Ohio DC Large-Cap Growth Strategy

OHIO DEFERRED
COMPENSATION
Large-Cap Growth Strategy
As of March 31, 2014
OHIO PUBLIC EMPLOYEES DEFERRED COMPENSATION PROGRAM
This information is presented for comparison purposes only.
Ohio DC Large-Cap Growth will be managed by T. Rowe Price using the strategy presented
in this document. Since this fund is new as of August 1, 2014, a fund profile and historical
performance will not be available until the fourth quarter 2014.
Investment Approach
Top 10 Issuers
• Scrutinize both company- and industry-level fundamentals to identify
companies with characteristics that support sustainable double-digit
earnings growth.
• Focus on high-quality earnings, strong free cash flow growth,
shareholder-oriented management, and rational competitive
environments.
• Exploit differences between secular and cyclical trends.
• Limit Portfolio holdings to the most attractive growth opportunities
across industries.
% of Representative
Portfolio
Google
5.7%
Amazon.com
4.4%
Priceline
3.1%
Gilead Sciences
3.0%
Crown Castle International
2.9%
Precision Castparts
2.8%
Portfolio Construction
• 50-70 stock portfolio
• Individual position sizes typically range +/- 1.00% to 4.00% relative to
Russell 1000 Growth Index
• Sector weights will vary from 0.5X to 3.0X for primary sectors relative to
Russell 1000 Growth Index
Benchmark
Danaher
2.7%
Visa
2.7%
Boeing
2.6%
McKesson
2.5%
Total
32.5%
The information shown does not reflect any ETFs that may be held in
the portfolio. The specific securities identified and described above do
not represent all of the securities purchased, sold or recommended for
the Composite and no assumptions should be made that the securities
identified and discussed were or will be profitable. Numbers may not add
due to rounding.
• Russell 1000 Growth Index
Portfolio Management
Robert W. Sharps, CFA (Portfolio Manager)
Larry J. Puglia, CFA, CPA
Joseph B. Fath, CPA
Fees and Expenses
Management
0.35% *
Custodial
0.02%
Adminsitrative
0.09%
Total Fees
0.46%
Total Annual Operating Exp/$1,000
$4.60
*Management fees may vary based on total assets in the fund.
Portfolio Characteristics
Representative
Portfolio
Russell 1000
Growth Index
Projected Earnings Growth Rate (IBES)*
16.8%
12.2%
Price to Earnings (12 Months Forward)*
22.3X
17.8X
Return on Equity (Last 12 Months excl. charges)*
16.8%
24.6%
The Ohio DC Large-Cap Growth
fund will be offered by the Ohio
Public Employees Deferred
Compensation Board. This option
is not a mutual fund or registered
investment company, and does
not have a prospectus. For more
information, contact the Service
Center at 1-877-644-6457.
Price to Book*
5.1X
4.7X
Investment Weighted Median Market Cap (mm)
$39,174
$56,680
Investment Weighted Average Market Cap (mm)
$73,043
$101,486
Number of Holdings
Top 20 Holdings as % of Total
Portfolio Turnover (12 Months)
74
625
50.8%
44.3%
32.9%
—
*Investment Weighted Median
The representative portfolio is an account in the composite we believe most closely reflects current portfolio management
style for the strategy. Performance is not a consideration in the selection of the representative portfolio. The characteristics
of the representative portfolio shown may differ from those of the composite and of the other accounts in the composite.
NRW-4040OH
OHIO DEFERRED
COMPENSATION
Ohio DC Large-Cap Growth
Frequently Asked Questions
OHIO PUBLIC EMPLOYEES DEFERRED COMPENSATION PROGRAM
Q:
What is the Ohio DC Large-Cap Growth fund?
A: This is an investment designed to focus on high-quality earnings, strong cash flow growth,
shareholder-oriented management, and rational competitive environments. It will limit portfolio
holdings to those that the manager believes are the most attractive growth opportunities
across industries. The manager will be T. Rowe Price Associates, Inc. (T. Rowe Price).
Q:
Is a private-label fund something new?
A: No. In fact, this is the way the Stable Value Option has been structured for many years.
Ohio DC has selected T. Rowe Price to manage the fund, but it will be a privately managed
separate account that uses money only from Ohio DC investors to buy securities. The investor
(Ohio DC and its participants) actually owns shares of the underlying securities instead of
sharing in a pool of securities with other investors outside Ohio DC, which is the structure of a
mutual fund. The Ohio DC Large-Cap Growth fund will have the same portfolio management
as the T. Rowe Price Institutional Large-Cap Growth fund (TRLGX).
Q:
Why not just offer a similarly managed mutual fund instead of creating a private-labeled fund?
A: Private-label investments are directly negotiated by Ohio DC to be less expensive for you, the
participant. This means more of the investment returns go to work for you, rather than being
retained by the mutual fund company for marketing, advertising, and printing.
Q:
Where can I find information on performance of the new Ohio DC Large-Cap Growth fund?
A: Since the fund will be created for Ohio DC participants on August 1, 2014, initially there will be
no historical performance to report. Over-time the fund will build a performance history.
Q:
Are there other changes expected to Ohio DC’s investment options?
A: This change is being made because we need to replace an existing large cap growth
investment manager. No further investment manager changes are anticipated at this time.

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