Performance

Naylor & Company has used a consistent investment philosophy to generate long-term returns in excess of the S&P 500 and, our benchmark, the Russell 3000®.  Our mission is to continue to use this same philosophy to produce market-beating returns in the future.

Naylor & Company claims compliance with the Global Investment Performance Standards (“GIPS®”) and has been independently verified for the periods April 10, 2003 to December 31, 2016, by Ashland Partners & Company LLP.

 

Annualized Returns (Net of Fees)1

  Naylor & Company Core CompositeSM Russell 3000® Index
YTD 17.3% 13.9%
1 Year 29.9% 18.7%
3 Year 12.0% 10.7%
5 Year 23.4% 14.2%
Since Inception (4/10/03) 15.2% 10.3%

Annualized Returns (Gross of Fees)1

Naylor & Company Core CompositeSM Russell 3000® Index
YTD 18.9% 13.9%
1 Year 32.3% 18.7%
3 Year 14.4% 10.7%
5 Year 25.9% 14.2%
Since Inception (4/10/03) 17.8% 10.3%

1As of September 30, 2017

NAYLOR & COMPANY INVESTMENTS, LLC
CORE COMPOSITESM

ANNUAL DISCLOSURE PRESENTATION

Year End Total Firm Assets
(USD)
Composite Assets
(USD)
Number of Accounts % of Non-Fee-Paying Annual Performance Results Composite Russell 3000® Index Composite Dispersion

Composite 3 Yr
St Dev

Benchmark 3 Yr
St Dev

Gross Net
2016 $44,162,493 $39,984,180 66 1.3% 5.3% 3.2% 12.7% 0.7% 17.6% 10.9%
2015 $29,536,994 $24,653,435 61 2.1% 6.9% 4.4% 0.5% 1.0% 16.0% 10.6%
2014 $24,344,221 $20,692,467 42 4.5% 20.2% 17.6% 12.6% 1.6% 15.8% 9.3%
2013 $19,668,544 $15,691,029 36 5.2% 79.2% 75.4% 33.6% 3.5% 17.9% 12.5%
2012 $10,998,148 $7,740,985 35 0% 37.9% 35.0% 16.4% 3.0% 21.2% 15.7%
2011 $7,413,821 $5,537,499 33 0% (4.2%) (6.2%) 1.0% 2.0% 26.8% 19.4%
2010 $7,162,159 $6,102,540 35 0% 24.8% 22.2% 16.9% 2.6% N.A.2 N.A.2
2009 $6,080,814 $4,953,277 34 0% 50.7% 47.5% 28.3% 4.2% N.A.2 N.A.2
2008 $4,559,375 $3,389,829 34 4.7% (44.4%) (45.8%) (37.3)% 2.4% N.A.2 N.A.2
2007 $7,045,453 $6,537,671 49 10.6% (1.2%) (3.5)% 5.1% 2.5% N.A.2 N.A.2
2006 $6,474,615 $5,778,506 45 11.5% 29.6% 26.4% 15.7% 3.0% N.A.2 N.A.2
2005 $3,119,884 $2,627,593 29 9.7% 2.7% 0.1% 6.1% 2.2% N.A.2 N.A.2
2004 $2,274,203 $2,064,033 27 11.8% 15.1% 12.2% 12.0% 3.1% N.A.2 N.A.2
2003* $1,210,192 $1,064,562 16 20.1% 79.1% 77.2% 32.5% N.A.1 N.A.2 N.A.2

*Composite and benchmark performance are for the period April 10, 2003 to December 31, 2003
N.A.1 – Information is not statistically meaningful due to the period not covering a full year.
N.A.2 – The 3-year annualized standard deviation measures the variability of the composite and the benchmark over the preceding 36-month period. The 3-year standard deviation is not presented for non-required periods 2003 to 2010.

Naylor & Company Core CompositeSM includes all fee-paying and non-fee paying portfolios managed to a strategy of finding growth at a good price.  Naylor & Company Investments, LLC (“Naylor & Company”) uses a quality, focused portfolio of stocks seeking to generate returns above those of the overall U.S. stock market over a market cycle.  Naylor & Company analyzes the fundamentals of companies (ranging in size from micro-cap to large cap) to find investments with excellent long-term earnings growth prospects, but with stock prices that, in our opinion, are good relative to their expected earnings growth rates.  Naylor & Company also invests in selected turnaround and cyclical companies.  In April 2013, Naylor & Company began investing in certain warrants.  Investments in warrants have not and will not exceed 10% of portfolio values.  Portfolios within the composite are concentrated, holding approximately 30-50 securities, so returns may have a lower correlation with the overall stock market, and may exhibit higher volatility than the overall stock market.  The benchmark presented is the Russell 3000® Index, which represents 98% of the investable U.S. equity market and is shown as a market indicator, for comparative purposes only.  The minimum account size for this composite is $20,000.  The Composite was created December 2013. 

