Asset Allocation – Compass

*Composite inception date is 12/31/2006
N.R. – Not Required

June 30, 2024

The end result of the investment process is a portfolio comprised of companies with solid growth prospects trading at compelling valuation levels.

The Compass Composite contains fully discretionary accounts that are comprised of domestic stocks and bonds that are actively allocated.  Clients should average about 60% in stocks and 40% in bonds over the long run. Cornerstone Investment Partners set weights accordingly between stocks and bonds based on their relative attractiveness and repositions portfolios at the beginning of the month if the move is greater than a 5% difference in the weighting between the asset classes. Equity allocation can range from 40-80% and Fixed income 20-60%. The fixed income portion includes cash.  Portfolios are rebalanced on a monthly basis. For comparison purposes the composite is measured against 60% of the  S&P 500 Index and 40% of the Barclays Aggregate Index. The custom blended benchmark is calculated within our accounting and performance measurement system and is static.  Cornerstone Investment Partners’ has constructed a universe of 800 large, liquid securities, including non-US companies, traded on US exchanges.  **Pure gross returns are presented as supplemental information as they do not reflect the deduction of any expenses, including trading costs. Cornerstone Investment Partners, LLC is an independent, employee owned investment advisory firm.  The firm maintains a complete list and description of composites, which is available upon request.  Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Past performance is not indicative of future results. The U.S. Dollar is the currency used to express performance. The composite includes both bundled fee and non-bundled fee accounts. Returns are presented gross and net of management fees and include the reinvestment of all income. For non-bundled fee accounts, gross returns were reduced by transaction costs, and the net of fee performance was calculated using actual management fees. For bundled fee accounts gross returns are shown as supplemental information and have not been reduced by transaction costs, net of fee performance has been reduced by the entire bundled fee. The bundled fee includes brokerage commissions, administrative, and custodial services, and in some cases the investment management fee.  Some of the bundled fee accounts included paying the investment management fee separately from the bundled fee.  For these accounts, the net of fee performance has been reduced by both the bundled fee and the investment management fee.  For non-fee paying accounts, a model fee based on the standard investment advisory schedule was applied. Beginning October 1, 2008, composite policy requires the temporary removal of any portfolio incurring a client initiated significant cash inflow or outflow of 30% of portfolio assets.  The Compass composite was created and incepted on December 31, 2006. The annual composite dispersion is an asset-weighted standard deviation calculated for the accounts in the composite the entire year. Cornerstone Investment Partners claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Cornerstone Investment Partners has been independently verified for the periods September 30, 2001 thru December 31, 2023.  A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards.  Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis.  The Compass composite has had a performance examination for the periods December 31, 2006 thru December 31, 2023.  The verification and performance examination reports are available upon request.  Benchmark returns are not covered by the report of independent verifiers.  Policies for valuing investments, calculating performance, and preparing GIPS Reports are available upon request.  Submit requests to Cornerstone Investment Partners: 3438 Peachtree Rd, NE; Suite 900; Atlanta, GA 30326. Phone: 404-751-3850   Email: marketing@cornerstone-ip.com.  The general fee schedule for equity accounts is as follows: 0.75% on the first $10,000,000; 0.55% on the next $10,000,000 and 0.35% on the balance. Actual investment advisory fees incurred by clients may vary.  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. Due to the marketing rule that went into effect on 11/4/22, the net returns were updated to comply with this regulation.  Additional information is available upon request.