Investment Objective
The goal of the International Equity ADR Strategy is to consistently deliver relative outperformance over a full market cycle (three to five years) with less than commensurate risk.
Philosophy
We believe relative, risk-adjusted outperformance over full market cycles can be achieved through long-term ownership of a diversified portfolio of typically 65 to 85 securities that represent industry-leading companies with sustainable competitive advantages.
Investment Process
Top-down analysis:
- Macro perspective: The team conducts a global analysis of prevailing economic, market and political conditions to identify countries with favorable long-term growth themes.
Bottom-up approach:
- Fundamental analysis: The team identifies industry leading companies with dominant market share, sustainable competitive advantages, product or cost structure advantages, low debt, sound liquidity, a strong capital position, sustainable sales and revenue growth.
- Country selection criteria: We invest in countries with a bias toward regions with characteristics that include political stability and general economic freedom.
This material is provided for informational purposes only and contains no investment advice or recommendations to buy, sell or hold any specific securities. You should not interpret the statements in this material as investment, tax, legal, or financial planning advice. All investments involve risk, including the possible loss of principal. Past performance does not guarantee or indicate future results. There is no assurance the investment strategy will meet its investment objective. Graphs or other illustrations, if included, are provided for illustrative purposes only and not intended as a recommendation to buy or sell securities displaying similar characteristics. Scout Investments, and its fixed income division Reams Asset Management, is a wholly owned subsidiary of Carillon Tower Advisers, which in turn is a wholly owned subsidiary of Raymond James Financial, Inc. Neither Scout Investments, its affiliates, directors, officers, employees nor agents accept any liability for any loss or damage arising out of your use of all or any part of this material. Additional information is available at www.scoutinv.com or www.reamsasset.com.
International investing presents specific risks, such as currency fluctuations, differences in financial accounting standards, and potential political and economic instability. These risks are further accentuated in emerging market countries, where risks can also include possible economic dependency on revenues from particular commodities or on international aid or development assistance, currency transfer restrictions, and liquidity risks related to lower trading volumes.