Financials24.7% Communication Services13.8% Health Care10.4% Energy9.8% Information Technology9.2% Industrials9.1% Consumer Discretionary6.9% Utilities6.8% Consumer Staples4.4% Materials3.1% Real Estate1.7%
|% OF PORTFOLIO|
|Walgreens Boots Alliance, Inc.||3.4%|
|Electricite de France S.A.||3.2%|
|Merck & Co., Inc.||3.2%|
|Royal Dutch Shell plc||3.1%|
|NN Group N.V.||2.8%|
|China Mobile Ltd.||2.6%|
Orange SA operates as a telecommunication services company, which operates mobile and internet services. It provides telecommunication services to multinational companies, under the brand Orange Business Services. The company was founded in 1999 and is headquartered in Paris, France.
Walgreens Boots Alliance, Inc. provides drug store services. In December of 2014 Walgreens and Boots Alliance merged to become Walgreens Boots Alliance. It is the largest retail pharmacy, and health and daily living destination in the USA and Europe. The company is headquartered in Deerfield, IL.
Atlantia SpA is a holding company which engages in the infrastructures and mobility networks sectors. It operates through the following business segments: Italian Motorways, Italian Airports, Overseas Motorways, Technology, Design and Construction, and Atlantia. The Italian Motorways segment consists of the management, maintenance, construction, and widening of the Italian motorway operators under concession. The Italian Airports segment operates and develops the Rome Fiumicino and Rome Ciampino airports. The Overseas Motorways includes the holders of motorways concessions in Chile, Poland, and Brazil, and the companies that provide operational support for these overseas activities and the related foreign registered holding companies. The Technology segment includes the subsidiaries that produce and operate free-flow tolling systems, traffic, and transport management systems, public information, and electronic payment systems. The Design and Construction segment covers the companies related to the design, construction, and maintenance of road infrastructure. The Atlantia segment performs parent company functions for its subsidiaries and associates whose business is the construction and operation of motorways, airports and transport infrastructure, parking areas and intermodal systems, and management of motorway or airport traffic. The company was founded in 1950 and is headquartered in Rome, Italy.
Source – FactSet
Électricité de France SA produces, markets, and distributes electricity. It provides a wide range of natural gas, electricity and energy eco-efficiency services. It operates through five divisions Engineering, Generation, Optimization & Trading, Transmission and Distribution. The company was founded on April 8, 1946 and is headquartered in Paris, France.
Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products worldwide. It is a global research-driven pharmaceutical company that discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs. The company operates through the following segments: Pharmaceutical, Animal Health and Alliances. The Pharmaceutical segment includes human health pharmaceutical and vaccine products marketed either directly by the company or through joint ventures. Its human health pharmaceutical products consist of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders. The company sells these products primarily to drug wholesalers and retailers, hospitals, government agencies and managed health care providers, such as health maintenance organizations, pharmacy benefit managers and other institutions. Its vaccine products consist of preventive pediatric, adolescent and adult vaccines, primarily administered at physician offices. The company sells these vaccines primarily to physicians, wholesalers, physician distributors and government entities. The Animal Health segment discovers, develops, manufactures and markets animal health products, including vaccines, which it sells to veterinarians, distributors and animal producers. The Alliances segment includes revenue from the company relationship with AstraZeneca LP. The company was founded in 1851 and is headquartered in Kenilworth, NJ.
Royal Dutch Shell Plc produces oil and natural gas. It operates through three segments: Upstream, Downstream, and Corporate. The Upstream segment combines the operating segments Upstream International and Upstream Americas, which have similar characteristics and are engaged in exploring for and recovering crude oil and natural gas; the liquefaction and transportation of gas; the extraction of bitumen from oil sands that is converted into synthetic crude oil; and wind energy. The Downstream segment engages in manufacturing, supply and distribution and marketing activities for oil products and chemicals; alternative energy; and CO2 management. The Corporate segment represents the support functions, comprising holdings and treasury, headquarters, central functions and its self-insurance activities. The company was founded in February 1907 and is headquartered in The Hague, Netherlands.
