|SYMBOL||% OF PORTFOLIO|
|Resona Holdings, Inc.||8308 JP||3.4%|
|ING Groep N.V.||INGA NA||3.4%|
|UBS Group AG||UBSG SW||2.7%|
|CRH plc||CRH ID||2.6%|
|Enel SpA||ENEL IM||2.6%|
|Sony Corp.||6758 JP||2.6%|
|Mondi plc||MNDI LN||2.4%|
|The Weir Group, plc.||WEIR LN||2.4%|
|Deutsche Post AG||DPW GR||2.3%|
|United Overseas Bank Ltd.||UOB SP||2.2%|
|Intact Financial Corp.||IFC CN||2.2%|
|ASML Holding N.V.||ASML NA||2.2%|
|Taiwan Semiconductor Manufacturing Co. Ltd.||TSM US||2.1%|
|ICICI Bank Ltd.||ICICIBC I||1.8%|
|Subaru Corp.||7270 JP||1.8%|
|Legrand S.A.||LR FP||1.4%|
ING was created in 1991 through a merger of two of the Netherlands' largest banks. The Group has since become one of Europe's largest financial institutions, active in traditional banking, insurance, and asset management. The share price of ING declined dramatically in the financial crisis as material holes in the group strategy and balance sheet were revealed. In 2009 management announced plans to shrink the company, simplify its operations by disposing of all non-banking assets, and sell new shares in order to redeem quasi-equity previously issued to the Dutch government. After this "back to basics" restructuring, ING Group is positioned to become a more pure bank (rather than a financial conglomerate) with a strong market position. As ING completes the final phases of restructuring shares should command a more normalized valuation, commensurate with its competitive earnings power.
Zurich-based UBS is one of the largest investment management companies in the world, providing Wealth Management, Asset Management and Investment Banking services globally, and traditional banking in Switzerland. Following the turmoil of the global financial crisis and a US tax inquiry, UBS has been focused on improving its core businesses. Improved capital ratios, growth in the wealth management segment, and an emphasis on cost control have allowed the group to regain its footing and return to profitability.
The company remains one of the largest asset managers in the world with assets under management in the trillions. Economic growth in developing markets has also boosted the number of high-net worth individuals looking to diversify their financial holdings to areas outside of their home markets.
Sony is a global conglomerate with various business segments and is best known for the development of consumer electronic products including televisions, personal computers, gaming hardware, and software. Sony is also engaged in the production and broadcasting of motion pictures, home entertainment, television programming, and recorded music. In 2004, Sony established a wholly owned subsidiary, SFH, which owns Sony Life, a Japanese life insurance company, Sony Assurance, a Japanese non-life insurance company, and Sony Bank, a Japanese Internet-based bank. Sony also owns a network services business and an advertising agency in Japan.
Sony is undergoing a transformation from low margin hardware sales to an increased focus on recurring revenue streams. The sale of its PC business and promotion of its Playstation streaming subscription services are examples. Sony has been reducing its global workforce, with the goal of becoming a more efficient and more profitable company. In recent years, through its gaming hardware, Sony has been able to successfully create an attractive entertainment eco-system that encompasses gaming, movies, TV shows, and music, which should be a growth area for the company in the next several years.
Taiwan Semiconductor is the largest independent semiconductor foundry in the world. The industry is characterized by process orientation and scale, and TSM leads in both. It is the only company in its industry with the financial resources to continue to invest in both R&D and capital equipment/process technologies throughout the business cycle. TSM has manufactured chips for over 500 different customers globally, with a huge array of end market applications, including automotive, cell phones, video games, DVD players, digital camera, medical devices, etc.
Although margins are very volatile, cash flow generation has been robust, and TSM continues to gain share over time. Since being founded in 1987, TSM has been at the leading edge of technology manufacturing.
ICICI Bank Ltd. is engaged in providing a wide range of banking and financial services, which includes commercial banking and treasury operations to corporate and retail customers through a variety of delivery channels. Through its specialized subsidiaries in the areas of commercial banking, retail banking, life and non-life insurance, project and corporate finance, working capital finance, venture capital and private equity, investment banking, asset management, broking and treasury products and services.
