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Capital International, Inc. ("Capital International") is part of the Capital Group Companies ("Capital organization"), an organisation whose affiliates' focus has been global investment management for over 70 years. Capital International, along with its institutional affiliates manages more than A$374 billion worldwide for corporations, foundations and endowments as at 31 December 2003.
Mandate
Active Global Shares
Corporate Overview
Capital International is headquartered in Los Angeles and is part of the Capital organisation. Capital and its affiliates have a total of 78 portfolio managers and 185 research analysts with 40 nationalities represented and 41 languages spoken between them. These investment professionals made over 9,507 company research visits in more than 72 countries during 2003, hallmarking Capital as one of the few organisations with a fully integrated global approach to research and investment management.
Portfolio Managers
Investment Process Description
Bottom-up, multiple portfolio manager style.
Philosophy - Individual security selection is viewed as the most critical factor in the investment process, with emphasis placed on a company's stock price relative to the underlying value and expected earnings growth. Capital International's style can be described as "core" active management with stocks selected from a broad universe.
Research - Capital International's research affiliate Capital International Research, Inc. ("CIRI") is strongly committed to fundamental research. Analysts are resourceful in carrying out research that focuses on close relationships with senior company management and local market coverage and knowledge. Research information is shared among research and management affiliates via a number of media including use of central databases, voice mail, email and regular meetings. Each affiliate manages assets independently.
Stock Selection - Analysts' and portfolio managers' judgments are the key determinants as to whether an individual stock represents attractive value. When valuing a company, analysts ask, "How much would we pay if we were going to acquire the whole company today?" The time frame for valuation is 3-5 years. Any "buy" recommendations are subject to a thorough review and debate by internal investment committees.
Country and Industry Selection - The portfolio's country and sector allocation is a by-product of security selection, not general market opinion of industries, sectors or regions. As a result, significant country and industry tilts are possible. Investment professionals do consider macroeconomic information provided by the in-house analysts, whose meetings the equity portfolio managers and analysts regularly attend.
Portfolio Construction - Capital International employs a multiple portfolio manager system, with each portfolio divided into segments that are managed autonomously by different portfolio managers. The aggregate structure of the portfolio is driven by bottom-up stock decisions rather than an attempt at tracking benchmarks. A lead portfolio manager is appointed to each portfolio for investment oversight. Portfolio Control monitors aggregate portfolios for compliance with individual client guidelines. They are responsible for monitoring the trading process to ensure the portfolios remain within the guidelines set by the client.
Implementation - Due to the autonomy afforded individual portfolio managers, their decisions can be quickly implemented.
MLC uses Capital International because of its immense research capacity and global perspective as well as the capabilities of its institutional affiliates. Together, they offer extensive coverage of both developed and emerging markets.
Key Investment Personnel
David I. Fisher is Chairman of the Board of Capital Group International, Inc. and Capital Guardian Trust Company, as well as an officer and director of numerous affiliated companies. He is a portfolio manager for U.S., non-U.S., global, and emerging market assets and has been responsible for our organisation's international investing activities since 1982. He joined our organisation in 1969 as a financial analyst and was Director of Research for ten years. Previously, he was an officer of Smith Barney & Co. and a marketing executive with General Electric Company. A graduate of the University of California at Berkeley, he holds an MBA from the University of Missouri Graduate School of Business Administration. Mr. Fisher is a member of the Los Angeles Society of Financial Analysts, as well as the International Society of Security Analysts. In addition to serving as a Trustee Emeritus of the J. Paul Getty Trust, he serves on the Board of Trustees for Alternative Living for the Aging, Lowe Institute, Harvard-Westlake School, Claremont McKenna College and the UCLA School of Public Policy and Social Research. He also serves as an Advisory Board member of the International Monetary Fund Retirement Plan. He is based in the West Los Angeles office.
Richard N. Havas is a Senior Vice President and a portfolio manager for Capital Guardian Trust Company, Capital International, Inc. and Capital International Limited. He is also a Senior Vice President and Director of Capital Guardian (Canada), Inc. and Capital International Research, Inc. Mr. Havas joined our organisation in 1986 as a financial analyst specialising in Canadian non-resource companies, as well as Australian banks and industrial companies. Before joining our organisation, he was a lending officer for the Bank of Nova Scotia for four years. He received a BA from the University of Toronto and an MBA (with distinction) from INSEAD in Fontainebleau, France. He is based in our Montreal office.
