ContactHarbor International Compounders ETF (OSEA) Strategy Profile
Table of Contents
- Investment Team & Philosophy
- Approach to Investing based on Competition for Capital
- Portfolio Characteristics Reflect Distinct and Consistent Approach
| Average Annual Returns as of 9/30/2024 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 3 Months | YTD | 1 Yr. | 3 Yr. | 5 Yr. | 10 Yr. | Since Fund Inception | Fund Inception Date | Gross Expense Ratio | |
| Harbor International Compounders ETF (NAV) | 4.10% | 9.75% | 26.14% | N/A | N/A | N/A | 19.89% | 09/07/2022 | 0.55% |
| Harbor International Compounders ETF (Market) | 4.59% | 10.55% | 27.10% | N/A | N/A | N/A | 20.33% | 09/07/2022 | 0.55% |
| MSCI All Country World Ex. US (ND) Index | 8.06% | 14.21% | 25.35% | 4.14% | 7.59% | 5.22% | 17.78% | ||
| Morningstar US Fund Foreign Large Growth | 6.18% | 12.81% | 26.55% | -0.23% | 7.18% | 6.09% | 5.23% | ||
Performance data shown represents past performance and is no guarantee of future results. Past performance is net of management fees and expenses and reflects reinvested dividends and distributions. Investment returns and principal value will fluctuate and when redeemed may be worth more or less than their original cost. Returns for periods less than one year are not annualized. Current performance may be higher or lower and is available through the most recent month end at harborcapital.com or by calling 800-422-1050. For most current performance please click here.
- Founded in 1986, C WorldWide is an equity boutique investment firm based in Copenhagen, Denmark.
- Since the firm’s inception, AUM has grown to over $21 billion (as of 9/30/2024). The firm has over three decades of experience employing a disciplined and consistent process.
- The firm's PMs average 30 years of industry experience and 22 years of firm tenure and are part of the firm's 24-person investment team.
- OSEA is a high conviction portfolio employing a 30-stock maximum. This approach ensures a constant competition for capital, ensuring each holding continuously earns its place in the portfolio.
- It’s not the magnitude of growth, it’s the sustainability of growth. The team is seeking companies with competitive advantages, strong governance and clear long-term strategies which have the potential to compound earnings growth over time.
- C WorldWide devotes resources explicitly to focus on identifying generational trends (20 – 40 years) and themes (at least five years, often longer). These thematic insights help drive C WorldWide toward attractive addressable markets with the potential for sustainable growth.
- These themes are seamlessly integrated with C WorldWide’s disciplined, bottom-up fundamental research; the team will never invest in low conviction stocks regardless of conviction in the theme.
The process starts and ends with a portfolio of C WorldWide’s highest conviction ideas – maximum 30 holdings. One in, one out approach is a result of competition for capital.
| High Conviction Portfolio 25-30 holdings | (Full investment team, 26 people - meeting twice a week) | Building Conviction Global Research Team & core members* - meeting every 4th week | Global Decision Team & Meeting Meeting every 10th day or more often | Portfolio Construction 25-30 holdings |
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*The core members of the Global Research Meeting are the four PM’s in global decision team Bo Knudsen, Bengt Seger, Mattias Kolmand and Peter O’Reilly. Supplemented with global PMs Jakob Greisen and Leemon Wu, and Emerging Markets PM Aman Kalsi, Senior Advisor Lars Wincentsen. Director of Research, Senior Analyst David Rindegren, Senior Analyst Marcus Bellander, and Sustainability Specialist Mette Bergenstoff Sletbjerg.
| Ticker Symbol | OSEA |
| Cusip | 41151J885 |
| Listed Exchange | NYSE |
| Gross Expense Ratio | 0.55% |
| Lead Market Maker | Virtu |
| Inception Date | 09/07/2022 |
| Manager Name | C WorldWide Asset Management |
| Benchmark | MSCI All Country World Ex. U.S. (ND) Index |
| Morningstar Category | Foreign Large Growth |
Conviction: maximum 30 stocks
Buy/Sell discipline: one in/one out
Global trends and themes
Tailwinds and headwinds drive bottom-up selection
Low turnover
Long-term investment horizon
OSEA's key ratios are the result of the team's focus on identifying companies with the following characteristics:
Profitability
Above average quality and strong margins
Growth
Higher earnings growth and return on equity
Quality
Lower balance sheet risk
| As of 9/30/24 | OSEA | MSCI ACWI ex USA |
|---|---|---|
| # Holdings | 29 | 2,094 |
| Active Share | 89% | - |
| 1 Year Turnover | 19% | - |
| Operating Margin 12M Trailing | 25.0 | 19.3 |
| Est 3-5 Year EPS Growth | 10.0% | 12.6% |
| ROE 12M Trailing | 26.4 | 16.9 |
| Net Debt / EBIDTA 12M Forward | 0.7 | 1.7 |
C WorldWide believes higher profitability and growth should compound earnings and drive performance over time.
Source: C WorldWide.
Important Information
All investments involve risk including the possible loss of principal.
There is no guarantee that the investment objective of the Fund will be achieved. Stock markets are volatile and equity values can decline significantly in response to adverse issuer, political, regulatory, market and economic conditions. Investing in international and emerging markets poses special risks, including potentially greater price volatility due to social, political and economic factors, as well as currency exchange rate fluctuations. These risks are more severe for securities of issuers in emerging market regions. A non-diversified Fund may invest a greater percentage of its assets in securities of a single issuer, and/or invest in a relatively small number of issuers, it is more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio.
The Subadviser considers certain ESG factors in evaluating company quality which may result in the selection or exclusion of securities for reasons other than performance and the Fund may underperform relative to other funds that do not consider ESG factors.
The MSCI All Country World Ex. US (ND) Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market performance in the global developed and emerging markets, excluding the U.S. This unmanaged index does not reflect fees and expenses and is not available for direct investment.
The Morningstar US Fund Foreign Large Growth category includes funds that invest in large international stocks that are expected to grow at an above-average pace. These funds are often concentrated and can be more volatile, but they offer the potential for higher returns.
In relation to any data attributed to Morningstar, please note the following: © Morningstar 2024. All rights reserved. Use of this content requires expert knowledge. It is to be used by specialist institutions only. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied, adapted or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information, except where such damages or losses cannot be limited or excluded by law in your jurisdiction. Past financial performance is no guarantee of future results.
Active share is a metric that measures how different a fund's holdings are from its benchmark index.
Correlation is a statistic that measures the degree to which two securities move in relation to each other.
The Est 3-5 Yr EPS Growth (%) is the estimated growth of earnings per share over the next 3-5 years, using pre-calculated mean long-term EPS growth rate estimates, which are calculated using each individual broker's methodology, from FactSet, First Call, I/B/E/S Consensus, and Reuters. Forward looking estimates may not come to pass.
ROE is a measure of financial performance calculated by dividing net income by shareholders' equity.
Operating Margin is a measure of a company's overall profitability from operations.
EBITDA or earnings before interest, taxes, depreciation, and amortization is used as an indicator of the overall profitability of a business.
The views expressed herein may not be reflective of current opinions, are subject to change without prior notice, and should not be considered investment advice.
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