|SYMBOL||% OF PORTFOLIO|
|CME Group, Inc.||CME US||4.0%|
|JPMorgan Chase & Co.||JPM US||2.9%|
|QUALCOMM, Inc.||QCOM US||2.5%|
|Walgreens Boots Alliance, Inc.||WBA US||2.4%|
|The Home Depot, Inc.||HD US||2.1%|
|Merck & Co., Inc.||MRK US||2.1%|
|AT&T, Inc.||T US||2.0%|
|Ares Capital Corp.||ARCC US||1.7%|
|ONEOK, Inc.||OKE US||1.7%|
|MFA Financial, Inc.||MFA US||1.7%|
|Crown Castle International Corp.||CCI US||1.6%|
|Las Vegas Sands Corp.||LVS US||1.4%|
|AXA Equitable Holdings, Inc.||EQH US||1.3%|
|LyondellBasell Industries N.V.||LYB US||1.2%|
|Valero Energy Corp.||VLO US||1.2%|
|Chimera Investment Corp.||CIM US||1.0%|
|Apollo Investment Corp.||AINV US||0.9%|
|Pfizer, Inc.||PFE US||0.9%|
|Lamar Advertising Co.||LAMR US||0.8%|
|Broadcom, Inc.||AVGO US||0.7%|
|Solar Capital Ltd.||SLRC US||0.7%|
|Washington Real Estate Investment Trust||WRE US||0.6%|
|Outfront Media, Inc.||OUT US||0.4%|
|Lazard Ltd.||LAZ US||0.4%|
|Granite Point Mortgage Trust, Inc.||GPMT US||0.2%|
|Colony Capital, Inc.||CLNY US||0.1%|
|Malamute Energy, Inc.||MALAMUTE1||0.0%|
CME Group, Inc. operates securities and commodity exchanges. The company serves the risk management and investment needs of customers around the globe. It offers wide range of products across various asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. Its products include both exchange traded and over-the-counter derivatives. CME Group brings buyers and sellers together through its CME Globex electronic trading platform across the globe and its open outcry trading facilities in Chicago and New York City. It provides hosting, connectivity and customer support for electronic trading through its co-location services. It also provides clearing and settlement services for exchange-traded contracts, as well as for cleared over-the-counter derivatives transactions. The company also offers a wide range of market data services-including live quotes, delayed quotes, market reports and a comprehensive historical data service and have expanded into the index services business through CME Group Index Services. CME Group was founded in 1898 and is headquartered in Chicago, IL.
Source – FactSet
JPMorgan is a diversified financial company with banking, investment banking, private banking, asset management, securities services and credit card operations. The entity is the result first of a merger between JP Morgan and Chase Manhattan and then the acquisition of BankOne by JPMorgan Chase.
The diversified nature of JPM gives it some characteristics that are different from a traditional bank. Investment banking and securities processing are impacted more by the level of activity in the financial markets than by economic strength or interest rate movements. Revenue growth in asset management and private banking is mostly a function of growth in assets under management. Credit card operations are similar to traditional banking and can benefit from the economies of scale that have resulted from combining JPMorgan Chase and BankOne.
JPM believes that its various business units can improve the profitability of each other. Loans to potential investment banking clients have the potential to help win investment banking deals and increase loan volume. There may be synergies between asset management, private banking and investment banking. However, realizing the synergies between these businesses is not easy or automatic.
Jamie Dimon is the Chairman and CEO of JPM. Dimon is one of the most respected and highly thought of managers in the financial services sector. Prior to Dimon becoming CEO, JPMorgan Chase had not delivered the results that investors hoped for. The performance of the company in navigating the liquidity crisis and credit problems associated with the housing downturn and recession of 2007-2008 appears to have been extremely favorable relative to other industry leaders and could position the company for market share gains and high profitability in the future.
QUALCOMM, Inc. engages in the development, design, manufacture, and marketing of digital telecommunications products and services. It operates through the following segments: Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Strategic Initiatives. The Qualcomm CDMA Technologies segment develops and supplies integrated circuits and system software based on technologies for the use in voice and data communications, networking, application processing, multimedia, and global positioning system products. The Qualcomm Technology Licensing segment provides rights to use portions of the firm's intellectual property portfolio. The Qualcomm Strategic Initiatives segment invests in the technology, design, and introduction of products and services for voice and data communications. The company was founded by Franklin Antonio, Adelia Coffman, Andrew Cohen, Klein Gilhousen, Irwin Mark Jacobs, Andrew Viterbi, and Harvey White in July 1985 and is headquartered in San Diego, CA.
Source - Factset
Walgreens Boots Alliance, Inc. provides drug store services. In December of 2014 Walgreens and Boots Alliance merged to become Walgreens Boots Alliance. It is the largest retail pharmacy, and health and daily living destination in the USA and Europe. The company is headquartered in Deerfield, IL.
Home Depot, Inc. is a home improvement retailer that sells building materials and home improvement products. It operates The Home Depot stores, which provides full-service, warehouse-style stores that sells a wide assortment of building materials, home improvement products and lawn and garden products and provide a number of services. The company offers national installation services through pre-screened independent contractors for products ranging from floors to roofs, windows to water heaters, and kitchen cabinets to vinyl siding. Its retail stores offer professional customers, including repair and remodel contractors, special services and support to make them more successful on the job site. It serves professional remodelers, general contractors, repairmen, small business owners, and tradesmen. Home Depot was founded by Bernard Marcus, Arthur M. Blank, Kenneth Gerald Langone and Pat Farrah on June 29, 1978 and is headquartered at Atlanta, GA.
