International Strategies
In an expanding global marketplace, high-quality companies and investment opportunities are scattered far across the world. Shelton Capital Management finds those opportunities and offers U.S. investors international exposure through the Shelton International Select Equity Fund, separately managed accounts (SMAs) and the Shelton Emerging Markets Fund.
Both strategies are concentrated portfolios with a principles-based component that seeks to invest in companies that are deemed to have a positive societal impact.
Shelton International Select Equity Fund
The Shelton International Select Equity Fund seeks to achieve long-term capital appreciation. This strategy provides international exposure and an investment opportunity categorized by Morningstar® as a foreign large blend.
Morningstar RatingTM
SISEX
Shelton International Select Equity Fund (SISEX, SISLX) received an Overall Morningstar RatingTM of 5 stars in the Foreign Large Blend category as of 9/30/2020. Important Information for Morningstar® Rating
Fund Information
 |
 |
 |
|---|---|---|
| Download Commentary | Download Fact Sheet: Shelton International Select Equity Fund Tickers: SISLX, SISEX Benchmark: MSCI ACWI Ex US |
Download PDF: Portfolio Insights Shelton International Select Equity Fund (SISEX, SISLX) |
In The News
Press Release: Shelton International Receives 5 Star Morningstar Rating
Article: Four Myths About Investing Outside U.S. Markets
Article: European Shares End Choppy Session Higher After Wall Street bounce
Article: Pensions and Investments: Reject the Classification Crutch
Article: Boutique of the Week: Shelton Capital Management
Article: China’s Quest For IP Is One Of The Biggest Risks For Investors Worldwide
By clicking the article link to Pensions and Investments online, you’ll leave this site and go to a third-party website. Shelton Capital Management does not control the content or privacy practices of the other website and does not endorse or accept responsibility for the content, policies, activities, products or services offered on the site. It should not be considered investment advice. The information provided does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security.
Process
The Fund seeks to achieve long-term capital appreciation by investing in a concentrated portfolio of 30-50 stocks using a proprietary process that seeks to identify companies generating superior and consistent internal returns on capital in order to create shareholder value. The fund invests primarily in mid-to-large cap foreign equity securities.
Central to our approach is the premise that a company generates value for its shareholders by successfully redeploying capital over time. By analyzing a company according to its life cycle stage, we believe that we can most effectively evaluate its risk and return potential, and more accurately forecast the company’s likelihood of generating value for shareholders.
By focusing in on a company’s economic returns and its reinvestment rate, we believe more accurate assumptions can be made about the future generation of cash flows – the basis for a company’s stock price. We incorporate this idea into our investment process from start to finish.
A distinctive approach to international investing —a life cycle approach:
Strategy Benefits
- “Controlled Growth” international strategy (“foreign large blend” box in Morningstar).
- Concentrated portfolio (30-50 stocks) with a high active share and relatively lower tracking error.
- Access to a unique investment process that involves a Corporate Lifecycle perspective.
- Investment in some of the best-managed companies around the world.
- Access to fast-growing, developing markets.
Strategy Considerations
- All investments involve risk including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.
- Foreign currency fluctuations can add volatility to foreign equity prices.
Portfolio Management Team
Derek Izuel, CFA
Justin Sheetz, CFA
Resources
| Documents | Zip | |
|---|---|---|
| Prospectus |  |
|
| Annual Report | |
|
| Statement of Additional Information | |
|
| Semi-Annual Report | |
FAQs
The strategy is primarily fundamental in nature but uses quantitative tools to increase the efficiency of the team’s work flow. Quantitative models are used to determine which life cycle stage each company is in and the future expected returns. Those returns are then compiled into a ranking system, of which the top 20% is used as a priority list for new investment ideas. Because most of the quantitative aspect of the process is automated, the team is able to spend the majority of its time dissecting and fundamentally analyzing new ideas from a list of the most promising stocks.
