Dear Mr. and Mrs. LaPorte, · 2020. 5. 5. · P2 Dividend Yield: 0.00% Total Dividend Yield:0.00%...

Dear Mr. and Mrs. LaPorte, Thank you so very much for the opportunity to manage this fund. Because of your continued generosity, we are able to enhance our learning experience far beyond what our classroom curriculum can and gain invaluable real-world knowledge that we can apply in our careers. Much like the majority of the world, our experience has changed over the past few months due to COVID-19. All of our meetings are now done through videoconferencing, and all of our collaborative work is done through shared documents. Despite these circumstances, our expectations and our dedication to this fund have not changed, as we continue to strive to deliver outperformance in our fund. During Period 2 of our academic year (January 1, 2020 – March 31, 2020), the global economy was shaken by drastic measures meant to slow the spread of COVID-19. Our fund returned -13.64% over this period, which was enough to outperform the S&P 500 (-19.60%) but underperform our benchmark (-11.66%). We entered 2020 with our portfolio positioned relatively conservatively, with close to 30% of our portfolio held in cash or alternative positions. Even as economic data looked strong, we were unable to find value in equity prices as many of our target companies reached 52-week, or all-time, highs. That relatively conservative position paid off when news of the COVID-19 outbreak began to spread and the market began to sell off. Some of our holdings however, particularly the two REITs (LAMR and STOR) and defense holding RTN, were hit particularly hard and experienced their share prices drop over 35%, which brought down the portfolio as a whole. We purchased positions in companies that we believed stood to benefit from the “new normal” coming out of this pandemic such as IBM, Amazon and Microsoft, and removed holdings that our research suggested would have a long and slow recovery such as Visa. We cannot express how fortunate we are to serve as the fund managers for this Torch Fund, and we will continue to work hard in order to show our gratitude for your investment in our futures. While there were both positives and disappointments to take away from our performance this quarter, we embrace the challenge of managing this fund over the uncertain periods ahead. Sincerely, The LaPorte Torch Fund Team

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Table of Contents Cover 1

Letter 2

Table of Contents 3

Performance Summary 4

Portfolio Highlights 6

Portfolio Details 7

Economic Outlook 9

Sectors:

Consumer Discretionary 10

Consumer Staples 13

Industrials 17

Information Technology 22

Financial Services 27

Real Estate 30

Alternatives 33

Healthcare 36

Materials 40

Works Cited 42

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Performance Summary Period 2

Top 5 Performers Bottom 5 Performers AMZN 4.49% STOR -50.40% AGG 3.10% LAMR -41.43% KO 2.57% RTN -39.89%

USFR 0.48% VMC -24.71% IBM 0.08% GD -24.39%

Fund Benchmark Actual Spread LaPorte -11.66 -13.64 -1.98 Haslam -13.22 -13.27 -0.05 Carroll -12.25 -11.91 0.34

McClain -27.21 -25.40 1.81

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Performance Summary Tenure

Top 5 Performers Bottom 5 Performers INTC 12.80% STOR -49.69%

AMZN 9.41% LAMR -35.07% AMGN 6.34% RTN -32.19%

V 6.16% VMC -28.11% AGG 2.63% DLTR -27.67%

Fund Benchmark Actual Spread LaPorte -6.00 -10.98 -4.98 Haslam -7.04 -8.59 -1.55 Carroll -7.441 -7.447 -0.006

McClain -21.62 -20.56 1.06

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Por4olio Highlights Period 2

Period 2 Tenure

Portfolio Weighted

Benchmark Portfolio Weighted

Benchmark

Total Return -13.64% -11.66% -10.69% -5.70%

Beta 1.1070 1.0000 1.0951 1.0000 Daily Standard

Deviation 0.0288 0.0233 0.0203 0.0166 Annualized Sharpe -1.3140 -1.4405 -0.6814 -0.4187 Annualized Taylor -0.6532 -0.6416 -0.2418 -0.1329

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Por4olio Details Period 2

8

Por4olio Details Tenure

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Economic Outlook Period 2

P E R I O D P E R F O R M A N C E In period two, the LaPorte fund’s outlook toward the economy was cautious and wary. COVID-19 brought about a huge disruption to the global economy, sending markets plummeting. On the biggest drop, the Dow Jones Industrial fell almost 3,000 points, and the S&P 500 index fell 12%.50

Unemployment has skyrocketed to around 13% as industries are being forced to furlough employees, mortgage and loan applications are at an all-time low,1 and the federal reserve rate currently sits between 0-0.25%.51 IMF has warned that our ‘Great Lockdown’ global recession will be our economy’s worst meltdown since the Great Depression.1 Considering these factors, and our current, unprecedented, situation with the COVID-19 pandemic, the LaPorte fund chose to not purchase many new holdings and maintain cash for the time being. The fund previously had a considerable amount of cash, which we added to through liquidating holdings we felt were too torn amid the pandemic. Ironically, we believed we held too much cash in the previous period, which now has led to our fund taking the smallest hit amidst the market volatility.

L O O K I N G A H E A D The LaPorte fund’s continuous conservative position allowed for minimal negative returns, when compared to the other fund’s performances. While the market is yielding some all-time lows, and interest rates are almost nominal, we plan to explore our areas of interest in potential holdings before the coming anticipated restart of our economy. Consumers: Consumer spending has grounded to a halt with the pandemic. President Trump’s social distancing guidelines and state issued stay-at-home orders have silenced the once lively shopping districts. Federal student loan interest rates have been paused,52 but no businesses are open, and the interest rate pauses won’t have a positive long-term effect on consumer spending. Businesses: Fourth-quarter GDP rose about 2.1%, and for 2019, it rose about 2.3%. With the COVID-19 outbreak, most non-essential businesses were forced to close, and many supply chains were disrupted. Local businesses have suffered immensely from the lack of consumers, and even with the recently announced $2 billion stimulus package, many businesses aren’t anticipated to survive. The countless furloughs plaguing the market have shot up unemployment but is anticipated to drop back down once the pandemic is under control. Trade and Foreign Relations: Tensions between the United States and China have grown over the reporting of COVID-19 confirmed cases.1 Tariffs imposed by the United States on China may have contributed to the shortages and higher cost of necessary equipment.54 President Trump’s particular tariffs on imported medical equipment from China have severely hurt the needed access to PPE to fight the outbreak.53 Trade negotiations with the United States, Russia, and Saudi Arabia led to a major cut in oil-production, and demand significantly dropped due to the pandemic.55

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Consumer Discre=onary Sector Elizabeth Caughman

P E R I O D P E R F O R M A N C E During Period 2, the Consumer Discretionary Sector (-3.86) did better than the S&P 500 (-19.60%). This sector was widely varied in companies’ earnings. This is shown by a loss in Dollar Tree (-12.21%) while there being a positive return in Amazon (4.49%). While some of the hardest hit companies fell in this sector, we were not invested in those.

