HANCOCK HORIZON FUNDS Presented by: David Lundgren, Jr., CFA Senior Vice President Managing Director
Dec 28, 2015
HANCOCK HORIZON FUNDS
Presented by:
David Lundgren, Jr., CFA
Senior Vice President
Managing Director
Hancock Holding Company OverviewCommitment to Service Hancock Horizon Advisers is a division of Whitney Bank, an institution founded more than a century ago on
ideals of Honor & Integrity, Strength & Stability, Commitment to Service, Teamwork and Personal Responsibility
Strength & Stability Whitney Bank earned five-star excellent recommended designations from BauerFinancial, Inc. based on
September 30, 2014 results Earned top customer service marks with Greenwich Excellence Awards in 2014 Bauer Rating: For the 101st consecutive quarter confirmed as one of the strongest, safest banks in the United
States Veribanc: Blue Ribbon In 2012, was listed in top-20 of Forbes America’s Best Banks for the second year in a row
One Strong Future Approximately $21 billion in total assets Approximately 3,800 employees across bank footprint Over 200 banking and financial services offices in Louisiana, Mississippi, Alabama, Florida and Texas Headquarters located in New Orleans, LA
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Trust & Asset Management Depth of Services and ResourcesAsset Management Manages assets for high net worth and institutional clients including pension plans, endowments,
foundations, government entities, corporations, trusts and estates. Investment styles are also offered as mutual funds through the Hancock Horizon Family of Funds Information about our firm is submitted to the following databases: eVestment Alliance, PSN Informa,
Zephyr, Equest, Morningstar, Callan, and Wilshire Odyssey
Investment Styles: Equity: Large Cap Core, Value, Growth, Small Cap Regional, Small Cap National, International and Dividend
Income Fixed Income: Intermediate Duration, Short Duration, High Yield, Government and Tax-free Income Alternative: Long/Short, Diversified Income, Preferred Stock, Dynamic Global , Master Limited Partnerships
(MLPs) and Real Estate Investment Trust (REITs)
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Footprint Across the Gulf Coast
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John Portwood, CFAChief Investment
Strategist
Luther McDougal, CFATrading & Performance
Bryan McCaulley, CFAPerformance Analyst
Shaw BrelandEquity Trader
Sean PetriFixed Income Trader
Gayle JuneauInvestments
Administrator
Jeffery TanguisDirector of Fixed Income
Nathan Grant, CFACredit Analyst
David Lundgren, CFAManaging Director
Sarah CarterPortfolio Manager
Kristy OehmsQuantitative Analyst
Paula ChastainPortfolio Manager
Jacob Hartl, CFAPortfolio Manager
Greg Hodlewsky, CFAEquity & Portfolio
Management
Steve Solomon, CFAPortfolio Manager
Anthony Slovick, CFAPortfolio Manager
Austin Zaunbrecher, CFA
Portfolio Manager
Investment Management Team
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OVERVIEW OF MUTUAL FUNDS
Meet the Family The Hancock Horizon Funds were launched on May 31, 2000, with three funds and assets of $240 million. As of 12/31/2014, Hancock Horizon Funds offers eleven funds and has assets of approximately $2.4 billion:
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- Government Money Market Fund; May 31, 2000*
- Core Bond Fund; May 31, 2000
- Louisiana Tax-Free Income Fund; February 2011
- Mississippi Tax-Free Income Fund; February 2011
- Diversified Income Fund; September 2012
- Value Fund; May 31, 2000
- Growth Fund; January 2001
- Quantitative Long/Short Fund; September 2008
- U.S. Small Cap Fund; December 2013
- Burkenroad Small Cap Fund; December 2001
- Diversified International Fund; September 2008
Investment Management Infrastructure
- Already in place
Distribution of Investment Management Services
- To clients with smaller assets
- To non-bank clients
Maximize Shareholder Value
Why Proprietary Funds
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Turnkey, bundled solution that investment managers can leverage to launch and grow mutual funds while focusing on:
- Investment performance, and - Investor relations
Provides complete infrastructure for offering mutual funds- Governance Infrastructure
• Board of Trustees• Fund Counsel/Independent Trustee Counsel
- Compliance Infrastructure• CCO• Compliance Program
- Operational Infrastructure• Administrator and Fund Accountant• Distributor• Transfer Agent• Custodian• Independent Public Accountant
Market leader and pioneer
What is SEI’s Advisors’ Inner Circle Trust (“AIC”)?
