Thornburg International
Growth ADR Strategy
WRAP FEE
JUNE 30, 2017
Investment Strategy
Annualized Returns (as of 6/30/17)
The Strategy invests in ADRs or
dollar-denominated securities that
are economically tied to international
markets. The Strategy typically invests in a selection of growth stocks
that management believes will have
growing revenues and earnings. A
flexible mandate allows the Strategy
to pursue long-term performance
using a broad approach to geography, investing style, and market
capitalization. The Strategy may
invest in companies of any size, from
large well established firms to small,
emerging growth franchises.
Investment Objective
The Strategy seeks long-term
growth of capital by investing in
American Depositary Receipts
(ADRs) or other dollar-denominated securities that are selected for
their growth potential. There is no
guarantee that the Strategy will meet
its objectives.
Portfolio Managers
Greg Dunn
Sean Koung Sun, cfa
5-YR
International Growth ADR Wrap Composite (NET)
9.10%
19.52% 22.69%
0.74%
8.72%
7.33%
International Growth ADR Wrap Composite (“PURE” GROSS)
9.89%
21.25%
26.31%
3.76%
11.96%
10.54%
MSCI ACWI ex-U.S. Growth
7.57%
17.38%
17.38%
2.55%
8.04%
5.57%
QTD
Risk Metrics vs.
MSCI ACWI ex-U.S. Growth Index
3-YR
Annualized Alpha
1.47
4.28
Beta
0.97
0.95
Sharpe Ratio
0.27
0.95
Info Ratio
0.18
0.58
6.59
6.76
75.51
70.60
Market Cap Breakout
†
STRATEGY
MSCI ACWI
EX-U.S.
GROWTH
Large Cap > $12 B
38.6%
75.4%
Mid Cap $2.5-$12 B
51.9%
23.9%
Small Cap < $2.5 B
9.5%
0.7%
32.6%
28.9%
Emerging Growth Companies
Cash, Cash Equivalents &
Currency Forwards
32.8%
5.7%
Growth Industry Leaders: fast-growing companies with proprietary advantages in their industry
segment.
Emerging Growth Companies: growing
companies that are in the process of establishing
a leading position in a significant product service
or market and are expected to grow at an above
average rate.
Selected Characteristics†
MSCI ACWI
EX-U.S.
STRATEGY GROWTH
Weighted Avg. Dividend Yield
1.30%
Weighted Avg. Forward Est. P/E 22.9x
1.94%
18.5x
Median Market Cap.
$8.4 B
$8.1 B
$34.2 B
$63.7 B
50
1,063
16.9%
24.2%
92%
–
Weighted Avg. Market Cap.
Number of Securities
Emerging Market Exposure
Active Share1
7/24/17
TH2466
Ten Largest Holdings† (as of 5/31/17)
% OF PORTFOLIO
RISK COUNTRY◊
Paysafe Group plc
5.1%
United Kingdom
Wirecard AG
3.6%
Germany
Worldpay Group plc - ADR
3.2%
United Kingdom
Bayer AG - ADR
Fomento Economico Mexicano S.A.B. de C.V. - ADR
Galaxy Entertainment
Group Ltd.
2.9%
Germany
2.8%
Mexico
2.7%
Hong Kong
MasterCard, Inc.
2.6%
United States
Edenred S.A. - ADR
Fresenius Medical Care
AG - ADR
2.5%
France
2.4%
Germany
Ingenico Group S.A. - ADR
2.3%
France
Sector Allocation†
STRATEGY
Consistent Growth Companies: companies that
show steady revenue and earnings growth.
Thornburg Investment Management
2300 North Ridgetop Road
Santa Fe, New Mexico 87506
800.276.3930
www.thornburg.com
5-YR
Past performance does not guarantee future results.
Consistent Growth Companies
1-YR
Performance data for the International Growth ADR Strategy is from the International Growth ADR Wrap Composite, inception date
of May 1, 2010. The International Growth ADR Wrap Composite includes discretionary wrap accounts invested in the International
ADR Growth Strategy. Returns are calculated using a time-weighted and asset-weighted calculation including reinvestment of dividends and income. Returns are annualized for periods greater than one year. Individual account performance will vary. The performance data quoted represents past performance; it does not guarantee future results. “Pure” Gross returns do not reflect the
deduction of any expenses, including trading costs and are supplemental to net returns. Beginning January 1, 2009, net returns
reflect the deduction of the maximum total wrap fee which is currently 3% per annum. Net returns are derived from subtracting
1/12th of 3% from each account's monthly gross return. The total wrap fee includes all charges for the trading costs, portfolio management, custody and other administrative fees. Prior to January 1, 2009 net returns reflect actual wrap fees for each account in
the composite. Beginning January 1, 2014 returns reflect the deduction of transaction costs for some accounts in the composite.
