PHILOSOPHY: What is different about Eagle’s approach to mid-cap investing?

The overarching mantra of the Eagle Mid Cap Growth team is to invest in companies we believe are going to experience an acceleration in their earnings growth rate. Simply put: we are looking for companies where the future appears brighter than the past. The key component of our investment strategy is to be early in identifying these opportunities and recognize this inflection in earnings growth before our competitors, which allows us to buy stocks at reasonable valuations.

PROCESS: How does your team choose stocks?

We leverage our years of experience researching specific sectors to find companies we believe are poised to see a step-change in growth. Typically, this inflection point in the growth rate coincides with a change in industry dynamics — a new product introduction or a strategic acquisition. We frequently scour the upper end of the small-cap investment universe to identify up-and-coming mid-cap stocks as candidates for the portfolio. As the acceleration in growth becomes apparent to the rest of the investment community, the stock may experience multiple expansion which can drive share price appreciation. Importantly, we do not use price targets; we tend to let our winners run and drive the alpha in the portfolio.

What role do the healthcare and information technology sectors play in Eagle’s strategy?

Unsurprisingly, the health care and technology sectors stand out as important areas of focus for growth investors. We allocate significant resources to research these sectors where we typically find many candidates for accelerating earnings growth. The earnings growth rates of companies in these sectors are less influenced by the economic cycle, which makes them attractive long-term holdings. Importantly, we employ a relatively neutral sector-allocation strategy. This means we typically will not significantly under- or overweight a specific sector versus the benchmark. Sector calls are extremely difficult to get right on a consistent basis and can lead to variability in performance.

MARKET OUTLOOK: What is your major macroeconomic concern for the near-term?

We believe the biggest influence on equity markets will be the healthcare system’s response to the COVID-19 crisis. Timing and success of various vaccines and therapeutics will affect equity markets over the near to intermediate term. The pandemic caught the world flat-footed on a variety of fronts, but we have since made tremendous progress in a short period. We expect this trend to continue. Our portfolio consists of both cyclical companies that are well-positioned to benefit from the reopening of the global economy and companies that are seeing an acceleration in their secular growth rates due to the response to COVID-19.

ABOUT Carillon Tower Advisers

Carillon Tower Advisers is the investment adviser for the Carillon Family of Funds and Eagle Asset Management is the subadviser to the Carillon Eagle Mid Cap Growth Fund. Carillon Fund Distributors is a wholly owned subsidiary of Eagle Asset Management (a sub-adviser to certain of the Carillon Family of Funds) and Eagle Asset Management is a wholly owned subsidiary of Carillon Tower Advisers. All entities named are affiliates.

Risk Considerations:
Investments in mid-cap and small-cap companies generally involve greater risks than investing in larger capitalization companies. Mid-cap companies often have narrower commercial markets, more limited managerial and financial resources, and more volatile trading than larger, more established companies.

Growth companies are expected to increase their earnings at a certain rate. When these expectations are not met, investors may punish the stocks excessively, even if earnings showed an absolute increase. Growth company stocks also typically lack the dividend yield that can cushion stock prices in market downturns. The companies engaged in the technology industry are subject to fierce competition and their products and services may be subject to rapid obsolescence. The values of these companies tend to fluctuate sharply.

This material may include forward-looking statements. These statements are not historical facts, but instead represent only beliefs regarding future events, many of which, by their nature, are inherently uncertain. You should not place undue reliance on forward-looking statements as it is possible that actual results and financial conditions may differ, possibly materially, from the anticipated results and financial conditions indicated in these forward-looking statements. There are uncertainties, unknown risks, and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these statements.

The statements above are based on the views of the advisor and are subject to change.

The information presented is for discussion purposes only and not an offer.

The information presented is not tax, investment or legal advice. Prospective investors should consult with their advisers.

Past performance does not guarantee or indicate future results. The information presented is for a representative account and for illustrative purposes only and should not be used as the sole basis for an investment decision.

Please consider the investment objectives, risks, charges, and expenses of any fund carefully before investing. Call 1.800.421.4184 or your financial professional for a prospectus, which contains this and other important information about the funds. Read the prospectus carefully before you invest or send money.

CFD20-0662 | Exp. 1/31/21