Business Context and Reporting Period
This filing is a Form 13F Information Table submitted by First Business Financial Services, Inc. to the U.S. Securities and Exchange Commission. The report covers the portfolio holdings as of the period ending March 31, 2020. As a Form 13F, this document discloses the equity securities held by the institution for the benefit of clients or for its own account, rather than reporting the company's own operating financial results.
Key Financial Metrics and Portfolio Composition
The filing details a diversified portfolio consisting of individual equities and Exchange Traded Funds (ETFs). Key metrics derived from the table include:
- Total Holdings: The table lists approximately 90 distinct securities, including common stocks and ETFs.
- Top Holdings by Share Count:
- Vanguard Total Stock Market ETF: 960,748 shares.
- iShares Edge MSCI Min Vol USA: 762,112 shares.
- iShares Core MSCI EAFE ETF: 790,925 shares.
- First Business Financial Services Common: 333,273 shares (held by the institution itself).
- Investment Discretion: The vast majority of holdings are reported with Sole voting authority, indicating the institution has full control over these positions.
- Derivatives: The filing indicates the presence of Put/Call options for several positions (e.g., Altria Group, Apple, AT&T, Cisco Systems), though specific contract values are not detailed in the summary columns.
Material Changes and Portfolio Structure
As this is a snapshot of holdings at a specific date, the filing does not provide comparative data against the prior quarter (December 31, 2019) within this text. However, the composition reveals:
- Heavy ETF Allocation: A significant portion of the portfolio is allocated to broad market and factor-based ETFs (iShares and Vanguard series), suggesting a passive or index-tracking strategy for a large segment of assets.
- Sector Exposure: The portfolio includes significant exposure to Technology (Apple, Microsoft, Cisco), Financials (JPMorgan, Fiserv), and Healthcare (UnitedHealth, Johnson & Johnson).
- Self-Holding: The institution holds a substantial position in its own stock (First Business Financial Services), with 333,273 shares reported under "Other" voting authority, implying these may be held in a different capacity (e.g., treasury stock or specific client accounts) compared to the "Sole" discretion holdings.
Guidance, Risks, and Contingencies
Management Commentary and Guidance: This filing type does not contain management commentary, forward-looking guidance, or operational outlooks. It is a regulatory disclosure of asset ownership.
Risks and Contingencies: The filing includes a standard disclaimer stating that the SEC has not reviewed the information for accuracy or completeness. The presence of Put/Call options on certain equities indicates the use of derivatives, which introduces market risk and leverage considerations not fully quantified in this summary table.
Important Facts for Investor Verification
- Reporting Entity: Verify that "First Business Financial Services, Inc." is the reporting manager and not a subsidiary or affiliate.
- Valuation Context: The "Value" column is reported in thousands (x$1000). Investors must multiply these figures by 1,000 to determine the actual dollar value of positions.
- Voting Rights: Note the distinction between "Sole" and "Other" voting authority, particularly for the company's own stock, which may affect proxy voting analysis.
- Derivative Exposure: Investigate the specific terms of the Put/Call options listed for major holdings like Apple and Cisco to understand potential hedging strategies or speculative positions.
- Missing Data: The filing does not provide the total aggregate value of the entire portfolio, only the value of individual line items. Summing the "Value" column is required to estimate total assets under management reported in this specific table.