The standard fee schedule currently in effect is: 1% to 3% on all assets. Fees may be negotiated in lieu of the standard fee schedule. Actual fees may vary depending on, among other things, the applicable fee schedule and portfolio size. The firm's fees are
available upon request and also may be found in Part II of its Form ADV.
R-Squared
Portfolio Baskets†
YTD
Returns are annualized for periods greater than one year.
Tracking Error
Supported by the entire
Thornburg investment team.
Growth Indistry Leaders
3-YR
SINCE
INCEPTION
(5/1/10)
MSCIACWI
EX-U.S.
GROWTH
Information Technology
31.5%
16.4%
Consumer Discretionary
24.5%
14.2%
Health Care
14.1%
10.1%
Consumer Staples
7.5%
16.9%
Industrials
6.4%
15.0%
Financials
5.8%
9.0%
Energy
2.1%
3.6%
Materials
1.5%
8.5%
Real Estate
Cash, Cash Equivalents
& Currency Forwards
0.9%
2.2%
5.7%
–
Ten Largest Countries†◊
Important Information
MSCI ACWI
EX-U.S.
STRATEGY GROWTH
United Kingdom
21.6%
10.9%
France
11.1%
7.1%
Germany
9.7%
6.9%
United States
8.8%
–
China
8.7%
7.0%
Mexico
4.4%
0.9%
Australia
4.4%
5.0%
Japan
3.7%
16.5%
Ireland
3.7%
0.6%
Netherlands
3.2%
3.8%
Source: FactSet, Vestmark, and Thornburg.
† Portfolio holdings and characteristics shown herein are from a representative account managed within
the investment composite. The representative account is selected based on account characteristics that
Thornburg believes accurately represent the investment strategy as a whole. Should these characteristics
change materially, Thornburg may select a different representative account. Holdings may change daily and
may vary among accounts, which may contribute to different investment results. The representative account
information is supplemental to the strategy’s composite and GIPS compliant presentation.
◊ Holdings are classified by country of risk, determined at Thornburg’s discretion.
1. Active Share – A measure of the percentage of stock holdings in a manager's portfolio that differ from the
benchmark index.
Portfolio characteristics are derived using currently available data from independent research resources that
are believed to be accurate. Portfolio attributes can and do vary.
The information provided in this report 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
herein. through December 31, 2016
2010discussed
(inception)
GIPS Compliant Presentation
International Growth ADR Wrap Composite
May 1,
Thornburg Investment Management International Growth ADR Wrap Composite May 1, 2010 through December 31, 2016
Composite Returns
Period
2016
2015
2014
2013
2012
2011
2010***
"Pure"
Gross**
-3.31%
4.69%
-11.72%
41.86%
23.09%
-6.68%
16.12%
Net
-6.15%
1.65%
-14.33%
37.83%
19.55%
-9.43%
13.86%
Index Returns
MSCI AC
World ex-US
Growth Index
0.13%
-1.25%
-2.65%
15.49%
16.67%
-14.21%
12.92%
3-Yr Annualized Standard
Dispersion
Deviation*
MSCI AC
World ex-US Internal Equal
Wtd.
Composite Growth Index
13.02%
0.30%
12.02%
11.39%
12.90%
0.46%
12.06%
13.03%
0.47%
16.04%
15.77%
0.59%
N/A
N/A
N/M
N/A
N/A
N/M
N/M
As of December 31
Number of
Accounts
46
535
489
246
29
1
1
Composite
Assets (MM)
26.6
182.5
137.3
78.5
7.5
0.1
0.1
Total Firm
Assets (MM)
48,937
54,809
64,492
94,303
83,646
73,213
73,389
* 3-Yr
annualizedstandard
standarddeviation
deviation is
is not required
prior
to 2011.
* 3-Yr
annualized
requiredfor
forannual
annualperiods
periods
prior
to 2011.
"Pure"gross
grossreturns
returns do
do not reflect
any
expenses,
including
trading
costs,
and are
to net to
returns.
See note
#9note
below.
** **
“Pure”
reflectthe
thededuction
deductionofof
any
expenses,
including
trading
costs,
andsupplemental
are supplemental
net returns.
