About International Long-Term Unconstrained
The strategy is designed for investors seeking sustainable long-term outperformance of the market from a high conviction portfolio, backed by proprietary and systematic fundamental research.
The strategy’s portfolio of 20-40 quality growth companies offer sustainable growth and resilience to economic uncertainty.
Our three long-term mega trends of demographic change, the future of technology and resource scarcity, guide our proprietary fundamental research and portfolio construction. This allows us to invest on multi-decade investment horizon to meet client requirements for sustainable long-term returns.
Proprietary fundamental research can identify long-term value-creating companies undervalued by the market. We elaborate on this below:
- The market is myopic and fades returns of quality companies too fast
- Our proprietary fundamental research framework is able to identify these companies
- Value creating companies compound returns over the long-term
We consider portfolio construction with equal importance to the research process, employing the same high-quality data from the research process. Here we focus on five areas – long-term thematics, company classifications, geographic revenue/profit, end user markets and industry lifecycles. These aid our understanding of the portfolio’s diversity, effectively manage risk and ensure we are positioned to capture long-term growth.
| Portfolio characteristics | International Long-Term Unconstrained |
|---|---|
| Benchmark | Unconstrained |
| Performance objective | Long-term capital appreciation |
| Market capitalisation | Mid- and Large-Cap |
| Forecast tracking error | N/A |
| Sector/country allocations | Unconstrained |
| Number of stocks | 20-40 |
| Maximum active stock weight | 10% |
| Portfolio turnover | < 25% per annum |
| Inception | November 2015 |
Podcast: Anatomy of the market recovery
We could therefore get to a point of ‘bottoming’ in earnings downgrades much more rapidly than in previous recessions
Zehrid Osmani
Portfolio Manager
Zehrid Osmani
- Job title
- Head of Global Long-Term Unconstrained
- Experience
- 22 years
Ken Hughes
- Job title
- Portfolio Manager
- Experience
- 26 years
Amanda Whitecross
- Job title
- Portfolio Manager
- Experience
- 26 years
Yulia Hofstede
- Job title
- Portfolio Manager
- Experience
- 11 years
Robbie McNab
- Job title
- Portfolio Manager
- Experience
- 12 years
Roberto Venanzio
- Job title
- Investment Analyst
- Experience
- 4 years
Sam Cottrell
- Job title
- Investment Analyst
- Experience
- 5 years
Zoe Hutchison
- Job title
- Investment Analyst
- Experience
- 4 years
Jonathan Regan
- Job title
- Investment Analyst
- Experience
- 4 years
Strategy factsheet
Strategy composite, net of fees (US$)
| 31 March 2020 | Three months (%) | One year (%) | Three years (% p.a.) | Five years (% p.a.) | Since inception (% p.a.) |
|---|---|---|---|---|---|
| International Long-Term Unconstrained strategy | -13.8 | 0.0 | 5.1 | - | 4.8 |
| MSCI AC World ex USA | -23.3 | -15.1 | -1.5 | - | 1.4 |
| Relative return | 12.4 | 17.8 | 6.7 | - | 3.3 |
Past performance is not a guide to future returns. Data calculated in US$ net of fees. The return may increase or decrease as a result of currency fluctuations.
Source: Martin Currie as at 31 March 2020. Data shown is for the Martin Currie International Long-Term Unconstrained strategy composite (US$). Data is presented net of investment advisory fees, broker commissions, and all other expenses borne by investors. An annual fee rate of 0.65% has been used in the presentation of net performance data. This is our standard fee offering for a US$100 million mandate for this strategy. The figures provided include the re-investment of dividends. Relative calculation is geometric. Inception of the composite is 1 December 2015. This strategy is not constrained by a benchmark but we show it versus the MSCI AC World ex USA for illustrative purposes only.
This performance record is a clear representation of the Martin Currie International Long-Term Unconstrained strategy performance over the periods shown. Performance information showing five years (or since inception) in complete 12-month periods is available upon request. This data is supplementary to the GIPS disclosures provided at the end of this document.