Terry Berkemeier is a Vice President of Capital Guardian Trust Company with U.S. equity portfolio management responsibilities, a Vice President of Capital International Research, Inc. with equity analyst responsibilities following the metals and mining industries, and also a Vice President of Capital International Inc. with portfolio management responsibilities for the U.S. equity portion of Australian global accounts. Prior to joining our organisation in 1992, he was a Vice President/Research in the New York office of Merrill Lynch Capital Markets. Before that, he was an analyst and Manager, Corporate Finance and Equity Research of Bankers Trust Company in Sydney, Australia, where he concentrated on mining stocks. Mr. Berkemeier earned a BSc and a BE (with honors) in geology and mining engineering from the University of Sydney, and he worked at the Libanon Mine in South Africa as an underground miner and analyst following his graduation. He is based in our San Francisco office.
Philip Winston is a Senior Vice President and portfolio manager for Capital International Limited with responsibilities for U.K. and European equity portfolios and is an analyst covering European Marketing Services and property companies. Prior to joining our organisation in 1997, he spent eight years as a Director and UK Equity Fund Manager at BZW Investment Management in London. He was also formerly with Orion Royal Bank in London and New York. Before that, he was a lecturer at Durham University. Mr. Winston holds a BA and a Ph.D. in history from Cambridge University. He is based in our London office.
Thomas Wolf is a Senior Vice President and portfolio manager for Capital International, Inc., Capital International Limited and Capital International S.A. with responsibilities for Asian and Pacific Basin markets. Prior to joining our organisation in 1993, he served as a Vice President and portfolio manager for Pictet International Ltd. in London. Before that, he was with Morgan Grenfell International in Tokyo and Morgan Grenfell Investments in London. Mr. Wolf received a BA in economics from Columbia University and a master's degree in public and private management from Yale University. He is based in our Singapore office.
Lionel M. Sauvage is a Senior Vice President and a Director of Capital Guardian Trust Company (CGTC) as well as a Senior Vice President of Capital International, Inc. (CII), with portfolio management responsibilities for both CGTC and CII. He joined our organisation in 1987 as an investment analyst and has covered European food, beverage and airline industries, as well as U.S. aerospace companies. Mr. Sauvage earned his MBA from INSEAD in Fontainebleau, France and his electronic engineering degree from ENSEM in Nancy, France. Prior to attending business school, he was a project manager at Sogelerg Engineering in France for five years. He is based in our West Los Angeles office.
Gerald Du Manoir is a Senior Vice President of Capital International Research, Inc. and Capital Guardian Trust Company's Personal Investment Management (PIM) division. He is also a Vice President of Capital Guardian Trust Company and a Director of Capital Guardian (Canada), Inc. He has research responsibilities for the consumer goods industries in Europe and the United States, as well as European cosmetics, luxury products, and beverages. Mr. Du Manoir also serves as a Non-U.S. Equity Research Portfolio Coordinator. Prior to joining our organisation in 1990 as a participant in "The Associates Program," he spent six months with Donaldson, Lufkin and Jenrette/Autranet in New York City. Mr. Du Manoir is an honors graduate of the Institut Supérieur de Gestion in Paris, where he earned a degree in international finance. He is based in West Los Angeles.
Andrew F. Barth is President of Capital International Research, Inc. and Capital Guardian Trust Company. He is also a Director and Global Research Director for Capital International Research, Inc. with research responsibilities for U.S. financial services, specifically thrifts, mortgage lenders, and government-sponsored enterprises. He also serves as a Director for Capital Guardian Trust Company, and is a member of the CGTC Executive Committee, the Capital Group International, Inc. Management Committee, the Global Institutional Group North American Management Committee, and the Capital Research and Management Company Management Committee. He joined our organization in 1985 after completing his MBA at Columbia University Graduate School of Business. Mr. Barth graduated summa cum laude from Columbia University (Phi Beta Kappa). He is based in our Los Angeles office. Other civic duties include serving on the school board of the San Marino Unified School District, the board of trustees for the American Ballet Theater, the Center for the Study of the Presidency, the California Science Center Foundation, the Kappa Delta Rho Foundation, and the Overseers of the Huntington Museum, Library, and Gardens.
This information is solely for the use of authorised investment advisers and is not intended for distribution to investors.
The information contained in this material has been prepared by MLC Limited (ABN 90 000 000 402) and MLC Investments Limited (ABN 30 002 641 661) and is current as at 30 June 2004.
This article/website is intended to provide general information only and has been prepared without taking into account any particular persons objectives, financial situation or needs. You should obtain a Product Disclosure Statement relating to any financial products that may be mentioned in this article/website and consider the Statement before making any decision about whether to acquire the product.
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