Wilmington (NYSE:WL)
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From Jul 2019 to Jul 2024
Wilmington Trust announced it is adding two new mutual funds, Wilmington
Fundamentally Weighted Large Company Fund and Wilmington Fundamentally
Weighted Small Company Fund, to its line-up of domestic equity funds.
The introduction of Wilmington Trust’s two new
fundamentally weighted mutual funds follows the company’s
recent launch of three fundamentally weighted separately managed
accounts for high-net-worth individuals. These separate accounts focus
on large company stocks, mid-sized company stocks, and small company
stocks, respectively. Combined, they have accumulated $155 million in
assets under management.
As with the new separately managed accounts, the new mutual funds
ascribe to an emerging investment approach, often referred to as
fundamentally weighted index investing. This approach, which is rapidly
gaining acceptance in investor and academic circles, uses fundamental
measures of a company’s size, such as net
income, dividends, and free cash flow, to select securities. It stands
in contrast to the market capitalization approach of conventional index
investing. Fundamental weighting allows managers to take advantage of
the mispricings inherent in the financial markets and helps to avoid
what many observers believe is the essential flaw of conventional index
investing: that market-cap weighting, by definition, causes investors to
be overexposed to overvalued securities and underexposed to undervalued
securities.
“Fundamentally weighted portfolios represent
an enhancement of market cap-weighted index investing,”
said Rex Macey, CFA®, CIMA, CFP®,
vice president and director of equity management for Wilmington Trust. “Conventional
indexing has strengths, including low operating costs and the
predictability of achieving substantially similar performance to an
unmanaged index. Maintaining proper portfolio balance, however, is not
one of them. Fundamentally weighted portfolios can help solve that
problem.”
According to research performed by Mr. Macey’s
group, hypothetical portfolios built to reflect fundamental measures of
company size performed better than traditional market cap-weighted
benchmarks. And they did so without increased volatility. This held true
for portfolios of large-, mid-, and small-sized companies. In addition,
the research showed that tax-loss harvesting of an otherwise passive
portfolio can help boost not only after-tax returns, but pre-tax
returns, as well.
It is anticipated that Wilmington Fundamentally Weighted Large Company
Fund will hold several hundred stocks included in the Russell 1000®
Index, which represents approximately 92% of the U.S. equity market.
Wilmington Fundamentally Weighted Small Company Fund will hold stocks
included in the Russell 2000® Index, which is
constructed to provide a comprehensive and unbiased benchmark of U.S.
small company stocks.
By one estimate, there is approximately $3 trillion invested worldwide
in portfolios that track indexes. According to another estimate, nearly
12% of all U.S. mutual fund assets are held in indexed portfolios.
“We believe many investors who are
comfortable with conventional indexed portfolios will find fundamentally
weighted portfolios to be a sensible alternative,”
Mr. Macey said. “It’s
similar to index investing, but with intellect. This approach has the
benefits of conventional index investing –
broad diversification, relatively low portfolio turnover and cost, tax
sensitivity – without the drawback of chasing
overpriced stocks.”
Wilmington Trust Corporation (NYSE:WL) is a financial services holding
company that provides Regional Banking services throughout the Delaware
Valley region, Wealth Advisory Services for high-net-worth clients in 22
countries, and Corporate Client Services for institutional clients in 81
countries. Its wholly owned bank subsidiary, Wilmington Trust Company,
which was founded in 1903, is one of the largest personal trust
providers in the United States and the leading retail and commercial
bank in Delaware. Wilmington Trust Corporation and its affiliates have
offices in California, Connecticut, Delaware, Florida, Georgia,
Maryland, Nevada, New Jersey, New York, Pennsylvania, South Carolina,
Vermont, the Cayman Islands, the Channel Islands, London, Dublin, and
Frankfurt. For more information, visit www.wilmingtontrust.com.
You should carefully consider the investment objectives, risks,
charges, and expenses of the Wilmington Funds before investing. A
prospectus with this and other information may be obtained by calling
800-336-9970 or by visiting www.wilmingtonfunds.com.
The prospectus should be read carefully before investing.
The Wilmington Funds are distributed by Professional Funds
Distributor, LLC and through Wilmington Brokerage Services Company, a
Wilmington Trust affiliate. Rodney Square Management Corp., a
Wilmington Trust affiliate, is the funds’
investment adviser. The funds are not deposits of, or other
obligations of, or guaranteed by Wilmington Trust or any other bank or
entity. They are not insured by the FDIC or any other
governmental agency.
Mutual funds involve risk, including loss of principal. Investing
in smaller companies presents a greater risk of loss than investing in
larger companies. Past performance is no guarantee of future
results. Indexes are unmanaged and cannot be invested in directly.
CFA® and Chartered Financial Analyst®
are trademarks owned by CFA Institute.
Certified Financial Planner Board of Standards Inc. owns the
certification mark CFP®, which it awards to
individuals who successfully complete initial and ongoing certification
requirements.
Russell Investment Group owns the Russell 1000®
and Russell 2000® trademarks as well as
service marks and copyrights related to its indexes.