Largest positions
| Stock | Portfolio weight (%) |
|---|---|
| ResMed | 5.6 |
| Straumann | 5.2 |
| Atlas Copco | 5.1 |
| AIA | 5.1 |
| Tencent Holdings | 4.9 |
| CSL | 4.9 |
| Spirax-Sarco Engineering | 4.8 |
| Moncler | 4.5 |
| L'Oreal | 4.3 |
| Mettler-Toledo International | 4.3 |
Stock attribution
| Top five contributors Q1 2020 | Contribution to absolute return (%) |
|---|---|
| Coloplast | 0.5 |
| Unilever | 0.1 |
| Tencent Holdings | 0.1 |
| Ferrari | -0.1 |
| Alibaba | -0.2 |
| Bottom five contributors Q1 2020 | Contribution to absolute return (%) |
|---|---|
| Straumann | (1.6) |
| Beazley | (1.4) |
| Hexagon | (1.2) |
| Adidas | (1.0) |
| Assa Abloy | (0.9) |
Past performance is not a guide to future returns.
Source: Martin Currie as at 31 March 2020. Data shown is for the Martin Currie International Long-Term Unconstrained representative account.
The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were, or will prove to be, profitable.
Sector exposure
| Sector | Portfolio (%) | Index (%) |
|---|---|---|
| Healthcare | 24.2 | 10.5 |
| Consumer Discretionary | 17.4 | 11.8 |
| Industrials | 16.7 | 11.4 |
| Information Technology | 12.8 | 10.2 |
| Consumer Staples | 8.6 | 10.5 |
| Financials | 7.9 | 19.2 |
| Communication Services | 4.9 | 7.5 |
| Materials | 4.0 | 7.0 |
| Cash | 3.5 | 0.0 |
Country exposure
| Region | Portfolio (%) | Index (%) |
|---|---|---|
| Europe | 60.4 | 40.9 |
| Emerging Markets | 11.0 | 27.7 |
| Paciifc ex Japan | 10.0 | 7.3 |
| Canada | 3.1 | 6.3 |
| Israel | 2.2 | 0.4 |
| Other | 9.9 | 0.0 |
| Cash | 3.5 | 0.0 |
Source: Martin Currie as at 31 March 2020. Data shown is for the Martin Currie International Long-Term Unconstrained representative account. This strategy is not constrained by a benchmark but we show it versus the MSCI AC World ex USA Index for illustrative purposes only.
Portfolio Volatility
| Three years | Five Years | Seven years | |
|---|---|---|---|
| Portfolio Volatility | 14.0 | - | - |
| Index Volatility | 15.5 | 14.8 | 13.8 |
Past performance is not a guide to future returns.
Source: Martin Currie as at 31 March 2020. Data shown is for the Martin Currie International Long-Term Unconstrained representative account. This strategy is not constrained by a benchmark but we show it versus the MSCI AC World ex USA Index for illustrative purposes only.
Portfolio volatility is the annualised standard deviation of the portfolio returns. Index volatility is the annualised standard deviation of the index returns.
We focus on sustainable businesses with good compounding characteristics, backed by low disruption risk, strong pricing power, good ESG credentials and high management quality.
How to invest
We offer investors access to our strategies through a segregated account or a range of pooled vehicles.
Please contact us to discuss the most appropriate investment to meet your requirements.
How to invest
Martin Currie is an independently managed investment affiliate of Legg Mason, one of the world’s largest asset management firms.
Legg Mason is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Legg Mason website.
How to invest
Martin Currie is an independently managed investment affiliate of Legg Mason, one of the world’s largest asset management firms.
Legg Mason is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Legg Mason website.
How to invest
Martin Currie is an independently managed investment affiliate of Legg Mason, one of the world’s largest asset management firms.
Legg Mason is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Legg Mason website.
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