Mondrian is an active defensive manager. All of our investment products utilize income-oriented value disciplines that have been successfully applied since our founding in 1990.
Equity Investment Philosophy
In the management of international/global equity assets, we invest in securities where rigorous dividend discount analysis identifies value in terms of the long-term flow of income. Dividend yield and future real growth play a central role in our decision making process and over time the dividend component is expected to be a meaningful portion of the expected total return.
Our methodology is applied consistently to individual securities across all markets and industries.
Mondrian’s investment approach seeks to generate three specific investment benefits.
- Provide a rate of return meaningfully greater than the client’s domestic rate of inflation.
- Structure client portfolios that preserve capital during protracted international market declines.
- Provide portfolio performance that is less volatile than both benchmark indices and other managers.
Fixed Income Philosophy
Mondrian invests in global bond markets that offer high income in real (inflation-adjusted) terms, measured by a market’s Prospective Real Yield (PRY).
We define PRY as the 10 year government bond yield minus Mondrian’s inflation forecast.
High PRY countries offer the highest long-term returns in an investor’s base currency when currencies track inflation differentials.
- We have a disciplined fixed income investment philosophy that has been consistently implemented for 25 years.
- Inflation forecasting is key to our process.
- Our team is well resourced, employing qualitative, quantitative, sovereign, and credit capabilities.
- We manage strategies for both developed and emerging bond markets.