MONDRIAN
Investment Capabilities
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 Philosophy
In the management of 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.
- An approach that seeks to provide a rate of return meaningfully greater than the client’s domestic rate of inflation
- Client portfolios that aim to preserve capital during protracted global market decline
- Portfolio performance that has been less volatile than the relevant benchmark and most peers in the universe
Fixed Income Philosophy
We have a disciplined fixed income investment philosophy which has been applied since we were founded in 1990. We invest in global bond markets that best compensate for inflation and sovereign credit risks, measured by a market’s Prospective Real Yield (PRY). We define PRY as the 10-year government bond yield minus Mondrian’s inflation forecast minus Mondrian’s sovereign credit adjustment. Our approach to currency is based on Purchasing Power Parity (PPP) supplemented by our sovereign credit analysis.
- We have a disciplined investment philosophy that has been in place since we were founded in 1990
- Stable, well-resourced team with expert knowledge of the asset class
- Our inflation forecasting use proprietary quantitative models that drive process and provide structure - the ‘relative’ inflation forecasts produced are key for our process
ESG Integration
Mondrian believes that the inclusion of ESG factors is essential in understanding risk-adjusted returns for both dedicated ESG and standard strategies. Mondrian’s long-term, fundamental research process has always demanded that analysts strive to consider all material risks that could influence a security’s valuation, including those factors rooted in environmental, social and governance concerns. For more information, please see ESG at Mondrian.
Investment Vehicles
International Equities
Global Equities
Emerging Markets Equities
Small Cap
Benchmark: MSCI Emerging Markets Small Cap Index │ Year of inception: 2011
Fixed Income
Benchmark: FTSE Non-US World Government Bond Index │ Year of inception: 1993
Benchmark: Bloomberg Barclays World Government Bond Inflation-Linked Bond Index │ Year of inception: 2010
Benchmark: 80% FTSE World Government Bond Index 20% JP Morgan GBI-EM Global Diversified │ Year of inception: 2007
Benchmark: Bloomberg Barclays Global Aggregate Bond ex-US Index │ Year of inception: 2003
Benchmark: Bloomberg Barclays Euro Aggregate Bond Index │ Year of inception: 2004
Benchmark: JP Morgan GBI-EM Global Diversified │ Year of inception: 2006
Benchmark: JP Morgan EMBI Global Diversified │ Year of inception: 2016
Benchmark: 50% JP Morgan GBI-EM Global Diversified, 50% JP Morgan EMBI Global Diversified │ Year of inception: 2016
International Equities
Global Equities
Emerging Markets Equities
Small Cap
Fixed Income
Benchmark: Bloomberg Barclays World Government Bond Inflation-Linked Bond Index
Benchmark: 80% FTSE World Government Bond Index 20% JP Morgan GBI-EM Global Diversified │ Year of inception: 2007
Benchmark: 50% JP Morgan GBI-EM Global Diversified, 50% JP Morgan EMBI Global Diversified