L O O K I N G A H E A D Looking forward, consumer confidence and the government’s actions will need to be closely monitored. Consumers can easily decrease spending in this category, as wants are the first things to go in a bear market economy. The government’s stimulus bill could delay the effects of the market selloff, and further action will affect this sector. We will need to monitor and evaluate the companies in this sector for possible mispricing, both over and undervalued. Amazon could hold onto its sales due to its unique position.47

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Amazon.com, Inc. AMZN

P2 Total Return: -11.33% Total Return: 9.41%

Beg. Shares: 15 End Shares: 20

Beg. Value: $27,717.60 End Value: $38,994.00

P2 Dividend Yield: 0.00% Total Dividend Yield: 0.00%

Beta: 0.708 P2 Action: Buy additional 5 shares

D E S C R I P T I O N Amazon is a trillion-dollar company with a wide variety of products and services to offer consumers and sellers. The Company seeks to be the world’s most customer-centric company by creating a platform that individualizes experiences to each user. They are organized into three segments: North America, International and Amazon Web Service (AWS). They also offer a platform for small businesses and third parties to sell their products. 1

P O S I T I V E G R O W T H D R I V E R S With the COVID-19 pandemic, consumers are shifting to less-contact options to purchase necessities. This includes an increase in online shopping due to the ability to stay home and avoid stores, most of which are closed. Amazon is the leader in logistics, with its Prime One-Day Shipping, and its AmazonFresh grocery delivery service. They saw an increase per share, one of the few this period. With many consumers stocking-up on food and essentials, its Whole Foods division is also promising. The company also continues to increase its market share with its AWS. 1, 41

N E G A T I V E G R O W T H D R I V E R S With the market in bear territory, reduced discretionary spending is expected. While this is focused on the restaurant and tourism segments in the current moment, this could easily be turned towards Amazon when consumers begin going out and traveling again. The Company also faces possible supply chain disruptions as it has announced for sellers to put accounts on hiatus if they cannot make sales.43 They are also under current criticism with their handlings of safe conditions and pay for workers both during and before the COVID-19 pandemic, which could result in lawsuits.42

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Dollar Tree DLTR

P2 Total Return: -12.21% Total Return: -27.67%


Beg. Value: $47,107.50 End Value: $0.00


Beta: 0.397 P2 Action: Sell

D E S C R I P T I O N Dollar Tree operates over 15,000 discounts stores in the United States and Canada. The Company sells a wide variety of products, all priced at one dollar, while the Family Dollar stores have items prices under $10. They attract customers by using a wide variety of products with a constantly changing inventory. Many stores are located in middle to lower income areas with average check out prices around $4.40 Dollar Tree has continued to expand into new areas.1

N E G A T I V E G R O W T H D R I V E R S This period, we decided to sell our holding of Dollar Tree, as it does not benefit the portfolio, and we do not see the stock improving. The Company has missed 6 of its last 8 earnings estimates,1 showing a consistent overvaluing of the company and its future outlook. The company also has struggled to gain a competitive advantage, as big-name retailers have achieved low prices to match, or beat, Dollar Tree’s prices. With possible rising costs, due to disruptions in the global supply chain, their “Everything’s $1” slogan will not last without severely compromising quality. 40

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Consumer Staples Sector Elizabeth Caughman

P E R I O D P E R F O R M A N C E During Period 2, the Consumer Staples Sector (-7.27) outperformed compared to the S&P 500 (-19.60%). With a large selloff, the sector lost value, but not as immense as the general market. There was large market volatility due to the COVID-19 outbreak and pandemic. This world event has cause consumers to stock-up on household essentials and change their daily lives. There could be an issue to some in the sector due to its reliance on China’s production.1, 47

L O O K I N G A H E A D Looking towards the rest of the year, the Consumer Staple Sector is predicted to maintain its slower loss, especially if there is a further drop in consumer confidence. With the economic downturn, we are holding onto our holdings in the Staples Sector, with the possibility of picking up more if an undervalued security is identified.

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Proctor and Gamble PG





Beta: 0.680 P2 Action: Hold

D E S C R I P T I O N Proctor and Gamble is a multibillion-dollar company that operates in over 70 countries worldwide. They segment their business into Fabric & Home Care, Baby, Feminine, & Family Care, Beauty, Health Care, and Grooming. Their main customers are retailers, such as grocery stores, which then sell their products to individual consumers. P&G produces brands such as Tide, Crest, Pampers, Gillette, Swiffer and Puffs tissues.1

P O S I T I V E G R O W T H D R I V E R S With the COVID-19 pandemic, consumers are shifting to less-contact options to purchase necessities. Proctor and Gamble is the leader in the household and personal-care segment of the Consumer Staples Sector. Consumers are not going to stop buying these items, as they are seen as necessities. The company has achieved large size and scale of operations, which allows for a lower unit cost. They have also shown innovation by their launch of a new subscription-based model for shaving and personal grooming products.44 Looking forward, this will benefit the portfolio as its sales are not predicted to take a big hit.

N E G A T I V E G R O W T H D R I V E R S Proctor and Gamble faces competitive fear and challenging economic conditions as factories are unable to open due to the COVID-19 pandemic. This could possibly hurt the company with its reliance on a global economy. Due to less production, suppliers could raise prices, hurting their margins. In the recent years, the company has increased their promotional spending. This has conditioned consumers to lower prices and could hurt the brand if they cut advertising operations. The company’s beauty sector is also facing pressure, as it has lost market share.44

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Consumer Staples Select SPDR Fund XLP






D E S C R I P T I O N The Consumer Staples Select SPDR Fund is an ETF of publicly traded consumer staples companies. This includes securities in food and staples retailing; household products; food products; beverages; tobacco; and personal products. The top weighted holdings are Proctor &Gamble Co. (15.98%), Coco-Cola Co (11.60%) and Pepsi Co (10.30%).45

P O S I T I V E G R O W T H D R I V E R S Since this ETF is diversified in the Consumer Staples Sector, with over 30 companies represented, firm-specific risk is virtually eliminated. With the COVID-19 pandemic, most consumers are stocking-up on household essentials, which will boost sales for companies in the Consumer Staples Sector. Given our outlook, this ETF will continue to benefit our portfolio as it is defensive.

