Global Equity Fund

Share Class Investor  
Ticker CAMGX  
Inception Date 11.30.2011
Minimum Investment       $2,500  

2016 Final Capital Gain Distributions

The Cambiar Global Equity Fund is structured as a ‘best ideas’ portfolio, whereby sourcing of new ideas will come from Cambiar’s existing domestic and international portfolios.  

The Fund has the ability to seek investment opportunities from across the globe, making it Cambiar's most diversified portfolio.  

  • Flexibility to invest in all corners of the world.
  • Equal-weighted approach - All new stock positions enter the portfolio at 2% position sizes. This construction is designed to reduce excessive stock-specific risk, while allowing for the freedom to participate on the upside. 
  • Fund will take a broadly neutral weight relative to the U.S. and international exposure found in the benchmark
  • The Fund attempts to hold between 45-55 stocks.

Portfolio Managers


Ania A. Aldrich, CFA 



Todd L. Edwards, PhD 



Alvaro Shiraishi

Morningstar Rating™

Performance Charts

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Returns assume reinvestment of all dividend and capital gains distributions.  Expense ratio is 3.72% (gross); 1.21% (net). Cambiar Investors, LLC has contractually agreed to reduce fees and reimburse expenses in order to keep net operating expenses from exceeding 0.95% of the average daily net assets of each of the Fund’s share classes until September 1, 2017.  Absent these waivers, total return would be reduced. For performance current to the most recent month-end, please call 1-866-777-8227. The MSCI World and ACWI Index are unmanaged indices compiled by Morgan Stanley Capital International. The MSCI indices returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an index.

The Fund charges a 2.00% redemption fee on redemptions of shares held for less than 90 days. 

Portfolio Profile (as of 12.31.2016)

Top 10 Holdings % Weight
Citizens Financial 2.3
Philips NV 2.3
Citigroup 2.3
Bristol-Myer Squibb 2.2
Synchrony Financial 2.2
AXA SA 2.2
HSBC 2.2
AerCap 2.2
Agilent Technologies 2.2
EOG Resources 2.1
% of Total 22.2
Holdings Subject to Change  
Attributes Cambiar MSCI World MSCI ACWI
Price/Earnings F1Y 15.0 16.2 15.5
Price/Book 2.0 2.2 2.1
Debt/Equity  1.0 1.1 1.0
EPS Growth  8.8 10.4 10.6
Market Cap Wtd Avg 70.4 B 106.2 B 100.9 B
Market Cap Median 32.5 B 11.1 B 8.8 B
Active Share 92.4    
Sector Weights   Cambiar      MSCI World MSCI ACWI
Consumer Discretionary 7.6 12.3 12.1
Consumer Staples 10.8 9.7 9.5
Energy 9.6 7.3 7.3
Financials 19.0 18.0 18.7
Health Care 15.4 12.0 11.1
Industrials 14.3 11.2 10.6
Information Tech 11.2 14.6 15.5
Materials 3.6 5.0 5.3
Real Estate 1.7 3.2 3.1
Telecom Services 3.7 3.4 3.6
Utilities 0.0 3.2 3.2
Cash 2.9    
Top 5 Countries     Cambiar MSCI World MSCI ACWI
United States 48.8 59.5 53.3
Netherlands 14.3 2.3 2.1
Japan 9.5 8.7 7.8
United Kingdom 6.0 6.0 5.4
France 4.1 3.5 1.0
Risk Statistics* Cambiar MSCI World MSCI ACWI
Alpha 0.0 0.0 -0.7
Beta 1.0 1.0 1.0
R-Squared 89.3 100 98.9
Sharpe Ratio 0.4 0.4 0.3
Standard Deviation 11.2 11.1 11.2
*Three Year      


Market Review (12.31.2016)

Global equity markets posted mixed returns for the final quarter of 2016.  U.S. stocks were the bright spot in the quarter, as investors reacted positively to the pro-growth agenda put forth by the Trump Administration.  International equities missed the invite to the party put on by their U.S. counterparts, with most non-U.S. markets incurring modest negative returns for the quarter.  Emerging Markets was hit the hardest, with the MSCI Emerging Markets Index returning -4.2%.  Despite their 4Q setback, EM stocks were one of the top-performing markets (outside of the U.S.) in 2016; top EM contributors were Brazil and Russia.  One non-U.S. market that was positive for the quarter was Japan, as a stronger dollar/weaker yen was viewed as supportive for Japanese stocks.  Japanese equities have rebounded strongly in the second half of 2016, after struggling for the first six months of the year.  Cambiar’s International and Global Funds have varying allocations to Japan – mostly a function of the opportunity set and relative risk/reward for the underlying investment strategy.