The team believes that the predominant modes of market segregation (based on sector or geographic preferences) are not useful starting points when thinking about the merits of investing in a company. Instead, the most beneficial information to an investor is how effective a company has been at generating cash flows as compared to the rest of the market. That effectiveness can be measured and is ultimately a good indicator of where a company lies in its corporate lifecycle. The team captures this information for every company at the onset of the process, and by focusing on a company’s economic returns and its reinvestment rate, more accurate assumptions can be made about the future generation of cash flows – the basis for a company’s stock price. The international team’s process incorporates this idea in its investment process from start to finish.
The Shelton International Select Equity Strategy is likely a suitable investment strategy for those looking for either a core or growth international strategy. The team’s lifecycle-based process targets companies with the best opportunity to create shareholder value. This involves traditional “growth” companies along with what may be considered “value” companies that we believe are in the position to improve their competitive capacity, typically done with a management change and/or a major restructuring. Additionally, the portfolio is managed to take more idiosyncratic risk (stock specific risk) rather than making factor bets (i.e. big differences in sector or region allocation versus the benchmark). This ultimately leads to a higher active share and a lower tracking error.
Important Information
It is possible to lose money by investing in the Fund. Investors should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund. To obtain a prospectus, visit www.sheltoncap.com or call (800) 955-9988. A prospectus should be read carefully before investing. There may be additional risks associated with international investing involving foreign, economic, political, monetary, and/or legal factors.
International investing may not be for everyone. The information contained in this document is given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it, does so entirely at his or her own risk. Any projections or other forward-looking statements regarding future events or performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual events or results. This information is intended to highlight issues and not to be comprehensive or to provide advice.
The MSCI ACWI ex USA is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed (excluding the United States) and emerging markets. Developed market countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Emerging market countries include: Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and the United Arab Emirates. Net total return indexes reinvest dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. It is not possible to invest directly in an index.
Distributed by RFS Partners, a member of FINRA, and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
Shelton Emerging Markets Fund
The Shelton Emerging Markets Fund seeks to achieve long-term capital appreciation. This strategy provides international exposure and an investment opportunity categorized by Morningstar® as a Diversified Emerging Markets fund.
Fund Information
 |
 |
|---|---|
| Download Fact Sheet: Shelton Emerging Markets Fund Tickers: EMSQX, EMSLX Benchmark: MSCI Emerging Markets |
Download Commentary |
In The News
Press Release: Shelton Capital Management Introduces Emerging Markets Fund
Process
The Fund seeks to achieve long-term capital appreciation by investing in a concentrated portfolio of 30-50 stocks using a proprietary process that seeks to identify companies generating superior and consistent internal returns on capital in order to create shareholder value. The fund invests its assets in equity securities of non-U.S. companies located in countries with emerging markets, but may also invest in companies domiciled in developed markets.
Central to our approach is the premise that a company generates value for its shareholders by successfully redeploying capital over time. By analyzing a company according to its life cycle stage, we believe that we can most effectively evaluate its risk and return potential, and more accurately forecast the company’s likelihood of generating value for shareholders.
By focusing in on a company’s economic returns and its reinvestment rate, we believe more accurate assumptions can be made about the future generation of cash flows – the basis for a company’s stock price. We incorporate this idea into our investment process from start to finish.
A distinctive approach to international investing —a life cycle approach:
Strategy Benefits
- “Controlled Growth” international strategy (“Diversified Emerging Markets” box in Morningstar).
- Concentrated portfolio (30-50 stocks) with a high active share and relatively lower tracking error.
- Access to a unique investment process that involves a Corporate Lifecycle perspective.
- Investment in some of the best-managed companies around the world.
- Access to fast-growing, emerging markets.
Strategy Considerations
- All investments involve risk including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.
- Foreign currency fluctuations can add volatility to foreign equity prices.