N E G A T I V E G R O W T H D R I V E R S Since firm-specific risk is virtually eliminated, individual holdings that post high returns will be muted. If a company outperforms the fund, the ETF will not show as high of an increase due to the weight of the other securities. Looking forward, it will be important to look for securities that are undervalued due to the sell-off.

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The Coca-Cola Company KO

P2 Total Return: 2.57% Total Return: 2.57%


Beg. Value: $0.00 End Value: $5,088.75


Beta: 0.918 P2 Action: Buy

D E S C R I P T I O N The Coca-Cola Company manufactures, markets, and distributes soft drink concentrates and syrups. The Company is one of the world's most recognizable brands as it is a world-class advertiser and is known for many popular ad campaigns. Coca-Cola manages six operating segments, most of them geographically based, and owns large stakes in major bottlers, while phasing out their own. Coca-Cola reaches customers through the largest beverage distribution system in the world with its goal being to put drinks in more hands in more places more quickly than any competitor.46

P O S I T I V E G R O W T H D R I V E R S The Coca-Cola Company has continued to innovate their product offerings in order to maintain a competitive advantage. The company has over 500 product offerings, including 4 of the top 5 selling sodas in the world.1 The Company has acknowledged the consumer’s desire for healthier drink options, and it is driving most of its new product research into that area. It is also focusing on a major refranchising initiative through which bottling operations are returned to local ownership.46

N E G A T I V E G R O W T H D R I V E R S The Coca-Cola Company faces risk due to cancellations, lack of ownership, and possible brand degradation. With the COVID-19 pandemic, most sports events, large gatherings, and dine-in eating at restaurants have been cancelled or postponed, this includes the 2020 Summer Olympic Games, which the company is a large sponsor for. This will result in a short-term loss but should rebound back when sports events and dine-in eating resume. Most lost sales will be contained to the current time period and will not have a lasting effect on long-term growth. The company also does not own their bottling franchises, which poses an issue if the plants refuse to produce Coca-Cola products. The company mitigates the risk by owning large stakes in the company and focusing on local ownership. The company could face brand degradation if the public sees their handling of the COVID-19 crisis, or any other event, poorly. 46

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Industrials Sector Whit Joseph

P E R I O D P E R F O R M A N C E Our holdings in the industrial sector underperformed the S&P 500 Index over Period 1, returning a total of -12.42%. CoStar Group Inc., General Dynamics, Raytheon Company, and Waste Management Inc. make up over 18% of the total portfolio, which is overweight compared to the S&P 500.

L O O K I N G A H E A D The economic slowdown in the aftermath of COVID-19 will hit parts of the industrial sector very hard. With manufacturing coming to a near standstill in new projects, construction & materials, industrial engineering and machinery are expected to slow significantly and experience a slower recovery. Aerospace and defense companies, such as Raytheon and General Dynamics, could suffer in the short term from a potential slashing of the US military budget after the federal deficit increased from a massive stimulus package, although that is purely speculative. The transportation subsector will be heavily affected as global business productivity slows down, especially airlines and rail. Industrial support services will experience a slowdown in demand in the short term, but companies like Waste Management should experience a relatively moderate decline and recovery because of the essential and non-cyclical nature of their work.

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CoStar Group, Inc. CSGP






D E S C R I P T I O N CoStar Group provides a vast database primarily for the United States commercial real estate industry. Their comprehensive database of properties in the United States, Canada, and Europe includes floor plans, leasing information, tenant information, and comparable sales prices. They generate revenues primarily from subscription services used by commercial real estate brokers, investors, lenders, retailers, and appraisers. CoStar Group also operates in the multifamily rental space as the owners of Apartments.com and ForRent.com. 1

P O S I T I V E G R O W T H D R I V E R S CoStar has benefitted from a digital revolution in the commercial real estate space by providing relevant and accurate data for their clients, which makes their services more valuable to commercial real estate firms with fewer resources. Demand for their data and virtual tours has increased both on their commercial front and from subsidiary Apartments.com as many walkthroughs have been canceled due to social distancing guidelines from COVID-19. As CoStar’s database has grown, they have been able to improve their margins by generating more revenue and becoming more efficient in maintaining their database. Technological advancements have allowed CoStar to acquire data through a more cost-effective process. CoStar Group will not experience loss of assets from a commercial real estate decline as they do not own any of the properties that they list their data on.

N E G A T I V E G R O W T H D R I V E R S CoStar’s primary customers are commercial real estate firms and brokers, an industry that could face a decline from the effects of COVID-19. They could see their subscriber revenue reduced if their customers were unable to afford their services or go out of business. CoStar also generates advertising revenue from sponsored listings, which could be in lower demand during a slow business cycle. Venture capital backed startups are a constant threat to CoStar’s dominance in this industry, which could offer a lower priced subscription and cut into the high margins of CoStar and begin to take away market share.

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General Dynamics Corp. GD






D E S C R I P T I O N General Dynamics is a diversified defense company that designs and manufactures combat vehicles, weapons systems, artillery, aircraft, and marine vehicles. General Dynamics is one of the largest contractors to the United States government, with 65% of their total sales coming from the Pentagon. The five main segments they operate in are marine systems, aerospace, information technology, combat systems, and mission systems. While their primary source of revenue comes from the United States government, they do generate revenues from contracts with other nations and commercial customers, primarily from their business jets.1

P O S I T I V E G R O W T H D R I V E R S General Dynamics revenues and growth are heavily tied to the purchasing of the US military and defense contracts. General Dynamics benefitted from a strong growth in their combat systems group, primarily from US Army purchases of their new Stryker tank and updating munitions. The company is attempting to diversify their revenue stream away from combat machines and vehicles by expanding their information technology division. Their recent acquisition of Gulfstream has not been as profitable as expected, but the company is expecting stronger sales from their new G700 luxury business jet.