Source – FactSet
Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products worldwide. It is a global research-driven pharmaceutical company that discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs. The company operates through the following segments: Pharmaceutical, Animal Health and Alliances. The Pharmaceutical segment includes human health pharmaceutical and vaccine products marketed either directly by the company or through joint ventures. Its human health pharmaceutical products consist of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders. The company sells these products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers, such as health maintenance organizations, pharmacy benefit managers and other institutions. Its vaccine products consist of preventive pediatric, adolescent and adult vaccines, primarily administered at physician offices. The company sells these vaccines primarily to physicians, wholesalers, physician distributors and government entities. The Animal Health segment discovers, develops, manufactures and markets animal health products, including vaccines, which it sells to veterinarians, distributors and animal producers. The Alliances segment includes revenue from the company relationship with AstraZeneca LP. The company was founded in 1851 and is headquartered in Kenilworth, NJ.
AT&T is one of the largest telecommunications companies in the world, providing fixed line and wireless services to residential and business customers, primarily in the U.S. Today's AT&T has been formed over time by combinations of former Regional Bell Operating Companies, including Southwestern Bell (the controlling entity), Pacific Telesis, Ameritech, and BellSouth. AT&T has also incorporated the legacy AT&T Corporate assets including an international long haul fiber network.
AT&T Wireless is one of the largest wireless service providers in the U.S. claiming more than 90 million subscribers. While certain operating metrics continue to trail Verizon Wireless, AT&T has improved its operation meaningfully over the last few years. Revenue growth has been driven by subscriber additions, declining churn (a measure of lost customers) and impressive growth in data usage by AT&T's customers. Smart-phones (like the iPhone) are used by a growing portion of AT&T's wireless user base; growing wireless data revenues have become a meaningful component of AT&T's wireless revenues.
AT&T's traditional wireline division has experienced declining revenues over the last few years. Consumers and businesses have decreased the number of traditional access lines utilized for voice services, as consumers either drop their home phones or use competitive offerings (from cable providers, for example) and as businesses switch from traditional ATM/Frame Relay services to newer Internet Protocol (IP) based services. Offsetting some of these declines has been growth in DSL and fiber optic cable lines into homes, and growing IP services to businesses.
AT&T has shown an ability and willingness to return capital to shareholders through both dividends and share buybacks. AT&T has increased its dividend at an average note of approximately 4% in recent years.
Ares Capital Corporate is a business development company ("BDC"), organized under the U.S. Investment Company Act to invest primarily in loans to middle market businesses. Provided that Ares meets conditions required to maintain its status as a BDC, it can pass through income earned from portfolio investments directly to shareholders without paying tax at the entity level.
Ares is managed by Ares Management, LLC. The company has more than $3 billion of equity capital, and it is able to borrow up to 1 times its equity to fund its investment portfolio. It must pay out most of its earnings in dividends to shareholders, in accordance with Investment Company and IRS regulations.
Ares is one of the largest BDCs in the United States. It substantially increased its size during 2010 by acquiring Allied Capital, a seasoned internally managed BDC that had a portfolio with a cost basis in excess of $3.5 billion, for approximately $1.8 billion. Since acquiring the Allied portfolio, Ares has disposed of a significant portion of the assets at prices above the Ares purchase price, though well below Allied's original cost.
Ares dividend payments are a function of its skill in making attractive yielding loans that are repaid at maturity. A modest degree of capital growth may be achieved if Ares can sell new equity above book value or sell investments at a profit. Book value erosion is also possible if Ares sells new shares at a discount to book value, or suffers losses on investments.
ONEOK, Inc. engages in gathering, processing, storage and transportation of natural gas. The company operates through the following segments: Natural Gas Gathering and Processing, Natural Gas Liquids, and Natural Gas Pipelines. The Natural Gas Gathering and Processing segment provides nondiscretionary services to producers that include gathering and processing of natural gas produced from crude oil and natural gas wells. The Natural Gas Liquids (NGLs) segment owns and operates facilities that gather, fractionate, treat and distribute NGLs and store NGL products. The Natural Gas Pipelines segment owns and operates regulated interstate and intrastate natural gas transmission pipelines and natural gas storage facilities. The company was founded in 1906 and is headquartered in Tulsa, OK.
MFA is a real estate investment trust ("REIT") which invests in mortgage securities issued by U.S. Government sponsored entities Fannie Mae and Freddie Mac, and other private residential mortgage loans. MFA can pass through income earned from portfolio investments directly to shareholders without paying tax at the entity level, provided it continues to qualify as a REIT.
MFA has more than $2.5 billion of equity capital, which is leveraged with short maturity credit instruments to support an investment portfolio of more than $8 billion. It must pay out most of its earnings in dividends to shareholders, in accordance with IRS regulations.
MFA executed its initial public offering more than 10 years ago. It has substantially increased its size since becoming a public company by issuing new shares. MFA earns spread income on the difference between its yield on mortgage securities and its cost of borrowing. It assumes varying degrees of interest rate risk associated with owning investments that generally have longer maturities than the financings employed to fund these. It takes credit risk on portions of its portfolio that are invested in private mortgage securities and whole loans, a strategy it began to employ since the onset of the mortgage finance crisis that began in 2007. MFA's earnings increase when short maturity interest rates are lower than intermediate and longer maturity rates, and vice-versa. The extremely low short-term interest rate environment in place since late 2008 has supported very attractive spread earnings, and dividends. MFA's book value and dividend could be expected to decline during an environment of relatively high short-term interest rates, such as that experienced in the middle of the last decade.
