Global Value – USD

Evidence Based Investing

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Portfolio Characteristics

Inception Date – September 2014
Currency – USD
Dividend Yield – 2.66%
Daily Liquidity

Investment Approach

Evidence Based Investing is our core investment philosophy, which means that rather than relying on short-term forecasting, we draw information about expected returns from the market itself. Letting markets do what they do best, drive information into prices, frees us up to spend time where we believe we have an advantage, namely in how we interpret the research and how we design and manage portfolios. It means we take a more systematic approach to investing, an approach we can implement consistently, and investors can understand and stick with, even in challenging market environments.

Rigorous, unbiased research has yielded six expected return premia for patient investors, which are equity premium, small cap premium, value premium, profitability premium, term premium and credit premium. We then select the most suitable securities to create the desired market exposure in the most cost and tax efficient way to capture these premiums.

We manage investment risks by using the combined powers of diversification and asset allocation. Diversification is a way to dampen risks. While some risks can be diversified away, market risk however remains and is expected to enhance your long-term returns if you build them into your total portfolio, and if you stay the course with them over time.

Asset allocation is determined by the investor’s specific goals and times frames and guided by his or her risk tolerance and capacity.

Strategy Description

The strategy uses a bottom-up stock picking approach to create a concentrated portfolio of securities from developed and emerging markets around the world. It invests in a global portfolio of individual companies that are selected through an intelligent and disciplined process. The research process is focused on finding companies that show strong value and quality characteristics. Our research models screen the global stock universe in a disciplined way based on 27 model factors and select the companies that have the highest return expectations.

The portfolio is regularly rebalanced based on those factors. The regional allocation will generally be in line with the global benchmark allocation. The sector allocation can deviate from the benchmark because of the bias towards on stocks with value and quality characteristics. The portfolio consists of our highest conviction stock picks in the U.S., Europe and Asia.

Portfolio Performance

YTD 2019 2018 2017 2016 2015 2014
Portfolio-17.72%18.99%-11.10%31.92%6.60%-2.17%0.26%
Benchmark *-9.28%23.86%-12.13%23.34%3.80%-1.81%0.08%
*Morningstar Global Large-Cap Blend Equity as of 05/29/2020

Annualised Return

Standard Deviation

Sharpe Ratio

Portfolio3.28%15.83%0.21
Benchmark *3.90%11.31%0.34

Allocation

America 54.84%

Greater Europe 23.50%

Developed Asia 10.32%

Emerging Asia 11.34%

Central/Latin America 0.00%

Sector

Financials

17.47%

Industrials

13.83%

Consumer Discretinoary

6.05%

Real Estate

2.17%

Consumer Staples

8.96%

Materials

3.67%

Healthcare

14.14%

Utilities

2.14%

Technology

19.81%

Energy

7.84%

Telecommunication

3.92%

Sector

Financials

17.47%

Industrials

13.83%

Consumer Discretinoary

6.05%

Real Estate

2.17%

Consumer Staples

8.96%

Materials

3.67%

Healthcare

14.14%

Utilities

2.14%

Technology

19.81%

Energy

7.84%

Telecommunication

3.92%

Sector

Investment Grade

null

High Yield

0.00%

Other

0.00%

Financials

17.47%

Industrials

13.83%

Consumer Discretionary

6.05%

Real Estate

2.17%

Consumer Staples

8.96%

Materials

3.67%

Healthcare

14.14%

Utilites

2.14%

Technology

19.81%

Energy

7.84%

Telecommunication

3.92%

Sector

Diversified Reits

null

Office Reits

0.00%

Retail Reits

0.00%

Hotel & Resort Reits

0.00%

Industrial Reits

0.00%

Financials

17.47%

Industrials

13.83%

Consumer Discretionary

6.05%

Real Estate

2.17%

Consumer Staples

8.96%

Materials

3.67%

Healthcare

14.14%

Utilites

2.14%

Technology

19.81%

Energy

7.84%

Telecommunication

3.92%

Top Holdings

StockWeight

NTT Docomo2.31%

SONY Corporation2.31%

Weichai Power Co., Ltd2.30%

TOKYO Electron Ltd2.29%

UBER Technologies Inc2.26%

XIAOMI Corporation2.22%

Rio Tinto PLC2.21%

CUMMINS INC2.17%

Oracle Corporation 2.15%

Industrial and Commercial Bank of China2.11%

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