International Strategies (old)2020-07-08T15:33:06-06:00

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 in a concentrated portfolio through the Shelton International Select Equity Fund, separately managed accounts (SMAs) and the Shelton Emerging Markets Fund.

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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

star star star star star   SISEX

Shelton International Select Equity Fund (SISEX, SISLX) received an Overall Morningstar RatingTM of 5 stars in the Foreign Large Blend category as of 3/31/2020. Important Information for Morningstar® Rating

In The News

Press Release: Shelton International Receives 5 Star Morningstar Rating

Article: Pensions and Investments: Reject the Classification Crunch

Podcast: (July 6,2018) Andrew Manton interviewed by Charlie Wright on Strategic Investor Radio: Our proprietary approach to international company selection

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.

Fund Information

International Commentary Image International Equity Fact Sheet
Download Commentary  Download Fact Sheet: Shelton International Select Equity Fund
Tickers: SISLX, SISEX
Benchmark: MSCI ACWI Ex US

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:

International Lifecycle graphic 1 v2 01

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

Resources

Documents PDF Zip
Prospectus pdf DL
Annual Report pdf DL
Statement of Additional Information pdf DL
Semi-Annual Report pdf DL
XBRL Files Zip DL

FAQs

Is your process quantitative or fundamental?2020-06-26T08:45:53-06:00

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.

What is unique about the Corporate Lifecycle philosophy and how does it help you find better investing opportunities?2020-06-26T08:46:04-06:00

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.

What is meant by a “Controlled Growth” strategy?2019-08-23T13:26:13-06:00

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 International Select Equity SMA Strategy

The Shelton International Select Equity Portfolio seeks to deliver attractive risk-adjusted returns over time.

In The News

Press Release: Shelton International Receives 5 Star Morningstar Rating

Article: Pensions and Investments: Reject the Classification Crunch

Podcast: (July 6,2018) Andrew Manton interviewed by Charlie Wright on Strategic Investor Radio: Our proprietary approach to international company selection

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.

Strategy Information

International Equity Commentary

Download International Commentary

Please consult with your Director of Advisor Services for access to more information.

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.

International Lifecycle graphic 1 v2 01

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

FAQs

What is meant by a “Controlled Growth” strategy?2020-06-26T15:14:02-06:00

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.

Is your process quantitative or fundamental?2020-06-26T08:45:53-06:00

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.

What is unique about the Corporate Lifecycle philosophy and how does it help you find better investing opportunities?2020-06-26T08:46:04-06:00

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.

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