Clive Gillmore, CEO and Group CIO at Mondrian Investment Partners, discusses the international markets and global equities. Hosted by Paul Sweeney and Vonnie Quinn.
INVESTMENT CAPABILITIES
International Equity
This strategy invests in non-US developed markets with select exposure to emerging markets. The portfolio ranges from 35 to 55 companies and clients typically benchmark the strategy to the MSCI EAFE Index.
Why Mondrian for International Equities?
We are a value-oriented defensive manager – we invest in stocks where rigorous dividend discount analysis isolates value in terms of the long-term flow of dividends
- Strong track records – consistent dividend discount methodology which compares value across all securities, markets and sectors
- Financially robust, employee-owned firm – long-term continuity and stability
- Stable, well-resourced team with expert knowledge of the asset class
- Disciplined process that has been shown to work over a long period
- Not reliant on “star managers” with potentially unrepeatable calls
- Comprehensive ESG integration – the incorporation of strategy and governance into our equity process was awarded A+ in the 2020 PRI assessment*
- Competitive management fees
*Please refer to http://www.unpri.org for the PRI assessment methodology. Mondrian’s full Assessment Report and Transparency Report may be requested via the PRI Data Portal.
Performance
As of September 30, 2020
Annualized
Calendar Year
Defensive Characteristics
Mondrian International Equity Composite (USD)
Inception date October 1, 1991
Index returns are shown with net dividends reinvested.
Past performance is not a guide to future performance. The value of investments and income from then can fall as well as rise and investors may not get back the original amount invested. Performance results marked “Gross” do not reflect deduction of investment advisory fees but are net of transaction costs and withholding tax. Investment returns will be reduced accordingly. Performance returns marked “Net” reflect deduction of investment advisory fees and are calculated by deducting a quarterly indicative fee from the quarterly composite return. Please see important information below.
Periods over 12 months are annualized.Â
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This introductory material is for informational purposes only and is not an offer or solicitation with respect to any securities. Any offer of securities can only be made by written offering materials, which are available solely upon request, on an exclusively private basis and only to qualified financially sophisticated investors residing in jurisdictions consistent with Mondrian’s regulatory authorizations. The information set forth herein is a summary only and does not set forth all of the risks associated with the investment strategy described herein.
Views expressed were current as of the date indicated, are subject to change, and may not reflect current views. Views should not be considered a recommendation to buy, hold or sell any security and should not be relied on as research or investment advice.
These materials may include forward-looking statements. All statements other than statements of historical facts are forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” “expect”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Various factors could cause actual results or performance to differ materially from those reflected in such forward-looking statements.
Calculations for P/E, P/B, dividend yield, sector country allocations, market caps, yield to maturity, modified duration, average maturity, average quality and country allocations are based on generally accepted industry standards. All characteristics are based on a representative account and derived by first calculating the characteristics for each security, and then calculating the weighted average of these values. The details of exact calculations can be provided upon request. All characteristic data provided is produced using Mondrian’s accounting system data.
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There can be no assurance that the investment objectives of the strategy will be achieved.
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MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.
Portfolio
As of September 30, 2020
Characteristics
Sector Allocation
Country Allocation
Top 10
| Characteristic | ||
|---|---|---|
| P/E (trailing 12 months) | ||
| P/B (trailing 12 months) | ||
| Price/Cash Flow | ||
| Dividend Yield (%) | ||
| Number of Holdings | ||
| Weighted Average Market Cap (million, USD) | ||
| Median Market Cap (million, USD) | ||
| Information Ratio (3 years) |
Source: Mondrian Investment Partners/MSCI
News and Insights
Growth-oriented investments in equity markets have significantly outperformed value since the financial crisis.
Mondrian’s CEO/Group CIO, Clive Gillmore, was one of three featured presenters on P&I’s Managing Volatility Amid the Coronavirus webinar in early May. The panelists discussed the recent spike in the markets and economic volatility, what investors might expect for the long term and the implications of corporate bailouts for investors.
As featured recently in Fin daily, “Asset Managers Have Clashing Views On Coronavirus Severity: Webinar,” Clive Gillmore, Group CIO and CEO of Mondrian, provided insight and perspective on the international investment landscape and the coronavirus.
Twelve months ago, most market observers assumed that further economic recovery and the threat of modestly higher inflation would prompt further tightening from central banks on a path to post-crisis monetary normalization.
Nigel Bliss, Senior Portfolio Manager at Mondrian Investment Partners recently spoke with PlanAdvisor on opportunities in international investing.
Despite double-digit gains for the MSCI World index, geopolitical gloom, notably trade wars and Brexit, hangs over investors, economies and the share prices of more economically-sensitive companies.
Listen to Clive Gillmore, CEO and Group CIO of Mondrian Investment Partners, on Bloomberg Radio discuss why U.S. investors should be looking at international equities.
Amidst increasing concern over deteriorating economic growth, geo-political uncertainty and the prospects of tightening monetary policy, global equity and credit markets threw a temper tantrum towards the end of 2018.Â
Clive Gillmore, Group CIO and CEO recently joined a panel of experts to discuss geographical opportunities, long term ESG potential, and the impact of trade wars on global markets.
As a long-term value manager Mondrian Investment Partners has always believed in carrying out analysis which captures all potential material risks and opportunities; understanding and integrating the impacts of ESG factors has therefore consistently been part of our long-term modeling.
As a result of our thorough bottom-up analysis and incorporating all a variety of factors into our long-term dividend discount valuation, we concluded the stock was significantly undervalued with an attractive skew of returns and a reasonable worst case scenario.
Mondrian International Equity has a solid strategy, experienced managers and analysts, and a committed parent. It receives a Morningstar Analyst Rating of Bronze.
Nearly a decade into an economic recovery marked by low yields and stock market volatility, wary investors are still struggling with where to allocate portfolio assets for stable, long-term returns.
Since the US stock market has outperformed international equities for nearly a decade, some investors may falsely believe that owning non-US stocks no longer offers the performance-enhancing advantage it once did.
Investors tend to overpay for growth when interest rates are held artificially low and monetary policy floods the markets with liquidity.
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Policy Statements
© 2020 Mondrian Investment Partners Limited is authorised and regulated by the Financial Conduct Authority – Firm Reference Number 149507.
All information is as of September 30, 2020 unless otherwise noted.