The company operates through four segments: Retail Banking, Wholesale Banking, Treasury and Other Banking. The Retail Banking segment includes exposures of the bank, which satisfy the four qualifying criteria of regulatory retail portfolio as stipulated by the RBI guidelines on the Basel II framework. The Wholesale Banking segment includes all advances to trusts, partnership firms, companies and statutory bodies, by the bank which are not included in the Retail Banking segment, as per the RBI guidelines for the bank. The Treasury segment includes the entire investment portfolio of the bank. The Other Banking segment includes leasing operations and other items not attributable to any particular business segment of the bank. ICICI Bank was founded on January 5, 1994 and is headquartered in Mumbai, India.
Source - Factset
|SYMBOL||% OF PORTFOLIO|
|Compass Group plc||CPG LN||2.6%|
|Novartis AG||NOVN SW||2.5%|
|Cerved Information Solutions SpA||CERV IM||2.3%|
|Equinix, Inc.||EQIX US||2.3%|
|Aena SME S.A.||AENA SM||2.3%|
|Brenntag AG||BNR GR||2.2%|
|Orange S.A.||ORA FP||2.2%|
|Nippon Telegraph & Telephone Corp.||9432 JP||2.2%|
|Galenica AG||GALE SW||2.0%|
|Kyushu Railway Co.||9142 JP||1.8%|
|Thermo Fisher Scientific, Inc.||TMO US||1.8%|
|Industria de Diseno Textil S.A.||ITX SM||1.8%|
|Shaw Communications, Inc.||SJR/B CN||1.8%|
|DNA Oyj||DNA FH||1.6%|
|RELX plc||REL LN||1.6%|
|Kao Corp.||4452 JP||1.5%|
|GreenTree Hospitality Group Ltd.||GHG US||1.4%|
|Shanghai International Airport Co. Ltd.||600009 C1||1.3%|
|Reckitt Benckiser Group plc||RB/ LN||1.2%|
|Bureau Veritas S.A.||BVI FP||1.1%|
Compass Group Plc provides food and support services to customers in the workplace, which includes schools & colleges, hospitals, at leisure and in remote environments. It operates in following sectors: Business & Industry, Education, Healthcare & Seniors, Sports & Leisure and Defense, Offshore & Remote. Compass Group was founded in 1941 and is headquartered in Chertsey, the United Kingdom.
Swiss-based Novartis manufactures and sells pharmaceutical and nutrition products worldwide. Novartis was formed from the 1996 merger of Sandoz and Ciba-Geigy, and is the world's fifth largest producer of non-prescription over-the-counter drugs. Novartis also holds nearly one-third of the voting stock of Roche, Europe's fifth largest drug company. Novartis also has a strong generic franchise, mostly marketed under the Sandoz name. The company is currently the number two global generics manufacturer after Teva. The acquisition of Alcon in 2010 has helped Novartis gain a leading position in the global eye-care market.
A solid balance sheet enables Novartis to pay a strong and growing dividend.
Cerved Information Solutions SpA is a holding company, which through its subsidiaries, engages in the management, processing, and distribution of financial, character, commercial, accounting, economic, and legal information for corporate and financial institution clients. It operates through the following business segments: Credit Information, Marketing Solutions, and Credit Management. The Credit Information segment offers legal, commercial, accounting, and economic-financial information. The Marketing Solutions segment provides market analysis information. The Credit Management segment specializes in credit assessment and management and problematic goods on behalf of third parties. The company was founded on March 14, 2014 and is headquartered in Milan, Italy.
Aena SA engages in the management and operation of a group of airports. It operates through the following segments: Airports, Off-terminal Services, International, and other. The Airports segment includes operations as airport manager, and management of commercial spaces in airport terminals. The Off-terminal Services segment operates parking lots and garages outside the terminals, and of the industrial and real estate assets. The International segment deals with the international development business. The company was founded on February 25, 2011 and is headquartered in Madrid, Spain.
Brenntag AG engages in the production and distribution solutions of chemicals. It operates through the North America, Latin America, Europe, and Asia Pacific segments. The company was founded by Philipp Mühsam in 1874 and is headquartered in Mülheim an der Ruhr, Germany.
Orange SA operates as a telecommunication services company, which operates mobile and internet services. It provides telecommunication services to multinational companies, under the brand Orange Business Services. The company was founded in 1999 and is headquartered in Paris, France.
Nippon Telegraph & Telephone Corp. is a holding company engaging in telecommunication services. It operates through the following segments: Regional Communications Business, Long-Distance and International Communications Business, Mobile Communications Business, Data Communications Business, and Other Businesses. The Regional Communications Business segment offers domestic intra-prefectural communication services such as fixed voice-related, internet protocol (IP), and packet communications services; and sells telecommunications equipment. The Long Distance and International Communications Business segment deals with the domestic intra-prefectural and international communications and system integration services. The Mobile Communications Business segment provides mobile voice-related, IP, and packet communications services; and sells telecommunications equipment. The Data Communications Business segment includes system integration and network system services. The Other Businesses segment involves in the real estate, finance, engineering, system integration and data processing, and development of technologies and shared operations. The company was founded on August 1, 1952 and is headquartered in Tokyo, Japan.
