Around the World in Search of Value
Thornburg Global Equity Ex-U.S. Fund is a focused, diversified portfolio of leading,
mostly large-cap international companies, selected via a fundamentally driven,
bottom-up, valuation-sensitive process. The fund is centered on providing
attractive risk-adjusted returns with mitigated volatility versus its benchmarks.
“Our core stock selection
philosophy centers on building a focused but diversified portfolio of international
companies. We like to find
industry leaders when they
are out of favor, offering value
in the context of long-term
prospects. The portfolio will
be invested primarily in the
developed markets of Europe
and the Asia Pacific region but
does include some emerging-market holdings. We believe diversification among
three types of stocks (basic
value, consistent earners, and
emerging franchises) provides the opportunity for our
portfolio to produce positive
total returns over time. Stock
selection is a key element
in achieving our investment
— Lei Wang, and Di Zhou
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
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
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 U.S. mutual fund’s inception more than 15 years ago.
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 ten largest 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 fund 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.
The Fund is offered solely to non-U.S. investors under the terms and conditions of the Fund’s current Prospectus. A copy of the full Prospectus and KIID for the Fund may be obtained by contacting the local Paying Agent through the Fund’s Transfer Agent, Brown Brothers Harriman Fund Administrator Services (Ireland) Limited or in the forms and literature section of this website. The Prospectus and KIID contain important information about the Fund and should be read carefully before investing.
Investments carry risks, including possible loss of principal. Additional risks may be associated with investments in emerging markets, including currency fluctuations, illiquidity, volatility, and political and economic risks. Investments in small- and mid-capitalization companies may increase the risk of greater price fluctuations. Investments in the Fund are not insured, nor are they bank deposits or guaranteed by a bank or any other entity.
This material constitutes a financial promotion for the purposes of the Financial Services and Markets Act 2000 (the “Act”) and the handbook of rules and guidance issued from time to time by the FCA (the "FCA Rules"). This material is for information purposes only and does not constitute an offer to subscribe for or purchase any financial instrument. Thornburg Investment Management Ltd. ("TIM Ltd.") neither provides investment advice to, nor receives and transmits orders from, persons to whom this material is communicated nor does it carry on any other activities with or for such persons that constitute "MiFID or equivalent third country business" for the purposes of the FCA Rules. All information provided is not warranted as to completeness or accuracy and is subject to change without notice.
The Fund is a sub-fund of Thornburg Global Investment plc, an open-ended umbrella type investment company with segregated liability between sub-funds, authorised by the Central Bank of Ireland (CBI) on 25 November 2011 as an investment company pursuant to the UCITS Regulations. Authorisation of the Company by the CBI is not an endorsement or guarantee of the Company by the CBI nor is the CBI responsible for the contents of the Prospectus or KIID.
Administrator: Brown Brothers Harriman Fund Administration Services (Ireland) Limited, Ireland, BBH.Dublin.TA@bbh.com +353.1.603.6490
Please see our glossary for a definition of terms.