TIA Equity Styles
Growth Equity Style
The Growth Equity Portfolio (GEP) is invested in companies having revenues and earnings growing faster than the market. The investment objective is to maximize total return by investing in companies whose products have a marked edge over competitors and whose expected revenue increase will result in meaningfully stronger earnings prospects. Long-term, superior earnings performance should lead to significant capital appreciation for the portfolio.
TIA's stock selection process has two components: a screening process to determine stocks meeting TIA's guidelines for inclusion in the GEP and a ranking process based on the company's price to earnings ratio adjusted for the company's long-term earnings growth rate.
TIA uses a valuation model based on earnings estimates and projected earnings growth to evaluate stocks selected through the screening process. The price to earnings ratio utilizing estimates for the current fiscal year is adjusted for the projected growth rate in earnings. This adjusted ratio is compared to the ratio for the S&P 500 Index in projecting a fair valuation for the company. TIA then ranks the companies based on their relative attractiveness.
Typically, the GEP will consist of a well-diversified portfolio of 33 stocks.