|SYMBOL||% OF PORTFOLIO|
|UniCredit S.p.A.||UCG IM||4.7%|
|Electricite de France SA||EDF FP||3.8%|
|Commerzbank AG||CBK GR||3.4%|
|Canadian Pacific Railway Ltd.||CP||3.2%|
|Credit Suisse Group AG||CSGN VX||3.2%|
|Infineon Technologies AG||IFX GR||3.1%|
|China Petroleum & Chemical Corp.||386 HK||3.1%|
|LafargeHolcim Ltd.||LHN VX||2.7%|
|Reliance Industries Ltd.||RIL IN||2.7%|
|Shin-Etsu Chemical Co., Ltd.||4063 JP||2.6%|
|NN Group NV||NN NA||2.2%|
|Veolia Environnement SA||VIE FP||2.0%|
|General Electric Co.||GE||1.6%|
|OMRON Corporation||6645 JP||1.5%|
|Korea Electric Power Corp.||015760 KS||1.4%|
|Compagnie de Saint-Gobain||SGO FP||1.2%|
|BRF SA||BRFS3 BZ||1.2%|
|ING Life Insurance Korea Ltd.||079440 KS||1.1%|
|Kingfisher plc||KGF LN||0.8%|
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.
Infineon Technologies AG engages in the provision of semiconductor and system solutions. It operates through the following segments: Automotive; Industrial Power Control; Power Management and Multimarket; and Chip Card and Security. The Automotive segment designs, develops, manufactures, and markets semiconductor for automotive applications. The Industrial Power Control segment engages in the design, development, manufacture, and marketing of semiconductors for the generation, transmission, and economy in the use of electrical energy. The Power Management and Multimarket segment involves in the design, development, manufacture, and marketing of semiconductors for energy-efficient power supplies as well as for mobile devices and mobile phone network infrastructures. The Chip Card and Security segment designs, develops, manufactures, and markets semiconductor-based security products for card applications and network systems. The company was founded on April 1, 1999 and is headquartered in Munich, Germany.
China Petroleum & Chemical Corp. (Sinopec Group) is an energy and chemical company. It engages in the exploration, production and transportation of petroleum products such as crude oil and natural gas. The company operates through the following business segments: Exploration & Production, Refining, Marketing & Distribution, Chemicals, and Corporate & Others. The Exploration & Production segment explores crude oil and natural gas. The Refining segment processes crude oil and natural gas to produce petroleum products. The Marketing & Distribution segment operates service stations, and sells refined products at wholesale or retail. The Chemicals segment manufactures and sells chemical products. The Corporate & Others segment includes trading, research and development activities of the company. China Petroleum & Chemical was founded on February 25, 2000 and is headquartered in Beijing, China.
LafargeHolcim Ltd. manufactures and sells cement, aggregates, ready-mix concrete, concrete, and asphalt products as well as associated services and solutions. Its products are used in various projects and applications, including the construction of infrastructure projects, such as tunnels, airports, ports, bridges, data centers, roads and highways, and stadiums. The company was founded on July 10, 2015 and is headquartered in Jona, Switzerland.
Reliance Industries Ltd. engages in exploration and production of oil and gas, petroleum refining and marketing textiles, retail and special economic zones. The company also markets petrochemicals, polyester, fiber intermediates, plastics and chemicals. It has three reportable segments: petrochemicals, refining and oil & gas. The petrochemicals segment includes production and marketing operations of petrochemical products, including high and low density polyethylene, polypropylene, polyvinyl chloride, poly butadiene rubber, polyester yarn, polyester fibre, purified terephthalic acid, paraxylene, ethylene glycol, olefins, aromatics, linear alkyl benzene, butadiene, acrylonitrile, caustic soda and polyethylene terephthalate. The refining segment includes production and marketing operations of the petroleum products. The oil & gas segment includes exploration, development and production of crude oil and natural gas. Reliance Industries was founded by Dhirubhai Hirachand Ambani in 1966 and is headquartered in Mumbai, India.
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.
