Omnis Developed Markets (ex US, ex UK) Equity Fund
Thomas White International Limited.
The fund is managed by Thomas White International’s Investment Committee, which includes:
- Thomas S. White Jr,
- Douglas M. Jackman, CFA
- Wei Li, PhD., CFA
- Jinwen Zhang, PhD., CFA
- John Wu, PhD., CFA
- Rishabh Halakhandi, CFA
- Ramkumar Venkatramani, CFA
Key fund facts
- Expertise – the eight member Investment Committee has over 140 years of collective investment experience and has the backing of some of the largest and most well-renowned institutional investors in the US.
- Unique – the investment expertise of Thomas White International is not available to UK retail clients other than through the Omnis investment proposition.
- Modular investment process – Thomas White International Limited employs a focused stock research process to identify the richest investment opportunities in each sector of each investable market.
The aim is to achieve capital growth.
The Fund intends to invest primarily in companies incorporated in, or significantly exposed to, developed markets, excluding the United Kingdom and the United States of America. The Fund may also invest in other transferable securities (for example, other international equities which, for the avoidance of doubt, may include equities in the UK and US), units in collective investment schemes, money market instruments, warrants and deposits as detailed in the Prospectus. No more than 10% of the Scheme Property of the Fund will be invested in other collective investment schemes.
Use may also be made of stock lending, temporary borrowing and cash holdings. Derivatives may also be used for the purposes of hedging and efficient portfolio management.
Investment process overview
Thomas White International’s investment philosophy is predicated on the belief that a disciplined investment process applied with in-depth fundamental valuation techniques will reward the patient long-term investor.
The managers believe that the short-term focus of most investors creates an exaggerated cycle of over- and undervaluation relative to a company’s actual business value. By focusing on the long term, TWI can unlock the superior returns derived from harnessing the potential inherent within undervalued securities.
TWI follow a systematic three-step investment process. Firstly, the investable universe of over a thousand large, liquid securities is segmented into 65 ‘Valuation Groups’ with companies classified according to their unique financial and investment return characteristics. The second step involves extensive fundamental, quantitative and qualitative analysis, through which the managers seek to identify undervalued companies with solid cash flows, strong growth potential and conservative balance sheets.
Following this analysis, the stocks within each valuation group are ranked according to their expected relative return. Finally, the managers construct a diversified portfolio of 70-90 best ideas with risks controlled relative to the benchmark. Portfolio allocations will typically be neutral relative to the benchmark in terms of geographic and sector exposures; stock selection is the primary driver of the fund’s performance.
The fund managers aim to outperform the benchmark over the full market cycle and place particular emphasis on the importance of relative performance in declining markets. However, the managers will not accept higher risk as an automatic cost of outperformance and will seek to achieve superior risk-adjusted performance as measured by high information and Sharpe ratios.