N E G A T I V E G R O W T H D R I V E R S With the dependence on military contracts, General Dynamics’ revenue is heavily damaged when their purchasers cancel a contract. The US Army canceled a $45 billion contract awarded to General Dynamics for the Bradley Fighting Vehicle from a lack of competition in the bidding. The Pentagon frequently creates competition among defense manufacturers to secure a lower price, which affects the value of the contracts. General Dynamics admitted in a filing that they expect to experience disruptions or closures in their operations from COVID-19, which could have a negative impact on their contracts and demand for their products. A global business downturn would also decrease demand for their Gulfstream business jets. 13

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Raytheon Company RTN






D E S C R I P T I O N Based out of Waltham, MA, Raytheon Company is a technology company that specializes in defense and homeland security. They offer advanced missile systems, space and airborne systems, intelligence support, and integrated defense systems to the United States government and its allies. Raytheon generates 70% of its revenues from contracts with the United States government but has a growing cyber security division for commercial clients called Forcepoint. Announced in June 2019, Raytheon is currently in the process of the largest defense merger in history with United Technologies. The merger was completed on April 3, 2020 following an ordered divestiture of Raytheon’s military airborne radios business.1

P O S I T I V E G R O W T H D R I V E R S Raytheon is the industry leader in advanced missile and missile defense systems, which generate very lucrative contracts and are difficult for competitors to imitate. Raytheon earned two $1 billion contracts at the end of 2019 from the US Navy and US Missile Defense Agency, and their Tomahawk guided cruise missiles continue to be a leading technology that is used by the Navy. Their Patriot missile defense system earned a contract worth up to $5 billion in October 2019 and continues to be the company’s biggest franchise. The merger with United Technologies will diversify the product offerings for Raytheon as well as give the company the ability to scale operations, creating an aerospace and defense giant. Defense sales will only represent about 55% of the combined company’s revenues after the merger, lowering their sole dependence on military contracts.1

N E G A T I V E G R O W T H D R I V E R S After the federal government has spent over $2 trillion fighting COVID-19, there is the potential for some defense spending budget cuts, which directly affects Raytheon Technologies moving forward. The merger with United Technologies could create unforeseen problems with the business that could disrupt operations and create inefficiencies. 1

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Waste Management, Inc. WM






D E S C R I P T I O N Headquartered in Houston, TX, Waste Management, Inc. does exactly as its name indicates: provides waste management services to individual, commercial, and government customers. Their primary business consists of collection, transfer, and disposal of solid waste. Waste Management has a strong focus on sustainability, as some segments of their business include recycling services, hazardous waste disposal, and waste-to-energy services.1

P O S I T I V E G R O W T H D R I V E R S Waste Management delivers slow but steady growth from the consistency of its core business units, which are much less sensitive to economic cycles. The company operates a massive trucking fleet, which has seen increased efficiency in recent years due to technology such as leveraging data to optimize routes. They have benefited from a growing residential and commercial construction market in the United States and have focused on improving their customer churn rate to below 10% while growing their customer list to above 20 million residential and 2 million commercial clients. Waste Management should benefit from a higher unemployment number from the fallout of COVID-19, as it has become very expensive to employ their labor force and truck drivers in a tight labor market.

N E G A T I V E G R O W T H D R I V E R S Waste Management’s core business of trash collection has been deemed essential during the COVID-19 outbreak, but they have had to suspend some of their ancillary operations in certain locations which will cost them revenue. WM also makes money on construction and demolition recycling. As commercial construction projects slow down because of the economic uncertainty from COVID-19, Waste Management will miss out on new business contracts. WM has to work around both federal and state regulations regarding the disposal of their waste, which can vary by state and create new expenses if there is a change in regulations.

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Informa=on Technology Sector Whit Joseph

P E R I O D P E R F O R M A N C E Our holdings in the Information Technology sector outperformed the S&P 500, returning a total of -6.53% during Period 2. We began the period with positions in both Visa and Accenture and saw opportunities to purchase shares of Microsoft and IBM. All shares of Visa were liquidated during the period. At the end of the period, our total position in the IT sector made up 15.26% of the portfolio, which is underweight compared to the S&P 500.

L O O K I N G A H E A D After powering the growth in the stock market, the past few years, the technology sector proved to be vulnerable to the fallout from COVID-19. The most affected subsector of technology will be hardware and equipment, which includes manufacturers of phones, computers, semiconductors and office equipment. Many of these companies produce or source their products from Asia, and the global supply chain has been severely disrupted in certain parts of the world, causing backlogs of orders. They would also expect to see a decrease in demand of their products if the global economy slows more severely than expected. On the opposite side of the IT sector, there is some cause for optimism from software and services companies. As much of the world has transitioned to a remote working environment, business productivity applications and cloud-based storage have seen a rise in demand that has been accelerated by COVID-19. While it varies by company and product, the software and services subsector has potential to outpace the market over the next few months.1

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Accenture Plc ACN






D E S C R I P T I O N Based out of Dublin, Ireland, Accenture Plc provides management and technology consulting services to some of the largest corporations and governments around the world. Accenture operates offices in over 200 major business centers in North America, Europe, and the Asia/Pacific region, providing solutions for clients in more than 40 types of industries. Accenture has partnerships with leading tech companies such as SAP, Microsoft, Oracle, Salesforce, and Workday in order to execute their strategy of being the top consultancy in areas of new technologies that are changing the way companies across the world do business.1, 20

P O S I T I V E G R O W T H D R I V E R S Accenture has enjoyed incredible loyalty and consistency from its client base, which has allowed them to generate constant top-line revenue growth. Even during the beginning of the coronavirus, Accenture posted a record $14.2 billion in new bookings in Q2 2020. The majority of those bookings were long-term projects, so that spike in bookings won’t translate to immediate earnings growth in the next quarter. Their portfolio of clients is well diversified across five industries (products, communications & tech, financial services, health & public services, resources), and their focus in digital transformation has created an increased demand for their services. During the previous quarter, Accenture saw their health & public services revenue grow 14%, as orders from the federal government increased. 1

N E G A T I V E G R O W T H D R I V E R S While Accenture projects 4.5% growth for the full year, their short-term revenue will be significantly affected by COVID-19 as their clients’ business cycles slow down, leaving them with a lower budget for consulting projects. Consulting groups face extremely heavy competition in their industry from multiple well-respected groups such as McKinsey, PWC, Deloitte, and Bain. Heavy competition combined with limited client budgets have prevented Accenture from increasing their profit margins at all over the past 4 years. 21

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Visa, Inc. V






D E S C R I P T I O N Based out of San Francisco, CA, Visa Inc. is a global payments technology company that provides consumers, businesses, financial institutions, and governments access to safe and secure electronic payments across 200 different countries. Roughly 45% of Visa’s revenue is derived from its data processing segment, which are fees collected for authorizing and clearing transactions across its large payments network. Visa makes 41% of its revenues off service fees that the company earns from its card issuers for being able to use Visa products. The company also earn fees from processing international transactions. Visa spends nearly $1.5 billion every quarter on client incentives to use their products.

