|SYMBOL||% OF PORTFOLIO|
|Teekay LNG Partners LP||TGP||6.2%|
|AENA S.A.||AENA SM||6.1%|
|easyJet plc||EZJ LN||3.8%|
|Colony NorthStar, Inc.||CLNS||3.6%|
|MGM China Holdings Ltd.||2282 HK||3.5%|
|Atlantia S.p.A.||ATL IM||3.3%|
|JPMorgan Chase & Co.||JPM||3.0%|
|Kraft Heinz Co.||KHC||3.0%|
|Wynn Macau Ltd.||1128 HK||2.9%|
|SpeedCast International Ltd.||BPRC2R4||2.8%|
|Asaleo Care Ltd.||BNKVHC4||2.8%|
|CF Industries Holdings, Inc.||CF||2.8%|
|Ryanair Holdings plc - ADR||RYAAY||2.7%|
|Samsung Electronics Co. Ltd.||5930||2.5%|
|New World Development Co. Ltd.||17||2.2%|
|Bayer AG||BAYN GR||2.2%|
|Helmerich & Payne||HP||2.1%|
|Bank Of NT Butterfield & Son Ltd.||NTB||2.1%|
|China Mobile Ltd.||941||2.1%|
|CK Hutchison Holdings Ltd.||BW9P816||2.0%|
|Lloyds Banking Group plc||LLOY LN||2.0%|
|C&C Group plc||B011Y09||1.8%|
|Yum China Holdings, Inc.||YUMC||1.8%|
|Wells Fargo & Co.||WFC||1.8%|
|Ferrovial S.A.||FER SM||1.5%|
|Hopewell Holdings Ltd.||54 HK||1.5%|
|Mineral Resources Ltd.||MNOD LI||1.1%|
|Crown Castle International Corp.||CCI||1.0%|
|NN Group N.V.||NN NA||1.0%|
|ING Groep N.V.||INGA NA||1.0%|
|Ascendas Real Estate Investment Trust||AREIT||0.7%|
|Innogy SE||IGY GR||0.6%|
|Total S.A.||FP FP||0.5%|
|Taiwan Semiconductor Manufacturing Ltd. - ADR||TSM||0.5%|
|Royal Dutch Shell plc - ADR||RDS/A||0.5%|
|Altice N.V.||ATC NA||0.4%|
|Roche Holding AG||ROG||0.4%|
|Seritage Growth Properties||SRG||0.2%|
|Anheuser-Busch InBev N.V. - ADR||BUD||0.2%|
|Carsales.com Ltd.||CAR AU||0.2%|
|Ares Capital Corp.||ARCC||0.1%|
|The Hongkong & Shanghai Hotels Ltd.||45||0.1%|
|Mondelez International, Inc.||MDLZ||0.1%|
Aena SA engages in the management and operation of a group of airports. It operates through the following segments: Airports, Off-terminal Services, International, and other. The Airports segment includes operations as airport manager, and management of commercial spaces in airport terminals. The Off-terminal Services segment operates parking lots and garages outside the terminals, and of the industrial and real estate assets. The International segment deals with the international development business. The company was founded on February 25, 2011 and is headquartered in Madrid, Spain.
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
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.
The Kraft Heinz Company manufactures and markets food and beverage products, including convenient meals, refreshment beverages and coffee, cheese and other grocery products. In 2015 H.J. Heinz Company and Kraft Foods Group merged becoming the 3rd largest food beverage company in North America and the 5th largest in the world. The company’s brands include: Kraft, Heinz, ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Maxwell House, Ore-Ida, Oscar Mayer, Philadelphia, Plasmon, Quero, Weight Watchers Smart Ones, and Velveeta.
CF Industries Holdings, Inc. manufactures and distributes nitrogen fertilizer. It owns and operates nitrogen plants and serves agricultural and industrial customers through its distribution system. The company operates through following segments: Ammonia, Granular Urea, UAN, AN, Other and Phosphate. The Ammonia segment produces anhydrous ammonia, which is company's most concentrated nitrogen fertilizer product as it contains 82% nitrogen. The Granular Urea segment produces granular urea, which contains 46% nitrogen. The UAN segment produces urea ammonium nitrate solution, which is a liquid fertilizer product with a nitrogen content from 28% to 32%, is produced by combining urea and ammonium nitrate. The AN segment produces ammonium nitrate, which is a nitrogen-based product with a nitrogen content between 29% and 35%. The Other segment includes Diesel exhaust fluid, Nitric acid, Urea liquor and Compound fertilizer products. The Phosphate segment does not have operating results subsequent to that quarter although the segment will continue to be included until the reporting of comparable period phosphate results ceases. CF Industries Holdings was founded in 1946 and is headquartered in Deerfield, IL.
Ryanair Holdings Plc operates an ultra-low cost, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe and Morocco. It provides low fares airline-related services, including scheduled services, and ancillary services—including car services, and Internet and other related services to third parties, across a European route network. The company was founded on June 5, 1996 and is headquartered in Dublin, Ireland.
Bayerische Motoren Werke AG engages in the manufacture and sale of automobiles and motorcycles. The company operates its business through the following segments: Automotive, Motorcycles and Financial Services. The Automotive segment develops, manufactures, assembles, and sells cars and off-road vehicles, under the following brands: BMW, MINI and Rolls-Royce, as well as spare parts and accessories. The Motorcycles segment develops, produces, assembles, and markets BMW and Husqvarna brand motorcycles, as well as spare parts and accessories. The Financial Services segment includes car leasing, fleet business, retail customer and dealer financing, customer deposit business, and insurance activities. Bayerische Motoren Werke was founded on March 6, 1916 and is headquartered in Munich, Germany.
