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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Carillon Eagle Growth & Income Fund 2023 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Carillon Eagle Growth & Income Fund)

Primary Source Intelligence • Q3 2023 Letter Analysis

Carillon Eagle Growth & Income Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Carillon Eagle Growth & Income Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

Positioning StanceConstructive

Market CapLarge Cap

GeographyUS

Digest Analysis

Quick Take

"Carillon Eagle Growth & Income Fund focuses on dividend-paying companies amid rising rates and market concentration in AI stocks. Third quarter saw 10-year yields spike to 4.6% while oil surged 30%."

Executive Summary

The Carillon Eagle Growth & Income Fund maintains its focus on dividend-paying companies despite a challenging third quarter where the S&P 500 declined 3.3%. The biggest market driver was the rise in 10-year Treasury yields from 3.8% to 4.6%, reaching the highest level since 2007, alongside a 30% increase in oil prices. The Fed continued tightening with its fourth rate hike of 2023, bringing the federal funds rate to 5.5%. Top performers included Chevron, which benefited from rising oil prices, AbbVie with strong earnings that exceeded expectations, and Eaton, which hit all-time highs after raising guidance. Underperformers included NextEra Energy and other utilities pressured by rising yields, and RTX due to jet engine issues. The fund's dividend-focused strategy faced headwinds as AI-driven technology stocks dominated market returns, with the top seven S&P 500 performers accounting for 84% of the index's year-to-date gains. Management remains committed to their dividend growth strategy, believing income will serve clients well as economic crosscurrents persist and companies continue adjusting to post-pandemic conditions.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

68%

CautiousHigh

Moderate (68%)

The fund demonstrates moderate-high conviction through its concentrated 41-position portfolio with clear position sizing (top holdings weighted 2-4%), specific commentary on individual holdings, and unwavering commitment to dividend strategy despite performance headwinds. However, the diversified nature and lack of extreme concentration caps the score below 0.75.

Growth Outlook

38%

BearishBullish

Neutral (38%)

The managers present a cautious market outlook, noting mixed economic indicators with the recession camp gaining ground in Q3. They acknowledge the biggest threat from rising interest rates and express concern about economic damage yet to be experienced.

Risk Appetite

0%

DefensiveAggressive

Defensive (0%)

The fund maintains its existing positioning in dividend-paying companies without indicating significant changes to risk appetite. They remain committed to their strategy despite acknowledging it's been a tough performance year for their style.

Capital Deployment

0%

De-riskingDeploying

De-risking (0%)

No specific information is provided about cash level changes or net deployment activity during the quarter. The letter focuses on existing holdings performance rather than new capital allocation decisions.

Forward Guidance

0%

CautiousExpansionary

Cautious (0%)

Management indicates they will continue their existing strategy of seeking high-quality dividend-paying businesses. No clear directional bias toward increasing or decreasing deployment is expressed.

Language Signal

38%

BearishBullish

Balanced (38%)

Language is balanced but leans slightly negative with references to threats, economic damage, tough performance year, and various company-specific challenges, though this is offset by some positive company-specific commentary.

Perceived Risk

72%

Low RiskElevated

Elevated Risk (72%)

Management identifies several specific risks including rising interest rates as the biggest threat to economic stability, potential economic damage from rate lags, inflation fears from oil price surges, and weakening consumer confidence. These are discussed with meaningful detail rather than brief mentions.

Opportunity Density

45%

ScarceAbundant

Selective (45%)

The managers acknowledge it has been a tough performance year for their investment style and note the challenge of narrow market leadership dominated by AI stocks. They remain diligent in searching for opportunities but don't characterize the environment as rich with prospects.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

The fund demonstrates a multi-year investment horizon through its focus on companies that consistently pay and increase dividends over time. The emphasis on income growth serving clients well in the future and commitment to strategy despite near-term headwinds suggests a 2-5 year outlook typical of dividend growth strategies.