For investors seeking long-term capital growth in large-cap stocks. Emphasizes stocks with a market cap of $5 billion or greater (at cost).

As of September 30, 2008

The Large-Cap Equity Portfolio focuses on a high quality universe of U.S. and select European firms with equity market capitalizations in excess of $5 billion. This list of approximately 425 companies is narrowed down to a working list of around 100 firms that meet KING’s Business Valuation Approach.

KING offers the large-cap product for investors who seek a high dividend-yielding, defensive equity class portfolio with low volatility. The large-cap portfolio comprises holdings that are broadly diversified among the Standard and Poor's (S&P) ten economic sectors. Sector rotation is minimal and sector concentrations are limited to 30% of the total equity portfolio value. Equities are selected with the expectation of long-term total returns exceeding those of the S&P 500 Index, and an expected average holding period exceeding three years. Anticipated annual portfolio turnover of less than 20%, maximizes tax efficiency. The stocks selected have current dividend yields that generally match or exceed those of the major benchmark equity indices such as the S&P 500, and demonstrate a consistent track record of steady dividend growth.

By using the Business Valuation Approach, KING invests in companies that are among the most industry dominant, possessing a successful, long-term financial track record, identifiable competitive advantages, industry-leading products and services, major market shares, pricing power, and a proven ability to adapt and innovate in today’s fiercely competitive marketplace. These well-managed firms have produced a consistent record of financial success as measured by steady growth in sales, earnings, free cash flows, and dividends over many business cycles. Management’s commitment to conservative financial discipline is demonstrated by a firm’s generation of consistently high real returns on equity while employing relatively low financial leverage. Firms that produce strong free cash flow provide funds for internal growth of the business without balance sheet impairment and constant shareholder dilution from significant new equity issuance. Most importantly, a record of persistent dividend growth reduces share price volatility, enhances inflation protection, and commits management to efficient financial stewardship and value generation for shareholders.

The Large-Cap Equity Portfolio is managed with the same bottom-up investment philosophy as all KING products. Through disciplined, bottom-up research, KING looks for companies that appear to be selling for less than their true intrinsic value.

The portfolio characteristics presented in the KING Large-Cap Equity Portfolio are representative of all of the portfolios managed in the large-cap style, and are not specific to any individual portfolio. Individual portfolios may vary.

Large-Cap Portfolio Brochure (PDF 866kb)