Source – FactSet
Thermo Fisher manufactures and distributes consumables, lab equipment, analytical instruments, software and services that are used in health care and life sciences research and diagnostics. The company’s portfolio of products includes instruments for mass spectrometry, elemental analysis, sample preparation, and air-quality monitoring. Its diverse customer base includes pharmaceutical and biotechnology companies, hospital and clinical diagnostic labs, universities, research institutions and government agencies, as well as environmental and industrial companies.
Thermo Fisher was formed in November 2006, with the merger of Thermo Electron and Fisher Scientific. The merger combined the technological breadth of Thermo’s product line with the distribution and purchasing convenience of Fisher Scientific’s Catalog distribution business. The current company is divided into two segments, Lab Products and Analytical Technologies. Within Lab Products, the Fisher Catalog and the company website provide a one-stop shop with an extensive selection of routine lab products. The Analytical Technologies segment sells advanced technologies and workflow solutions directly to lab scientists.
Investors are concerned about overall R&D spending as Pharma and Biotech companies merge and look to cut costs. While Thermo Fisher’s sales will have some sensitivity to an R&D spending slump, the majority of TMO’s sale are tied to everyday lab operations, which help insulate the company from end-demand weakness.
RELX Plc is a global provider of information solutions for professional customers across industries. The company operates in four market segments, Scientific, Technical & Medical, Risk and Business Information, Legal, and Exhibitions. The company was founded by Albert Edward Reed in 1894 and is headquartered in London, the United Kingdom.
Shanghai International Airport Co., Ltd. engages in the airport services of Pudong International Airport in Shanghai, China. It provides ground handling services and guaranteeing of the airport lounges facilities for aviation enterprises and passengers. Other services include managing and renting places, offices, stores and restaurants in the lounges; domestic trading; advertising; comprehensive developing and other investing projects permitted by the country. The company was founded on February 11, 1998 and is headquartered in Shanghai, China.
Source - Factset
Reckitt Benckiser Group Plc manufactures and markets household, health and personal care, selling products. The company's geographical segments include: Europe and North America (ENA); Latin America, North Asia, South East Asia and Australia and New Zealand (LAPAC); and Russia and CIS, Middle East, North Africa, Turkey and Sub-Saharan Africa (RUMEA). Its key brands include Durex, Gaviscon, Mucinex, Nurofen, Scholl, Strepsils, Airborne, MegaRed, Move Free, Bang, Clearasil, Dettol, Finish, Harpic, Lysol, Mortein, Veet Air Wick, Calgon, Vanish and Woolite. It also makes over-the-counter pharmaceuticals such as analgesics, antiseptics, flu remedies and gastrointestinal medications and offers products for hair removal, denture cleaning and pest control. Reckitt Benckiser Group was founded in December 1999 and is headquartered in Slough, the United Kingdom.
Bureau Veritas SA offers testing, inspection and certification (TIC) services for clients with quality, safety, environmental protection, and social responsibility. It offers a range of services including inspection, testing, auditing, certification, ship classification and related technical assistance, training and outsourcing. The company was founded in June 1828 and is headquartered in Neuilly-sur-Seine, France.
|SYMBOL||% OF PORTFOLIO|
|AIA Group Ltd.||1299 HK||3.6%|
|Grupo Nutresa S.A.||NUTRESA C||2.2%|
|Alibaba Group Holding Ltd.||BABA US||2.2%|
|Tencent Holdings Ltd.||700 HK||1.8%|
|Vietnam Dairy Products JSC||VNM VN||1.6%|
|Scout24 AG||G24 GR||1.3%|
|Cielo S.A.||CIEL3 BZ||1.3%|
|Schibsted ASA||SCHA NO||1.2%|
|Ctrip.com International Ltd.||CTRP US||1.1%|
|BBVA Banco Frances S.A.||BFR US||1.0%|
AIA Group Ltd. is the largest independent, publicly listed pan-Asian life insurance group in the world. It has wholly-owned main operating subsidiaries or branches in 14 markets in Asia-Pacific and a joint venture in India. AIA meets the savings and protection needs of individuals by offering a range of products and services including retirement planning, life insurance, and accident and health insurance.
