The content in this report is authored by American Enterprise Investment Services Inc. ("AEIS") and distributed by Ameriprise Financial Services, LLC ("AFS") to financial advisors and clients of AFS. AEIS and AFS are affiliates and subsidiaries of Ameriprise Financial, Inc. Both AEIS and AFS are member firms registered with FINRA and are subject to the objectivity safeguards and disclosure requirements relating to research analysts and the publication and distribution of research reports. The "Important Disclosures" below relate to the AEIS research analyst(s) that prepared this publication. The "Disclosures of Possible Conflicts of Interest" section, where applicable, relates to the conflicts of interest of each of AEIS and AFS, their affiliates and their research analysts, as applicable, with respect to the subject companies mentioned in the report.
Each of AEIS and AFS have implemented policies and procedures reasonably designed to ensure that its employees involved in the preparation, content and distribution of research reports, including dually registered employees, do not influence the objectivity or timing of the publication of research report content. All research policies, coverage decisions, compensation, hiring and other personnel decisions with respect to research analysts are made by AEIS, which is operationally independent of AFS.
As of June 30, 2020
The views expressed regarding the company(ies) and sector(s) featured in this publication reflect the personal views of the research analyst(s) authoring the publication. Further, no part of research analyst compensation is directly or indirectly related to the specific recommendations or views contained in this publication.
A part of a research analyst's compensation may be based upon overall firm revenue and profitability, of which investment banking, sales and trading, and principal trading are components.
No part of a research analyst's compensation is based on a specific investment banking transaction, nor is it based on sales, trading, or principal trading. A research analyst may have visited the material operations of one or more of the subject companies mentioned in this research report. No payment was received for the related travel costs.
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Tactical asset class recommendations mentioned in this report reflect The Ameriprise Global Asset Allocation Committee's general view of the financial markets, as of the date of the report, based on then current conditions. Our tactical recommendations may differ materially from what is presented in a customized long-term financial plan or portfolio strategy. You should view our recommendations in conjunction with a broader long-term portfolio strategy. Not all products, services, or asset classes mentioned in this report may be available for sale at Ameriprise Financial Services, LLC. Please consult with your financial advisor.
Ameriprise Recommended List equities are equities that our analyst(s) believe offer attractive total return potential within their coverage universe based on current conditions. Your financial advisor can assist you with determining the risk profile of the Recommended List companies within the context of your overall investment portfolio. Additions and deletions are at the discretion of the analyst(s) covering the sector, with changes based upon such fundamental factors as valuation, competitive position, market conditions, etc. Furthermore, we have an internal sell discipline designed to potentially improve Recommended List performance and reduce risk. A Recommended List company that has generated returns in the bottom quartile of its respective S&P economic sector for three consecutive months will be flagged for review for possible removal from the Recommended List.
The Sector Recommended List is not designed to be a complete portfolio, but instead to assist in the selection of securities for the equity portion of a well-diversified portfolio. We believe it is important for investors to diversify their investments across asset classes, economic sectors and industries in order to help reduce risk. Please consult with your financial advisor to assist in creating a diversified portfolio that is consistent with your investment objectives.
Recommended List selections and securities markets in general could experience significant volatility due to several factors, including but not limited to: changes in global economic conditions, movements in interest & foreign exchange rates, fluctuations in commodity prices, geopolitical risks, changes in the regulatory & legislative environment (e.g. regulatory capital requirements, changes in tax rates, Medicare, etc.), catastrophes & natural disasters, labor issues, disruptions in the supply chain, merger integration issues, patent expiration, cybersecurity issues, litigation risks, headline risks, changes in distribution, and the loss of key personnel. For additional information please refer to third party research reports. You may experience a loss of principal by investing in equities.
Securities included on our Recommended Lists are selected from the universe of companies covered by AEIS. Approved third party research providers (e.g., CFRA powered by data from S&P Global, Morningstar, Reuters and Standard & Poor's) generally provide additional information on Recommended List companies. Recommended List selections reflect securities that our analysts believe represent good value based on current conditions. If a security is added to a Recommended List, we deem it to be appropriate for investment. If a security is removed from a Recommended List and you choose to hold the removed security in your investment portfolio, you should continue to review available third-party research sources in order to obtain an investment opinion, price target, and additional fundamental analysis. For ratings definition purposes, securities included on our Recommended Lists most closely correlate with an investment opinion of "Buy"; therefore, 100% of the securities on our Recommended Lists meet this definition. For purposes of constructing our Recommended List, a rating of "Buy"is defined as those securities that our research analysts believe represent good value based on current conditions. Additionally, we note that each of our respective approved third-party research providers utilizes its own unique rating system, which is disclosed and defined in its own research reports.
Dividend and interest payments are not guaranteed. The amount of dividend payment, if any, can vary over time and issuers may reduce or eliminate dividends paid on securities in the event of a recession or adverse event affecting a specific industry or issuer. Should a company be unable to pay interest on a timely basis a default may occur and interruption or reduction of interest and principal occur.
Investments in a narrowly focused sector may exhibit higher volatility than investments with broader objectives and is subject to market risk and economic risk.
Sector funds are subject to greater volatility than more broadly diversified funds because they invest in specific sectors: real estate, precious metals, commodities, etc. See each fund's prospectus for specific risks associated with the fund.
DEFINITIONS OF TERMS
The FactSet Consensus price target represents the average projected price over the next 6 to 12 months, for a particular security, from a universe of broker research that contributes to FactSet. By default, consensus estimates calculated by FactSet are based on estimates that have been validated via broker research within the past 100 index provides a broad snapshot of the overall U.S. equity market. Over 70% of all U.S. equity value is tracked by the S&P 500. Inclusion in the index is determined by Standard & Poor's and is based upon their market size, liquidity, and sector.
An index is a statistical composite that is not managed. It is not possible to invest directly in an index.
Definitions of individual indices mentioned in this report are available on our website at ameriprise.com/legal/disclosures/ in the Additional Ameriprise research disclosures section, or through your Ameriprise financial advisor.
DISCLOSURES OF POSSIBLE CONFLICTS OF INTEREST
One or more members of the research team who prepared this research report may have a financial interest in securities mentioned in this research report through investments in a discretionary separately managed account program.
As of July 31, 2020, in the past 12 months, neither AEIS nor AFS has provided investment banking services to any of the companies covered in this research report.
Except for the historical information contained herein, certain matters in this report are forward-looking statements or projections that are dependent upon certain risks and uncertainties, including but not limited to, such factors and considerations as general market volatility, global economic and geopolitical impacts, fiscal and monetary policy, liquidity, the level of interest rates, historical sector performance relationships as they relate to the business and economic cycle, consumer preferences, foreign currency exchange rates, litigation risk, competitive positioning, the ability to successfully integrate acquisitions, the ability to develop and commercialize new products and services, legislative risks, the pricing environment for products and services, and compliance with various local, state, and federal health care laws. See latest third-party research reports and updates for risks pertaining to a particular security.
This summary is based upon financial information and statistical data obtained from sources deemed reliable, but in no way is warranted by Ameriprise Financial, Inc. as to accuracy or completeness. This is not a solicitation by Ameriprise Financial Services, LLC of any order to buy or sell securities. This summary is based exclusively on an analysis of general current market conditions, rather than the appropriateness of a specific proposed securities transaction. We will not advise you as to any change in figures or our views.
Past performance is not a guarantee of future results.
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