Portfolio Management Team
Derek Izuel, CFA
Justin Sheetz, CFA
Resources
| Documents | |
|---|---|
| Prospectus | |
| Statement of Additional Information | |
| Annual Report | |
FAQs
The Shelton Emerging Markets Fund is likely a suitable investment strategy for those looking for either a core or growth international strategy. The team’s lifecycle-based process targets companies with the best opportunity to create shareholder value. This involves traditional “growth” companies along with what may be considered “value” companies that we believe are in the position to improve their competitive capacity, typically done with a management change and/or a major restructuring. Additionally, the portfolio is managed to take a more idiosyncratic risk (stock-specific risk) rather than making factor bets (i.e. big differences in sector or region allocation versus the benchmark). This ultimately leads to a higher active share and a lower tracking error.
The strategy is primarily fundamental in nature but uses quantitative tools to increase the efficiency of the team’s work flow. Quantitative models are used to determine which life cycle stage each company is in and the future expected returns. Those returns are then compiled into a ranking system, of which the top 20% is used as a priority list for new investment ideas. Because most of the quantitative aspect of the process is automated, the team is able to spend the majority of its time dissecting and fundamentally analyzing new ideas from a list of the most promising stocks.
The team believes that the predominant modes of market segregation (based on sector or geographic preferences) are not useful starting points when thinking about the merits of investing in a company. Instead, the most beneficial information to an investor is how effective a company has been at generating cash flows as compared to the rest of the market. That effectiveness can be measured and is ultimately a good indicator of where a company lies in its corporate lifecycle. The team captures this information for every company at the onset of the process, and by focusing on a company’s economic returns and its reinvestment rate, more accurate assumptions can be made about the future generation of cash flows – the basis for a company’s stock price. The international team’s process incorporates this idea in its investment process from start to finish.
Important Information
It is possible to lose money by investing in the Fund. Investors should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund. To obtain a prospectus, visit www.sheltoncap.com or call (800) 955-9988. A prospectus should be read carefully before investing.
There may be additional risks associated with international investing involving foreign, economic, political, monetary, and/or legal factors. International investing may not be for everyone. The information contained in this document is given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it, does so entirely at his or her own risk. Any projections or other forward-looking statements regarding future events or performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual events or results. This information is intended to highlight issues and not to be comprehensive or to provide advice.
The MSCI Emerging Markets Index captures large and mid cap representation across 26 Emerging Markets (EM) countries (Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates).
With 1,403 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
Distributed by RFS Partners, a member of FINRA, and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
Shelton International Select Equity SMA Strategy
The Shelton International Select Equity Portfolio seeks to deliver attractive risk-adjusted returns over time.
Strategy Information
|
|
|
|---|---|---|
| Download Commentary | Download Fact Sheet: Shelton International Select Equity Strategy Benchmark: MSCI ACWI Ex US |
Download PDF: Portfolio Insights Shelton International Select Equity Fund (SISEX, SISLX) |
Please consult with your Director of Advisor Services for access to more information.
In The News
Press Release: Shelton International Receives 5 Star Morningstar Rating
Article: Four Myths About Investing Outside U.S. Markets
Article: European Shares End Choppy Session Higher After Wall Street bounce
Article: Pensions and Investments: Reject the Classification Crutch
Article: Boutique of the Week: Shelton Capital Management
Article: China’s Quest For IP Is One Of The Biggest Risks For Investors Worldwide
By clicking the article link to Pensions and Investments online, you’ll leave this site and go to a third-party website. Shelton Capital Management does not control the content or privacy practices of the other website and does not endorse or accept responsibility for the content, policies, activities, products or services offered on the site. It should not be considered investment advice. The information provided does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security.
Process
The International Equity team at Shelton Capital manages concentrated, high-conviction portfolios of non-US large-cap and mid-cap companies. Shelton Capital Management offers this strategy through SMAs and a mutual fund.
Central to our approach is the premise that a company generates value for its shareholders by successfully redeploying capital over time. By analyzing a company according to its life cycle stage, we believe that we can most effectively evaluate its risk and return potential, and more accurately forecast the company’s likelihood of generating value for shareholders.
By focusing in on a company’s economic returns and its reinvestment rate, more accurate assumptions can be made about the future generation of cash flows – the basis for a company’s stock price. We incorporate this idea into our investment process from start to finish.
