Around the World in Search of Value

Thornburg International ADR Strategy is a focused, diversified portfolio of leading, mostly large-cap international companies, selected via a fundamentally driven, bottom-up, valuation-sensitive process. The strategy is centered on providing attractive risk-adjusted returns with mitigated volatility versus its benchmarks.

A Focus on Risk-Adjusted Returns

We focus on constructing a core portfolio with potential to outperform benchmarks over time — with lower volatility. One way we mitigate volatility is via Thornburg’s three-basket diversification construct:

Basic value companies are, in our opinion, financially sound, well-established businesses selling at low valuations relative to net assets or earnings power.

Consistent earners normally exhibit steady earnings growth, cash-flow characteristics, and/or dividend growth. These companies may have above-average profitability measures, and may sell at above-average valuations.

Emerging franchises are often in the process of establishing a leading position in a product, service, or market, or have the potential to grow at an above-average rate.

A Broad, Nuanced View of Valuation

Some value managers who don’t diversify across a basket structure may have a narrow view of valuation, with a single set of metrics or constraints by which they evaluate stocks. Our view of valuation is flexible and varies across basket structures. It is a broader, more nuanced, less formulaic take.

A Consistent, Repeatable Process

We have selected stocks via the same bottom-up, collaborative, fundamentally driven, repeatable process since the strategy's inception.

Seeking Promising, Quality Companies at a Discount

We look for promising, quality companies — industry leaders with modest financial risk and demonstrated management competence — trading at a discount to their intrinsic value.

A Focus on Economic Exposure, not Country of Domicile

We generally focus on a company’s economic exposure (the countries or markets from which it derives most revenues) not its country of domicile. Of the top 10 holdings, most operate in a number of countries worldwide, with a significant share of sales and earnings from outside the country of domicile.

Emerging Markets Exposure

The portfolio has historically had exposure to emerging markets — either through firms domiciled in emerging markets or through firms that derive a large portion of revenues from them. The inclusion of emerging-markets holdings, while they are often more volatile, has benefitted the portfolio over the years.

Benchmark Aware, Not Benchmark Driven

While we respect the necessary role a benchmark plays in assessing management skill, we don’t use benchmarks as starting points in constructing the portfolio. We focus on individual security selection and managing risk.
Important Information

Investments in the Strategy carry risks, including possible loss of principal. Special risks may be associated with investments outside the United States, especially in emerging markets, including currency fluctuations, illiquidity, volatility, and political and economic risks. Investments in small capitalization companies may increase the risk of greater price fluctuations. Carefully consider the Strategy’s investment objectives, risks, fees and expenses before investing. There is no guarantee that the Strategy will meet its investment objectives.

The information provided herein should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an account's portfolio at the time you receive this report or that securities sold have not been repurchased. The securities discussed may not represent an account's entire portfolio and in the aggregate may represent only a small percentage of an account's portfolio holdings. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.

Weight percentages are of the total portfolio unless otherwise noted.

Portfolio characteristics are derived using currently available data from independent research resources that are believed to be accurate. Portfolio attributes can and do vary.

Diversification does not assure or guarantee better performance and cannot eliminate the risk of investment losses.

Portfolios invested in a limited number of holdings may expose an investor to greater volatility.

Portfolio construction will have significant differences from that of a benchmark index in terms of security holdings, industry weightings, asset allocations and number of positions held, all of which may contribute to performance, characteristics and volatility differences. Investors may not make direct investments into any index. Investors may not make direct investments into any index.

Valuations are computed and reported in U.S. dollars.

Source: Advent/APX, FactSet, APL, Vestmark, and Thornburg.

View the International ADR Composite GIPS compliant presentation.

To receive a complete list and description of Thornburg Investment Management's composites, please contact the Business Development Group at

Please see our glossary for a definition of terms.