uploads///Portfolio Breakdown of the UNCGX

Portfolio Moves of the Waddell & Reed Advisors Global Growth Fund until YTD 2016


Jun. 25 2016, Published 5:32 a.m. ET

Waddell & Reed Advisors Global Growth Fund overview

The Waddell & Reed Advisors Global Growth Fund (UNCGX) looks for companies that “are competitively well-positioned, gaining market share, have the potential for long-term growth and/or operate in regions or countries that possess attractive growth characteristics.”

The Waddell & Reed Advisors Global Growth Fund (UNCGX) generally invests in large-cap companies, but it is not restricted to those companies. It can invest in companies of any size.

The fund manager would aim to invest at least 40% of the fund’s assets in stocks of foreign issuers. Fund management blends bottom-up stock selection with a top-down global economic analysis.

The fund’s assets were spread across 47 holdings in May 2016 and was managing $645.5 million in assets. In March, its equity holdings included Level 3 Communications (LVLT), MasterCard (MA), TripAdvisor (TRIP), Anheuser-Busch InBev (BUD), and ASML Holding (ASML).

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Portfolio changes in the Waddell & Reed Advisors Global Growth Fund

Healthcare and information technology are key sectors for the UNCGX, as each forms over a quarter of the assets. Combined with the consumer discretionary sector, the top three sectors account for 70% of the assets. The fund is not invested in the materials and utilities sectors.

UNCGX is not a typical international fund, as 61% of its assets are invested in US stocks. China is a distant second, forming 9.3% of the assets. Germany, France, and the United Kingdom, in that order, round off the top five invested countries.

Compared to May 2015, exposure to healthcare has increased from one-fifth to one-fourth of the total portfolio. Information technology stocks have also seen their portfolio weight increase from a year ago.

On the other end of the spectrum are consumer-related sectors, and exposure to both has declined in the past 12 months. While exposure to financials had stood at 11% intra-period, it is now down to ~5%.

How has the Waddell & Reed Advisors Global Growth Fund – Class A (UNCGX) fared in YTD 2016? Let’s look at that in the next article.


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