Foreign Equity
Our Non-US 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 Non-US 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
- 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 Non-US strategies seek to add value at the security level, however, 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
Investment Process-Top-Down
