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(800) 221-4384 Lake Oswego Office 5500 Meadows Road, Suite 200 Lake Oswego, OR 97035

The strength of our investment philosophy is built on a long-term perspective and a commitment to investing in quality businesses.

1

Your goals are always at the center of what we do.

  • Growth

    At Jensen, our long-term investment perspective combined with our commitment to high quality companies blends patience and risk mitigation.

  • Liquidity

    Jensen works with you to build a financial plan that analyzes cash needs from investment accounts. This forward-thinking approach lends itself to constructing portfolios that provide for an investor’s need for liquidity—now or in the future.

  • Taxes

    Our Quality Growth investment process combines a high-conviction investment discipline with a tailored portfolio approach which gives us the ability to account for the eroding effects of taxes. In this way we help manage the impact of capital gains taxes.

  • Education

    From sharing detailed reviews of investments in your portfolio account to discussions about the impact of Social Security benefits/requirements, Jensen’s professionals are well-equipped to explain a broad array of topics that affect you.

At Jensen, our long-term investment perspective combined with our commitment to high quality companies blends patience and risk mitigation.

Jensen works with you to build a financial plan that analyzes cash needs from investment accounts. This forward-thinking approach lends itself to constructing portfolios that provide for an investor’s need for liquidity—now or in the future.

Our Quality Growth investment process combines a high-conviction investment discipline with a tailored portfolio approach which gives us the ability to account for the eroding effects of taxes. In this way we help manage the impact of capital gains taxes.

From sharing detailed reviews of investments in your portfolio account to discussions about the impact of Social Security benefits/requirements, Jensen’s professionals are well-equipped to explain a broad array of topics that affect you.

2

What is the Jensen Quality Universe?

We are extremely selective. The Jensen Quality Universe includes only those businesses that have produced a return on shareholder equity of 15% or greater in each of the past ten years, as determined by the Investment Team.

Derived from this investable universe, Jensen’s Quality Growth Strategy and Quality Value Strategy share the same investment philosophy. We then apply a distinct investment process to each, producing different end results.

Sell Discipline

Our sell discipline monitors the key tenets of our buy discipline: sustainable competitive advantages, growth, value creation and price. We will sell a company if:

  • Company fundamentals deteriorate below our minimum business standard of a 15% return on equity, on an annual basis, indicating a possible loss of competitive advantage
  • The market price of a business exceeds our estimate of full value
  • It is displaced by a better investment that allows an upgrade to the portfolio’s quality, growth outlook and/or valuation metrics

Our annual selection process pares down 4,000 publicly-traded U.S. companies , creating a focused universe of fewer than 250 to perform further screening.

  • Market capitalization above $1 Billion
  • ROE greater than 15% for each of the last ten years as determined by the Investment Team

Identification of quality growth companies on which to perform due diligence.

  • Growth potential
  • Margin strength and consistency
  • Business returns
  • Financial strength
  • Other quality characteristics

40-50 quality growth companies for potential inclusion in client portfolios.

  • Assess sustainability of competitive advantages
  • Identify growth drivers
  • Determine free cash flow potential

Approximately 25-30 portfolio stocks selected that we believe should offer potential long-term returns with less volatility than the overall securities market.

  • Identify undervalued securities
  • Individual positions of 1% to 7.5%
  • Sector limit of 30%
  • Position weights reflecting conviction level

Sell Discipline

A company will be sold if:

  • It no longer meets one or more of the criteria of the investment process
  • Its fundamentals deteriorate, lowering ROE below 15% on an annual basis, indicating a possible loss of competitive advantage
  • The Investment Team determines that another qualifying company has a better opportunity to achieve the objective

Our selection process pares down 4,000 publicly-traded U.S. companies, creating a focused universe of approximately 175 to perform further screening.

  • Market capitalization above $100 million
  • Market capitalization less than the largest capitalization company included in the Russell Midcap® Index at the time of the investment
  • ROE greater than 15% for each of the last ten years as determined by the Investment Team

Identification of each company’s value relative to its business performance.

  • Fundamental research and valuation are applied to the universe
  • Companies with strong fundamental businesses and attractive valuation are identified and monitored

A portfolio of approximately 50-80 companies which we believe are undervalued relative to their business performance.

  • Emphasizes approximately one-third of the universe based on our own internal research and valuation
  • Position sizes vary based on analysis of potential return and risk characteristics
3

UNWAVERING DISCIPLINE
AND CALM DECISION MAKING

  • Tax Efficiency
    Tax Efficiency

    The Jensen Quality Growth Strategy is a long-term focused approach to investing with historically low turnover and a corresponding high degree of tax efficiency.

  • Low Turnover
    Low Turnover

    In our Quality Growth Strategy we search for quality companies by targeting exceptional business performance combined with endurance. As a result of this sound discipline, we don’t trade based on daily market noise.

  • Competitive Fees
    Competitive Fees

    Whether you invest in the Jensen mutual funds or directly in individual positions, our fee schedule is competitive, easy to understand, and designed such that if our clients do well, so do we.

  • Client Service
    Client Service

    We strive to attract and retain talented staff to serve our client base for the long term. We provide a highly tailored client experience based on our clients’ differing servicing needs.

In addition to managing investment portfolios, an important component of the private client service is helping our clients plan for the future.

Rob McIver
Rob McIver Managing Director - Portfolio Manager read his bio