See
#9 below.
******
Represents
through12/31/2010.
12/31/2010.
Representsdata
datafrom
from5/1/2010
5/1/2010 through
N/AN/A
- Not
available.
compositereturns
returnsare
arenotnot
available
to the
composite’s
inception
- Not
available.Thirty-six
Thirty-six monthly
monthly composite
available
duedue
to the
composite's
inception
date. date.
N/M
- Not
meaningful.
measureofofinternal
internaldispersion
dispersion
composites
fivefewer
or fewer
accounts
(included
theyear)
entire
is not considered
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N/M
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meaningful.AAstatistical
statistical measure
forfor
composites
withwith
five or
accounts
(included
for the for
entire
is year)
not considered
meaningful.
1. Thornburg
Thornburg
Investment
Management,
Inc. claims
compliance
theInvestment
Global Investment
Performance
(GIPS®)
and has
prepared
and
this reportwith the GIP
1.
Investment
Management,
Inc. claims
compliance
with thewith
Global
Performance
Standards Standards
(GIPS®) and
has prepared
and
presented
thispresented
report in compliance
standards.
Thornburg
Investment
Inc. has been
independently
verified forInc.
thehas
period
Julyindependently
1, 1998 through
December
31, period
2016. The
reports are
available31,
upon request.
in compliance
with
the GIPS Management,
standards. Thornburg
Investment
Management,
been
verified
for the
Julyverification
1, 1998 through
December
Verification
assesses
whether
(1) theare
firm
has complied
all theVerification
composite construction
requirements
the GIPS
standardswith
on aall
firm-wide
basis andconstruction
(2) the firm’s requirements
policies and procedures ar
2016. The
verification
reports
available
upon with
request.
assesses whether
(1) theoffirm
has complied
the composite
designed
calculate
and present
performance
in and
compliance
with the
GIPS standards.
Verification
does not ensure
the accuracy
of anyperformance
specific composite
presentation.
of the to
GIPS
standards
on a firm-wide
basis
(2) the firm’s
policies
and procedures
are designed
to calculate
and present
in compliance
with the GIPS
2. Thornburg
Investment
Management,
(the the
“Firm”)
is an independent
investment
adviser
registered under the Investment Advisers Act of 1940. Registration does not imply a certain level of sk
standards.
Verification
does notInc.
ensure
accuracy
of any specific
composite
presentation.
or training. The Firm’s clientele consists of mutual funds, commingled funds and taxable and non-taxable separately managed accounts in U.S., non-U.S. and global equity strategies and in U.S.
2. fixedThornburg
Investment
Management,
(the “Firm”)
is anperformance,
independentand
investment
registered
under
Investment
Advisers Act of 1940. Registration does
income strategies.
Policies
for valuingInc.
portfolios,
calculating
preparing adviser
compliant
presentations
arethe
available
upon request.
not imply
certain level
skill or training.
The Firm’s
clientele
3. Valuations
area computed
andofperformance
is reported
in United
Statesconsists
dollars. of mutual funds, commingled funds and taxable and non-taxable separately managed accounts
U.S., non-U.S.
and global
strategies
in U.S.the
fixed
income
Policies
forbenchmark
valuing portfolios,
calculating
performance,
and preparing
compliantis calculated
4. Theinthree-year
annualized
ex-postequity
standard
deviationand
measures
variability
of strategies.
the composite
and the
returns over
the preceding
36-month period.
Internal dispersion
presentations
are available
upon
request.
using
the equal-weighted
standard
deviation
of annual gross returns of those accounts included in the composite for the entire year.
5.
performance
quoted represents
past performance;
not guarantee
future results. Returns will fluctuate and current performance may be either lower or higher than data shown.
3. TheValuations
aredata
computed
and performance
is reporteditindoes
United
States dollars.
6. The International Growth ADR Wrap Composite includes all discretionary wrap accounts invested in the International ADR Growth Strategy. The strategy seeks long-term growth of capital by
4. investing
The three-year
annualized
ex-post
standard
deviation
measures
the
variability
of the
benchmark
over the
preceding
period.
in American Depositary Receipts (ADRs) or other dollar-denominated securities that
arecomposite
selected forand
theirthe
growth
potential.returns
The strategy
invests
in ADRs36-month
or dollar-denominated
securitie
dispersiontied
is to
calculated
using
the equal-weighted
standard
deviation
of annual
gross returns
of those
accountsbelieves
included
the growing
composite
for theand
entire
year. A flexible
thatInternal
are economically
international
markets.
