Investment Philosophy

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.

Key points:

  • 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.