France3.3% Financials22.0% Industrials13.7% Consumer Discretionary13.7% Consumer Staples10.1% Health Care9.6% Information Technology8.7% Telecommunication Services6.1% Materials4.2% Utilities2.0% Cash and Cash Equivalents9.8% Banks10.3% Pharma, Biotech & Life Sciences8.5% Transportation7.1% Diversified Financials6.8% Software & Services6.3% Telecommunication Services6.1% Food, Beverage & Tobacco5.2% Media5.2% Insurance4.9% Capital Goods4.6%
|% OF PORTFOLIO|
|ING Groep N.V.||2.8%|
|AIA Group Ltd.||2.8%|
|UBS Group AG||2.6%|
|Nippon Telegraph & Telephone Corp.||2.5%|
|US Foods Holding Corp.||2.4%|
|Resona Holdings, Inc.||2.4%|
|Compass Group plc||2.3%|
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.
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.
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.
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.
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
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.
|Portfolio P/E Trailing 12 Months*||20.2x|
|Portfolio Price to Cash Flow*||10.7x|
|Portfolio Price to Book*||2.4x|
|Median Market Capitalization*||$13.3 B|
|Number of Holdings||54|
|Emerging Markets Exposure||21.2%|
|Active Share* (vs. MSCI AC World ex-U.S. Index)||92.5%|Basic Value32.8% Consistent Earners41.5% Emerging Franchises16.0% Cash & Cash Equivalents9.8% Large Cap (> $12 B)58.1% Mid Cap ($2.5 to $12 B)28.4% Small Cap (< $2.5 B)13.6%