SEI Pacific Basin (Ex-Japan) Equity Fund Quarter 4, 2008

Transcription

1 Benchmark MSCI Pacific ex-japan Index Base Currency USD Currencies Available USD, EUR, GBP Fund Complex SEI Global Master Fund PLC SEI Pacific Basin (Ex-Japan) Equity Fund Quarter 4, 2008 SEI MANAGER OF MANAGERS PHILOSOPHY SEI employs a sophisticated investment process that allocates client portfolios across a wide variety of asset classes, investment styles and approaches in an effort to reduce risk and deliver more consistent long-term returns. Through a rigorous manager selection and monitoring process, SEI undertakes the burden of researching, hiring and combining managers that are able to exploit different sources of excess returns. Managers are then continuously monitored to ensure they are meeting these investment objectives. Country Allocation* (%) Investment Objective The investment objective of The SEI Pacific Basin (ex-japan) Equity Fund is long-term growth of capital and income through investment in a broadly diversified portfolio of Pacific Basin (ex-japan) equity securities. Fund Details Australia Hong Kong Singapore China 2.55 Korea 1.30 United Kingdom 1.30 Taiwan 0.74 India 0.40 Thailand 0.35 Other 0.70 Top Ten Holdings* (%) The Fund will invest in equity and equity related securities (including warrants and convertible securities provided that no more than 5% of the Fund s net assets will be invested in warrants and no more than 25% of the Fund s net assets will be invested in convertible securities) listed on Recognised Markets in Hong Kong, Singapore, Malaysia, Thailand, the Philippines, Korea, Indonesia, Australia, New Zealand, Sri Lanka, Taiwan, China, India and Pakistan. It is not proposed to invest in Japan. At all times the Fund s investment in equity and equity related securities will represent at least 65% of the Fund s net assets. The Fund will be highly diversified and therefore will not be concentrating on any specific industry sectors but will pursue a policy of active stock selection. The Fund will invest no more than 20% of its net assets in the securities (including convertible securities and fixed income securities described below) listed or traded on Recognised Markets located in Emerging Market Countries. The Fund may also invest in equity-linked notes. The Portfolio Manager may also invest up to 20% of the Fund s net assets in securities of issuers located outside the markets identified above. The Fund may also use derivative instruments such as futures, forwards, options, swaps, contracts for differences, credit derivatives, caps, floors and currency forward contracts to pursue its investment objectives. BHP Billiton 6.49 Australia & NZ Banking 3.96 National Australia Bank 3.43 Woolworths 3.13 Westpac Banking 2.67 Newcrest Mining 2.60 Origin Energy 2.56 Telstra Corp Commonwealth Bank of Aust Foster's Group 2.07 Total *As at 31st December Committed investments can and will change over time as opportunities present themselves.

2 AXA Investment Managers Ltd (AXA IM) Alpha Source: Value Investment Approach: Macro Thematic AXA IM s investment approach is based on the belief that market inefficiencies can be exploited to achieve an asymmetric return profile with larger swings on the upside and smaller swings on the downside. The three major components of the manager's pproach are research, portfolio engineering and portfolio management,.divided into clearly structured teams. The manager believes its specialist team structure enables each of the units to be responsive to market events. However, there is also a high degree of co-ordination between strategists and analysts, portfolio managers and the Portfolio Engineering Group (PEG). AXA IM s investment process combines top-down analysis and bottom-up security selection. Internally generated forecasts for global interest rates and inflation drive the investment process. Quantitative (computer driven) models provide indicators for determining investment themes, while qualitative analysis by portfolio managers provides fundamental support to these findings. Shorter-term sub-strategies may also be used to take advantage of market opportunities that arise. AXA IM view allocations between government and index-linked government bonds, corporate debt and derivative instruments as sources of added value. AXA IM specialises in managing a broad-spectrum of bond portfolios with exposure to the full range of investment-grade securities. Founded in 1994, Paris-based AXA IM is part of the AXA Group. Capital International Ltd (Capital) Alpha Source: Forward Insight Investment Approach: Fundamental Capital s investment philosophy is based on the belief that solid research is fundamental to sound investment decisions. The manager's research approach is driven by a desire to gain an information advantage relative to other investors and combines in-depth analysis with extensive management contacts. Capital s research capability, which benefits from significant resources and expertise, is split along global industry lines. In addition, Capital's long-term investment horizon is reflected in a low turnover of securities within its portfolios.