The strategy typically
invests
in a selection
of growth
stocks that
management
willinhave
revenues
earnings.
allows the strategy
to pursue
long-termpast
performance
using it
a broad
approach
to geography,
investing
style, will
and fluctuate
market capitalization.
strategy may
invest
in companies
5. mandate
The performance
data quoted
represents
performance;
does not
guarantee
future results.
Returns
and currentThe
performance
may
be either
lower of any size,
from
wellthan
established
firms to small, emerging growth franchises.
orlarge
higher
data shown.
7. The benchmark for the composite is the MSCI All Country (AC) World Index ex-U.S. Growth. The MSCI All Country (AC) World ex-U.S. Growth Index is a market capitalization weighted index tha
6. includes
The International
Growth ADR Wrap Composite includes all discretionary wrap accounts invested in the International ADR Growth Strategy. The strategy seeks longgrowth companies in developed and emerging markets throughout the world, excluding the United States. The index returns reflect the reinvestment of dividends and other earnings, are
growth oftaxes,
capital
in American
Receiptsfees,
(ADRs)
or other
dollar-denominated
securities
that
are selected
for their
growth potential.
The
net term
of withholding
andbydoinvesting
not include
any tradingDepositary
costs, management
or other
expenses.
Benchmark returns
are not
covered
by the report
of independent
verifiers.
strategy
invests inwillADRs
dollar-denominated
securities
are economically
tied to
markets.
The
strategy typically
invests and
in a number
selection
growthheld, all of whic
8. Portfolio
construction
haveor
significant
differences from
that of that
a benchmark
index in terms
of international
security holdings,
industry
weightings,
asset allocations
of of
positions
that to
management
will have
andInvestors
earnings.
A flexible
mandate
allows theinto
strategy
to pursue long-term performance using a broad
maystocks
contribute
performance,believes
characteristics
andgrowing
volatilityrevenues
differences.
may
not make
direct investments
any index.
approach
geography,
investing
style,
market
capitalization.
strategy
invest
in companies
ofexpenses,
any size, from
largetrading
well established
to small, to net returns. Net
9. Returns
reflecttothe
reinvestment
of income
andand
capital
gains.
“Pure” Gross The
returns
do notmay
reflect
the deduction
of any
including
costs and arefirms
supplemental
emerging
franchises.
returns
reflect growth
the deduction
of the maximum total wrap fee which is currently 3% per annum. Net returns are derived from subtracting 1/12th of 3% from each account's monthly gross return. Th
wrap
fee includes
charges
for theistrading
costs,
custody
and other
administrative
fees.
The standard
fee schedule
currentlyIndex
in effect
1% to capital3% on all assets. Fe
7. totalThe
benchmark
forallthe
composite
the MSCI
All portfolio
Countrymanagement,
(AC) World Index
ex-U.S.
Growth.
The MSCI All
Country
(AC) World
ex-U.S. Growth
is ais:
market
mayization
be negotiated
in index
lieu ofthat
the standard
schedule.
weighted
includes fee
growth
companies in developed and emerging markets throughout the world, excluding the United States. The index returns reflect
10. Wrap accounts represent 100% of the composite assets as of each year-end presented.
the reinvestment of dividends and other earnings, are net of withholding taxes, and do not include any trading costs, management fees, or other expenses. Benchmark
returns are not covered by the report of independent verifiers.
8. 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.
9. Returns reflect the reinvestment of income and capital gains. “Pure” Gross returns do not reflect the deduction of any expenses, including trading costs and are supplemental to net returns. Net returns reflect the deduction of the maximum total wrap fee which is currently 3% per annum. Net returns are derived from subtracting
1/12th of 3% from each account’s monthly gross return. The total wrap fee includes all charges for the trading costs, portfolio management, custody and other
administrative fees. The standard fee schedule currently in effect is: 1% to 3% on all assets. Fees may be negotiated in lieu of the standard fee schedule.
10. Wrap accounts represent 100% of the composite assets as of each year-end presented.
11. Non-fee paying accounts represent 100% of the composite assets at year-end 2010 and 2011, 2% at year-end 2012, and less than 1% at year-end 2013, 2014, 2015
and 2016.
12. The International Growth ADR Wrap Composite has been examined for the period from May 1, 2010 through December 31, 2016. The examination reports are available upon request.
13. This composite was created in May 2010. A list of composite descriptions is available upon request.