Helmerich & Payne, Inc. is an energy-oriented company. It is engaged in contract drilling of oil and gas wells for exploration and production companies. The company operates its business through three segments: U.S. Land Operations, Offshore Operations and International Land Operations. Its contract drilling operations consist mainly of contracting company-owned drilling equipment primarily to large oil and gas exploration companies. Helmerich & Payne was founded in 1920 and is headquartered in Tulsa, OK.
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.
Lloyds Banking Group Plc is a financial services company, which provides a wide range of banking and financial services. The company operates through the following business segments: Retail, Commercial Banking and Consumer Finance. The Retail segment provides banking, mortgages and other financial services to personal customers in the UK. The Commercial Banking segment provides banking and related services to business clients, from small businesses to large corporate. The Consumer Finance segment group consists of consumer and corporate credit card businesses, along with Black Horse motor financing and Lex Autolease car leasing businesses in asset finance. The company was founded by George Truett Tate on December 27, 1995 and is headquartered in London, the United Kingdom.
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.
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.
Based in Australia, Mineral Resources is a leading mining services provider. The company works as a partner to large miners, building and operating necessary infrastructure such as ore processing facilities, road/rail access, employee accommodations and export terminals. The company also constructs pipelines.
The growing number of mining operations in areas like Western Australia has led to greater infrastructure development over time. Mineral Resources enjoys a leading market position due to its reputation as a credible contractor and its ability to execute large-scale projects.
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.
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.
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.
Microsoft is the world's largest software company with annual revenues exceeding $60 billion. The company's major business segments include: (1) "Client," comprising essentially of the "Windows" notebook/desktop PC operating system; (2) "Server and Tools, "which develops and markets software server products, software developer tools, services, and solutions; (3) "Online Services Business," comprised of online advertising platforms, online information offerings (such as Bing and MSN portals), and communications services; (4) "Microsoft Business Division," which contains products for business solutions; (5) "Entertainment and Devices Division," which develops, produces, and markets gaming systems (such as Xbox).
Microsoft sees growth opportunities in cloud computing and software plus services, natural user interfaces, new scenario innovation, and intelligent computing. Recently, Microsoft has attempted to make inroads into the market for mobile communications software. This effort has had only limited success, though the acquisition of Skype and a joint venture with Nokia may be helpful to future results. To the extent that Microsoft does not succeed in its wireless software effort, it is probable that the recent sluggishness in its PC software business will persist.
Microsoft remains a visible target for litigation relating to anticompetitive behavior. Other threats include piracy of its content, the ongoing development of open source software like Linux, and strong competition in home entertainment and mobile communications software.
Among technology firms, Microsoft's dividend is above average and it has grown by more than 10% annually over the last 5 years. With better capital discipline, Microsoft's dividend could be significantly better.
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.
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
The Altice Group is a multinational cable, fiber, telecommunications, contents and media company. Services provided include pay television, broadband internet, fixed line telephony and mobile phones for both residential and corporate customers. It operates in Western Europe, the United States, Israel and the Overseas Territories (currently comprising the French Caribbean and the Indian Ocean regions and the Dominican Republic). The company was founded by Patrick Drahi on May 18, 2015 and is headquartered in Amsterdam, the Netherlands.
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.
Apple designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players. It also sells a variety of related software, services, peripherals, and networking solutions.
carsales.com Ltd. operates online automotive classified website, www.carsales.com.au through which it enables customers to buy new and used cars, sell cars, value cars, research cars, and obtain news and reviews. It also provides other online classified offerings, including bikes, boats, trucks, machinery, equipment and accessories. The company operates its business through following segments: online advertising services, data & research services, international and finance & related services. The online advertising services segment's online advertising offerings can be broken into two key product sets being classified advertising and display advertising services. The classified advertising encompasses both private sellers and dealer customers; and display advertising, typically involves corporate customers such as automotive manufacturers/importers, finance and insurance companies, placing advertisements on company's website. The data & research services segment provides various solutions to a range of customers, including manufacturers/importers, dealers, industry bodies, finance and insurance companies offering products, including software, analysis, research and reporting, valuation services, website development and hosting, as well as photography services. This segment also includes display and consumer advertising. The international segment offerings comprises of automotive data services and online automotive classifieds outside Australia. The finance and related services segment includes the Stratton Finance Pty Ltd subsidiary, which provides innovative vehicle finance arrangements, vehicle procurement and other related services to customers. carsales.com was founded by Gregory Paul Roebuck on June 18, 1996 and is headquartered in Richmond, Australia.
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.
Allergan Plc operates as a global pharmaceutical company. It is a global, integrated specialty pharmaceutical company focused on developing, manufacturing and distributing generic, brand, brand generic, over-the-counter and biosimilar products. The company operates through the following segments: North American Brands, North American Generics and International, and Anda. The company was founded on October 1, 2013 and is headquartered in Dublin, Ireland.
Mondelez is a leading global snacks company with significant revenues from developing markets, suggesting a long-term structural driver of growth. The company has strong competitive positioning in each of its markets.
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.