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Thornburg International Equity ESG Strategy

Strategy Overview
The International Equity ESG Strategy employs a rigorous bottom-up research process to identify promising stocks of non-U.S. companies trading below their intrinsic value. Actively integrating ESG (environmental, social and governance) criteria into the fundamental approach allows the strategy to reflect ESG values through the portfolio’s investments without sacrificing the potential for attractive long-term risk-adjusted performance. The portfolio is high conviction but also well diversified by sector, country and market capitalization. Our three-basket portfolio construction process aids in balancing risk across the portfolio.
Strategy Inception Date
1 Oct 2015

Portfolio Managers

Portfolio Manager and Managing Director
Portfolio Manager and Managing Director
Portfolio Manager and Managing Director
Overview

Overview

Why Invest in This Strategy?

 

  • Focused, diversified equity portfolio to include sustainable companies primarily in developed markets outside the U.S.
  • Rigorous, fundamental research process focused on buying sustainable businesses with sound business fundamentals, trading at a discount to their intrinsic value and a defined path to success. Companies must also demonstrate one or more significant positive environmental, social and governance (ESG) characteristics; emphasizing the areas of environmental impact, ethical business activity, corporate governance, social factors surrounding customers, suppliers and employees and product integrity.
  • Three-basket portfolio construction process seeks to provide style diversification and reduce volatility and deliver superior risk-adjusted performance over time.
Performance

Performance

Returns

(As of 31 Dec 2024)
YTD
1y
3y
5y
Inception
Thornburg International Equity ESG Strategy - Gross (%)
8.07
8.07
0.57
9.75
10.26
Thornburg International Equity ESG Strategy - Net (%)
7.03
7.03
-0.38
8.71
9.32
MSCI ACWI ex-U.S. Index (%)
5.53
5.53
0.82
4.10
6.23
MSCI EAFE Index (%)
3.82
3.82
1.65
4.73
6.25
YTD
1y
3y
5y
Inception
Thornburg International Equity ESG Strategy - Gross (%)
4.67
9.91
4.60
12.58
10.60
Thornburg International Equity ESG Strategy - Net (%)
4.50
8.86
3.62
11.52
9.66
MSCI ACWI ex-U.S. Index (%)
5.47
9.65
4.62
7.55
6.72
MSCI EAFE Index (%)
7.30
8.77
6.42
8.70
6.93
2019
2020
2021
2022
2023
2024
Thornburg International Equity ESG Strategy - Gross (%)
25.96
28.11
22.22
-17.22
13.70
8.07
Thornburg International Equity ESG Strategy - Net (%)
24.79
26.90
21.05
-17.98
12.62
7.03
MSCI ACWI ex-U.S. Index (%)
21.51
10.65
7.87
-15.88
15.62
5.53
MSCI EAFE Index (%)
22.01
7.82
11.26
-14.45
18.24
3.82
Strategy Facts

Strategy Facts

(As of 28 Feb 2025)
Strategy Assets
$481.6 M
Benchmark
MSCI ACWI ex-U.S. Index
Number of Holdings
53
Portfolio Turnover
51%
eVestment Category
ACWI ex-US All Cap Core Equity
Characteristics

Characteristics

Portfolio

(As of 28 Feb 2025)
Portfolio
Benchmark
Weighted Average Market Cap
$126.0 B
$114.5 B
Median Market Cap
$73.1 B
$10.4 B
Price to Earnings - Forward 1YR
19.3x
14.2x
Price to Earnings - Trailing 12 Months
22.5x
16.7x
Price to Cash Flow
12.2x
9.0x
Portfolio
Benchmark
Price to Book Value
2.6x
1.9x
Return on Assets - 5 YR
6.6%
6.6%
Return on Equity - 5 YR
15.0%
15.5%
Historical 3YR Sales Growth
13.0%
16.0%
Active Share
87.0%
Portfolio

Portfolio

Top Holdings

(As of 31 Jan 2025)
Name
Ticker/Symbol
Sector
Weight %
Mitsubishi UFJ Financial Group, Inc.
8306
Financials
3.3
SAP SE
SAP
Information Technology
3.2
LVMH Moet Hennessy Louis Vuitton SE
MC
Consumer Discretionary
3.1
Canadian Pacific Kansas City Ltd.
CP
Industrials
3.1
Hong Kong Exchanges & Clearing Ltd.
388
Financials
3.1
Sony Group Corp.
6758
Consumer Discretionary
3.0
Hitachi Ltd.
6501
Industrials
3.0
Alcon AG
ALC
Health Care
3.0
Linde plc
LIN
Materials
3.0
L'Oreal S.A.
OR
Consumer Staples
3.0
Exposure Breakdown