MFA's dividend payments are a function of its skill earning spread income, in managing portfolio interest rate risk, and in managing credit risk. A modest degree of capital growth may be achieved if MFA can sell new equity above book value or sell investments at a profit. Book value erosion is also possible if MFA sells new shares at a discount to book value, or suffers losses on investments.
Crown Castle International Corp. operates as a Real Estate Investment Trust (REIT), which engages in the provision of shared wireless infrastructure solutions. The company was founded in 1994 and is headquartered in Houston, TX.
Las Vegas Sands operates casinos, hotels and convention facilities. Properties include the Venetian Casino Resort and the Sands Expo and Convention Center in Las Vegas, Nevada; the Sands Macao Casino and Venetian Macao Casino in Macau, China; and the Marina Bay Sands in Singapore. LVS has focused on using convention business to drive higher than industry average non-gaming revenues. The company's strategy is to build signature casino resorts and then connect convention facilities in order to drive more predictable and repeatable customer traffic midweek to its properties.
The Asian gaming opportunity over the next five years is attractive. Demographics in the region are compelling for years of growth driven by low penetration of mass market gaming, growing incomes, easing of travel restrictions for mainland Chinese, and infrastructure development. LVS has positioned itself for leadership in the region with its development plans for the Cotai Strip as well as Singapore, where it is one of two licensed operators. Leading with a strategy that draws convention business to its properties, the Sands aims to repeat its success in the Las Vegas convention market in Asia. The company could also generate equity value for shareholders through real estate development activities in and around the Cotai Strip in order to capture the value of the traffic created by its casino resorts.
LyondellBasell is a worldwide producer of olefins, including ethylene and propylene, polyolefins, polypropylene, and polypropylene compounds. Ethylene is the most significant petrochemical in terms of worldwide production volume and is the key building block for polyethylene and a large number of other chemicals, plastics, and synthetics. Ethylene and its co-products are fundamental to many segments of the economy, including the production of consumer products, packaging, housing, automotive components, and other durable and non-durable goods.
LyondellBasell's US petrochemical operations use ethane as a feedstock in the production of ethylene. Ethane pricing is based upon a floor price that is a slight premium to natural gas feedstocks and a ceiling price that is equal to oil equivalent feedstocks. It is a beneficiary of a high oil-to-gas ratio.
Chimera Investment Corporation is a real estate investment trust (REIT) that invests in several areas of the mortgage bond market. Its objective is to use dividends as the primary source of return to investors with a secondary objective of capital appreciation. The company invests in residential mortgage loans, residential mortgage-backed securities, and real estate-related securities to try to meet this goal. Chimera's long-term strategy is to take advantage of the interest rate and credit environment, buy assets at attractive prices, and employ leverage to increase returns.
Chimera stock performed poorly through most of 2008 and 2009, as well as in 2011. In the fourth quarter 2008, the company raised additional capital, and adjusted to a lower leverage strategy to continue operating in turbulent market conditions. In 2010 its assets totaled more than $8 billion, up more than five times from 2008.
The company is externally managed by Fixed Income Discount Advisory Company (FIDAC), a registered investment advisor and wholly-owned subsidiary of Annaly Capital Management. FIDAC is a fixed-income investment management company that focuses on managing interest rate and credit-sensitive fixed-income strategies.
Apollo Investment Corporation is a closed-end, non-diversified management investment company that invests in debt and equity securities to provide current income and capital appreciation. Apollo holds several types of securities to pursue the objective, including mezzanine loans and senior secured loans for private middle-market companies, direct equity investments, and thinly traded public companies. Apollo's investment portfolio totals more than $2.5 billion, making it one of the largest business development companies in the United States. Apollo is registered with the SEC as a business development company for tax and public liquidity advantages.
Apollo dividend payments are a function of its skill in making attractive yielding loans that are repaid at maturity. A modest degree of capital growth may be achieved if Apollo can sell new equity above book value or sell investments at a profit. Book value erosion is also possible if Apollo sells new shares at a discount to book value, or suffers losses on investments.
Pfizer, Inc. is a research-based, global biopharmaceutical company. The company's global portfolio includes medicines and vaccines, as well as many of the world's best-known consumer healthcare products. It collaborates with healthcare providers, governments and local communities to support and expand access to reliable, affordable healthcare around the world. It operates through four operating segments: Primary Care, Specialty Care and Oncology, Established Products & Emerging Markets, and Consumer Healthcare. The Primary Care segment includes products in therapeutic and disease areas: Alzheimer's disease, cardiovascular, erectile dysfunction, genitourinary, major depressive disorder, pain, respiratory, and smoking cessation. The Specialty Care and Oncology segment comprises the Specialty Care business unit and the Oncology business unit. The Specialty Care business unit includes products in the following therapeutic and disease areas: anti-infections, endocrine disorders, hemophilia, inflammation, multiple sclerosis, ophthalmology, pulmonary arterial hypertension, specialty neuroscience and vaccines. The Oncology business unit includes pharmaceutical products addressing oncology and oncology-related illnesses. The Established Products & Emerging Markets segment comprises the Established Products business unit and the Emerging Markets business unit. The Established Products unit includes pharmaceutical products that have lost patent protection or marketing exclusivity in certain countries and/or regions. The Emerging Markets unit includes human prescription pharmaceutical products sold in emerging markets, including Asia, Latin America, Middle East, Africa, Central and Eastern Europe and Turkey. The Consumer Healthcare segment includes non-prescription products in the following therapeutic categories: dietary supplements, pain management, respiratory and personal care. The company was founded by Charles Pfizer and Charles Erhart in 1849 and is headquartered in New York, NY.
