Foreign Equity

Our foreign equity strategies utilize a top-down investment process based on a broad analysis of economic, political, and sentiment drivers to formulate forecasts and develop portfolio themes. These investment strategies exploit the structure of foreign markets and capitalize on country, sector, and industry cycles as they come in and out of favor. Additionally, in order to maximize the possibility of leveraging top-down themes and identifying unintended risk concentrations in the security selection process, the Investment Policy Committee applies risk management controls based on an analysis of prospective stocks to assess their correlations to various countries and sectors.

We offer the following foreign equity products:

Foreign Equity (benchmarked against the MSCI EAFE Index)
All Foreign Equity (benchmarked against the MSCI ACWI ex US Index)
All Foreign Equity Growth (benchmarked against the MSCI ACWI ex US Growth Index)

The goal of our foreign equity strategies is to outperform their benchmarks in any market environment. To accomplish this, we utilize a top-down investment process that focuses on the most important determinants of portfolio return: countries, sectors and stocks. Strategy benefits include:

• An innovative investment process accounting for country, sector and stock decisions
• The goal of achieving excess return in a variety of market environments
• A top-down process complementing a multi-manager structure, increasing diversification benefits

INVESTMENT PROCESS AND PORTFOLIO ENGINEERING

Our foreign strategies seek to add value at the security level, but we believe traditional individual security research is most effective when used to complement higher-level portfolio themes. The strategies' alpha is approximately evenly divided between our country, sector and stock decisions.

• Top-down process focuses on the most important determinants of portfolio return
• Economic, political and sentiment drivers shape portfolio themes
• Combination of quantitative and fundamental research
• Security selection levered to themes
• Disciplined portfolio management process
• Active risk management

Emerging Markets Equity

Our Emerging Markets Equity strategy utilizes a top-down investment process based on applying capital markets technology to the analysis of a wide range of economic, political, and sentiment drivers to formulate forecasts and develop portfolio themes. Additionally, in order to maximize the possibility of leveraging top-down themes and identifying unintended risk concentrations in the security selection process, the Investment Policy Committee applies risk management controls based on an analysis of prospective stocks to assess their correlations to various countries and sectors.

The goal of our Emerging Markets Equity strategy is to outperform its benchmark in any market environment. To accomplish this, we utilize a top-down investment process that focuses on the most important determinants of portfolio return: countries, sectors and stocks. Strategy benefits include:

• An innovative investment process accounting for country, sector and stock decisions
• The goal of achieving excess return in a variety of market environments
• A top-down process complementing a multi-manager structure, increasing diversification benefits

INVESTMENT PROCESS AND PORTFOLIO ENGINEERING

Our Emerging Markets Equity strategy seeks to add value at the security level, but we believe traditional individual security research is most effective when used to complement higher-level portfolio themes. The strategy’s alpha is expected to be approximately evenly divided among our country, sector and stock decisions.

• Top-down process focuses on the most important determinants of portfolio return
• Economic, political and sentiment drivers shape portfolio themes
• Combination of quantitative and fundamental research
• Security selection levered to themes
• Disciplined portfolio management process
• Active risk management