| The strategy
is a style agnostic investment discipline that targets
long-term investment returns with absolute risk lower
than the benchmark. The strategy is structured on a
series of uncorrelated global investment themes rather
than any benchmark; tracking error is not an aspect
that is managed. The strategy typically comprises approximately
100 holdings, primarily of securities of companies that
are listed on the major equity markets. Emerging Market
investment is limited to 15% of the portfolio and investment
is normally confined to companies that have market capitalizations
of $US 1 billion or greater.
The Global Thematic Team believes that major companies
compete for customers and capital in a single global
marketplace and that investing therefore requires a
global perspective. As geographic boundaries become
less relevant, it makes sense to structure an investment
portfolio that seeks to understand the complexity of
this single system by focusing on its global connections,
relationships and themes rather than, for example, geographic
regions or traditional industry sectors.
The Thematic approach seeks to identify the major secular,
cyclical and structural influences on the world’s
economies and stock markets in the early stages of their
development. The associated social, economic and industry
or demographical investment themes, which the Team believes
represent investment opportunities that are asymmetric
in the investor’s favour, determine the shape
and strategic direction of the portfolio.
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