France3.7% Financials21.1% Industrials14.8% Consumer Staples13.9% Consumer Discretionary11.8% Health Care9.9% Information Technology8.4% Telecommunication Services6.0% Utilities2.3% Materials2.3% Cash and Cash Equivalents9.4% Banks9.9% Pharma, Biotech & Life Sciences8.4% Transportation6.9% Diversified Financials6.4% Food, Beverage & Tobacco6.3% Telecommunication Services6.0% Software & Services5.7% Insurance4.8% Capital Goods4.6% Household & Personal Products3.9%
|% OF PORTFOLIO|
|ING Groep N.V.||3.1%|
|UBS Group AG||3.0%|
|Reckitt Benckiser plc||2.7%|
|Intact Financial Corp.||2.7%|
|Sumitomo Mitsui Financial Group, Inc.||2.6%|
|AIA Group Ltd.||2.6%|
|Compass Group plc||2.5%|
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.
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.
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.
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.
Europris ASA engages in the operation of variety stores for retail and wholesale activities. Its products include home and kitchen, home and garden, travel, leisure and sport, electronics, personal care, clothes and shoes, handyman, hobby and office, candy and chocolate, laundry and cleaning, and pets. The company was founded on November 16, 2011 and is headquartered in Fredrikstad, Norway.
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.
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.
|Portfolio P/E Trailing 12 Months*||20.0x|
|Portfolio Price to Cash Flow*||10.1x|
|Portfolio Price to Book*||2.4x|
|Median Market Capitalization*||$12.7 B|
|Number of Holdings||54|
|Emerging Markets Exposure||19.8%|
|Active Share* (vs. MSCI AC World ex-U.S. Index)||93.6%|Basic Value30.3% Consistent Earners47.3% Emerging Franchises13.0% Cash & Cash Equivalents9.4% Large Cap (> $12 B)58.1% Mid Cap ($2.5 to $12 B)27.3% Small Cap (< $2.5 B)14.6%