Source - Factset
Solar Capital is closed-end, externally managed investment company that is structured as a business development company (BDC) with more than $1.2 billion in assets. The company invests predominantly in debt and to a lesser extent the equity of privately held companies. The primary goal of Solar Capital is to provide current income and capital appreciation. Due to tax purposes the typical BDC distributes approximately 90% of its income to shareholders.
Numerous types of securities are utilized to meet the objective including mezzanine loans, senior secured loans, and direct equity investments to the middle market companies.
Washington Real Estate Investment Trust engages in the ownership and operation of income-producing real estate properties. It invests in a diversified portfolio which includes office buildings, retail centers, and residential properties. The company was founded by Arthur A. Birney and Benjamin H. Dorsey in 1960 and is headquartered in Washington, DC.
|SYMBOL||% OF PORTFOLIO|
|China Mobile Ltd.||941 HK||4.5%|
|Royal Dutch Shell plc||RDS/A US||3.7%|
|Electricite de France S.A.||EDF FP||3.4%|
|Orange S.A.||ORA FP||3.2%|
|Total S.A.||FP FP||2.8%|
|Taiwan Semiconductor Manufacturing Co. Ltd.||2330 TT||2.7%|
|Eni SpA||ENI IM||2.2%|
|NN Group N.V.||NN NA||2.2%|
|BT Group plc||BT/A LN||2.0%|
|KT&G Corp.||033780 KS||1.7%|
|MMC Norilsk Nickel PJSC||MNOD LI||1.6%|
|Roche Holding AG||ROG SW||1.5%|
|UBS Group AG||UBSG SW||1.3%|
|Glencore plc||GLEN LN||1.3%|
|Vodafone Group plc||VOD LN||1.2%|
|Atlantia SpA||ATL IM||1.2%|
|Vinci S.A.||DG FP||1.1%|
|Koninklijke KPN N.V.||KPN NA||1.1%|
|BNP Paribas S.A.||BNP FP||1.0%|
|Repsol S.A.||REP SM||0.9%|
|Enel SpA||ENEL IM||0.9%|
|Astrazeneca plc||AZN LN||0.8%|
|Novartis AG||NOVN SW||0.8%|
|British American Tobacco plc||BATS LN||0.8%|
|BAE Systems plc||BA/ LN||0.7%|
|Hopewell Holdings Ltd.||54 HK||0.6%|
|Deutsche Telekom AG||DTE GR||0.6%|
|ING Groep N.V.||INGA NA||0.6%|
|Suncor Energy, Inc.||SU CN||0.5%|
|ASE Technology Holding Co. Ltd.||3711 TT||0.5%|
|Nestle S.A.||NESN SW||0.5%|
|Samsung Electronics Co. Ltd.||005930 KS||0.5%|
|Ferrovial S.A.||FER SM||0.5%|
|Wynn Macau Ltd.||1128 HK||0.5%|
|Sydney Airport||SYD AU||0.4%|
|Jasmine Broadband Internet Infrastructure Fund||JASIF/F T||0.4%|
|LUKOIL PJSC||LKOD LI||0.4%|
|MTN Group Ltd.||MTN SJ||0.3%|
|Legal & General Group plc||LGEN LN||0.3%|
|Deutsche Boerse AG||DB1 GR||0.3%|
|E.ON SE||EOAN GR||0.3%|
|NWS Holdings Ltd.||659 HK||0.2%|
|AXA S.A.||CS FP||0.1%|
|Assicurazioni Generali SpA||G IM||0.1%|
|HSBC Holdings plc||5 HK||0.1%|
China Mobile is the incumbent wireless provider in China and is the world's largest wireless telecom operator with over 760 million mobile subscribers. The company holds licenses to operate nationwide 2G (GSM) and 3G (TD-SCDMA) services. China Mobile's dominant 2G network covers over 98% of the population. In its 3G network China Mobile continues to gain market share, having added over 100 million customers in 2013.
Towards the end of 2013, China Mobile was the first wireless telecom carrier in China to receive a 4G (TD-LTE) network license. The company is focused on building the infrastructure to support the 4G (TD-LTE) technology and have half a million base stations around China that will deliver continuous coverage to all cities and urban areas by the end of 2014. China Mobile may grow revenue and operating profit through driving higher data usage and 4G penetration, increasing minutes of use, managing churn, and continuing to add subscribers.
As the incumbent telecom, China Mobile benefits from significant economies of scale and a mature, cash generative, core franchise. Over the next few years capital expenditure should decrease and free cash flow generation should ramp up in a company that already pays an attractive dividend.
Royal Dutch Shell Plc produces oil and natural gas. It operates through three segments: Upstream, Downstream, and Corporate. The Upstream segment combines the operating segments Upstream International and Upstream Americas, which have similar characteristics and are engaged in exploring for and recovering crude oil and natural gas; the liquefaction and transportation of gas; the extraction of bitumen from oil sands that is converted into synthetic crude oil; and wind energy. The Downstream segment engages in manufacturing, supply and distribution and marketing activities for oil products and chemicals; alternative energy; and CO2 management. The Corporate segment represents the support functions, comprising holdings and treasury, headquarters, central functions and its self-insurance activities. The company was founded in February 1907 and is headquartered in The Hague, Netherlands.
Source - Factset
Électricité de France SA produces, markets, and distributes electricity. It provides a wide range of natural gas, electricity and energy eco-efficiency services. It operates through five divisions Engineering, Generation, Optimization & Trading, Transmission and Distribution. The company was founded on April 8, 1946 and is headquartered in Paris, France.