N E G A T I V E G R O W T H D R I V E R S Visa’s revenue streams are heavily tied to volume of customer transactions and were reported to be one of the hardest-hit companies from the COVID-19 outbreak. A global economic slowdown following shelter-in-place or full lockdown policies will drastically reduce customer opportunities for transactions, which will reduce the fees that Visa generates for every transaction processed. Visa generates roughly 34% of its revenues from international transaction fees, and the global travel industry has begun to experience a near standstill from COVID-19 that could take years to recover from. Visa is one of the top sponsors of the Olympic Games, paying over $100 million for every cycle. At the time the security was sold, there was uncertainty whether or not the 2020 Summer Olympics would be played and what would happen to those sponsorship dollars if there were a cancellation or postponement. 16, 17 Since liquidation, Visa has dropped -14.56% as of the end of the period.1

25

MicrosoL Corpora=on MSFT






D E S C R I P T I O N Microsoft Corporation develops, manufactures, licenses and supports software products worldwide. Best known for its Windows operating system and Microsoft Office productivity applications that have been around for decades, Microsoft operates a rapidly growing cloud services segment called Azure. The company has developed the second most popular gaming system in the world, being Xbox, and also owns the social media site LinkedIn. The company generates about half of its revenue outside of the United States and is one of the market leaders in artificial intelligence.1

P O S I T I V E G R O W T H D R I V E R S Microsoft has built a diversified stream of revenues in multiple markets in different life cycle phases. Their productivity and business processes segment (33% of revenues) contains staples of office productivity tools like Office 365, SharePoint, and LinkedIn which are already built-out and earn high profit margins. Their more personal computing segment (35% of revenues) sells products that run on the Microsoft OS like the Surface tablet, Xbox, and HoloLens virtual reality system. Microsoft Azure is their fastest growing product at 62% growth rate in their most previous quarter, as there is a huge demand for their intelligent cloud segment.14

N E G A T I V E G R O W T H D R I V E R S Microsoft cut their revenue guidance for Q3 after stating that their supply chain in their more personal computing segment had not responded like they had hoped from the initial COVID-19 shock. The global nature of this virus affects the Microsoft’s customer base in almost every country that it does business. Microsoft competes against the top market-cap companies in the world such as Amazon, Google, Apple and Facebook in different business segments, making it difficult to gain a competitive advantage in their growth markets. Microsoft Azure is a clear 2nd in market share to Amazon’s AWS, with AWS capturing over 34% of the market share compared to Azure’s 17%.15

26

Interna=onal Business Machines Corpora=on IBM



Beg. Value: $0.00 End Value: $16,639.50



D E S C R I P T I O N IBM is a global technology company that provides hardware, software, cloud-based services and cognitive computing. The company shifted their strategy away from hardware dependence and have placed a big bet on the future growth of their cognitive computer systems division, which includes IBM Watson, their artificial intelligence and Internet of Things platform. The company derives 45% of its revenue from its technology services and cloud division, which includes outsourcing and cloud services, as well as maintenance for their IBM products. Their global business services segment covers their growing technology consulting arm which helps with digital workplace, process design, and application support.

P O S I T I V E G R O W T H D R I V E R S IBM has invested heavily in their artificial intelligence platform (Watson), and has positioned itself to take advantage of some the highest growth markets. Watson healthcare is a leader in the AI healthcare segment, a market which is expected to grow by 50% CAGR by 2025. Their acquisition of Red Hat in 2019 helped IBM become a leader in the hybrid cloud space and has allowed IBM to bring its product portfolio to any public and private cloud. Their technology consulting division creates a steady growth revenue stream and provides an additional service to their business clients. 18

N E G A T I V E G R O W T H D R I V E R S IBM is not in the top 3 of market share in any of the main cloud computing areas except for hosted private cloud, as it trails Microsoft, Amazon, Google, and Oracle in all other areas. IBM operates in extremely competitive segments that has required heavy financial investments over the past 5 years, leaving the company with very high leverage. They experienced declining revenues since 2012 from slowing business segments as they transitioned away from hardware, which have hurt their credit and liquidity ratios and create additional risk if their investments in AI do not deliver the returns that they project. 19

27

Financial Services Sector Nathan McLaughlin

P E R I O D P E R F O R M A N C E Over the course of Period 2, the Financial sector underperformed the S&P 500 (-19.60%) by returning -31.82%. We have two holdings in financial services, Nasdaq Inc. and Wells Fargo Preferred Stock which is considered an alternative. These holdings reflect our more cautious approach to the overall sector. Our holding in Nasdaq Inc. overperformed in comparison to the S&P 500 returning -10.91%. We were not able to realize significant gains in this area due to the overall market sell off as well as decreases in interest rates.

L O O K I N G A H E A D Our team will likely maintain our conservative approach in the Financial Sector due to the current economic conditions and record low interest rates. There are opportunities in specific subsectors such as financial technology, and our team will potentially discuss this area in the future. Technology continues to change the financial services environment and customer interaction, so this is a space that could provide value to our portfolio.

28

Nasdaq Inc. NADQ






D E S C R I P T I O N Nasdaq Inc. (NDAQ) operates approximately 40 offices spanning 25 countries and is most widely known for owning and operating the NASDAQ stock exchange in the United States. The company also owns eight European Stock Exchanges and has a diverse range of revenue streams. The company’s revenue segments can be broken down into Market Services, Corporate Services, Information Services, and Market Technology. About 80% of their revenues come from the United States, and their Market Services segment accounts for roughly 35% of total revenue.1

P O S I T I V E G R O W T H D R I V E R S Nasdaq Inc. (NDAQ) slightly outperformed our weighted benchmark (-11.66%) and the S&P 500 (-19.60%) during Period 2 by returning -10.91%. Many industries have been significantly impacted by the COVID-19 outbreak causing companies to increasingly look for ways to access capital to address liquidity needs. Moving forward, Nasdaq Inc. expects all new listings and IPO’s to continue as scheduled. The company has also continued to execute its long-term strategy of accelerating its non-trading revenue base through market technology and analytics services. For example, in Q1 of 2020 Nasdaq Inc. acquired the financial-technology company Solovis which provides data and analytics services to investors. Executives at NDAQ are projecting a potential revenue pool of $22 billion in the long run from this expansion.1, 7