Bottom-Up vs Top-Down Investing

One takeaway from 2016 was the extent to which stock prices were buffeted by big picture events that took place around the globe – to the point where company-specific fundamentals were a distant second in importance.  Examples included the reach-for-yield trade, the Brexit event in June, Donald Trump’s victory in November, and the OPEC production cut in December.  Although the market’s response to such events moderated as the year progressed, investment manager performance was impacted (to varying extents) by positioning of one’s portfolio going into these episodes.  Given the event-driven year that was 2016, Cambiar’s view on bottom-up vs. top-down investing is a timely discussion.

The Cambiar International and Global Equity Funds are predominantly managed using a bottom-up approach; our analysts seek to identify high quality businesses that are nearing an inflection point in their business that we believe is not being recognized or properly valued by the market.  This ‘beat to the spot’ approach is based on a rigorous in-house research process.  As part of this research effort, the Cambiar team will often consider relevant macro variables that may be a part of a top-down discipline.  But the key is the order of the process; i.e., the macro is one factor in the Cambiar buy/sell decision, vs. the macro leading the decision.  Where relevant, it is Cambiar’s preference for macro factors to have a positive (or neutral) impact to the investment case; e.g., a higher oil price deck will be a positive for the strategies’ energy holdings, just as steepening yield curves will be beneficial for many of our financial positions.  A change in the macro can also be a negative leading indicator; the precipitous drop in oil prices during the second half of 2014 was a red flag for a related decline in margins/earnings within the sector.

Perhaps the bigger takeaway for our clients is that Cambiar attempts to take a 360-degree view when evaluating the companies in our portfolio – from both a risk and reward perspective.  The bottom-up will almost always trump the top-down, but the objective is to base portfolio decisions on an unbiased assessment on all data that can impact the investment case for the companies.

Global Equity Fund

The Cambiar Global Equity Fund posted a positive return in the fourth quarter, and ended 2016 with a solid gain for the year.  When viewed on a geographic basis, performance for the quarter was essentially segmented between the United States (positive return) and the rest of the world (negative returns).  The U.S. markets also did most of the heavy lifting for calendar year 2016 – although Emerging Markets was another outlier to the upside for the year.  The Global Equity Fund continues to maintain an underweight allocation to EM vs. our benchmark (3% vs. 10% for the index), as the strategy has historically had more of a developed market skew.  Cambiar continues to do work in identifying possible investment ideas in EM; yet given potential headwinds in the form of higher interest rates in the U.S. and a stronger dollar, we do not feel overly pressured to have more exposure in this segment of the market.

The Global Equity Fund maintained a lower U.S. weighting vs. the benchmark in the quarter (as well as on a full year basis).  Although the portfolio has generally taken a more neutral stance vs. the index as it relates to U.S./non-U.S. exposures, the outperformance of the U.S. market in recent years has resulted in an increasing pipeline of international companies that we believe offer a more attractive risk/reward profile.  While this line of thinking did not materialize in 2016, Cambiar remains comfortable with the portfolio’s current geographic allocations.

At a sector level, Financials was the runaway outperformer in the quarter – as banks, insurance, and related financial services companies re-rated on a combination of rising rates, higher economic growth expectations and the potential rollback of cumbersome regulations.  The Fund benefited from both a meaning allocation to Financials as well as strong stock performance within the sector.  While recognizing that the sector has had a sizable move in a short period of time, a good portion of the 4Q rally was simply a function of “catch up” – given the negative sentiment toward financials in the first six months of the year.  Cambiar’s still-constructive posture in financials is based on reasonable valuations and continued upside potential via higher earnings, increased capital return and modest multiple expansion.

The market’s preference for sectors/companies that are positively geared towards global growth trends subsequently resulted in lagging returns for more defensive sectors such as Consumer Staples, Utilities, Telecom and Health Care.  The Global Fund is exposed to these sectors to varying degrees (e.g. overweight Health Care, no allocation to Utilities) in an effort to provide balance as well as offset the strategy’s cyclical positioning. 

One sector where the Global portfolio trailed the benchmark was Technology; Cambiar’s tech holdings trailed in the quarter as well as on a full-year basis.  Much of the underperformance can be attributed to one holding – Ericsson, a Swedish telecom equipment company.  The investment thesis of improving free cash flow and anticipated revenue mix shift from equipment to services did not unfold as expected, and the position was liquidated in the quarter.