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.
Headquartered in France, Total is an integrated international oil and gas company with key assets in Canada, Russia, Qatar, Angola, Nigeria, and Kazakhstan. Business lines include upstream (oil and gas exploration, development, and production), downstream (refining, marketing, trading, and shipping of crude oil and petroleum products), and chemicals (fertilizers and petrochemicals). Upstream operations have the highest margin, contributing the majority of operating income.
Output from many of the world's existing oilfields is declining, and the rate of developable new resources continues to slow. While developed OECD countries have recently curbed demand for oil, oil demand continues to increase in non-OECD nations. Although the majority of incremental energy supply is expected to come from renewable, nuclear, and gas, oil is expected to remain the largest source of transportation energy for decades.
Compared to other oil majors, Total has potential for an above-average growth profile, with exposure to the LNG (Liquid Natural Gas) market and lower-than-average depletion rates in existing oil fields. Total has approximately 40 years of proved and probable resources. Production setbacks in recent years have been disappointing, however, and the company has been criticized for under-investing in exploration. Total has been focused on improving its yield from producing assets.
Total's dividend appears to be fully covered by cash flow in the oil price ranges we have seen over the last 5 years. The firm's strong balance sheet and operating cash flow have enabled it to increase the dividend at an annual rate of approximately 7% over the last 5 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.
NN Group NV engages in insurance and investment management. It operates through the following segments: Netherlands Life, Netherlands Non-Life, Insurance Europe, Japan Life, Investment Management, other, and Japan Closed Block VA. The Netherlands Life segment offers a range of group life and individual life insurance products. The Netherlands Non-Life segment offers non-life insurance products such as motor, transport, fire, liability, travel, and income protection to retail, self employed, small and medium enterprises (SME), and corporate customers. The Insurance Europe segment includes retail, self employed, SME, and corporate customer life insurance. The Japan Life segment manages corporate owned life insurance products to SMEs and owners and employees of SMEs through independent agents and bancassurance. The Investment Management segment overseas investment products and advisory services to retail and institutional customers. The other segment comprises of business of National Nederlanden Bank and ING Re. The Japan Closed Block VA segment includes NN Group's closed block single premium variable annuity individual life insurance portfolio in Japan. The company was founded in 1845 and is headquartered in Amsterdam, Netherlands.
BT Group Plc provides communication solutions and services. Its principal activities include networked IT services, local, national and international telecommunications services, higher value broadband, and Internet products and services. The company has five customer-facing businesses: BT Global Services, BT Business, BT Consumer, BT Wholesale and Openreach. The BT Global Services provides networked IT services to multinational corporations, domestic businesses, government departments and other communication service providers around the world. The BT Business provides a range of innovative communications products and services and serves consumer customers, small and medium sized enterprises in the United Kingdom. The BT Consumer provides consumer fixed voice and broadband in the U.K. with a growing base of TV and BT sport customers. The BT Wholesale provides broadband, voice, data connectivity, managed network outsourcing and value-added solutions to the UK communication providers. The Openreach owns, maintains and develops access network that links homes and businesses to the networks of Britain's communication providers. BT Group was founded on March 30, 2001 and is headquartered in London, the United Kingdom.
KT&G Corp. engages in the manufacture and sale of tobacco products. It operates through the following business divisions: Tobacco, Health Functional Food, Foods, Tobacco Leaf, Pharmaceuticals, Tobacco Materials, Trading and Real Estates. The Health Functional Food manufactures and sells red ginseng, red ginseng products and healthy foods. The Foods business provides groceries and beverages. The Tobacco Leaf division engages in cultivation of tobacco leaf lands. The Pharmaceutical division manufactures and sales drugs, biotech drugs, non-pharmaceutical health complements, other related products, medical goods and equipment. The Tobacco Materials division engages in the manufacture and distribution of raw materials needed in production of tobacco. The Real Estates division offers rentals, sales and housing development. It was founded on April 1, 1987 and is headquartered in Daejeon, South Korea.
Headquartered in Switzerland, global pharmaceutical company Roche has been in operation for over a century. Roche is the world leader in oncology and virology, and its annual revenues exceed 45 CHF billion (Swiss Francs). Its main products include treatments for anemia (CERA), arthritis (Rituxin), cancer (Herceptin, Tarceva and Avastin) and Hepatitis C and HIV. The company also operates a diagnostics business, which specializes in disease monitoring, prevention and genetics testing. Roche owns a sizeable stake in U.S.-based Genentech and Japan-based Chugai.
Roche's solid cancer franchise largely originates from Genentech. In addition, a strong relationship with Chugai allows for penetration of the difficult to enter Japanese market. Collectively, the companies lead the oncology industry with popular cancer drugs like Rituxan (which also treats rheumatoid arthritis) and Herceptin, the latter of which has shown especially promising potential in combination with Avastin in certain cancers. Avastin is also in studies for additional cancers. Roche's diagnostics division has grown through products focusing on diabetes, molecular diagnostics, and immunochemistry. An improved product mix, with high barriers to entry given the biologic nature of many of its products, should serve to support Roche's sales and earnings over time.
Roche has an intriguing dividend yield. It has increased per share dividends by more than 15% annually over the last 5 years.
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.
Vodafone is one of the world's largest providers of mobile telecommunications services, with presence in more than 25 countries. The company has stakes in large carriers in Germany, Italy, and Spain. After a period of heavy spending on strategic acquisitions and 3G licenses, Vodafone's cape requirements have decreased relative to operating revenues. The company has developed positive, growing cash flows in most markets as a result.