N E G A T I V E G R O W T H D R I V E R S Nasdaq Inc. could potentially continue to see a decline in its largest revenue stream, Market Services, which saw a 5% dip in 2019. Multiple trading platforms, including Nasdaq, are currently facing a $5 billion investor lawsuit that claims the exchanges gave advantages to high-frequency traders which could end up costing the company millions of dollars. Additionally, the SEC continues to review the current state of market data and fees. If the agency decides to limit the pricing of data fees NDAQ will be negatively impacted as the company collected 14% of its total revenue in 2019 from this area.1

29

Wells Fargo & Co. Preferred WFCPRL






D E S C R I P T I O N Headquartered in San Francisco, CA, Wells Fargo & Company is a diversified financial services company that provides retail, commercial, and corporate banking services to individuals, businesses, and institutions. The company operates through three main business segments: Community Banking, Wholesale Banking, and Wealth and Investment Management.1

P O S I T I V E G R O W T H D R I V E R S Wells Fargo & Co. was able to slightly outperform our weighted benchmark (-11.66%) and the S&P 500 (-19.60%) by returning -10.84%. The preferred stock is able to generate strong cash flow as it has the largest dividend yield in our portfolio, and the large bank is uniquely positioned in our current monetary environment. For example, the bank has the most residential mortgages out of any of the big four banks giving it lots of refinancing opportunity. The Federal Reserve has also temporarily modified the $1.95 trillion asset cap that was placed on the bank following its 2016 account scandal. This will allow the bank to make more small business loans and potentially restore some of the public confidence it lost in the past.1, 8

N E G A T I V E G R O W T H D R I V E R S Pressure on bank stocks is likely to persist until it is clear how bad the United States recession might be and how long it will last. Interest rates have continued to fall to record lows, and the Federal Reserve announced a series of unexpected rate cuts during the period which will translate into lower profit margins for banks. The current economic environment will likely cause an increase in loan defaults as well as lower demand for new loans. Wells Fargo has a $1 trillion loan portfolio with 23% of loans in residential and commercial mortgages which will likely see an increase in delinquencies moving forward.1

30

Real Estate Sector Nathan McLaughlin

P E R I O D P E R F O R M A N C E The real estate sector slightly outgained the S&P 500 (-19.60%) in Period 2 returning -18.49%. Our two REIT holdings in Lamar Advertising and STORE Capital made up 5.98% of the total portfolio and returned -41.43% and -50.40% respectively. The real estate owned by these holdings has been hit extremely hard by the COVID-19 outbreak and it has become difficult to collect rent payments. Large decreases in outdoor advertising spending have negatively impacted Lamar Advertising, and strict social distancing has hurt STORE Capital’s tenants in the service and retail industries.

L O O K I N G A H E A D Moving forward our team will address the risks associated with holding Lamar Advertising and STORE Capital. Certain REITs will have the potential to rebound quickly in the future depending on the type of tenants they have. We are expected to be in a low interest rate environment in the foreseeable future which will allow REITs and other real estate firms to borrow at a lower cost and expand their reach. However, it is unclear how long recovery will take and the real estate sector will likely be along for a bumpy ride in the short term.

31

Lamar Adver=sing Co. LAMR






D E S C R I P T I O N Based out of Baton Rouge, LA, Lamar Advertising Company is a real-estate investment trust (REIT) that engages in outdoor advertising services. Lamar operates billboards, logo signs, and transit displays throughout the United States and Canada.1

P O S I T I V E G R O W T H D R I V E R S Lamar Advertising considerably underperformed in comparison to our weighted benchmark (-11.66%) and the S&P 500 Index (-19.60%). However, the company’s effort to upgrade its traditional static billboards to digital ones will likely contribute to its growth in the long run. Additionally, Lamar enjoys an excellent national footprint and a well-diversified tenant base. Although there will be severe pressure over the next few months, outdoor advertising may be one of the first segments to recover. Notable technology brands such as Netflix, Hulu, Google, Amazon, and Facebook have all stepped up their outdoor advertising spending which could potentially drive a quicker recovery in the space.1, 9

N E G A T I V E G R O W T H D R I V E R S Lamar has been significantly impacted by the COVID-19 outbreak in the United States recognizing a loss of -41.43% during P2. Outdoor advertising spending has decreased tremendously due to strict social distancing from the virus making it difficult for Lamar to collect payments from its tenants moving forward. It is likely that the company will see a decrease in capital expenditures and less growth in the digital billboard space. As of December 31, 2019, Lamar had outstanding debt of approximately $2.98 billion, and with a slowdown in revenues it could be difficult for the company to pay their obligations. The negative impact on Lamar’s earnings also creates the risk of a potential dividend cut. Moving forward our team will discuss the risks associated with holding Lamar in our portfolio.1, 10

32

STORE Capital Corpora=on

STOR






D E S C R I P T I O N STORE Capital Corporation (STOR) is a real-estate investment trust that invests in single-tenant real estate such as chain restaurants, supermarkets, health clubs, retail, distribution, etc.1

P O S I T I V E G R O W T H D R I V E R S STORE owns and operates properties in 49 out of the 50 states in the United States, and this diverse geographical reach along with their range of tenant types allows them to capture value across a variety of areas. While it will be a bumpy ride for STOR over the next few months, the company has built a solid balance sheet with approximately $100 million in cash and an unused $600 million line of credit. The CEO of the company recently made an announcement that their average contract can tolerate a 40% revenue reduction and still meet its rent obligations. Additionally, STOR’s portfolio is made up of approximately 66% basic service tenants which could be the first to recover following the recent crisis.1, 11

N E G A T I V E G R O W T H D R I V E R S STORE Capital shares declined substantially in P2 due to the COVID-19 outbreak resulting in a total return of -50.40%. Although the REIT has an extremely diverse portfolio, many of its properties are now at risk, and the real estate that STOR owns is highly dependent on consumers making visits. For example, STOR’s properties in restaurants, movie theatres and entertainment, early childhood education, and health clubs accounted for over 33% of total revenue in 2019. Strict government shutdowns of the company’s service tenants could potentially result in missing rent payments. Furthermore, the large decrease in consumer spending puts their high dividend at risk. Our team will be discussing if STOR should continue to be held in the near future.1, 12

33

Alterna=ves Luke Gray

P E R I O D P E R F O R M A N C E Upon discussing our economic outlook for Period 2, our team decided to sell some at-risk securities due to COVID-19 bringing our Alternatives investments to 22.14% and cash to 12.23% for a total of 34.27% of our total portfolio value which is up from 29.35% in Period 1. While we were already well positioned for an economic disruption, we felt taking more risk off the portfolio lined up best with our economic outlook. During Period 2, the LaPorte fund held two alternative investments, AGG and USFR. With near zero betas, these two holdings helped mitigate the risk of our portfolio.

