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Thornburg International Equity ESG Strategy

Strategy Overview
The International Equity ESG Strategy employs a rigorous bottom-up research process to identify promising stocks of non-U.S. companies trading below their intrinsic value. Actively integrating ESG (environmental, social and governance) criteria into the fundamental approach allows the strategy to reflect ESG values through the portfolio’s investments without sacrificing the potential for attractive long-term risk-adjusted performance. The portfolio is high conviction but also well diversified by sector, country and market capitalization. Our three-basket portfolio construction process aids in balancing risk across the portfolio.
Strategy Inception Date
1 Oct 2015

Portfolio Managers

Lei Wang, CFA
Portfolio Manager and Managing Director
Brian Burrell, CFA
Portfolio Manager and Managing Director
Joe Salmond
Portfolio Manager and Managing Director
OverviewPerformanceStrategy FactsCharacteristicsPortfolioPortfolio ManagersLiterature
Overview

Overview

Why Invest in This Strategy?

 

  • Focused, diversified equity portfolio to include sustainable companies primarily in developed markets outside the U.S.
  • Rigorous, fundamental research process focused on buying sustainable businesses with sound business fundamentals, trading at a discount to their intrinsic value and a defined path to success. Companies must also demonstrate one or more significant positive environmental, social and governance (ESG) characteristics; emphasizing the areas of environmental impact, ethical business activity, corporate governance, social factors surrounding customers, suppliers and employees and product integrity.
  • Three-basket portfolio construction process seeks to provide style diversification and reduce volatility and deliver superior risk-adjusted performance over time.

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Performance

Performance

Returns

(As of 30 Jun 2025)
Annualized Returns
YTD
1y
3y
5y
Inception
Thornburg International Equity ESG Strategy - Gross (%)
16.18
17.24
13.99
13.16
11.41
Thornburg International Equity ESG Strategy - Net (%)
15.63
16.13
12.92
12.09
10.45
MSCI ACWI ex-U.S. Index (%)
17.90
17.72
13.99
10.13
7.71
MSCI EAFE Index (%)
19.45
17.73
15.97
11.16
7.87
YTD
1y
3y
5y
Inception
Thornburg International Equity ESG Strategy - Gross (%)
17.39
10.60
14.51
10.60
11.32
Thornburg International Equity ESG Strategy - Net (%)
16.65
9.55
13.42
9.56
10.37
MSCI ACWI ex-U.S. Index (%)
21.64
15.42
15.15
8.94
7.91
MSCI EAFE Index (%)
22.79
13.87
17.04
10.15
8.03
2019
2020
2021
2022
2023
2024
Thornburg International Equity ESG Strategy - Gross (%)
25.96
28.11
22.22
-17.22
13.70
8.07
Thornburg International Equity ESG Strategy - Net (%)
24.79
26.90
21.05
-17.98
12.62
7.03
MSCI ACWI ex-U.S. Index (%)
21.51
10.65
7.82
-15.99
15.62
5.53
MSCI EAFE Index (%)
22.01
7.82
11.26
-14.45
18.24
3.82

Total return (net and gross) is based on composite performance.

Periods less than one year are not annualized.

In US$ terms. Returns may increase or decrease as a result of currency fluctuations.

Performance data for the International Equity ESG Strategy is from the International Equity ESG Composite, inception date of 1 October 2015. The International Equity ESG Composite includes discretionary accounts invested in the International Equity ESG Strategy. Returns are calculated using a time-weighted and asset-weighted calculation including reinvestment of dividends and income. Periods less than one year are not annualized. Individual account performance will vary. The performance data quoted represents past performance; it does not guarantee future results. Gross of fee returns are net of transaction costs. Net of fee returns are net of transaction costs and investment advisory fees. Thornburg Investment Management Inc.'s fee schedule is detailed in Part 2A of its ADV brochure. Performance results of the firm's clients will be reduced by the firm's management fees. For example, an account with a compounded annual total return of 10% would have increased by 159% over ten years. Assuming an annual management fee of 0.75%, this increase would be 142%.

Strategy Facts

Strategy Facts

(As of 31 Aug 2025)
Strategy Assets
$501.9 M
Benchmark
MSCI ACWI ex-U.S. Index
eVestment Category
ACWI ex-US All Cap Core Equity
Characteristics

Characteristics

Portfolio

(As of 31 Aug 2025)
Portfolio
Benchmark
Number of Holdings
54
—
Weighted Average Market Cap
$128.2 B
$125.1 B
Median Market Cap
$69.9 B
$13.2 B
Annual Portfolio Turnover
44%
—
Price to Earnings - Forward 1YR
17.6x
15.5x
Price to Earnings - Trailing 12 Months
20.1x
17.2x
Portfolio
Benchmark
Price to Cash Flow
10.7x
9.4x
Price to Book Value
2.5x
2.1x
Return on Equity - 5 YR
14.5%
15.2%
Historical 3YR Sales Growth
11.9%
15.4%
Active Share
86.7%
—

Data based on representative account.