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Fund Shareholders
Fund Board of Directors(Majority of board must be independent directors)
Oversee the fund’s activities, including approval of the contracts with the management company and certain other service providers
Mutual Fund
Investment Adviser
Manages the fund’s portfolio according to the objectives and
policies described in the fund’s prospectus
Principal Underwriter
Sells fund shares, either directly to
the public or through other
firms(e.g. broker dealers
AdministratorOversees the
performance of other companies
that provide services to the
fund and ensures that the fund’s
operations comply with requirements
Transfer AgentExecutes
shareholder transactions,
maintains records of transactions and other shareholder account activity,
and send account statements and
other documents to shareholders
CustodianHolds the fund’s
assets, maintaining them separately to
protect shareholder
interests
Independent Public
AccountantCertifies the fund’s
financial statements.
Business Structure Hancock Horizon Funds
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Advisors’ Inner Circle Umbrella Trust
SEI Board of Trustees
Fund CCO & AML Compliance Officer
Fund Compliance Program
Sarbanes Oxley President & CFO
Joint Insurance Policies
Accounting Services
Administrative Services
Compliance
• Experienced• Independent• Fund Governance and oversight• 15c Review
• Annual Review• Compliance oversight• Compliance Consults• 15c Review• Fund Level SEC exam
• Independent 38a-1 testing• Board Reporting
• Regular Review of Internal Controls• Prepare Financial Stmts.• Certify Financial Stmts.
• Reduced Premiums• Improved Coverage
• Fund Counsel• Board Meeting Minutes• SEC Exam Ownership• Review Regulatory Documents
• Official Books & Records• Daily NAV Calculation• SSAE 16
• Financial Statements• Tax Return Prep• Tax Return Filing
• Post Trade-Advisor Alert• Quarterly Checklists• SEC Exam Assistance
DistributionServices
• Dealer Agreement Coordination• Call Center• FINRA Review / Filing• Regulatory Report Printing, Mailing & Fulfillment
LegalServices
Standard Services Provided by SEI
Additional Services Under AIC Trust
KeyOversight of all service providers – Transfer Agent, Custodian, Independent Public Accountant 11
Comprehensive Services under AIC
Intermediary Agreement Support
Contact Center
Marketing Review & Compliance
Platform Strategy Development
Distribution and sales planning
Market and competitive intelligence
FINRA Series 24 Licensed Personnel
Workflow & Recordkeeping Technology
Marketing Compliance Training
Marketing Partners
Dealer Agreement Management Process
Master Agreement Strategy
Workflow Technology
Inbound Intermediary & Shareholder Call / E-Mail Support
Outbound Call Support Capabilities
FINRA Series 7 Licensed Personnel
Solution Management - Client SupportEnsure service and response level
Activity & status reporting
Core Execution & Implementation
Platform Sales Solution
Distribution Insights
SEI Knowledge Partnership
Conferences & Web Seminars
Strategy Briefs Share class
development
Knowledge
• Speed to market• Scale• Sales planning
• Fact sheets• Prospectus• Website
• Messaging• Skilled team• Lead generation
• Strategic planning • Thought leadership• Business plan execution
Solution Benefits
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Comprehensive Distribution Services
Ability to review and understand information about the Funds provided to them by management
Identify and request other information they may deem relevant to the performance of their duties
Question management and other service providers regarding material factors bearing on the management and administration of the Funds
Exercise their business judgment in a manner that serves the best interests of the Funds’ shareholders.
In its periodic assessment of the effectiveness of the Board, the Board considers the complementary individual skills and experience of the individual Trustees primarily in the broader context of the overall composition so that the Board, as a body, possesses the appropriate (and appropriately diverse) skills and experience to oversee the business of the funds
Board Membership Criteria
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Average Net Assets by Type
Jun-0
0
Jun-0
1
Jun-0
2
Jun-0
3
Jun-0
4
Jun-0
5
Jun-0
6
Jun-0
7
Jun-0
8
Jun-0
9
Jun-1
0
Jun-1
1
Jun-1
2
Jun-1
3
Jun-1
4
Jun-1
5$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$3,000,000,000
Total NAV Funds Money Market14
Rolling 12 Months Advisory Revenue
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Net Monthly Advisory Fee - NAV Funds Only
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
Net Advisory Fee - Rolling 12 Months
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