L O O K I N G A H E A D As we move forward, our team will regularly discuss our economic outlook and make changes to our portfolio as we see fit. Because we were well positioned for the market downturn, this better positions us to be on the lookout for potential buying opportunities. We are currently looking for safe haven securities that will provide a positive return even in the possibility of a larger, lengthier market correction.

34

iShares Core U.S. Aggregate Bond ETF AGG






D E S C R I P T I O N The iShares Core U.S. Aggregate Bond ETF (AGG) is an exchange traded fund that seeks to track the Bloomberg Barclays U.S. Aggregate Bond Index. The fund invests in a range of U.S. investment grade bonds including treasuries, government and corporate securities, and others. AGG accounted for 8.34% of our portfolio in Period 2.1

P O S I T I V E G R O W T H D R I V E R S Because AGG seeks to track the Bloomberg Barclays U.S. Aggregate Bond Index, part of our weighted benchmark, AGG hedges some of the risk on our portfolio. Also, the fund has nearly 65% of its assets in Treasuries and agency mortgage-backed securities with AAA ratings. This even further limits the risk associated with the fund and offers better downside protection. With COVID-19 continuing to rise, the Fed has announced a series of expected rate cuts that should support future growth of AGG.2, 3

N E G A T I V E G R O W T H D R I V E R S Although downside protection is offered by allocating 65% of AGG’s assets to Treasuries and agency mortgage-backed securities with AAA ratings, this also limits the fund’s return potential. The government has announced a series of expected rate cuts. However, rates are already at record lows, and if they are cut too low it could panic investors into a massive selloff. If the economic slowdown continues, AGG could experience negative repercussions, so our team will continue to monitor economic conditions and ensure AGG is still a hold.2

35

WisdomTree Floa=ng Rate Treasury Fund USFR






D E S C R I P T I O N The Wisdom Tree Floating Rate Treasury ETF (USFR) is an exchange traded fund that seeks to track the Bloomberg U.S. Treasury Floating Rate Bond Index. USFR’s holdings have an average year to maturity and average yield to maturity of 1.44 years and 0.23%, respectively. The fund is comprised of 4 floating U.S. Treasury Notes with maturities throughout 2021 and 2022. USFR accounted for 7.23% of our total portfolio value.1, 4

P O S I T I V E G R O W T H D R I V E R S USFR has a dividend yield of 1.82% and an expense ratio of only 15 basis points. With the extremely low risk of this holding, it is an attractive alternative to cash. Because the coupons of the holdings inside USFR are adjusted periodically, USFR is less sensitive to interest rate increases which protects us from capital erosion. With the current market situation and interest rates being at all-time lows, periodic adjustments to coupons gives the fund more upside potential.1, 5

N E G A T I V E G R O W T H D R I V E R S As the market has slid into bear territory, Treasuries have also tumbled to historic lows as investors are looking for safe alternatives to ride out the market correction. 30- and 90-day Treasuries even slid into negative territory from March 18th to March 27th, territory we have only seen briefly in 2015. If rates drop into the negative for an extended period of time, investors will be a lot less likely to find this as an attractive cash alternative. Our team will continue to watch this holding next period to confirm it is still an attractive investment.1, 6

36

Health Care Sector Bennett Neece

P E R I O D P E R F O R M A N C E In period two, the La Porte fund’s healthcare holdings achieved an aggregate return of -16.22%. This return was lower than the S&P 500’s healthcare sector overall, earned a -13.07% return for the period.1 While we are disappointed with these results, we are confident that our current holdings, as well as the sale of Medtronic, put the fund in a position to outperform the market in the longer term.

L O O K I N G A H E A D Using the porter’s five forces analysis, the healthcare subsectors in the best long-term position are still manufacturers of proprietary drugs and medical devices. These sectors benefit from comparatively lower threats from entrants, suppliers, and buyers. Nonetheless, the coronavirus crisis has presented new challenges across the healthcare system. Device makers may suffer from diminishing sales as patients delay elective surgeries and trips to the dentist. While many drug makers may not see contractions in sales volumes, delays in doctor’s appointments may also create stagnation in new prescriptions. Furthermore, while hospitals remain busy, the patients filling major hospital systems are expensive to treat as they are likely either suffering from COVID-19 or another life-threatening ailment. Therefore, it is our belief that the best performing healthcare equities in the next year will be drug manufacturers with inelastic demand and strong balance sheets.

37

Amgen, Inc. AMGN






D E S C R I P T I O N Amgen, Inc. is an American based developer and manufacturer of biopharmaceuticals. Amgen uses a research-based strategy, investing heavily in research and development to invent and ultimately commercialize treatments for primarily chronic or life-threatening ailments. While the company markets its products internationally, its primary market is in the United States .1, 23 Both domestically and in foreign markets, wholesale drug distributors are Amgen’s main buyers.23

P O S I T I V E G R O W T H D R I V E R S Amgen’s product demand is significantly less disrupted than many American companies during the coronavirus shutdown. Pharmacies and hospital systems remain open as essential businesses, and since many of Amgen’s products treat serious illnesses, patients will demand regular usage even as fears of coronavirus rise.25 Thinking more long term, Amgen has exciting developments in its pipeline. Repatha, which assists to stabilize cholesterol, is currently in two different phase three studies, and received positive results in a third phase three study late in March.26, 27 One in four deaths in America are caused by heart disease, so the potential market for Repatha is huge.29 Finally, while Amgen’s top line fell in 2019, the company’s cost controls and new manufacturing capabilities have helped create greater year-over-year earnings per share.23, 24

N E G A T I V E G R O W T H D R I V E R S Growth in margins for biotech firms continues to become more challenging as both the government and competitors push prices down. CEO Robert Bradway noted in Amgen’s most recent earnings call that drug prices in the U.S. went down in 2019 for the first time in decades.28 One big threat to Amgen is H.R. 3, a United States bill currently in the Senate that, if passed, would give the United States government power to directly negotiate the price of certain drugs.23 Additionally, while Amgen may not see decreases in sales due to coronavirus, growth in volume may be hard to achieve as patients delay doctors’ appointments.