OMRON Corp. engages in the manufacture and sale of automation components, equipment, and systems. It operates through the following segments: Industrial Automation; Electronic and Mechanical Components; Automotive Electronic Components; Social Systems, Solutions, and Services; Healthcare; and Others. The Industrial Automation segment manufactures and sells control components and equipment for factory automation and production machinery. The Electronic and Mechanical Components segment produces and merchandises relays, switches, components, and units for amusement devices, connectors, and combination jogs. The Automotive Electronic Components segment supplies onboard electronic components aimed at auto makers and automotive component makers. The Social Systems, Solutions, and Services segment ideals with railway infrastructure, traffic control, road management, security, environmental solutions, and payment systems. The Healthcare segment sells digital blood pressure monitors, digital thermometers, body composition monitors, pedometers, biological information monitors, and nebulizers. The Others segment includes solar power generation systems, sensors, and liquid crystal display backlights. The company was founded by Kazuma Tateisi on May 10, 1933 and is headquartered in Kyoto, Japan.
Korea Electric Power Corp. engages in the generation, transmission and distribution of electricity and development of electric power resources. It operates through the following Domestic and Overseas Business areas. The Domestic Business area provides operations related to the transmission, distribution, and sale to end-users of electricity purchased from generation subsidiaries as well as from independent power producers through the Korea Power Exchange. The Overseas Business area provides power generation, distribution, transmission, power Information Technology (IT), personnel training and plant projects. The company was founded on July 1, 1961 and is headquartered in Seoul, South Korea.
Source - Factset
Compagnie de Saint-Gobain SA is engaged in the production and distribution of construction materials. The company operates through the following segments: Innovative Materials, Construction Products, Building Distribution, and Packaging. The Innovative Materials segment offers a unique portfolio of materials and processes for habitat and industrial markets. The Construction Products segment offers interior and exterior solutions to enhance the comfort of buildings and homes, including plaster, acoustic and thermal insulation, wall facing, roofing and pipe systems. The Building Distribution segment serves the new building, renovation and home improvement markets. The Packaging segment specializes manufacturing of bottles for wines and spirits and jars for food products. It also markets glass containers for beer, fruit juices, soft drinks, mineral water and oil. Compagnie de Saint-Gobain was founded in 1665 and is headquartered in Courbevoie, France.
Brasil Foods is one of the largest global food producers and is the result of the 2009 merger of Brazil's two leading food companies Perdigao and Sadia. The company processes meat within Brazil and sells the products locally and abroad. In its domestic market, Brazil Foods owns a nationwide distribution system and enjoys a leading market share in pasta, pizza, and processed meat products. The company's major brands include Perdix, Sadia, Hilal, and Batavo. Over time, household income has grown in Brazil which has resulted in higher demand for these types of processed foods. Internationally, the agricultural advantages of Brazil (related to climate, water, soil conditions, etc) have allowed BRF to gain market share over many years in meat exports.
|SYMBOL||% OF PORTFOLIO|
|SAP SE||SAP GR||3.2%|
|Daikin Industries, Ltd.||6367 JP||2.7%|
|Ferrovial SA||FER SM||2.6%|
|Fresenius SE & Co. KGaA||FRE GR||2.5%|
|Vinci S.A.||DG FP||2.4%|
|China Unicom (Hong Kong) Ltd.||762 HK||2.4%|
|Iberdrola S.A.||IBE SM||2.1%|
|Deutsche Telekom AG||DTE GR||2.1%|
|British American Tobacco plc ADR||BTI||2.1%|
|Danone SA||BN FP||2.0%|
|Yunnan Baiyao Group Co., Ltd.||000538 C2||1.8%|
|China Mobile Ltd.||941 HK||1.5%|
|Reckitt Benckiser plc||RB/ LN||1.5%|
|Dong-E-E-Jiao Co., Ltd.||000423 C2||1.3%|
|Convatec Ltd.||CTEC LN||1.1%|
|Nielsen Holdings plc||NLSN||1.0%|
|National Grid plc||NG/ LN||1.0%|
|Liberty Global plc||LBTYK||0.8%|
|Yum China Holdings, Inc.||YUMC||0.5%|
|Teva Pharmaceutical Industries Ltd. ADR||TEVA||0.0%|
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.