Strategy Benefits
- “Controlled Growth” international strategy (“foreign large blend” box in Morningstar).
- Concentrated portfolio (30-50 stocks) with a high active share and relatively lower tracking error.
- Access to a unique investment process that involves a Corporate Lifecycle perspective.
- Investment in some of the best-managed companies around the world.
- Access to fast-growing, developing markets.
Strategy Considerations
- The Shelton International Select Equity SMA Strategy seeks to deliver attractive risk-adjusted returns over time by investing in American Depository Receipts (ADRs).
- All investments involve risk including the possible loss of principal. There can be no assurance the strategy will achieve its investment objective.
- Foreign currency fluctuations can add volatility to foreign equity prices.
Portfolio Management Team
Derek Izuel, CFA
Justin Sheetz, CFA
FAQs
The Shelton Emerging Markets Fund is likely a suitable investment strategy for those looking for either a core or growth international strategy. The team’s lifecycle-based process targets companies with the best opportunity to create shareholder value. This involves traditional “growth” companies along with what may be considered “value” companies that we believe are in the position to improve their competitive capacity, typically done with a management change and/or a major restructuring. Additionally, the portfolio is managed to take a more idiosyncratic risk (stock-specific risk) rather than making factor bets (i.e. big differences in sector or region allocation versus the benchmark). This ultimately leads to a higher active share and a lower tracking error.
The strategy is primarily fundamental in nature but uses quantitative tools to increase the efficiency of the team’s work flow. Quantitative models are used to determine which life cycle stage each company is in and the future expected returns. Those returns are then compiled into a ranking system, of which the top 20% is used as a priority list for new investment ideas. Because most of the quantitative aspect of the process is automated, the team is able to spend the majority of its time dissecting and fundamentally analyzing new ideas from a list of the most promising stocks.
The team believes that the predominant modes of market segregation (based on sector or geographic preferences) are not useful starting points when thinking about the merits of investing in a company. Instead, the most beneficial information to an investor is how effective a company has been at generating cash flows as compared to the rest of the market. That effectiveness can be measured and is ultimately a good indicator of where a company lies in its corporate lifecycle. The team captures this information for every company at the onset of the process, and by focusing on a company’s economic returns and its reinvestment rate, more accurate assumptions can be made about the future generation of cash flows – the basis for a company’s stock price. The international team’s process incorporates this idea in its investment process from start to finish.
Important Information
It is possible to lose money by investing in the strategy. Past performance does not guarantee future results. There are management fees and other charges associated with the Shelton Separately Managed Account programs. Any strategies discussed, including examples using actual securities’ price data, are strictly for illustrative and educational purposes only and are not to be construed as an endorsement or recommendation to buy or sell securities. You should review transaction costs, margin requirements and tax considerations with a tax advisor before entering into any options strategy. There may be additional risks associated with international investing involving foreign, economic, political, monetary, and/or legal factors. International investing may not be for everyone. The information contained in this document is given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it, does so entirely at his or her own risk. Any projections or other forward-looking statements regarding future events or performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual events or results. This information is intended to highlight issues and not to be comprehensive or to provide advice.
The MSCI ACWI ex USA is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed (excluding the United States) and emerging markets. Developed market countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Emerging market countries include: Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and the United Arab Emirates. Net total return indexes reinvest dividends after the deduction of withholding taxes, using (for international indexes) a tax rate applicable to non-resident institutional investors who do not benefit from double taxation treaties. It is not possible to invest directly in an index.
Distributed by RFS Partners, a member of FINRA, and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
Contact Us For More Information
We have a team of professionals dedicated to supporting the needs of our advisor clients. Request to consult with a Portfolio Manager and your Director of Advisor Services to learn more about how we can help you meet your clients’ needs.
Josh Fudge
Ryan Groves
Matt Gunter
Jeff Medina
David Lucier
Laura Bevill, CAIA
Jason Shidler
Andy Holtgrieve
Tony Brown
Alyssa Zagrobski, AIF®, CPFA
Jenna Yoss
Daniel Klusty
Genevieve Kelly