Vodafone has put this cash to work largely by making acquisitions, including Hutchison Essay which gives the company exposure to the fast growing cellular market in India. With sales of certain non-strategic holdings, and in the absence of further large acquisitions, Vodafone should be able to continue increasing its dividend in the coming years, as well as buy back shares.
Atlantia SpA is a holding company which engages in the infrastructures and mobility networks sectors. It operates through the following business segments: Italian Motorways, Italian Airports, Overseas Motorways, Technology, Design and Construction, and Atlantia. The Italian Motorways segment consists of the management, maintenance, construction, and widening of the Italian motorway operators under concession. The Italian Airports segment operates and develops the Rome Fiumicino and Rome Ciampino airports. The Overseas Motorways includes the holders of motorways concessions in Chile, Poland, and Brazil, and the companies that provide operational support for these overseas activities and the related foreign registered holding companies. The Technology segment includes the subsidiaries that produce and operate free-flow tolling systems, traffic, and transport management systems, public information, and electronic payment systems. The Design and Construction segment covers the companies related to the design, construction, and maintenance of road infrastructure. The Atlantia segment performs parent company functions for its subsidiaries and associates whose business is the construction and operation of motorways, airports and transport infrastructure, parking areas and intermodal systems, and management of motorway or airport traffic. The company was founded in 1950 and is headquartered in Rome, Italy.
Source – FactSet
Paris-based Vinci is one of the largest integrated construction/concession firms in the world, with annual revenues of approximately 40 billion euros from operations in approximately 100 countries.
The group's business is divided into two main areas. Concessions provide approximately 60% of operating profit, including toll motorways in France, parking lots, airport operations, and a portfolio of other infrastructure assets. Contracting operations provide almost 40% of operating profit, including large infrastructure construction projects, technical installation & maintenance, road building, and real estate development.
Vinci's revenue and profits have fluctuated with economic cycles, as one might expect from its collection of businesses. Profits declined in the aftermath of the 2008 global financial crisis, before recovering since 2012. Notwithstanding the cyclical volatility, Vinci's profits and dividends have generally grown on a secular basis. Per share dividends have increased by more than 10% since the year 2000, though dividend growth has slowed from this pace in recent years.
BNP Paribas SA is engaged in the provision of banking and financial services. It operates through the following segments: Retail Banking, Investment Solutions, and Corporate and Investment Banking. The Retail Banking segment includes domestic markets, personal finance, and international retail banking. Domestic markets include Retail Banking networks in France, Italy, and Luxembourg well as certain specialized retail banking divisions. The Investment Solutions segment includes Wealth Management; investment partners covering all of the Asset Management businesses; Securities Services to management companies, financial institutions, and other corporations; and Insurance and Real Estate Services. The Corporate and Investment Banking segment includes advisory & capital markets and corporate banking. The Company was founded on May 26, 1966 and is headquartered in Paris, France.
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.
Deutsche Telekom AG proves fixed-network/broadband, mobile communications, Internet, and IPTV products and services for consumers and information and communication technology (ICT) solutions for business and corporate customers. The company was founded on January 2, 1995 and is headquartered in Bonn, Germany.
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.
Suncor Energy, Inc. is an integrated energy company, which develops petroleum resource basins. Its activities include oil sands development, and upgrading, onshore and offshore oil and gas production, petroleum refining, and product marketing. It operates under the Petro-Canada brand and on the following segments: oil sands, exploration and production, and refining and marketing. The oil sands segment refers to the operations in the Athabasca oil sands in Alberta to develop and produce synthetic crude oil and related products through the recovery and upgrading of bitumen from mining and in situ operations. The exploration and production segment includes offshore activity in East Coast Canada the exploration and production of crude oil and natural gas in the United Kingdom, Norway, Libya, and Syria, and exploration and production of natural gas and natural gas liquids in Western Canada. The refining and marketing segment is the refining of crude oil products, and the distribution and marketing of these and other purchased products through retail stations located in Canada and the United State, as well as a lubricants plant located in Eastern Canada. The company was founded on August 1, 2009 and is headquartered in Calgary, Canada.
Nestle is a Switzerland-based global food and beverage company. The largest food and beverage company in the world, Nestle products principally include chocolate, infant nutrition, pet care and frozen foods. Some familiar Nestle brands include Nescafe, Stouffers, Purina, Powerbar and Nespresso. Nestle has nearly 500 manufacturing sites worldwide.
Nestle has demonstrated cost discipline, improving margins and return on capital through effective asset utilization. Organic growth drivers include the growing influence of nutrition and health businesses in their product mix, and management's focus on their top 21 brands. The company is generating substantial cash flow that can be directed toward share buybacks and increasing dividend payouts.
Ferrovial SA is engaged in the investment and development of transportation infrastructures. It operates through the following segments: Construction, Services, Toll Roads, and Airports. The Construction segment designs and performs public and private works for roads, highways, airports, and buildings. The Services segment involves in the maintenance and upkeep of infrastructures, facilities, and buildings; waste collection and treatment; and rendering of other kinds of public services. The Toll Roads segment develops, finances, and operates tollways such as 407 ETR, North Tarrant Express, LBJ Express, Indiana Toll Road, Euroscut Azores, Madrid-Levante, and Ausol I. The Airports segment develops and runs Heathrow, Glasgow, Aberdeen, and Southampton Airports. The company was founded by Rafael del Pino y Moreno in December 1952 and is headquartered in Madrid, Spain.
Formerly known as Macquarie Airports, Sydney Airport owns a material equity interest in Sydney Airport (85% interest) and manages operations there.
