Italy3.2% Financials17.5% Information Technology15.8% Consumer Discretionary10.8% Industrials9.9% Utilities9.4% Consumer Staples7.8% Health Care6.9% Energy6.5% Materials6.5% Telecommunication Services5.3% Cash and Cash Equivalents3.6%
|Weighted Average Dividend Yield||2.2%|
|Weighted Average Forward Est. P/E||17.5x|
|Median Market Capitalization||$34.2 B|
|Weighted Average Market Capitalization||$59.9 B|
|Emerging Market Exposure||18.5%|
|Active Share (vs. MSCI AC World ex-U.S. Index)||91.5%|
|Active Share (vs. MSCI EAFE Index)||92.1%|
|% OF PORTFOLIO|
|BNP Paribas S.A. - ADR||3.2%|
|Intesa Sanpaolo S.p.A - ADR||3.2%|
|Alibaba Group Holding Ltd. - ADR||3.1%|
|Commerzbank AG - ADR||2.9%|
|Shin-Etsu Chemical Co. Ltd. - ADR||2.9%|
|Ctrip.com International Ltd. - ADR||2.9%|
|EDF - ADR||2.8%|
|China Petroleum & Chemical Corp. - ADR||2.8%|
|UBS Group AG||2.7%|
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.
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.
Intesa Sanpaolo is a leading bank in Italy formed through the 2007 merger of Banca Intesa and SanPaolo IMI. It is almost exclusively focused on the domestic Italian market, and is well-diversified across corporate, retail and small business activities.
The Italian banking market is fairly consolidated and profitability as measured by Net Interest Margins tends to be above average in Italy. Intesa enjoys a leading branch-based deposit franchise that serves as a low-cost source of funding for the bank. Intesa therefore generates healthy levels of capital on an organic basis in most market environments. Although the recent extended period of extremely low rates has reduced the earnings contribution from the bank's deposit franchise, its normalized earnings power is quite attractive.
Since early 2010, the ongoing European government debt crisis has pressured economies and undermined public confidence in banks, which are significant owners of government bonds.
However, these risks are receding and funding costs are reducing, contributing to a return to higher levels of earnings.
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.
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.
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.
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.
Basic Value49.6% Consistent Earners37.6% Emerging Franchises9.2% Cash & Cash Equivalents3.6% Large Cap (> $12 B)86.6% Mid Cap ($2.5 to $12 B)13.4% Small Cap (< $2.5 B)0.0%