White Papers

Not All Quality is Created Equal

At Jensen, we define quality somewhat differently. Our primary quality metric is high and consistent return on equity. Beyond this requirement, we focus more broadly on quality characteristics such as competitive advantage, return on invested capital, and free cash flow. However, we find that S&P Earnings and Dividends Rankings is often a good proxy for measuring the investment performance impact of our portfolio's consistent overweight to high quality stocks. We invite you to read the article below, as we explore the pros and cons of our unique definition of quality and how it relates to the broader market landscape through various market cycles.

For more complete information about the Jensen Quality Growth Fund including investment objectives, risks, fees and expenses, please go to the prospectus, or call 800.992.4144. Read the prospectus carefully before you invest or send money.

Mutual fund investing involves risk. Principal loss is possible. The Jensen Quality Growth Fund is non-diversified, meaning that it may concentrate its assets in fewer individual holdings than a diversified fund, and is therefore more exposed to individual stock volatility than a diversified fund.

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All white papers posted were created by the listed authors who are solely responsible for the research, finding and all materials contained therein. Pensions & Investments has not verified or edited the materials (other than for length and style) and does not necessarily agree or disagree with the analysis and positions expressed by the authors. Reference to any company, product or service does not imply recommendation or sponsorship by Pensions & Investments.

For more information on submitting a white paper, please contact Richard Scanlon at rscanlon@pionline.com or 212-210-0157.