Estimates suggest that the life insurance gap in Asia is ~$30-35T and twice that amount when one considers health insurance, accident insurance, etc. AIA has the ability to sell its products into this large unmet need and provide consumers with a social safety net.
AIA was previously owned by AIG. During the financial crisis, the business became distracted by the issues at AIG. Now as an independent, public company, AIA has the ability to improve its margins and return profile. Additionally, the business is in a net cash position and can deploy it excess capital to improve returns.
Alibaba Group was the largest online and mobile commerce company in the world by gross merchandise volume in 2013. Alibaba operates platforms for third parties and does not engage in direct sales or hold inventory. Alibaba Group started as an online B2B marketplace platform, alibaba.com, in 1999. In 2003, it launched an online C2C marketplace platform, Taobao. In 2008, it launched an online B2C marketplace platform, Tmall.
Taobao currently has 85% market share in China C2C ecommerce market. Tmall has 55% market share in China B2C ecommerce market. We believe Alibaba Group is a beneficiary of 1) growth in China consumption, and 2) increasing penetration of online retail to offline retail.
Tencent is a leading Chinese Internet company offering an instant messaging service, a social networking site, a news/entertainment portal, and an online gaming platform. In the gaming division, Tencent is a leading provider of both casual games and massively multiplayer online games (MMOG) and utilizes in-house development and third party licensing. Its key asset is its large instant messaging user base, which allows it to cross sell and monetize other services.
Even with a relatively low level of Internet penetration, China already boasts the world's largest online population. The number of Chinese people accessing the Internet should continue to increase as physical telecommunication infrastructure is built out and as more individuals are able to afford PCs. Tencent, which already has more than 500 million active users, will benefit from increasing internet penetration to the extent it can continue to monetize its massive user base. Today Tencent derives revenue from premium instant messaging services, online advertisements, wireless messaging, and online gaming. Notably, it has become a key online gaming player in a relatively short period of time.
Barriers to entry in the Internet space are relatively low given low capital intensity, and the rapid pace of technological innovation can make the competitive environment quite dynamic. Tencent's famous "QQ" brand, user base, significant net cash balance sheet, and substantial free cash generation are key competitive advantages which may be leveraged to grow both organically and inorganically.
Cielo SA engages in the provision of merchant, payment processing, and credit and debit card services. It includes capturing and processing of transactions with credit and debit cards, other means of payment and accreditation of merchants. The company was founded on November 23, 1995 and is headquartered in Barueri, Brazil.
Ctrip is a leading travel agent in China with a significant presence in air travel, hotel bookings, and packaged tours. Ctrip aggregates information on potential bookings from its air and hotel partners, and then connects these partners with customers through its online portal, call centers and local offices. Local sales people help to advertise the company's platform and provide physical delivery of tickets.
The Chinese travel industry continues to grow at a multiple of GDP, with government policy likely to support tourism growth in excess of GDP growth in most years. In addition, rising disposable income, increased hotel and flight availability, and improved infrastructure should support industry growth rates. Against this backdrop, Ctrip should be able to leverage its brand name and distribution network to maintain or increase market share over time, consistent with historical trends. While the Chinese travel industry is likely to experience a gradual migration to the Internet over time, Ctrip has substantially higher share online than it does offline and should benefit from this transition.
While Ctrip's business model is profitable and consistently generates free cash flow, the company's fixed cost base of agents and call centers leaves it somewhat vulnerable to ebbs and flows in Chinese travel demand. However, its capital-light business model and limited inventory leaves it in a good position to weather potential industry volatility.
Wessanen NV engages in the manufacture and distribution of organic food products. The firm offers products under the Bjorg, Zonnatura, Clipper, Tartex, Bonneterre, Whole Earth, Kallo, Alter Eco, Alloas, Gayelord Hauser, and Isola Bio brands. It operates through the Branded and Non-Allocated segments. The company was founded by Dirk Laan and Adriaan Wessanen in 1765 and is headquartered in Amsterdam, Netherlands.
|% OF PORTFOLIO|
|Cash & Cash Equivalents||6.2%|
It is probable that buying or selling in the Fund portfolio will have occurred since this list was last updated. As a result of this buying or selling, the fund may own more, fewer, or no shares of the stock of any company listed. In addition, the fund may have purchased shares of companies that are not yet included in the above list.
This list of holdings is published with a one month lag on the first business day of each month. Holdings can and do vary over time.