Sydney Airport makes money via aircraft and passenger fees, rental of retail and passenger services company space, ground handling operations, parking operations, sales of advertising, and real estate development. Generally speaking, Sydney has succeeded in increasing "non-aeronautical" revenues as a percentage of total revenues by improving the retail and service offering available to passengers, their greeters, and airport employees.
In 2009 Sydney terminated its management agreements with Macquarie. The company's dividend fell in 2008 and 2009 as it sought to reduce leverage at its operating subsidiaries. Special cash dividends in 2010 and 2011 reversed this trend, and Sydney Airport goes forward as a much simplified single country operator.
MTN Group Limited is a leading mobile telecom operator in Africa and the Middle East. The company operates in 21 countries generally with low penetration rates of mobile subscribers. Nearly all customers prepay for their mobile service, allowing for wide customer participation. Falling handset prices are driving increased affordability and the monthly average revenue per user is surprisingly attractive for emerging economies.
The company generates substantial cash flow giving management flexibility to execute on the growth plan. Recently, the company expanded their geographic footprint with the acquisition of Investcom and entering the Iranian market. We believe the company may enjoy a long runway of growth opportunities.
Legal & General Group Plc provides risk, savings and investment management products and services. It operates through the following segments: Legal & General Retirement, Legal & General Investment Management, Insurance, Savings, Legal & General America and Legal & General Capital. The company was founded on September 19, 1836 and is headquartered in London, the United Kingdom.
Deutsche Börse AG engages in the operation of cash markets for trading securities, and derivatives markets for trading derivatives contracts. Its activities cover securities and derivatives trading, clearing, settlement, custody services, market data, and development and operation of electronic trading systems. The company operates through four segments: Xetra, Eurex, Clearstream and Market Data Services. The Xetra segment provides listing, trading, and clearing services for issuers, intermediaries, and investors in the cash market, including German and international issuers, fixed-income securities, exchange-traded funds, exchange-traded commodities, exchange-traded notes, actively managed mutual funds, and certificates and warrants. This segment also organizes trading on the floor of the Frankfurt Stock Exchange, as well as holds interests in Tradegate Exchange; a trading platform for private investors. The Eurex segment offers trading and clearing services for futures and options contracts. This segment operates Eurex Exchange, an electronic derivatives market trading platform; Eurex Clearing, a central counterparty for bonds, on-and-off exchange derivatives, and repo transactions; and International Securities Exchange, an equity options trading platform, as well as European Energy Exchange, Eurex Bonds and Eurex Repo, and over-the-counter trading platforms. The Clearstream segment provides post-trade infrastructure for bonds, equities, investment funds, and other asset classes, as well as offers custody services for securities from approximately 54 markets worldwide. The Market Data and Services segment provides information and services for capital markets comprising real-time trading data and other market moving signals for investors, brokers, trading desks, and traders. Deutsche Börse was founded in August 1990, and is headquartered in Eschborn, Germany.
AXA SA operates as a holding company, which engages in the provision of insurance and asset management services. The company operates its business through five segments: Life & Savings, Property & Casualty, International Insurance, Asset Management and Banking. The Life & Savings segment offers products including individual and group savings products, life and health products for both individual and commercial clients. The Property & Casualty segment offer products including motor, household, property and general liability insurance for both personal and commercial customers. The International Insurance segment focuses on risks, reinsurance and assistance. The Asset Management segment includes diversified asset management and related services. The Banking segment involves in the banking activities, which includes retail banking, mortgages loans, and savings conducted primarily in France, Belgium and Germany. The company was founded in 1985 and is headquartered in Paris, France.
|SYMBOL||% OF PORTFOLIO|
|Crestwood Equity Partners L.P.||226344307||0.1%|
|Centaur Funding Corp.||151327202||0.1%|
|Farm Credit Bank/Texas||30767E307||0.1%|
|First Tennessee Bank NA||337158208||0.1%|
Morgan Stanley is a global financial service firm, with more than 700 offices in over 25 countries. Revenues are divided between trading/principal transaction, investment banking, asset management, and credit cards. Morgan Stanley has some leading positions in its various business, with particular strength in wholesale investment banking and trading, its historic core business.
Investment banking activity is off due to slower overall economic growth, as are closed mergers and acquisitions volumes, commission trading activity, and margin debt. Asset management fees reflect depressed equity prices and sluggish activity, and higher bankruptcy rates are pressuring the credit card margins of Discover Card business. The firm has announced employee layoffs in response to the challenges of the business environment. Lower interest rates should improve the outlook for most of Morgan Stanley's businesses, and the firm is poised to expand its presence in Europe.
