Baring International Equity
- Investment Approach: Top-Down/Bottom-Up
- Style: International Equity
- Asset Allocation Ranges: Individual Securities 55% - 65%
- Average Annual Turnover: 50%
- Approximate Number of Holdings: 30 - 80
- Shares of the SMA Fund: 35% - 45%
OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc., offers a diverse range of tailored investment products and services, including separately managed accounts as well as program and investment management services to 529 college savings and prepaid plans. As part of an organization with 50 years of financial industry experience, OFI Private Investments helps high net worth individuals, institutions and nonprofit organizations work toward their financial goals.
About Baring Asset Management
Baring Asset Management (Baring), subadvisor to the OFI Private Investments International Equity Portfolio, is a global investment management firm managing over $30 billion as of 3/31/09. With 14 offices globally, Barings provides investment management services to institutional, retail and private clients around the world investing in both developed and emerging equities, as well as various fixed income products.
Investment Philosophy
The portfolio’s management employs a Growth at a Reasonable Price (GARP) approach that focuses on markets, sectors and stocks with potential for the greatest earnings growth surprise. The investment team seeks to avoid stocks where either the earnings potential is largely discounted (torpedoes) or where the low valuation reflects our view of future earnings disappointment (value traps). In addition, the portfolio’s management believes that combining growth and value investing across all market capitalizations can help minimize volatility while providing superior, risk-adjusted long-term returns.
Investment Process
A Global Perspective Backed Up by Local Expertise
This investment approach links top-down and bottom-up insights through a three-factor weighting methodology based on country, sector and stock analysis. This proprietary strategy integrates the management team’s views with the historical influence that these three factors have had on the movement of each stock. An equal emphasis is placed on security analysis and strategic exposures that focus on country and sector allocations in order to provide clients with strong long-term results.
Bottom-up Analysis—Bottom-up analysis is rooted in the extensive research capabilities of the investment team’s 41 stock analysts located in London, Boston, Hong Kong and Japan. All analysts have dual roles in which they cover individual stocks and are also members of global sector teams in order to effectively apply a global perspective to each individual stock they research.
Top-down Analysis—Policy analysts apply a global macroeconomic outlook to all possible buy candidates and assess the economic, risk, country and sector views of the investment team. Open debate within the Strategic Policy and Global Equity groups help determine global investment themes and best opportunities.
Unique Portfolio Construction
OFIPI and Baring have constructed an innovative product that aims to provide clients the broad global exposure generally not accessible in the managed account marketplace, while preserving the benefits of a separately managed account
Literature Downloads
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Top 10 Holdings
| Security Name | % of Assets |
|---|---|
| Lihir Gold Ltd. (ADS) | 3.50 % |
| AngloGold Ashanti Ltd. ADS | 2.60 % |
| Sun Hung Kai Properties Ltd. ADS | 2.40 % |
| Fresenius Medical Care AG & Co. KGaA ADS | 2.30 % |
| BRF-Brazil Foods S/A ADS | 2.30 % |
| Zurich Financial Services AG ADS | 2.30 % |
| BT Group PLC ADS | 2.30 % |
| Secom Co. Ltd. ADS | 2.20 % |
| Nippon Telegraph & Telephone Corp. ADS | 2.20 % |
| BOC Hong Kong (Holdings) Ltd. ADS | 2.10 % |
1. Top 10 Holdings are current as of 3/31/10, are based on a representative account managed within the strategy included in the composite, are subject to change, do not constitute a recommendation by OFI Private Investments of any of the positions and may vary by account . The specific securities identified are not representative of all of the securities purchased, sold or recommended for advisory clients. It should not be assumed that an investment in the securities identified was or will be profitable.