Exposure Breakdown

(As of 28 Feb 2025)
Sector Allocation
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
Industrials
21.9
13.8
Information Technology
16.8
13.0
Financials
12.5
24.3
Consumer Discretionary
10.3
11.4
Consumer Staples
10.2
6.7
Health Care
9.2
9.0
Utilities
6.2
2.9
Communication Services
5.2
6.2
Cash & Cash Equivalents
4.5
Materials
3.2
6.2
Real Estate
0.0
1.7
Energy
0.0
4.8
Sector Allocation
Portfolio (%)
Industrials
21.9
Information Technology
16.8
Financials
12.5
Consumer Discretionary
10.3
Consumer Staples
10.2
Health Care
9.2
Utilities
6.2
Communication Services
5.2
Cash & Cash Equivalents
4.5
Materials
3.2
Real Estate
0.0
Energy
0.0
Top 10 Industries
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
5%
10%
15%
20%
Capital Goods
11.7
10.1
Consumer Durables & Apparel
8.9
3.2
Software & Services
8.5
3.7
Commercial & Professional Services
7.1
1.6
Banks
6.2
15.0
Financial Services
6.2
4.1
Utilities
6.2
2.9
Pharmaceuticals, Biotechnology & Life Sciences
4.8
7.2
Consumer Staples Distribution & Retail
4.5
1.4
Health Care Equipment & Services
4.4
1.8
Top 10 Industries
Portfolio (%)
Capital Goods
11.7
Consumer Durables & Apparel
8.9
Software & Services
8.5
Commercial & Professional Services
7.1
Banks
6.2
Financial Services
6.2
Utilities
6.2
Pharmaceuticals, Biotechnology & Life Sciences
4.8
Consumer Staples Distribution & Retail
4.5
Health Care Equipment & Services
4.4
Top 10 Countries
Portfolio (%)
Benchmark (%)
Region

Portfolio

Benchmark

0%
5%
10%
15%
20%
25%
30%
Japan
21.4
13.8
Japan
France
18.8
7.2
Europe ex UK
United States
10.8
0.1
North America
Canada
8.3
7.9
North America
Switzerland
7.7
6.3
Europe ex UK
United Kingdom
6.1
9.6
UK
Italy
3.6
1.8
Europe ex UK
Spain
3.6
1.9
Europe ex UK
Germany
3.2
6.2
Europe ex UK
Korea, Republic of (South Korea)
2.8
2.7
Asia Pacific ex Japan
Top 10 Countries
Portfolio (%)
Japan
21.4
France
18.8
United States
10.8
Canada
8.3
Switzerland
7.7
United Kingdom
6.1
Italy
3.6
Spain
3.6
Germany
3.2
Korea, Republic of (South Korea)
2.8
Capitalization
Portfolio (%)
Benchmark (%)

Portfolio

Benchmark

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Large Cap (> $12 B)
85.1
85.6
Mid Cap ($2.5 to $12 B)
14.3
14.3
Small Cap (< $2.5 B)
0.6
0.1
Capitalization
Portfolio (%)
Large Cap (> $12 B)
85.1
Mid Cap ($2.5 to $12 B)
14.3
Small Cap (< $2.5 B)
0.6
Portfolio Managers

Portfolio Managers

Lei Wang, CFA

Lei Wang, CFA

Portfolio Manager and Managing Director
Lei Wang is portfolio manager for Thornburg Investment Management. He joined Thornburg Investment Management in 2004 as associate portfolio ­manager and was promoted to portfolio manager in 2006. Lei holds a BA and an MA from East China Normal University and an MBA from New York University. He is a CFA charterholder. Prior to joining Thornburg, he served as an…
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Brian Burrell, CFA

Brian Burrell, CFA

Portfolio Manager and Managing Director
Brian Burrell is portfolio manager for Thornburg Investment Management. He joined the firm in 2012 as an equity research analyst and became an associate portfolio manager in 2021 and portfolio manager in 2024. Brian earned a BA in economics from Reed College and an MBA from the University of Wisconsin in the Applied Security Analysis Program (ASAP). He is a…
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Joe Salmond

Joe Salmond

Portfolio Manager and Managing Director
Joe Salmond is portfolio manager for Thornburg Investment Management. He joined the firm in 2018 as an equity research analyst and became an associate portfolio manager in 2021, managing director in 2023 and portfolio manager in 2024. Joe earned an MBA from the Tepper School of Business at Carnegie Mellon University and graduated from Arizona State University with a BS…
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