|SYMBOL||% OF PORTFOLIO|
|The Williams Cos, Inc.||969457BW9||0.5%|
|Transcontinental Gas Pipe Line Co., LLC||893574AH6||0.3%|
|The Williams Cos, Inc.||969457BU3||0.2%|
|Citgo Petroleum Corp.||17302XAJ5||0.2%|
|Kinder Morgan, Inc./DE||49456BAG6||0.2%|
|Compass Group Diversified Holdings, LLC||20451RAA0||0.1%|
|Enviva Partners L.P. / Enviva Partners Finance Corp.||29413XAB3||0.1%|
|Summit Midstream Partners L.P.||866142AA0||0.1%|
|International Wire Group, Inc.||460933AL8||0.1%|
|Vector Group Ltd.||92240MBF4||0.1%|
|Zachry Holdings, Inc.||988745AA3||0.1%|
|The Williams Cos, Inc.||969457BV1||0.1%|
|JPMorgan Chase & Co.||46625HHA1||0.1%|
|Time Warner Cable, LLC||88732JAP3||0.1%|
|Salem Media Group, Inc.||794093AG9||0.1%|
|Energy Transfer Partners L.P.||29273RBA6||0.1%|
|Kinder Morgan Energy Partners L.P.||494550AT3||0.1%|
|Vista Outdoor, Inc.||928377AB6||0.1%|
|Alliance Data Systems Corp.||018581AG3||0.1%|
|Enbridge Energy Partners L.P.||29250RAR7||0.1%|
|Kinder Morgan Energy Partners L.P.||494550BP0||0.1%|
|B&G Foods, Inc.||05508RAE6||0.1%|
|Laureate Education, Inc.||518613AJ3||0.1%|
|ONEOK Partners L.P.||68268NAE3||0.1%|
|Kinder Morgan Energy Partners L.P.||494550AZ9||0.1%|
|C&S Group Enterprises, LLC||12467AAD0||0.1%|
|Summit Midstream Holdings, LLC/ Summit Midstream Finance Corp.||86614WAC0||0.0%|
|Energizer Holdings, Inc.||29273AAA4||0.0%|
|Mueller Industries, Inc.||624756AE2||0.0%|
|Enterprise TE Partners L.P.||872384AC6||0.0%|
|Arizona Public Service Co.||040555CL6||0.0%|
|Harland Clarke Holdings Corp.||412690AF6||0.0%|
|Kinder Morgan, Inc./DE||49456BAH4||0.0%|
|Ameren Illinois Co.||02361DAG5||0.0%|
|DISH DBS Corp.||25470XAQ8||0.0%|
|National Rural Utilities Cooperative Finance Corp.||637432LR4||0.0%|
|National Life Insurance Co.||636792AB9||0.0%|
|Energizer Gamma Acquisition, Inc.||29279VAA2||0.0%|
|Enable Oklahoma Intrastate Transmission, LLC||29348QAB8||0.0%|
|JPR Royalty Sub, LLC||46635XAA1||0.0%|
|RAAM Global Energy Co.||74920AAC3||0.0%|
|SYMBOL||% OF PORTFOLIO|
|ABG Intermediate Holdings 2, LLC||00076VAS9||0.1%|
|RGIS Services, LLC||74957MAL3||0.1%|
|Harland Clarke Holdings Corp.||181593AN4||0.1%|
|Wheels Up Partners, LLC||92940FAAF||0.1%|
|Fairway Outdoor Funding, LLC||30605XAB9||0.0%|
|Office Depot, Inc.||67622DAH1||0.0%|
|American Airlines 2013-2 Class A Pass Through Trust||02377UAB0||0.0%|
|Merrill Lynch Mortgage Investors Trust Series MLMI 2004-A4||59020ULT0||0.0%|
|San Bernardino County Redevelopment Agency Successor Agency||79685PCK4||0.0%|
|US Airways 2010-1 Class A Pass Through Trust||90345KAA8||0.0%|
|Northwind Holdings, LLC||668457AA2||0.0%|
|FBR Securitization Trust 2005-2||30246QAG8||0.0%|
|Malamute Energy, Inc.||MALAMUTEF||0.0%|
|Citigroup Mortgage Loan Trust, Inc.||17307GEF1||0.0%|
|Bear Stearns ARM Trust 2003-6||07384MXJ6||0.0%|
|SYMBOL||% OF PORTFOLIO|
|Telefonica Emisiones SAU||87938WAC7||0.7%|
|QBE Insurance Group Ltd.||74737EAA2||0.3%|
|Deutsche Telekom International Finance BV||25156PAC7||0.2%|
|Millicom International Cellular S.A.||600814AM9||0.2%|
|CFG Investments 2017-1 Ltd.||12528GAA0||0.2%|
|Antares Holdings L.P.||03666HAA9||0.1%|
|Kissner Holdings L.P. / Kissner Milling Co. Ltd. / BSC Holding, Inc. / Kissner USA||497864AA6||0.1%|
|Consolidated Energy Finance S.A.||20914UAD8||0.1%|
|The Dai-ichi Life Insurance Co. Ltd.||23380YAB3||0.1%|
|Telenet Finance Luxembourg Notes Sarl||AQ2322842||0.1%|
|VEON Holdings BV||92718WAB5||0.1%|
|Guanay Finance Ltd.||40066NAA4||0.1%|
|Sands China Ltd.||80007RAD7||0.0%|
|CIMPOR Financial Operations BV||17186LAA1||0.0%|
|Consolidated Energy Finance S.A.||20914UAC0||0.0%|
|Brazilian Government International Bond||105756BL3||0.0%|
|Nexteer Automotive Group Ltd.||65341EAA8||0.0%|
|Odebrecht Offshore Drilling Finance Ltd.||67576GAD9||0.0%|
|Odebrecht Offshore Drilling Finance Ltd.||67576GAC1||0.0%|
|Petroleum Co. of Trinidad & Tobago Ltd.||71657YAD4||0.0%|
|OS Two, LLC||67112PAA6||0.0%|
|Schahin II Finance Co. SPV Ltd.||80629QAA3||0.0%|
|Linc USA GP / Linc Energy Finance USA, Inc.||53278TAC4||0.0%|
|Odebrecht Oil & Gas Finance Ltd.||67576JAB7||0.0%|
|% OF PORTFOLIO|
|Cash & Cash Equivalents||3.3%|
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.
Amounts related to Unfunded Loan Commitments are not included in the list of holdings.