This material has been prepared for informational purposes only and does not constitute investment advice, and should not be construed as a solicitation or offer for sale, or any invitation to offer to buy or subscribe for, any securities, nor should it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. Any such offer or solicitation will be made only by means of offering discretionary investment management services under written contract. None of the information or analyses presented are intended to form the basis for any investment decision, and no specific recommendations are intended. Nuance expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) the use of this material, (ii) reliance on any information contained herein, (iii) any error, omission or inaccuracy in any such information or (iv) any action resulting therefrom.
Investors should seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this documentation and should understand that statements regarding future prospects may not be realized. Investors should note that income from such securities may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested.
Nuance takes care to ensure that the information provided is accurate as of the date noted on the material. Opinions expressed herein are subject to change without notice. All information and content in this book is furnished “as is,” without warranty of any kind, express or implied, including but not limited to implied warranties of merchantability, fitness for a particular purpose, or non-infringement. Certain information herein has been obtained from third-party sources believed to be reliable, but we do not guarantee or warrant its completeness or accuracy.
You may not copy, reproduce, recompile, decompile, disassemble, reverse engineer, distribute, publish, display, perform, modify, upload to, create derivative works from, transmit or in any way exploit any part of this material, except that you may use for your own personal, noncommercial use. The analysis and presentation included in this material may not be re-circulated, redistributed or published without our prior written consent. Modification of the materials content would be a violation of our copyright and other proprietary rights. Additionally, you may not offer any part of this material for sale or distribute it over any other medium without our prior written consent. The information contained herein may not be used to construct a database of any kind. Nor may the information be stored (in its entirety or in any part) in databases for access by you or any third party or to distribute any database services containing all or part of the information without our prior written consent.
Nuance claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS® standards. Nuance has been independently verified for the periods 11/03/2008 – 03/31/2024 by Absolute Performance Verification. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.
Nuance is an investment adviser registered with the Securities and Exchange Commission. The firm maintains a complete list and description of composites, which is available upon request. Results are based on fully discretionary separate accounts under management, including those accounts no longer with the firm, and are presented gross of foreign withholding taxes. The U.S. Dollar is the currency used to express performance returns and assets. Performance results are presented both net and gross of management fees and include the reinvestment of income. Both gross and net of fee returns are reduced by trading expenses that may occur. Net of fee performance returns are presented after actual standard management fees, performance-based management fees, and all trading expenses that may occur. No other fees are deducted aside from trading and management fees for the calculation of net of fee performance. The full fee schedule for all Nuance products is available upon request. It should be noted that the collection of fees produces a compounding effect on the total rate of return net of management fees. Nuance reserves the right to modify fee structures on an account by account basis at its discretion. Performance-based fee structures are available for qualified clients and are negotiated individually. In instances where Nuance has multiple accounts under an advisory relationship, Nuance typically calculates the amount of assets under management for the purpose of determining the applicable fee breakpoint by including all month-end assets (mutual fund and separate account) under that relationship. In calculating mutual fund assets for the purposes of breakpoint aggregation, Nuance utilizes a third-party provider or adviser data to obtain shareholder specific information associated with the firm relationship and aggregation is subject to the limitations and availability of such data.
Fees for separate accounts in the Nuance Mid Cap Value composite generally are 0.85% for assets under $25 million, 0.80% for clients with assets under management between $25-50 million, 0.75% for clients with assets under management between $50-75 million, 0.70% for clients with assets under management between $75-$100 million, and 0.65% for assets greater than $100 million. Nuance’s annual advisory fee is 0.75% of the average daily net assets for the Nuance Mid Cap Value Fund. For the Nuance Mid Cap Value Fund, the net expense ratio is 1.19% and 0.94% of the average daily net assets attributable to the Investor Class and the Institutional Class shares, respectively. The net expense ratio for the Z Class is 0.79%. Nuance has contractually agreed to reduce its management fees and pay fund expenses until at least 8/28/2024, to ensure that total annual fund operating expenses (exclusive of certain expenses as indicated in the prospectus) do not exceed 1.18% for the Investor Class, 0.93% for the Institutional Class, and 0.78% for the Z Class. The net expense ratio represents what investors have paid as of the prospectus dated 8/28/2023.
