Strategic Partner Managed Accounts

The strategy is intended to be a core, “all-weather” strategy for an international equity allocation, providing exposure to both developed and emerging markets.

Todd Asset Management traces its roots to 1967 when Bosworth Todd founded Todd Investment Advisors as a value-oriented investment advisor employing the customary measures of identifying attractive value. In 1986, responding to changing markets and frustration with the static nature of standard value practices, Todd Investment Advisors adopted its unique methodology using intrinsic value to identify a stock's true underlying value. Today, with 30-plus years of experience with the intrinsic value methodology, Todd Asset Management continues to believe Price to Intrinsic Value ("P/IV") is still the most effective method for determining the relative attractiveness of one stock versus another regardless of economic sector.

Todd Asset Management believes Price/Intrinsic Value (P/IV) is the most effective fundamental calculation to determine the true valuation of a stock. The P/IV calculation, coupled with the firm’s proprietary Multi-Factor Ranking Model, forms a comprehensive disciplined process including risk controls, designed to build a portfolio that should consistently outperform the MSCI ACWI ex-US over full market cycles.

The International Intrinsic Value portfolio is a high-quality, large-cap core portfolio of internationally domiciled stocks trading on US exchanges. The strategy is built on the firm’s P/IV philosophy, which is the basis for all of the firm’s strategies, and utilizes a proprietary Multi-Factor Ranking Model to identify stocks believed most likely to outperform based on an attractive valuation, positive and improving fundamentals and market acceptance of these factors.

The fundamentals-based, bottom-up selection process is combined with a robust sell discipline and risk controls in an effort to guard against downside surprises. The strategy is intended to be a core, “all-weather” strategy for an international equity allocation, providing exposure to both developed and emerging markets.

Risk Controls

• Buy and sell disciplines are managed by a portfolio management team averaging more than 30 years of experience.
• Disciplined fundamental stock review and buy discipline utilizing proprietary Multi-Factor Ranking Model to help avoid value traps
• Selection of 65-85 high quality, large cap stocks with attractive P/IV
• Diversified across sectors and regions with all major sectors and regions represented in the portfolio
• Portfolio limits +/- 10% relative to the MSCI ACWI ex-US weightings, and maximum issue weightings of 2% at initial cost and 3% at market
• Clear sell discipline with tiered urgency levels that utilize the Multi-Factor Composite Score to identify weakening holdings

Stocks are considered for sale when:

• P/IV ratio is > 1.3x the P/IV of Index
• Fundamentals of company or industry weaken
• Multi-Factor Composite Score falls below 8

Stocks are a mandatory sale when:

• P/IV ratio is > 1.5x the P/IV of Index
• Structural negative or accounting issues
• Multi-Factor Composite Score falls below 6