Financials17.3% Industrials16.2% Consumer Staples11.4% Energy10.7% Consumer Discretionary10.3% Information Technology9.5% Communication Services9.4% Health Care5.8% Utilities5.6% Materials3.8%
|% OF PORTFOLIO|
|Electricite de France S.A.||5.5%|
|Reliance Industries Ltd.||5.2%|
|Ping An Insurance Group Co. of China Ltd.||4.5%|
|Canadian Pacific Railway Ltd.||4.0%|
|Royal Dutch Shell plc||3.8%|
|Tencent Holdings Ltd.||3.4%|
|SoftBank Group Corp.||3.1%|
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.
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.
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
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.
SoftBank was founded by the charismatic Masayoshi Son as a publishing company in the 1980s. The CEO and largest shareholder has since transformed the company into one of three leading mobile communications providers in Japan. Since acquiring Vodafone's Japanese assets, SoftBank has continued to gain share by differentiating both its network and its brand.
SoftBank has continued to expand its reach through investments in both China and the US. Its acquisition of a controlling stake in Sprint targets a similar reinvigoration of the mobile assets achieved in Japan. SoftBank has also made a number of investments in the ecommerce space. The most significant thus far has been 33% in Alibaba. Management has repeatedly delivered on existing and found new growth drivers to increase shareholder value.
|Portfolio P/E Forward 12 Months*||15.5x|
|Portfolio Price to Cash Flow*||8.2x|
|Portfolio Price to Book*||2.0x|
|Median Market Capitalization*||$45.9 B|
|Number of Holdings||44|
|5-Year Beta† (A shares vs. MSCI EAFE Index)||1.01|
|5-Year Beta† (A shares vs. MSCI AC World ex-U.S. Index)||0.98|Europe ex UK49.2% Asia Pacific ex Japan29.1% Japan11.3% North America5.7% Other2.7% UK2.0% Large Cap (> $12 B)90.5% Mid Cap ($2.5 to $12 B)9.5% Small Cap (< $2.5 B)0.0%