Fresenius SE & Co. KGaA engages in the provision of healthcare related products and services. It operates through the following segments: Fresenius Medical Care, Fresenius Kabi, Fresenius Helios, Fresenius Vamed, and Corporate and other. The Fresenius Medical Care segment provides dialysis products and services for patients with chronic kidney failure. The Fresenius Kabi segment offers IV drugs including intravenously administered generic anesthetics, anti-infectives, analgesics, and drugs for the treatment of oncological and other critical diseases and infusion solutions and blood volume substitutes for infusion therapy. The Fresenius Helios segment operates hospitals. The Fresenius Vamed segment manages projects and provides services for hospitals and other healthcare facilities. The Corporate and other segment comprises the holding activities of the company and the activities of the information technology service provider Fresenius Netcare. The company was founded by Eduard Fresenius in October 1912 and is headquartered in Bad Homburg, Germany.
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.
Iberdrola S.A. generates, distributes, trades, and markets electricity in the United Kingdom, United States, Spain, Portugal, and Latin America. The Company specializes in clean energy and more specifically wind power. The company was founded by Juan de Urrutia in 1901 and is headquartered in Bilbao, Spain.
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.
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.
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.
Nielsen Holdings N.V. is a global information and measurement company. The Company offers critical media and marketing information, analytics, and industry expertise about what consumers watch and what consumers buy on a global and local basis. The Company was taken private in 2006 in a leveraged buyout and became public again in January 2011.
Nielsen is a premier, global franchise whose business has high barriers to entry. It has a high level of recurring revenue, a scalable business model, and generates high levels of free cash flow. It is also a beneficiary of two secular trends: the growth of the developing markets' consumer and emerging middle class, and the capture of consumer behavior as consumers enjoy expanding ways in which to consume media.
National Grid Plc engages in the transmission and distribution of electricity and gas in Great Britain and northeastern U.S. It operates through four segments: UK Electricity Transmission, UK Gas Transmission, UK Gas Distribution and U.S. Regulated. The UK Electricity Transmission segment engages in electricity transmission in England and Wales. The day-to-day operations of the system involves the continuous real-time matching of demand and generation output. The UK Gas Transmission segment owns and operates the gas national transmission system in Great Britain, with day-to-day responsibility for balancing demand. The UK Gas Distribution segment owns and operates regional gas distribution network in Great Britain. The U.S. Regulated segment owns and operates electricity distribution networks in upstate New York, Massachusetts, and Rhode Island. The company was founded on July 11, 2000 and is headquartered in London, the United Kingdom.
Source - Factset
Liberty Global is the largest cable operator in the world. Its cable network spans across Europe, with key markets of Germany, the Netherlands, Switzerland, Belgium and the UK. Cable infrastructure has emerged as the most cost efficient method to transmit data at high speeds. Liberty's network is also valuable to telecommunication companies given its ability to offload mobile internet traffic during peak times.
Consolidation in the European telecom sector favors strong incumbents that are able to benefit from the pricing power associated with a better market structure. The defensive growth nature of the cable business means Liberty should be able to generate sound shareholder returns in a variety of market environments.
|SYMBOL||% OF PORTFOLIO|
|Ctrip.com International, Ltd. ADR||CTRP||2.7%|
|Ping An Insurance Group Co.||2318 HK||2.3%|
|Inner Mongolia Yili Industrial Group Co., Ltd.||600887||1.7%|
|TAL Education Group ADR||TAL||1.6%|
|Tencent Holdings Ltd.||700 HK||1.1%|
|Alibaba Group Holding Ltd. ADR||BABA||1.1%|
|ams AG||AMS SW||0.9%|
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.
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.
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.
|% OF PORTFOLIO|
|Cash & Cash Equivalents||1.1%|
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.