of larger, more established companies. The value of a security may decline for a number of reasons which directly relate to the issuer, such as management performance, earnings and sales trends, investor perceptions, financial leverage or reduced demand for the issuer’s goods or services. Small cap companies may be more vulnerable to adverse business or economic developments. They may also be less liquid and/or more volatile than securities of larger companies or the market averages in general. Small cap companies may be adversely affected during periods when investors prefer to hold securities of large capitalization companies. A Fund may engage in active and frequent trading to achieve its principal investment objectives. This may result in the realization and distribution to shareholders of higher capital gains as compared to a fund with less active trading policies, which would increase and investor’s tax liability unless shares are held through a tax deferred or exempt vehicle. Frequent trading also increases transaction costs, which could detract from a Fund’s performance. There is no guarantee that the investment techniques and analyses used by the Fund’s portfolio managers will produce the desired results. In making investment consistent with ESG considerations, the Fund may choose to sell, or not to purchase, investments that are otherwise consistent with its investment objective. The application of ESG criteria will affect he Fund’s exposure to certain issuers, industries, sectors, regions and countries and my impact the relative financial performance of the Fund – positively or negatively – depending on whether such investments are in or out of favor. Investment selected using quantitative methods employ models that are built, developed, and tested using historical data in a predictive fashion. The success of such models depend on a number of factors, including the validity, accuracy and completeness of the model’s development, implementation and maintenance, the model’s assumptions, factors, algorithms and methodologies, and the accuracy and reliability of the historical data. While historical relationships can be measured and quantified, there is no guarantees that such relationships will persist going forward. Data for some companies may be less available, less current or inaccurate and investment selection could be adversely affected if erroneous or outdated data is utilized. The weight placed on a particular data characteristic in the model or changes in the market may cause performance to differ from what the model predicts or the market as a whole. There can be no assurance that quantitative methodologies will enable the Fund to achieve its objective. Higher transaction costs, delayed settlements, currency controls or adverse economic and political developments may affect foreign investments.
To the extent that the Fund makes investments with additional risks, those risks could increase volatility or reduce performance. The Fund may trade securities actively, which could increase its transaction costs (thus lowering performance) and may increase the amount of taxes that you pay.
Overall Morningstar rating out of 376 US OE Fund Mid-Cap lend (for the overall period ending 12/31/2020, Institutional Shares)
|Overall Morningstar Rating|
Category: US OE Fund Mid-Cap Blend (as of 12/31/2020)
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.
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Category: Lipper Mid-Cap Core Funds (as of 12/31/2020)
|Class A||Class C||Investor||Institutional|
|Net Asset Value||$11.90||$11.59||$11.83||$11.84|
|Gross Expense Ratio||13.12%||14.02%||13.27%||13.02%|
|Net Expense Ratio||1.06%||1.81%||1.06%||0.81%|
|Total Net Assets||$1,114,784|
|Number of Holdings||128|
|Trailing 4 Quarters P/E Ratio||21.7x|
|Mean (Average) Market Capitalization||$17.8 bil.|
Currently, contractual fee waivers are in effect from December 28, 2020 through December 31, 2021.