Wilmington Trust announced it is adding two new mutual funds,
Wilmington Fundamentally Weighted Large Company Fund and Wilmington
Fundamentally Weighted Small Company Fund, to its line-up of domestic
equity funds.
The introduction of Wilmington Trust's two new fundamentally
weighted mutual funds follows the company's recent launch of three
fundamentally weighted separately managed accounts for high-net-worth
individuals. These separate accounts focus on large company stocks,
mid-sized company stocks, and small company stocks, respectively.
Combined, they have accumulated $155 million in assets under
management.
As with the new separately managed accounts, the new mutual funds
ascribe to an emerging investment approach, often referred to as
fundamentally weighted index investing. This approach, which is
rapidly gaining acceptance in investor and academic circles, uses
fundamental measures of a company's size, such as net income,
dividends, and free cash flow, to select securities. It stands in
contrast to the market capitalization approach of conventional index
investing. Fundamental weighting allows managers to take advantage of
the mispricings inherent in the financial markets and helps to avoid
what many observers believe is the essential flaw of conventional
index investing: that market-cap weighting, by definition, causes
investors to be overexposed to overvalued securities and underexposed
to undervalued securities.
"Fundamentally weighted portfolios represent an enhancement of
market cap-weighted index investing," said Rex Macey, CFA(R), CIMA,
CFP(R), vice president and director of equity management for
Wilmington Trust. "Conventional indexing has strengths, including low
operating costs and the predictability of achieving substantially
similar performance to an unmanaged index. Maintaining proper
portfolio balance, however, is not one of them. Fundamentally weighted
portfolios can help solve that problem."
According to research performed by Mr. Macey's group, hypothetical
portfolios built to reflect fundamental measures of company size
performed better than traditional market cap-weighted benchmarks. And
they did so without increased volatility. This held true for
portfolios of large-, mid-, and small-sized companies. In addition,
the research showed that tax-loss harvesting of an otherwise passive
portfolio can help boost not only after-tax returns, but pre-tax
returns, as well.
It is anticipated that Wilmington Fundamentally Weighted Large
Company Fund will hold several hundred stocks included in the Russell
1000(R) Index, which represents approximately 92% of the U.S. equity
market. Wilmington Fundamentally Weighted Small Company Fund will hold
stocks included in the Russell 2000(R) Index, which is constructed to
provide a comprehensive and unbiased benchmark of U.S. small company
stocks.
By one estimate, there is approximately $3 trillion invested
worldwide in portfolios that track indexes. According to another
estimate, nearly 12% of all U.S. mutual fund assets are held in
indexed portfolios.
"We believe many investors who are comfortable with conventional
indexed portfolios will find fundamentally weighted portfolios to be a
sensible alternative," Mr. Macey said. "It's similar to index
investing, but with intellect. This approach has the benefits of
conventional index investing - broad diversification, relatively low
portfolio turnover and cost, tax sensitivity - without the drawback of
chasing overpriced stocks."
Wilmington Trust Corporation (NYSE:WL) is a financial services
holding company that provides Regional Banking services throughout the
Delaware Valley region, Wealth Advisory Services for high-net-worth
clients in 22 countries, and Corporate Client Services for
institutional clients in 81 countries. Its wholly owned bank
subsidiary, Wilmington Trust Company, which was founded in 1903, is
one of the largest personal trust providers in the United States and
the leading retail and commercial bank in Delaware. Wilmington Trust
Corporation and its affiliates have offices in California,
Connecticut, Delaware, Florida, Georgia, Maryland, Nevada, New Jersey,
New York, Pennsylvania, South Carolina, Vermont, the Cayman Islands,
the Channel Islands, London, Dublin, and Frankfurt. For more
information, visit www.wilmingtontrust.com.
You should carefully consider the investment objectives, risks,
charges, and expenses of the Wilmington Funds before investing. A
prospectus with this and other information may be obtained by calling
800-336-9970 or by visiting www.wilmingtonfunds.com. The prospectus
should be read carefully before investing.
The Wilmington Funds are distributed by Professional Funds
Distributor, LLC and through Wilmington Brokerage Services Company, a
Wilmington Trust affiliate. Rodney Square Management Corp., a
Wilmington Trust affiliate, is the funds' investment adviser. The
funds are not deposits of, or other obligations of, or guaranteed by
Wilmington Trust or any other bank or entity. They are not insured by
the FDIC or any other governmental agency.
Mutual funds involve risk, including loss of principal. Investing
in smaller companies presents a greater risk of loss than investing in
larger companies. Past performance is no guarantee of future results.
Indexes are unmanaged and cannot be invested in directly.
CFA(R) and Chartered Financial Analyst(R) are trademarks owned by
CFA Institute.
Certified Financial Planner Board of Standards Inc. owns the
certification mark CFP(R), which it awards to individuals who
successfully complete initial and ongoing certification requirements.
Russell Investment Group owns the Russell 1000(R) and Russell
2000(R) trademarks as well as service marks and copyrights related to
its indexes.