Source - Factset
Headquartered in France, Total is an integrated international oil and gas company with key assets in Canada, Russia, Qatar, Angola, Nigeria, and Kazakhstan. Business lines include upstream (oil and gas exploration, development, and production), downstream (refining, marketing, trading, and shipping of crude oil and petroleum products), and chemicals (fertilizers and petrochemicals). Upstream operations have the highest margin, contributing the majority of operating income.
Output from many of the world's existing oilfields is declining, and the rate of developable new resources continues to slow. While developed OECD countries have recently curbed demand for oil, oil demand continues to increase in non-OECD nations. Although the majority of incremental energy supply is expected to come from renewable, nuclear, and gas, oil is expected to remain the largest source of transportation energy for decades.
Compared to other oil majors, Total has potential for an above-average growth profile, with exposure to the LNG (Liquid Natural Gas) market and lower-than-average depletion rates in existing oil fields. Total has approximately 40 years of proved and probable resources. Production setbacks in recent years have been disappointing, however, and the company has been criticized for under-investing in exploration. Total has been focused on improving its yield from producing assets.
Total's dividend appears to be fully covered by cash flow in the oil price ranges we have seen over the last 5 years. The firm's strong balance sheet and operating cash flow have enabled it to increase the dividend at an annual rate of approximately 7% over the last 5 years.
NN Group NV engages in insurance and investment management. It operates through the following segments: Netherlands Life, Netherlands Non-Life, Insurance Europe, Japan Life, Investment Management, other, and Japan Closed Block VA. The Netherlands Life segment offers a range of group life and individual life insurance products. The Netherlands Non-Life segment offers non-life insurance products such as motor, transport, fire, liability, travel, and income protection to retail, self employed, small and medium enterprises (SME), and corporate customers. The Insurance Europe segment includes retail, self employed, SME, and corporate customer life insurance. The Japan Life segment manages corporate owned life insurance products to SMEs and owners and employees of SMEs through independent agents and bancassurance. The Investment Management segment overseas investment products and advisory services to retail and institutional customers. The other segment comprises of business of National Nederlanden Bank and ING Re. The Japan Closed Block VA segment includes NN Group's closed block single premium variable annuity individual life insurance portfolio in Japan. The company was founded in 1845 and is headquartered in Amsterdam, Netherlands.
China Mobile is the incumbent wireless provider in China and is the world's largest wireless telecom operator with over 760 million mobile subscribers. The company holds licenses to operate nationwide 2G (GSM) and 3G (TD-SCDMA) services. China Mobile's dominant 2G network covers over 98% of the population. In its 3G network China Mobile continues to gain market share, having added over 100 million customers in 2013.
Towards the end of 2013, China Mobile was the first wireless telecom carrier in China to receive a 4G (TD-LTE) network license. The company is focused on building the infrastructure to support the 4G (TD-LTE) technology and have half a million base stations around China that will deliver continuous coverage to all cities and urban areas by the end of 2014. China Mobile may grow revenue and operating profit through driving higher data usage and 4G penetration, increasing minutes of use, managing churn, and continuing to add subscribers.
As the incumbent telecom, China Mobile benefits from significant economies of scale and a mature, cash generative, core franchise. Over the next few years capital expenditure should decrease and free cash flow generation should ramp up in a company that already pays an attractive dividend.
|Portfolio P/E Forward 12 Months*||12.4x|
|Portfolio Price to Cash Flow*||6.0x|
|Portfolio Price to Book*||1.6x|
|Median Market Capitalization*||$45.1 B|
|Number of Holdings||71|
|5-Year Beta† (A shares vs. Blended Index)||0.98|Non-U.S. Equity65.8% U.S. Equity29.7% Cash & Cash Equivalents4.5% Europe ex UK50.7% North America31.8% Asia Pacific ex Japan9.8% UK6.7% Other1.0% Large Cap (> $12 B)90.5% Mid Cap ($2.5 to $12 B)7.3% Small Cap (< $2.5 B)2.2%