An Investment Adviser Points its Compass Toward Times Square
Armie Margaret Lee
One Compass Advisors, investment adviser to New Covenant Funds, added TimesSquare Capital Management as a subadvisor to the New Covenant Growth Fund effective this quarter. One Compass
chose TimesSquare from a pool of 27 potential firms with the help of an external consultant. The news release issued by One Compass on Wednesday did identify the consultant.
In addition, One Compass said Santa Barbara Asset Management and Sound Shore Management will assume subadvisory duties for the portion of the fund managed by
Russell Investments, interim sub-advisor to the fund. California-based Santa Barbara had subadvised the fund since 2005 and Greenwich, Connecticut-based Sound Shore had sub-advised it since 2001.
Company Press Release
Jeffersonville, IN (April 1, 2009) – One Compass Advisors, a division of the New Covenant Trust Company and investment adviser to New Covenant Funds, announces the addition of one new sub-advisor and the transition of assets to two existing New Covenant Growth Fund (NCGFX) sub-advisors. TimesSquare Capital Management has been selected to become a new sub-advisor, effective during the second quarter 2009. Additionally, Santa Barbara Asset Management and Sound Shore Management, Inc. will assume responsibility for sub-advising assets that had been managed by Russell Investments, interim sub-advisor to the Fund.
New Covenant Growth Fund is a “manager of managers” equity fund that uses a core satellite approach. Assets are allocated to five equity subadvisors, each of which focuses on certain segments of domestic and international equity markets. The Fund offers shareholders the benefits of owning a diversified portfolio of publicly traded equities and a competitive fee structure. The Fund is a no-load, socially responsible equity mutual fund with over $520 million in net asset value.
TimesSquare, headquartered in Manhattan with approximately $7 billion in assets under management, will pursue a mid-cap growth mandate. The TimeSquare approach emphasizes bottom-up equity research, fundamental analysis, and security selection. TimesSquare’s portion of the New Covenant Growth Fund portfolio is expected to be comprised of roughly sixty-five stocks with an initial value of approximately $20 million. One Compass Advisors worked with an external consultant during the manager search and vetting process to select TimeSquare from 27 potential firms.
In another move to refine the composition of the New Covenant Growth Fund, One Compass Advisors announces the completion of the transition of assets from Russell to Sound Shore and Santa Barbara. In addition to serving as an interim sub-advisor, Russell provides One Compass Advisors transition management services.
Sound Shore, based in Greenwich, Connecticut, has served as sub-advisor to New Covenant Growth Fund since 2001. The company pursues an investment strategy that attempts to capitalize on disparities between the stock price and intrinsic value of large companies. At this time, the Sound Shore portfolio represents approximately 15% of the New Covenant Growth Fund.
Santa Barbara, headquartered in Santa Barbara, California, has served as sub-advisor to New Covenant Growth Fund since 2005. Santa Barbara pursues an investment strategy focused on large, established companies its analysts expect to grow over time. Currently, the Santa Barbara portfolio represents approximately 12% of the New Covenant Growth Fund.
“We are pleased to add TimesSquare to our stable of equity sub-advisors,” stated Paul H. Stropkay, CFA and Chief Investment Officer. “While TimesSquare, Sound Shore, and Santa Barbara focus on different segments of the equity market, their processes are similar in that they emphasize business and industry analysis, independent thinking, and common sense,” he added.
New Covenant Funds is a family of faith-based, socially responsible mutual funds that are invested in a manner consistent with the social witness principals of the Presbyterian Church (U.S.A.). New Covenant Funds was registered in 1999 and is sponsored by the Presbyterian Foundation, Jeffersonville, Indiana.