38

Medtronic, plc. MDT






D E S C R I P T I O N Medtronic, plc. is an international manufacturer of medical devices. While headquartered in Ireland, the United States is Medtronic’s primary geographic market, with Western Europe, China, and Japan composing other key markets.1, 36 Medtronic primarily focuses on innovation, investing in research and development to create technologically complex, often patented and invasive devices. The company sells through a combination of direct sales representatives and wholesale distributors. Buyers include hospitals, surgical centers, and group purchasing organizations.36

N E G A T I V E G R O W T H D R I V E R S While emergency surgeries will still create some demand for Medtronic’s products, many hospitals are already delaying elective surgeries, and they will continue to do so until COVID-19 cases begin to subside. The American College of Surgeons released guidelines for delaying many surgeries in March. Joint replacements will be pushed back in large quantities, and demand for products like bone grafts will likely decrease sharply for the next two quarters.39 Additionally, even though demand for ventilators is rising, the fluctuations in demand will likely increase expenses for Medtronic, as the company could suffer from stockouts or warehousing costs from unused inventories. Finally, Medtronic issued a recall on a brain stent in March.38 This recall will be expensive and will likely lead to litigation expenses in the months to come.

39

Merck & Co., Inc. MRK






D E S C R I P T I O N Merck is a United States based company that develops and manufactures treatments and vaccines for humans and animals. Merck sells its products globally, with the sales outside the United States accounting for 57% of total sales in 2019.30 Merck divides its operations into four segments: pharmaceuticals, animal health, alliances, and health services. The company sells to a variety of buyers, including wholesalers, retailers and government entities. In 2021, Merck will complete a spinoff, primarily divesting of its women’s health products (Merck investors will receive a stock distribution).1, 30

P O S I T I V E G R O W T H D R I V E R S Like Amgen, Merck’s inelasticity in product demand will help it retain revenues in the wake of the coronavirus epidemic.31 The company’s products treat primarily chronic or life-threatening diseases, and patients will need these drugs even in times of economic distress. Merck’s dividend also makes it an attractive buy. The dividends will help to provide a return on investment even in periods of price stagnation, and investors will likely be more attracted to dividend paying stocks in a contracting economy. Additionally, Merck has a promising pipeline of potential expanded drug approvals. Phase three research on cancer drugs Lynparza and Lenvima are particularly attractive.33 The American Cancer Society projects that 1.8 million people will be diagnosed with Cancer this year, and additional sales in Lynparza and Lenvima would add desirable diversity to Merck’s portfolio.35

N E G A T I V E G R O W T H D R I V E R S Governments and private companies both in the U.S. and internationally continue to push drug prices, and therefore margins, down. Consolidations of pharmacy benefits managers and drug wholesalers increase the threat of buyers for Merck, which may offset growth.30 The company also received disappointing news in March. A phase three trial of Lynparza found that the drug was ineffective in delaying progression in women with ovarian cancer.34 Finally, while Merck’s international footprint may benefit the company if foreign economies recover from the coronavirus epidemic before the United States, it is a risk. Many foreign governments have patent laws that are less protective than those of the United States and the European Union.30

40

Materials Sector Cullen Bernal

P E R I O D P E R F O R M A N C E Throughout Period 2, our fund held one holding in the materials sector which underperformed our weighted benchmark (-11.657%) and the S&P 500 Index (-19.602%) by returning -24.71%. Vulcan Materials Co. accounted for 2.70% of our total portfolio during the period, and the holding was in our top five underperforming stocks in the portfolio. This stock did not have the anticipated rebound pre-coronavirus, and the virus’s high infection rate and spread halted the majority of global construction and materials activity.

L O O K I N G A H E A D Before the United States realized the impact the coronavirus would have on our economy, infrastructure was a growing portion of our market and business. It was being reported that the coronavirus wouldn’t break investors’ confidence and that the materials sector was seeing a “massive” inflow despite the unprecedented situation.48 Fast forward to the present and looking ahead, raw material prices have dropped significantly. While construction companies are considered “essential” in some countries, the needed resources such as steel and iron have skyrocketed in price, essentially halting many projects without a mandatory order.49 It might not be until late summer or early fall until we start to see recovery in our battered unemployment, which will push to improve our infrastructure’s economic impact.

41

Vulcan Materials Company VMC






D E S C R I P T I O N Based in Birmingham, AL, Vulcan Materials is one of the largest producers of construction aggregates in the US (crushed stone, gravel, sand).1 The materials produced go primarily towards building and maintaining infrastructure; include highways, bridges, airports, and other public works projects. Through 2020, amid the coronavirus, Vulcan aims to continue to preserve as much revenue as possible and promote stability throughout its aggregates in this unprecedented time.

P O S I T I V E G R O W T H D R I V E R S Vulcan Material’s aggregates performed extremely well in their Q4 earnings. Aggregate revenues increased by 9.9% from an increase in shipments and pricing. Aggregate volumes also increased 4% YoY, reflecting strong shipment growth in the Southwest and Southeast markets.22 They finished 16% higher on adjusted earnings at $4.70 a share, and a 12.5% increase in total revenues.1

N E G A T I V E G R O W T H D R I V E R S The coronavirus has negatively impacted just about all branches of the US economy. The materials sector dropped roughly 40% to its lowest closing price of 2020 amid the coronavirus’s impact on the market, while Vulcan Materials fell 46.32% to its lowest closing price of 2020. The shuttering of construction projects and the volatility of metal and material prices hindered the entire materials sector. Until workers can return to the workforce amidst mandatory stay at home orders, it might be a while until the Vulcan’s stock improves.

42

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tariffs-now/

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55. https://www.wsj.com/articles/opec-allies-look-to-resolve-saudi-mexico-standoff-and-seal-broader-oil-deal-11586695794

Dear Mr. and Mrs. LaPorte, · 2020. 5. 5. · P2 Dividend Yield: 0.00% Total Dividend Yield:0.00%...

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Transcript of Dear Mr. and Mrs. LaPorte, · 2020. 5. 5. · P2 Dividend Yield: 0.00% Total Dividend Yield:0.00%...