Global Equity Strategy
The Global Equity Strategy is a multi-factor econometric discipline that uses macroeconomic processes and models to evaluate countries for broad market investment opportunities. The strategy analyzes and evaluates macroeconomic and financial data in conjunction with real and expected changes to public policy in order to create a ranking of those countries that are expected to have the most attractive potential for total return. The rankings incorporate not only quantitative analysis but also qualitative assessments of expected or potential changes. Lastly, the investment team reviews any potential or actual special situations that could affect a country’s outlook based upon non-fundamental factors (i.e. political crisis, trade disputes, etc.)
This strategy uses exchange traded funds (ETF’s) to implement the investment process. The portfolio construction process is designed to create a model portfolio containing eight or more countries. Countries are equally weighted across the entire portfolio and typically receive an approximately 12.5% allocation each for new or rebalanced accounts. Approximately 25% or less of a new or rebalanced portfolio may be allocated to emerging market countries. Country selection typically involves selecting securities that represent a significant portion of the country’s total market capitalization. This typically leads to portfolios that are well diversified at the underlying security level but are still fairly concentrated at the country level, relative to the listed benchmark of the MSCI EAFE Index.
The Global Equity Strategy is not inherently biased towards any particular style, for example value or growth, but may be characterized from time to time as such.