Around the World in Search of Growth

Thornburg International Growth ADR Strategy is a bottom-up, focused, flexible, fundamentally driven portfolio of international growth American Depositary Receipts (ADRs) with the ability to invest in equities up and down the capitalization spectrum.

Working Photo “We search for good businesses with promising growth prospects that trade at reasonable valuations. Good businesses typically have durable competitive advantages that lead to strong market share and high margins. We look for secular tailwinds and a large addressable market — to provide a long runway for growth. We also consider valuation a key component of investing and are only willing to pay a reasonable price for growth. Our goal is to build a diversified, all-weather portfolio that will perform well in both up and down markets.”

— Greg Dunn

Overall Approach

Managed in a bottom-up, fundamentally driven, hard-research intensive fashion.

Managers enjoy true multi-cap flexibility: they’re able to buy many small- and mid-cap companies that other international growth strategies cannot. International markets tend to be less efficient and news-driven, which favors this flexibility.

While value managers often start from a place of valuation and decide whether a company is a good business, International Growth ADR Strategy managers start from a place of growth and ask:

  • Is there a long-term growth opportunity?
  • Is it a good business?
  • Is the valuation reasonable?

The Opportunity Set

We look for:
Attractive growth characteristics: A large addressable market, long term structural tailwinds, secular growth drivers, and a high rate of growth with operational leverage.

Good businesses: High barriers to entry, quality management, durable competitive advantages, strong market share, high and sustainable margins.

Reasonable valuation: We consider growth prospects, business models, historical valuation ranges, conduct peer valuation comparisons, and look at investor sentiment.

Distinguishing Characteristics

Focus:Thornburg International Growth is more focused than many peers.

Risk management: We use a three basket approach (roughly equally weighted) to give us exposure to different types of growth stocks and provide an extra layer of diversification. We also diversify by country, sector and industry.

Investment Process & Portfolio Construction

International Growth uses Thornburg’s basket construct; we attempt to keep the exposure to each basket roughly equal to provide optimal diversification balance.

Consistent growth companies exhibit steady earnings and revenue growth; these companies often have subscription or other recurring revenue profiles.

Growth industry leaders often have leadership positions in growing markets, sometimes with dominant market share, and tend to be larger and more established.

Emerging growth companies are typically growing rapidly, often carving out a niche in an existing market. They tend to be smaller, earlier-stage companies. We expect these companies to generate high returns over time, but with higher volatility.

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, Vestmark, and Thornburg.

View the International Growth 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.