International & Global Equity Portfolio Management

Transcription

1 Near Term Focus International & Global Equity Portfolio Management Near Term Focus GRATRY & COMPANY, LLC 320 Tower East Chagrin Blvd. Shaker Heights, OH

2 Firm Profile Experience Established years managing client portfolios Investment team averages 26 years in industry Independence Private and 100% employee-owned No affiliation with any other firm Total Firm Assets June 30, 2015 $862.1mm* Strategy Assets 95% 4% 1% International Equity Global Equity Emerging Market Equity Focus Global/International equities is our only business Client Assets Dedicated to providing consistent, competitive results Fundamental research is the key to success Stability Investment team in place for over 12 years 85% 13% 2% Advisor/Platform Institutional Mutual Fund Time-tested, repeatable investment process * Additional information located on Page 15 is an integral part of this data. 2

3 Gratry Investment Team Name Role Education Voting Member Years of Investment Experience Joined Gratry Jerome R. Gratry Portfolio Management MBA Thunderbird School of Global Management BA Lake Forest College Yes Mark A. Anderson, CFA Portfolio Management MBA St. Louis University BA St. Louis University Yes Gregory A. Tropf, CFA, CIPM Portfolio Management MBA John Carroll University BS John Carroll University Yes Robert S. Tynes, CFA Business Development MBA Loyola University-Chicago BSBA University of Missouri No Matthew D. Sinkovitz Portfolio Management BA Malone University Yes Investment Team biographies located in the Appendix (page 14). 3

4 Representative Clients Client Name Since Maryland Employees Retirement System 2008 Credit Suisse Private Bank 2009 SunTrust Bank 2007 Wisconsin United Methodist Foundation 2006 BNY Lockwood 2009 Wilmington Trust 2010 Robert W. Baird 1998 Stifel Nicolaus & Company 1998 Clients were selected based on the size of their portfolio(s). Clients were not selected based on the performance of their investment portfolio(s). Gratry & Company has received permission from the clients listed above or disclosed verbally.. It is not known whether these clients approve or disapprove of Gratry & Company and/or our investment services. 4

5 Strategy Offerings Global Equity International Equity Emerging Market Equity Growth * Developed Only Growth * Developed Only International ETF Strategy Emerging Market ADR * Growth strategies may contain up to 25% emerging market exposure. All strategies, except International ETF and Emerging ADR have 10+ year track records. 5

6 Product Overview Gratry Strategy International Growth Equity International Equity International ETF Allocation Global Equity Emerging Markets ADR Universe Developed and Emerging Markets (excluding U.S.) Developed Markets (excluding U.S. and Emerging Markets) Developed and Emerging Markets (excluding U.S.) Developed Markets (including U.S.) Emerging Markets Benchmark Index MSCI World ex-u.s. MSCI EAFE MSCI World ex-u.s. MSCI World BNY Emerging Markets ADR Security Selection Growth Orientation High Quality Growth Orientation High Quality Holdings Costs Growth Orientation High Quality Growth Orientation High Quality Reasonable Valuations Reasonable Valuations Liquidity/Trade Volume Reasonable Valuations Reasonable Valuations Structure and Provider Vehicles SMA SMA SMA SMA SMA UMA UMA UMA UMA UMA Mutual Fund* Inception Date 9/30/1997 * 6/28/2013 3/31/1992 6/30/2005 9/30/1997 9/30/2009 6

7 The Benefits of Our Investment Approach Active Fundamental Investment Process Helps manage downside volatility Synthesis of Top Down & Bottom Up Unique approach Portfolios Broadly Diversified Prudent diversification across country/sector/security to manage risk Disciplined and repeatable investment process Competitive long-term track record 7

8 Investment Philosophy We believe our disciplined, proven investment approach can benefit our clients with a higher probability of successfully achieving their objectives. We are global investors and believe in maintaining broad diversification in client portfolios across developed and emerging markets. Top-down macro-economic analysis determines country and sector allocation decision-making, which are meaningful contributors to our performance. Growth High Quality Fundamental research helps us identify which companies in each sector are expected to grow fastest while being reasonably valued. Reasonable Valuation These growth-oriented companies have highquality financial attributes and are managed by proven executive teams. 8

9 Country Universe Americas Euro-Zone Non-Euro Europe Asia Argentina Austria Denmark Australia Brazil Belgium Norway China Canada Finland Sweden Hong Kong Chile France Switzerland India Colombia Germany United Kingdom Indonesia Mexico Greece Japan Panama Peru Luxembourg Ireland CEEMA * Malaysia New Zealand United States Italy Netherlands Portugal Spain Israel Russia South Africa Turkey Singapore South Korea Taiwan Thailand Names in italics are emerging markets *Central & Eastern Europe, Middle East & Africa 9