While not an impact in the quarter, the portfolio’s approximate 6% cash level over the course of the year subsequently detracted from the strategy’s 2016 return vs. a fully invested portfolio.  Cambiar does not attempt to be tactical in the management of cash; the decisions to sell and buy are separate in nature, and may have timing mismatches that result in a cash balance.     

Looking Ahead

2016 marks the fourth consecutive year (and six out of seven) in which U.S. stocks have outperformed international equities.  This seemingly persistent one-way trade flies in the face of classic diversification tenets, and has likely resulted in a pronounced home country bias in many client portfolios. 

Perhaps it is the embedded mean reversion tendencies in us, yet Cambiar is reasonably optimistic about the outlook for international equities in 2017 – on both an absolute basis as well as relative to U.S. markets.  While market valuations are approaching cyclical highs in the U.S., international stocks remain reasonably priced relative to forward earnings estimates.  Additional tailwinds include improving global growth and steepening yield curves.  In our view, the global business cycle has a number of years left to go; if anything, it is probably time for many of the world’s economies to play catch up to the U.S.  If we are correct in this outlook, international equity markets should also be poised to outperform.

That being said, we are certainly cognizant of the risks, not only that the global economy disappoints on the growth side and deflationary issues (i.e., falling bond yields) return to the fore, but also that inflation may gather force.  This latter scenario would likely require more tightening than expected from the Fed, which together with a strong dollar could cause problems for global equities.  It is also important to see some follow-through from international markets on earnings – particularly in Europe.  Although Cambiar anticipates solid improvement on this front, a failure to produce a meaningful earnings rebound is an additional risk. As always, we are looking first and foremost for compelling investments to own on behalf of our clients; at this juncture, we continue to find abundant opportunities.


Mutual fund investing involves risk, including the possible loss of principal. In addition to the normal risks associated with investing, investments in small companies typically exhibit higher volatility.  International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations.  Emerging markets involved heightened risks related to the same factors as well as increased volatility and lower trading volume.  There can be no assurance that the Fund will achieve its stated objectives.

To determine if a Fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the Fund’s prospectus which can be obtained by clicking here or calling 1-866-777-8227. Please read it carefully before investing. There is no guarantee that the Funds will meet their stated objectives.

Performance data quotes are past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month-end, please call 1-866-777-8227.

The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. CAMGX was rated against 848 World Stock funds over a three year period and 669 funds over a five year period. With respect to these World Stock funds CAMGX received a rating of 3 stars for the three year and 3 stars for the five year period, respectively. Past performance is no guarantee of future results.

Price/Earninngs F1Y is a calculation that divides the current share price by the estimates of earnings in the next four quarters. Debt/Equity - Long Term is a calculation that takes interest bearing, long-term debt divided by shareholder equity. EPS Growth - Long Term is a calculation that takes the company’s estimated profits for five years divided by the outstanding shares. Active share is a holdings-based measure of active management representing the percentage of securities in a portfolio that differ from those in the benchmark index. Alpha is a measure of risk-adjusted performance. Beta is a measure of risk in relation to the market or benchmark. The Sharpe Ratio is a direct measure of reward-to-risk and is calculated by subtracting the risk free rate from the rate of return for a portfolio and dividing the result by the standard deviation. Standard Deviation is a statistical measure of historical volatility; a measure of the extent to which numbers are spread around their average. R-Squared measures how closely a portfolio’s performance correlates with the performance of a benchmark index.  These calculations are not a forecast of the Fund’s future performance. 

The MSCI World and ACWI index are an unmanaged index compiled by Morgan Stanley Capital International. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI indices returns do not reflect any management fees, transaction costs or expenses. The MSCI indices returns do not reflect any management fees, transaction costs or expenses. Individuals cannot invest directly in an Index. The Nikkei 225 Index is a price-weighted equity index, which consists of 225 stocks in the 1st section of the Tokyo Stock Exchange.  Individuals cannot invest directly in an Index.  

As of 12.31.16 the Cambiar Global Equity Fund had a 0.0% weighting in Ericsson.  Current and future holdings subject to risk.

This material represents the portfolio manager’s opinion and is an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice or a specific recommendation of securities.

Cambiar Funds are distributed by SEI Investments Distribution Co., 1 Freedom Valley Dr Oaks, PA 19456, which is not affiliated with the Advisor. Cambiar Funds are available to US investors only. Strategies included within the Institutional Investor offer are not mutual funds and are not affiliated with SEI Investments Distribution Co.