Investment Management Overview Manager Bios Peter L. Boardman | 05-01-2005 NWQ Investment Management Co LLC
Peter Boardman is a portfolio manager and a consumer durables analyst at Tradewinds. Prior to joining Tradewinds, Peter was an international equity analyst at Nuveen affiliate NWQ for three years. Before that time, he was a senior analyst with USAA Investment Management managing the Japan portion of the firm’s international fund while covering automobiles, pharmaceuticals, and semiconductors on a global sector basis. He spent eight years with UBS Warburg as a sellside analyst following the automobile and auto parts industries in North America, Japan, and Asia. Mark A. Morris | 05-01-2005 NWQ Investment Management Co LLC
Morris is a senior vice president with NWQ Investment Management, his employer since 2001. Prior to this, he was a director and portfolio manager with Merrill Lynch Investment Managers. Previously, Morris worked as a senior vice president and analyst at Trust Company of the West and as vice president and technology analyst at Hanifen Imhoff. Gregg S. Tenser | 05-01-2005 NWQ Investment Management Co LLC
Gregg S. Tenser joined NWQ as Vice President and Analyst in 2001, became Senior Vice President in 2003 and was named Managing Director in 2005. Mr. Tenser holds the Chartered Financial Analyst designation.
Investment Management Approach The Fund benefits from the bottom-up value investment expertise of NWQ Investment Management, a firm that takes a fundamental, long-term approach to global equity. Los Angeles-based NWQ employs a bottom-up value approach to stock selection, actively seeking out undervalued companies with catalysts to improve profitability or unlock value. In a market fuelled by emotion, NWQ strips away the subjectivity to search for objective value and has maintained an unwavering commitment to value investing since the firm’s founding in 1982. Discipline, collaboration and accountability remain the cornerstones of their culture. Based on three critical factors, NWQ’s investment process is disciplined, yet opportunistic. Firstly, they seek attractive valuation, applying a corporate finance perspective that
emphasizes absolute valuation in addition to cash flow and balance sheet analysis. Secondly, they seek favourable risk/reward and downside protection, as they believe the loss of capital should be limited. Lastly, but perhaps most critical, they seek inflection points, or catalysts that serve to improve profitability or unlock value before such changes become evident to other investors. The result is a globally diversified portfolio of undervalued companies with catalysts to improve profitability or unlock value. The Fund is an excellent complement to a domestic portfolio, and as a value offset for a growth-oriented portfolio.
Manager Commentary The second quarter was a period of heightened equity market volatility. From a sector perspective, the fund has an underweight position in the financials sector, with a focus on what the manager believes are well-capitalized insurancerelated companies and global banking franchises. The materials and telecommunications services sectors are the two most significant overweight positions in the fund. The manager prefers oligopolistic, strongly franchised telecommunications services companies in markets with limited telecom penetration. Within the materials sector, the fund has concentrated exposure to gold producers that the manager believes offer attractive valuations at current gold prices. Over the previous few years, the manager has found many quality companies with strong market positions and solid balance sheets that are domiciled in Japan. The fund continues to have an overweight position in
Japan, and the manager believes the risk/reward profile of the fund’s Japanese holdings remains attractive. The manager is carefully handling the fund’s European exposure to avoid low-priced businesses that may stagnate or continue to decline – while maintaining or building positions in companies offering the potential for long-term value. The manager continues to focus on bottom-up fundamental analysis when selecting fund holdings. The fund’s sector and regional weightings are a by-product of the manager’s disciplined investment process. The manager continues to invest in companies the manager believes offer attractive valuations, favourable risk/ reward profiles and unrecognized catalysts that may lead to the recognition of value over time. The manager believes the fund is well positioned for the current market environment. As at June 30, 2012
RENAISSANCE INVESTMENTS 107
GLOBAL EQUITY FUNDS
Renaissance Global Value Fund (Class A)