10 A Disciplined and Repeatable Investment Process Top-Down Economic Insight Fundamental Bottom-Up Research Portfolio Construction Analysis of long-term trends Proprietary country scoring model: - Macro Economics - Monetary Variables - Valuation Metrics Macro Analysis Drives Sector Views Idea Generation & Themes Large Cap Focus Growth Orientation - Top/Bottom Line - Historical & Peers Growth Rate to Peers - Catalysts - Expectations High Quality - Balance Sheet - Management Team - Earnings Reasonable Valuations - PEG - P/E - P/B Best Ideas Holdings Actively Managed 2.5% Position at Inception Risk Control 20% Limit/Country (except when BM weight exceeds 20%) Sovereign/Currency Risk Risk Control 20% limit/sector (except when BM weight exceeds 20%) Broad sector diversification Risk Control Low turnover 6% Limit/Security 10

11 Research Drives Security Selection Gratry team approach ensures a thorough group vetting of each idea Portfolio managers serve as generalists Majority agreement required to buy/sell a stock Growth Fastest growing companies in each sector Revenue/earnings growth in excess of peers Margins stable or expanding High Quality Strength of balance sheet Quality of earnings Caliber and credibility of management team Reasonable Valuations Price relative to future earnings potential of company - PEG Ratio - Price/Equity Ratio - Price/Book Value 11

12 Sell Discipline We Sell a Security When: Position Size Limit (Trim) Price Target Achieved Fundamentals Deteriorate Valuation Concerns Sell Criteria Change in Investment Thesis Better Risk / Reward Opportunity Milestones Not Achieved Country Allocation Shift 12

13 Summary People Portfolio management team with 100+ years of combined investment experience Stable team together for over 12 years Philosophy Global perspective Broad diversification Process Active, fundamental investment approach Combines top-down and bottom-up analysis Consistent Repeatable Performance Consistency of alpha Pricing Attractive pricing on separate account and mutual fund vehicles 13

14 Appendix Investment Team Biographies Jerome R. Gratry, Founder, Managing Director & Principal, serves as a Portfolio Manager and is a voting member of the Investment Committee. Prior to forming Gratry & Company in 1981, Mr. Gratry, a native of Paris, France, spent 13 years with Morgan Guaranty in Paris, Geneva, and New York where he was Vice President in the Trust and Investment Division and for two years the Co-Manager of the Geneva office. Mr. Gratry holds a BA in Economics from Lake Forest College and an MBA in International Management from the Thunderbird School of Global Management. He is a member of the CFA Society of Cleveland. Mark A. Anderson, CFA, Managing Director & Principal, serves as a Portfolio Manager and is a voting member of the Investment Committee. Prior to joining Gratry in 2000, Mr. Anderson served as a portfolio manager with Renaissance Investment Management in Cincinnati, OH. Mark earned an MBA (Finance) and a BA in Mathematics and Computer Science from St. Louis University. He is a member of the CFA Institute and the CFA Society of Cleveland. Gregory A. Tropf, CFA, CIPM Managing Director & Principal, serves as a Portfolio Manager and is a voting member of the Investment Committee. Greg also directs the research function for the Firm. Prior to joining Gratry in 1998 Greg spent 13 years as a Senior Investment Analyst for Centerior Energy Corporation. Greg earned his MBA (member Beta Gamma Sigma) and a BS in Chemistry from John Carroll University. Greg is a member of the CFA Institute, the CIPM Association and the CFA Society of Cleveland. Robert S. Tynes, CFA, Managing Director & Principal, directs marketing and business development activities for the firm and is a member of the Investment Committee. Prior to joining Gratry, Robert was a Senior Investment Specialist in the Private Client Group of JPMorgan. He also has served as a product manager for Goldman Sachs Asset Management and as national accounts manager for Ibbotson Associates. Robert earned a MBA from Loyola University of Chicago and a BSBA in Finance/Economics from the University of Missouri. Robert is a member of the CFA Institute. Matthew D. Sinkovitz, Director/Portfolio Manager, is a voting member of the Firm s Investment Committee. He also supports the client service efforts of the firm. Matt joined Gratry & Company in 2002 as a Research Associate. He has served in his current role since Matt is an affiliate member of the CFA Institute and member of CABE (Cleveland Association for Business Economics). He earned a BA in Business Administration from Malone University in Canton, OH. 14

15 Disclosure GRATRY & COMPANY, LLC, a limited liability company founded in 1981, is an independent global portfolio management firm whose expertise lies in the investment of domestic and international securities. Gratry & Company is registered with the Securities and Exchange Commission (SEC) under the Investment Advisors Act of The firm s investment mandates include developed market international and global portfolios, international and global portfolios with emerging market exposure, concentrated equity portfolios, emerging market portfolios, and an international Exchange Traded Fund (ETF) strategy. The firm also has tax-efficient and socially responsible overlay programs for these core strategies. Total firm assets shown on page 2 are the aggregate of the market value of all discretionary and nondiscretionary assets managed by Gratry & Company. This total includes both fee-paying and non-fee-paying assets. Firm assets include $602 million of assets under consulting arrangements (advisement) where acts as a sub advisor. The views and opinions expressed in this document are those of. This commentary is for information/educational purposes only and should not be used as investment advice. All data presented is believed to be reliable, but we cannot guarantee their accuracy. 15

16 Contact We welcome any questions or requests for further information about our firm. GRATRY & COMPANY, LLC 320 Tower East Chagrin Blvd. Shaker Heights, OH Phone: For more information on our investment strategies, please contact: Robert Tynes, CFA Managing Director , ext