Naylor & Company claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards.  Naylor & Company has been independently verified for the periods April 10, 2003 to December 31, 2016.

Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Core Composite has been examined for the periods April 10, 2003 to December 31, 2016.  The verification and performance examination reports are available upon request.

Naylor & Company is a state-registered, independent registered investment advisor (“RIA”).  The firm’s list of composite descriptions is available upon request.

Results are based on fully discretionary accounts under management, including those accounts no longer with the firm.  Composite performance is presented net of foreign withholding taxes on dividends, interest income, and capital gains.  Past performance is not indicative of future results.

The U.S. Dollar is the currency used to express performance.  Returns are presented gross and net of management fees and include the reinvestment of all income.  Net of fee performance was calculated using actual management fees.  The annual composite dispersion presented is an asset-weighted standard deviation calculated for the accounts in the composite the entire year.  Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.

The investment management fee for the composite is 2.00%.  Actual investment advisory fees incurred by clients may vary, and are negotiable.

The performance information for Naylor & Company's Core Composite Annual Presentation is on the preceding page.

Firm Brochure/Form ADV Part II
Naylor & Company’s Firm Brochure (Form ADV Part II) contains additional disclosures.  For a copy of the brochure, click here.

 

Morningstar Disclosure
The Naylor & Company Core Composite SM received a Morningstar Overall Rating™ of 5 stars among 217 Mid-Cap Growth separate accounts, and 4 stars among 217 separate accounts, 5 stars among 204 separate accounts and 5 stars among 170 separate accounts for the 3-, 5- and 10-year periods, respectively.

The Morningstar Rating for separate accounts, commonly called the star rating, is a measure of a separate account's risk-adjusted return, relative to other separate accounts in the same Morningstar Category. Separate accounts are rated from 1 to 5 stars, with the best performers receiving 5 stars and the worst performers receiving 1 star. Separate accounts are rated for up to three periods (three, five, and 10 years), and ratings are recalculated each quarter. The Morningstar Rating for separate accounts uses an enhanced risk-adjusted return measure, which accounts for all variations in a separate account’s monthly performance, with more emphasis on downward variation. Separate accounts are ranked against others in the same category and stars are assigned as follows: Top 10% - 5 stars, Next 22.5% - 4 stars, Middle 35% - 3 stars, Next 22.5% - 2 stars, Bottom 10% - 1 star.

Fees for separate accounts can vary widely and are negotiated between the asset manager and the investor. Morningstar has chosen to employ the AIMR-approved standard of gross-of-fees performance (before fees have been taken out) to compare separate accounts. Net-of-fees calculations often deduct the highest theoretical fees that an investor may pay. Morningstar will not calculate ratings for categories or time periods that contain fewer than five separate accounts. Each investor in the same separate account can experience slightly different total returns, because investors have different account preferences and restrictions. Therefore, all separate account performance data is reported to Morningstar as a "composite" of similarly managed portfolios. Separate accounts that do not have ratings can be divided into two groups: those that do not qualify to be rated and those that did not participate. A separate account will not get a Morningstar Rating if: It is less than three years old, the firm is not AIMR-compliant, or the category contains fewer than five separate accounts that are eligible for a rating.

© 2017 Morningstar, Inc. All rights reserved. The Morningstar 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.

 

Five Star Professional Wealth Manager Selection Criteria
Click here to see the selection criteria used by Five Star Professional to choose award recipients.

 

Pensions & Investments Ranking Criteria
The Naylor & Company Core Composite SM was ranked Number 1 in the 5-Year (up to 6/30/2014) Pensions & Investments category of Domestic Equity Blend/SMAs. There were 553 composites in this category. The N&C Core Composite was also ranked No. 1 in the 5-Year (up to 12/31/2015), No. 2 (up to 12/31/2016) and No. 3 (up to 6/30/2017) Pensions & Investments category of U.S. Stocks/SMAs. There were 2,167 composites in this category. The criteria used to determine these peer groups are as follows: 1) the composite must be a U.S. composite, 2) the firm must be GIPS compliant, 3) the composite must not be retail only, 4) the composite must have a compete return history for the time period up to the most recent quarter and 5) the composite must be in one of the following categories: Large-Cap Blend, Mid-Cap Blend or Small-Cap Blend (for the 2014 ranking) and one of the following categories (for the 2015-2017 rankings): Large Blend, Large Growth, Large Value, Mid-Cap Blend, Mid-Cap Growth, Mid-Cap Value, Small Blend, Small Growth, Small Value, Bear Market, Financial, Health, Natural Resources, Preferred Stock, Precious Metal, Real Estate, Technolgy, Utiliities, Equity Energy.

 

GIPS® is a registered trademark of CFA Institute.  CFA Institute has not been involved in the preparation or review of this report/advertisement.