RiverFront Chautauqua International ADR Portfolio / RCIADR

Investment Objective

Seeks to outperform MSCI ACWI ex-US, net of management fees, over a normalized investment period of 3-5 years.

Implementation

International Equity ADRs

Benchmark

MSCI ACWI ex USA Index

Time Horizon

3-5 years

EQUITY SOLUTION

Portfolio Objective

RiverFront Chautauqua International ADR portfolio invests in equity securities of non-US companies with large market capitalizations. The strategy is normally diversified among at least 10 countries and invests primarily in developed markets. On occasion the strategy may also invest in emerging and less-developed markets. The portfolio is made up of companies that the portfolio managers view as high-quality due to their governance and disclosure, more conservative accounting, less financial leverage and management practices. Chautauqua believes that the focus on high-quality companies reduces the risk of negative surprises and capital drawdowns. RiverFront has entered into a Model Provider agreement with Chautauqua Capital Management (“Chautauqua”) whereby Chautauqua provides an investment model that is used to make the investment selections for the RiverFront Chautauqua International ADR (“RCIADR”) portfolio.

  • Positions are typically 1-6% at the time of purchase
  • Market Caps in excess of $4 billion at the time of purchase
  • Sector weights limited to 50% of portfolio

INVESTOR OUTCOME

Accumulate ~ More Aggressive

Goal: Build
Outcome: Growth

International equities have historically provided capital growth and diversification benefits, two important objectives of the ‘Accumulate’ investor. The RiverFront Chautauqua Portfolio is a concentrated international equity portfolio made up exclusively of ADRs. The portfolio is designed to be fully invested at all times.

Investment Philosophy

Chautauqua seeks securities of companies that they believe are profitable and advantaged in the market-place and that appear mispriced to their judgment. The portfolio managers believe investors often underestimate a companies’ potential for sustained high-growth and improved profitability. Cornerstones of the investment process include:

  • After exhaustive research, only those companies that represent Chautauqua’s deepest fundamental conviction and trade at valuations below their perceived intrinsic worth, are represented in the portfolio.
  • Securities are selected with a long-term perspective and weighted in the portfolio based on Chautauqua's level of fundamental conviction. The end result is a concentrated portfolio, where risks are managed by security selection and security weightings.

About Chautauqua Capital Management

Chautauqua is an investment-focused boutique actively managing international and global portfolios. Chautauqua is a division of Robert W. Baird & Co., Inc.(“Baird”). Baird Financial Corporation (“BFC”) is the parent company of Baird, a registered broker/dealer and investment adviser. Chautauqua and Baird are affiliates of RiverFront via their common ownership under BFC. Chautauqua and Baird are operationally independent from RiverFront.

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