3 The manager's research process aims to uncover information at the industry and company level that will enable more accurate forecasting of future earnings. Portfolios are divided into segments and managed by separate managers, who draw on the analysis of the research team to make investment decisions. A group of Capital s analysts also manage a portion of the portfolios, which reflect the strongest convictions from their respective areas of industry coverage. The final portfolio is reviewed by the lead portfolio manager and the portfolio control team. A thorough risk control system is used throughout the investment process. Capital is a wholly owned subsidiary of the Capital Group of companies. Capital was founded in 1931 and established a Tokyo office, where Japanese equity portfolios are managed for clients around the world, in The Hong Kong and Singapore offices were established in 1983 and 1989, respectively, and are responsible for the management of Pacific Ex-Japan Equities. Lloyd George Investment Mgmt (Bermuda) Ltd (Lloyd George) Alpha Source: Forward Insight Investment Approach: Fundamental Lloyd George employs a combination of macroeconomic and bottom-up, individual security level research to select investments in Asian markets that offer long-term sustainable growth. The manager looks for companies that exhibit high or rising earnings growth, profit margins and return on invested capital. Various valuation tools, based on proprietary earnings forecasts, are used as a cross-check to avoid overpaying. Macroeconomic strategy is presented and individual stock ideas are discussed regularly by regional specialists at Lloyd George. Core holdings reflect the highest conviction ideas and are held across all client portfolios. Lloyd George takes a long-term, buy-andhold approach to stock selection and believes its extensive program of company visits is critical to long-term success. Founded in 1991 by Robert Lloyd George to take advantage of the opportunities in the Asian and global emerging markets, Hong Kong-based Lloyd George has since established investment offices in other emerging-market locations to broaden their research efforts.

4 Maple-Brown Abbott Ltd (Maple-Brown Abbott) Alpha Source: Value Investment Approach: Systematic Maple-Brown Abbott s value-based investment philosophy has a long-term investment horizon. The firm's value approach is applied at both the asset allocation and stock selection levels. Maple-Brown Abbot aims to invest in stocks that are undervalued relative to their earnings potential, dividends paid, cashflow generated and net tangible assets. The manager's investment process begins with quantitative (computer driven) screening to concentrate research efforts by identifying the most and least attractive stocks. This process also forms the basis for the manager's sell discipline. The screens that are used are based on a variety of measures including current valuations, key balance sheet items and future growth indicators, and are expected to highlight strong companies. Traditional, qualitative research is then carried out on the most attractive candidates, to assess management quality, industry dynamics and competitive positions within the industry. To avoid building in overly optimistic expectations Maple Brown Abbott uses conservative estimates of future growth. Portfolios are constructed through a team-wide voting process, which takes into account relative stock rankings and contribution to overall portfolio risk. A privately-held investment management firm, Maple-Brown Abbott was founded in 1984 and is based in Sydney. The firm's sole business is investment management, specialising in Australian and Asian equities.

5 Important Information Past performance is not a guarantee of future performance. Investment in the range of SEI s Funds is intended as a long-term investment. The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested. Additionally, this investment may not be suitable for everyone. If you should have any doubt whether it is suitable for you, you should obtain expert advice. No offer of any security is made hereby. Recipients of this information who intend to apply for shares in any SEI Fund are reminded that any such application may be made solely on the basis of the information contained in the Prospectus. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any stock in particular, nor should it be construed as a recommendation to purchase or sell a security, including futures contracts. If the investment is withdrawn in the early years it may not return the full amount invested. In addition to the normal risks associated with equity investing, international investments may involve risk of capital loss from unfavourable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Narrowly focused investments and smaller companies typically exhibit higher volatility. Products of companies in which technology funds invest may be subject to severe competition and rapid obsolescence. SEI Funds may use derivative instruments such as futures, forwards, options, swaps, contracts for differences, credit derivatives, caps, floors and currency forward contracts. These instruments may be used for hedging purposes and/or investment purposes. While considerable care has been taken to ensure the information contained within this document is accurate and up-to-date, no warranty is given as to the accuracy or completeness of any information and no liability is accepted for any errors or omissions in such information or any action taken on the basis of this information. This information is issued by SEI Investments (Europe) Limited, 4th Floor, Time & Life Building 1 Bruton Street, London W1J 6TL which is authorised and regulated by the Financial Services Authority. Please refer to our latest Full Prospectus (which includes information in relation to the use of derivatives and the risks associated with the use of derivative instruments), Simplified Prospectus and latest Annual or Interim Short Reports for more information on our funds.. This information can be obtained by contacting your Financial Advisor or using the contact details shown above. The opinions and views contained in this document are solely those of SEI and are subject to change; descriptions relating to organisational structure, teams and investment processes herein may differ significantly from those prescribed by underlying managers regarding their own investment houses and investments.