Fees for separate accounts in the Nuance Concentrated Value composite generally are 0.95% for assets under $25 million, 0.90% for clients with assets under management between $25-50 million, 0.85% for clients with assets under management between $50-75 million, 0.80% for clients with assets under management between $75-$100 million, and 0.75% for assets greater than $100 million. Nuance’s annual advisory fee is 0.85% of the average daily net assets for the Nuance Concentrated Value Fund. For the Nuance Concentrated Value Fund, the net expense ratio is 1.29% and 1.04% of the average daily net assets attributable to the Investor Class and the Institutional Class shares, respectively. Nuance has contractually agreed to reduce its management fees and pay fund expenses until at least 8/28/2024, to ensure that total annual fund operating expenses (exclusive of certain expenses as indicated in the prospectus) do not exceed 1.28% of the average daily net assets of the Investor Class and 1.03% of the average net assets of the Institutional Class. The net expense ratio represents what investors have paid as of the prospectus dated 8/28/2023.
Nuance participates in wrap account programs and separately managed account programs that charge a bundled fee. Performance results for wrap composites are presented both net and gross of bundled fees and include the reinvestment of income. Pure gross-of-fees returns do not reflect the deduction of transaction costs. the maximum wrap fee is deducted for net performance calculation purposes. Nuance management fee may be charged separately or as a portion of the bundled fee or managed account fee that clients pay the sponsor for management of such accounts. The wrap fee consists of all fees-Nuance management fee, sponsor fee, custodial fee, trading fee and any other fees assessed by the program and may be bundled or unbundled.
Valuations are net of all applicable withholding taxes. Portfolios are valued in accordance with GIPS® Valuation Principles. More information regarding standard investment management fees and the calculation of performance-based investment management fees is available upon request. From the inception of each composite until 12/31/2010, Time Weighted Return was compounded on a monthly basis. Beginning 01/01/2011 through present, Time Weighted Return was compounded on a daily basis. Nuance updated its index performance source from Bloomberg to FactSet effective 12/31/2020. Historical index returns have been amended to reflect FactSet source information.
The definition of the firm is the foundation for firm-wide compliance and creates defined boundaries for determining the assets of the firm. In this instance, the firm is defined as Nuance Investments, LLC (Nuance). Nuance, founded on November 1, 2008, was formed on the belief that the ability to outperform the broad stock market is predicated on a consistent and disciplined value investing approach. The Investment Management Team selects securities for the Nuance investment portfolio’s by using an extensive quantitative screening and fundamental research process that identifies leading businesses selling at a discount to fair value and that have the potential to generate above-average rates of returns over time. The Investment Management Team seeks to identify companies across a range of industries and market sectors that have leading and sustainable market share positions, above-average financial strength, and are trading at a discount to their internal view of intrinsic value. The Investment Management Team may sell an investment when it believes it has surpassed its intrinsic value by applying the screening process described above, for purposes of portfolio construction or risk management, or when a more attractive investment opportunity becomes available. The total firm assets will be defined as all discretionary and non-discretionary assets under management within Nuance. This includes primary investment management accounts, sub-advisory investment management accounts and wrap accounts as well as both fee-paying and nonfee paying assets.
Strategy: Our core offerings are the Nuance Mid Cap Value Strategy and the Nuance Concentrated Value Strategy.
Nuance Mid Cap Value Composite consists of separately managed accounts and pooled investment funds (portfolios) in the Mid Cap Value strategy. The composite was created and incepted on November 3, 2008. Nuance Mid Cap Value seeks to achieve long-term capital appreciation by investing primarily in equity securities (including common stocks, preferred stocks and convertible securities) of companies organized in the United States that the Investment Management Team believes are high quality, though temporarily out of favor. The market capitalization of at least 80 percent of the portfolio will be maintained in companies with market capitalizations between the smallest and largest members of the Russell Mid Cap Index (defined using a trailing 12 month average derived from FactSet of the smallest and largest members on a month to month basis). The Investment Management Team will invest primarily in the equity securities of U.S. companies; however the portfolio may invest up to 15% of its assets in equity securities of foreign companies in countries classified as “developed” by MSCI. Nuance utilizes FactSet’s country assignments for individual companies. 25% of the portfolio assets will generally not have positions of greater than 5%. Cash will generally not be greater than 10% of the market value of the portfolio. Each security position will not be greater than 7.50% of the market value of the portfolio. Each portfolio will not exceed a 25% weighting in one industry as defined by Global Industry Classification Standards (GICS®). A typical portfolio will hold between 50 and 90 companies. There is no minimum separate account asset level necessary for inclusion in the composite.