Portfolio

Portfolio

Top Holdings

(As of 31 Aug 2025)
Name
Ticker/Symbol
Sector
Weight %
Samsung Electronics Co. Ltd.
005930
Information Technology
3.7
L'Oreal S.A.
OR
Consumer Staples
3.7
BNP Paribas S.A.
BNP
Financials
3.4
AstraZeneca plc
AZN
Health Care
3.3
Enel SpA
ENEL
Utilities
3.2
Linde plc
LIN
Materials
3.2
Sony Group Corp.
6758
Consumer Discretionary
3.0
Hitachi Ltd.
6501
Industrials
3.0
Mitsubishi UFJ Financial Group, Inc.
8306
Financials
3.0
Canadian Pacific Kansas City Ltd.
CP
Industrials
2.9
Download Holdings

Data based on representative account.

Exposure Breakdown

Exposure Breakdown

(As of 31 Aug 2025)
Sector
Sector Allocation
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
Industrials
26.7
14.8
Financials
14.8
25.3
Health Care
9.9
8.0
Consumer Staples
9.7
6.5
Consumer Discretionary
9.6
10.2
Information Technology
9.1
13.0
Utilities
8.3
3.1
Cash & Cash Equivalents
4.5
—
Materials
4.2
6.4
Communication Services
3.2
6.5
Real Estate
0.0
1.7
Energy
0.0
4.6
Sector Allocation
Portfolio (%)
Industrials
26.7
Financials
14.8
Health Care
9.9
Consumer Staples
9.7
Consumer Discretionary
9.6
Information Technology
9.1
Utilities
8.3
Cash & Cash Equivalents
4.5
Materials
4.2
Communication Services
3.2
Real Estate
0.0
Energy
0.0
Top 10 Industries
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
Capital Goods
14.9
11.2
Utilities
8.3
3.1
Commercial & Professional Services
7.2
1.5
Pharmaceuticals, Biotechnology & Life Sciences
6.9
6.4
Consumer Durables & Apparel
6.6
2.5
Banks
6.4
15.9
Financial Services
5.8
4.1
Technology Hardware & Equipment
5.1
3.7
Transportation
4.6
2.1
Materials
4.2
6.4
Top 10 Industries
Portfolio (%)
Capital Goods
14.9
Utilities
8.3
Commercial & Professional Services
7.2
Pharmaceuticals, Biotechnology & Life Sciences
6.9
Consumer Durables & Apparel
6.6
Banks
6.4
Financial Services
5.8
Technology Hardware & Equipment
5.1
Transportation
4.6
Materials
4.2
Top 10 Countries
Portfolio (%)
Benchmark (%)
Region

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
France
21.4
6.7
Europe ex UK
Japan
21.0
13.9
Japan
United Kingdom
9.3
9.3
UK
Switzerland
8.6
5.9
Europe ex UK
Canada
5.4
8.3
North America
Spain
5.2
2.2
Europe ex UK
United States
5.1
0.1
North America
Germany
4.3
6.3
Europe ex UK
Italy
3.9
1.9
Europe ex UK
Korea, Republic of (South Korea)
3.7
3.1
Asia Pacific ex Japan
Top 10 Countries
Portfolio (%)
France
21.4
Japan
21.0
United Kingdom
9.3
Switzerland
8.6
Canada
5.4
Spain
5.2
United States
5.1
Germany
4.3
Italy
3.9
Korea, Republic of (South Korea)
3.7
Capitalization
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Large Cap (> $12 B)
85.7
89.0
Mid Cap ($2.5 to $12 B)
13.8
11.0
Small Cap (< $2.5 B)
0.5
0.0
Capitalization
Portfolio (%)
Large Cap (> $12 B)
85.7
Mid Cap ($2.5 to $12 B)
13.8
Small Cap (< $2.5 B)
0.5

Data based on representative account.

Holdings within the Geography breakdown are classified by country of risk as determined by MSCI and Bloomberg.

Cash includes cash equivalents. Weights are percentages of total portfolio unless otherwise noted.

Percentages may not add up to 100 due to rounding.

Portfolio Managers

Portfolio Managers

Lei Wang, CFA

Lei Wang, CFA

Portfolio Manager and Managing Director
Lei Wang is a portfolio manager for Thornburg Investment Management. He joined Thornburg Investment Management in 2004 as associate portfolio ­manager and was promoted to portfolio manager in 2006. Lei holds a BA and an MA from East China Normal University and an MBA from New York University. He is a CFA charterholder. Prior to joining Thornburg, he served as…
Learn More
Brian Burrell, CFA

Brian Burrell, CFA

Portfolio Manager and Managing Director
Brian Burrell is a portfolio manager for Thornburg Investment Management. He joined the firm in 2012 as an equity research analyst and became an associate portfolio manager in 2021 and portfolio manager in 2024. Brian earned a BA in economics from Reed College and an MBA from the University of Wisconsin in the Applied Security Analysis Program (ASAP). He is…
Learn More
Joe Salmond

Joe Salmond

Portfolio Manager and Managing Director
Joe Salmond is a portfolio manager for Thornburg Investment Management. He joined the firm in 2018 as an equity research analyst and became an associate portfolio manager in 2021, managing director in 2023 and portfolio manager in 2024. Joe earned an MBA from the Tepper School of Business at Carnegie Mellon University and graduated from Arizona State University with a…
Learn More

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