uploads///Portfolio Breakdown of the UMBWX

Portfolio Moves of the Scout International Fund in YTD 2016


Jun. 27 2016, Updated 9:08 a.m. ET

Scout International Fund overview

The Scout International Fund (UMBWX) invests in established companies that are either headquartered outside the US or whose main business is carried outside the US.

Its equity investments can be via common stocks, depositary receipts, preferred stocks, convertible securities, and warrants or other rights.

The fund’s management adopts a bottom-up approach to stock selection. The fund’s literature states that it “seeks to invest in securities of seasoned companies that are known for the quality and acceptance of their products or services.”

Apart from bottom-up analysis, fund managers also look at geopolitical and macroeconomic issues. The fund will not have more than 20% of its assets invested in emerging markets. Fund managers intend to invest in a security for the long term.

The fund’s assets were spread across 73 holdings in April 2016 and was managing $1.6 billion in assets in May. In April, its equity holdings included Magna International (MGA), Enbridge (ENB), Ryanair Holdings (RYAAY), Japan Tobacco (JAPAY), and Volkswagen (VLKAY).

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Portfolio changes in the Scout International Fund

Financials account for close to a fifth of the Scout International Fund’s (UMBWX) assets and are the largest invested sector. Industrials and consumer discretionary are the second and third largest, with consumer staples in a close fourth position. The fund is not invested in the utilities sector.

Compared to the MSCI EAFE Index, UMBWX is overweight in the information technology, energy, and materials sectors while being underweight in the consumer discretionary and telecom services sectors. Stocks from Europe make up over half of the fund’s assets with Asia and the Pacific Basin forming over a quarter of the portfolio.

Exposure to financials is marginally down in May 2016 from a year ago. Exposure to both consumer-oriented sectors—discretionary and staples—has been reduced. Industrials and information technology stocks occupy more of the portfolio now than they did a year ago.

How has the Scout International Fund (UMBWX) fared in YTD 2016? Let’s discover that in the next article.


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