Globally, investors tend to overweight portfolios towards home-country equities favouring equities they are familiar with, as opposed to investing in markets that have a higher potential of yielding better results. This well-documented phenomenon, known as the home country bias, has hindered the diversification of equity portfolios and potentially detracted from risk-adjusted returns.
Our international presence gives our global equity portfolio a competitive advantage, with analysts located across North America, Europe, and Asia Pacific capable of identifying attractive investment opportunities. Combining third-party global and thematic equity funds, which complement our internal core competencies, we are able to construct and manage a diverse global equity portfolio which can access niche pockets of alpha from various regions and market sectors.
CGWM Diversified Equities [DE] Portfolio
The CGWM DE Portfolio is a diversified, multi-manager equity portfolio which offers exposures to a range of equity investment styles across various regions, sectors, and market capitalizations. The nature of its diversity gives the portfolio the potential to capture multiple sources of excess return, creating a more robust return profile that is less dependent on singular country or sector specific outcomes. To further increase diversification and mitigate drawdowns, the portfolio utilises indirect tail hedges against equity risk.
The CGWM DE Portfolio is suitable for investors looking for a core global equity portfolio, capable of capturing multiple sources of excess returns generated from various investment styles and exposures. The portfolio attempts to generate equity like returns with lower market risk (beta) and volatility relative to passive benchmarks