Trailing Returns: International Equity Composite
Calendar Year Returns
All results portrayed are expressed in U.S. dollars.
Past performance is not necessarily indicative of future results. For full disclosure and for further information regarding comparison to an index, see the Disclaimer and Performance Disclosure.
The index comparisons in this presentation are provided for informational purposes only and should not be used as the basis for making an investment decision. Further, the performance of the composite and the Index may not be comparable. There are significant differences between the composite and the indices referenced, including, but not limited to, risk profile, liquidity, volatility and asset composition. Please note that an investor cannot invest directly in an index.
There can be no assurance that investment objectives will be achieved. Clients must be prepared to bear risk of a total loss of their investment.
Due to a varying frequency of the fees being paid and associated compounding effects, the actual difference between gross and net returns may differ from the stated annual fee. For example, on an account with a 0.50% fee, continuous monthly gross performance of 1.50% and the fees being deducted monthly, the compounding effect will result in an annual gross return of 19.56% and a net return of 18.97%. Thus, a $10,000 initial investment would grow to approximately $14,295 gross of fees, versus $14,155 net of fees, over a two-year period. Effective January 2016, the net-of-fees rates of return are calculated based on the fee schedule. All net returns that were previously calculated on a cash basis are linked to the returns being calculated under the new methodology, reflecting daily accrual of fees.
Vontobel Asset Management, Inc. (“Vontobel”) is registered with the U.S. Securities and Exchange Commission as an investment adviser under the Investment Advisers Act of 1940, as amended, in the USA. Registration as an Investment Advisor with the U.S. Securities and Exchange Commission does not imply a certain level of skill or expertise. Vontobel is exempt from the requirements to hold an Australian Financial Services License under the Corporations Act in respect of the financial services it provides to Australian wholesale clients under ASIC Class Order CO 03/1100. Vontobel is regulated by the US Securities and Exchange Commission under US laws, which differ from Australian laws.
International Equity Composite Performance
As of December 31, 2015
|Total Return1||Composite Characteristics at
End of Period
|External Standard Deviation3|
|Period||Gross of Fee
|Net of Fee
ex USA ND
|MSCI EAFE ND||# Accts||Internal
|Gross of Fee
|Net of Fee
ex USA ND
|MSCI EAFE ND|
1Total returns are expressed in USD.
2The measure of internal dispersion presented is an asset-weighted standard deviation based on gross of fee returns, and is calculated if the composite contains greater than five portfolios for the full year.
33-year annualized standard deviation based on monthly returns.
Vontobel Asset Management, Inc. (“Vontobel”) is an investment advisory firm registered, with the Securities and Exchange Commission, under the Investment Advisers Act of 1940, as amended, and a subsidiary of Vontobel Holding AG, Zurich, Switzerland. For GIPS purposes, the firm is defined as all institutional accounts at Vontobel Asset Management, excluding wrap accounts and private client assets. The firm maintains a complete list and description of composites, which is available upon request. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request.
International Equity Composite includes all discretionary accounts, excluding wrap accounts and private client assets, that invest at least 80% of their assets in equity securities of issuers located outside of the United States, or which derive a significant portion of their business or profits outside of the United States in three or more foreign countries. Such accounts hold equity or equity linked securities of issuers listed on a foreign securities exchange or that are quoted on an established foreign over-the-counter market, or have issued American Depositary Receipts (“ADRs”). Results of the composite are shown compared to the Morgan Stanley Capital International- Europe, Australasian and the Far East Index (the “MSCI EAFE Index”) and the Morgan Stanley Capital International- All Country World ex USA Index (the “MSCI ACWI ex USA”), an unmanaged index based on share prices of a select group of global developed and emerging market stocks that are available to global investors. The benchmarks are used for comparative purposes only and generally reflect the risk or investment style of the investments in the composite. The MSCI EAFE index is a free float-adjusted market capitalization index of approximately 900 stocks and is designed to measure equity market performance in 21 developed market countries outside of North America. The MSCI ACWI ex USA index is a free float-adjusted market capitalization index of approximately 1820 stocks and is designed to measure equity market performance in 45 developed and emerging market countries excluding the United States. The indices are calculated on a total return basis with net dividends reinvested. The indices reflect withholding taxes, but not fees and other investment expenses, and are expressed in U.S. Dollars. Investments made by Vontobel for the portfolios it manages according to respective strategies may differ significantly in terms of security holdings, industry weightings, and asset allocation from those of the ACWI ex USA and the MSCI EAFE Index. The minimum account size for this composite is $1 million.
Vontobel claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Vontobel has been independently verified for the periods between January 1, 2001 through June 30, 2013. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The International Equity composite has been examined for the periods between January 1, 1994 through June 30, 2013. The verification and performance examination reports are available upon request.
Results are based on fully discretionary institutional accounts under management, including those accounts no longer with the firm, and excluding wrap accounts and private client assets. Net composite performance is presented after the deduction of foreign withholding taxes. Capital gains, dividends and interest income received may be subject to withholding taxes imposed by the country of origin and such taxes may not be recoverable. Results portrayed reflect the reinvestment of dividends and other earnings. Past performance is not indicative of future results.
No portfolios contained in this composite were carved out from balanced portfolios or multi-manager portfolios currently or historically. Leverage and short positions are not used in the composition of client portfolios. Derivatives in the form of forward foreign currency contracts were used in managing client portfolios for opportunistic currency hedging until October 2011.
The Vontobel International Equity Fund, an unregistered private investment trust, pays a bundled fee, the components of which include: investment management fees; custodial fees; legal fees; and, other administrative expenses. Bundled-fee portfolios as a percentage of composite assets at year-end are as follows: 4.7% in 2007, 4.9% in 2008, 7.4% in 2009, 8.7% in 2010, 16.9% in 2011, 21.7% in 2012, 24.6% in 2013, 26.2% in 2014 and 27.2% in 2015. Prior to 2007 there were no bundled-fee portfolios in the composite.
The U.S. Dollar is the currency used to express performance. Returns include the effect of foreign currency exchange rates. Returns are presented gross and net of management fees and include the reinvestment of all income. The gross rates of return are presented before the deduction of investment management fees, other investment-related fees, and after the deduction of foreign withholding taxes, brokerage commissions and transaction costs. An investor’s actual return will be reduced by investment advisory fees. The net rates of return are presented after the deduction of investment management fees, brokerage commissions, transaction costs, other investment-related fees and foreign withholding taxes. Such investment management fees are actual fees, as distinguished from model fees, and do not contain any performance-based fee components. Withholding tax rates for the indices are applicable to Luxembourg withholding companies. Our withholding taxes, as captured in the composites, may vary from those captured in the index.
The standard annual management fees charged by Vontobel for the Composite are: 0.75% on the first $100 million, 0.65% over $100 million. Certain accounts may have higher management fees than the standard fee schedule. Investment advisory fees are further described in Part 2 of its Form ADV.
The International Equity Composite was created on July 6, 1990. Compliance with GIPS has been verified firm-wide by Ashland Partners & Company LLP from January 1, 2005 through December 31, 2014. For the period January 1, 2001 through December 31, 2004, Vontobel was verified firm-wide by, and the performance results of the International Equity Composite were examined by, Ernst & Young LLP. Performance results from January 1, 1994 to December 31, 2000 have been examined by PriceWaterhouseCoopers.