INVESTMENT PROCESS
A Team Approach
The Investment Committee is the foundation of our group decision-making process. The committee, which is comprised of six senior principals and four ex-officio members, is responsible for the firm’s portfolio structure and all investment decisions. The committee directs and monitors the firm’s extensive, internal research efforts and oversees the portfolio management function.
fundamental analysis
Our predominantly bottom-up investment decision-making process strives to identify leading companies in structurally attractive industries. The Investment Committee relies primarily on the fundamental research of our in-house analysts to evaluate the long-term attractiveness of various industries and to assess the competitive strengths of industry participants. The analysts present specific buy and sell recommendations to the Investment Committee, which makes the final decision concerning which securities should be included in the model portfolios and their recommended weightings. We seek to emphasize businesses where competitive advantages can be maintained, where earnings streams are sustainable and growing, and where valuations are judged to be reasonable. We are benchmark agnostic, and our portfolio can differ significantly from it.
macroeconomic outlook
Upon assessing internally generated fundamental data and select external resources, the Investment Committee overlays a macroeconomic and capital markets outlook to the decision-making process. This macro overlay provides a context for the analysts’ research efforts and helps direct them to the industries and companies most aligned with the committee’s current outlook.
In summary, approximately 80% of Fayez Sarofim & Co.’s investment process focuses on industry-specific and company-specific fundamental research and the remaining 20% focuses on the macroeconomic outlook.
LARGE CAP EQUITY
GLOBAL EQUITY
INTERNATIONAL EQUITY
EQUITY INCOME
CORE FIXED INCOME
BALANCED PORTFOLIO