Benchmark: For comparison purposes, the composite is measured against the Russell Midcap® Value Index as the primary index. The Russell Midcap Value Index measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values. The secondary benchmarks are the S&P MidCap 400 Value TR Index and the S&P 500 TR Index.
The Nuance Concentrated Value Composite consists of separately managed accounts and pooled investment funds (portfolios) in the Concentrated Value strategy. The composite was created and incepted on November 13, 2008. Nuance Concentrated Value seeks to achieve long-term capital appreciation by investing primarily in equity securities of companies organized in the United States that the Investment Management Team believes are high quality, though temporarily out of favor. The Investment Management Team will invest primarily in the equity securities of U.S. companies; however the portfolio may invest up to 25% of its assets in equity securities of foreign companies in countries classified as “developed” by MSCI. Nuance utilizes FactSet’s country assignments for individual companies. 50% of the portfolio assets will generally not have positions of greater than 5%. Cash will generally not be greater than 25% of the market value of the portfolio. Each security position will not be greater than 15% of the market value of the portfolio. Each portfolio will not exceed a 25% weighting in one industry as defined by Global Industry Classification Standards (GICS®). A typical portfolio will hold between 15 and 35 companies. There is no minimum separate account asset level necessary for inclusion in the composite.
Benchmark: For comparison purposes, the composite is measured against the Russell 3000 Value Index as the primary index. The Russell 3000 Value Index measures the performance of the broad value segment of the U.S. equity universe. It includes those Russell 3000 companies with lower price-to-book ratios and lower forecasted growth values. The secondary benchmark is the S&P 500 TR Index.
Dispersion: Dispersion is calculated from gross of fee returns using an equal-weighted standard deviation methodology. Only those accounts included for the full calculation period are part of the dispersion calculation. The 3-year Ex-post annualized standard deviation value is calculated using 36 consecutive monthly gross of fee returns to the end calculation period. Prior to January 1, 2017 dispersion was calculated using an asset-weighted methodology. The calculation methodology was updated based on a new performance system dispersion calculation.
Nuance has adopted a Significant Security & Cash Flow Policy since inception of the Concentrated Value and Mid Cap Value composites. An account will be removed from a composite if a client has given specific instructions that prevent full investment of securities or cash flow(s) in a timely manner (defined as 5 business days or greater), or if a single security or cash flow is equal or greater than 10% of the total account value based on the beginning of the month market value. If these circumstances exist, the account will be removed from the composite and added back to the composite on the first day of the following month.
More information regarding Composite List and descriptions and policies for valuing investments, calculating performance, and preparing GIPS reports are available upon request by contacting client.services@nuanceinvestments.com or 816-743-7080. To obtain information about the pooled funds included in the strategies, please contact client.services@nuanceinvestments.com or 816-743-7080.
Certain employees of Nuance may carry the CFA Charterholder designation. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute. The CFA charter is a globally respected, graduate-level investment credential established in 1962 and awarded by CFA Institute — the largest global association of investment professionals. There are currently more than 90,000 CFA charterholders working in 135 countries. To earn the CFA charter, candidates must: 1) pass three sequential, six-hour examinations; 2) have at least four years of qualified professional investment experience; 3) join CFA Institute as members; and 4) commit to abide by, and annually reaffirm, their adherence to the CFA Institute Code of Ethics and Standards of Professional Conduct.
Past Performance is not a guarantee of future results. Securities are subject to general market risks due to a variety of factors that affect the overall market. There is no guarantee that an investment with the strategy will meet its investment objectives, and it may underperform the market. Please see a copy of the Firm’s Disclosure Brochure for more information.
On 06/01/2010, the firm changed its name to Nuance Investments, LLC. Prior to 06/01/2010 the firm name was Mariner Value Strategies, LLC.
How to invest
Nuance has been managing portfolios for individuals and institutions using the same classic value investment philosophy since first registering as an investment advisor in 2008. If you would like to receive material describing our services, including our historical performance records, please contact us.
Nuance Investments, LLC
4900 Main Street, Suite 220
Kansas City, MO 64112
Telephone: (816) 743-7080
Fax: (913) 387-2729
Nuance Investments
Nuance Investments, LLC • 4900 Main Street, Suite 220, Kansas City, MO 64112