Global Equity

Objective

Maximize total US dollar return, consisting of capital appreciation and current income, by investing in a diversified portfolio of US and non-US equities, primarily large capitalization stocks of major developed countries.

Benchmark

MSCI World Equity (Free) Index
(MSCI EAFE Index in Private Wealth Solutions)

Investment Philosophy

Intrinsic value is determined by fundamentals that drive a security’s future cash flow.
Discrepancies between price and intrinsic value provide opportunities to outperform.
A truly integrated global approach produces superior research.
Leading-edge risk management and strong knowledge of clients are critical for superior portfolio construction.

Investment Process

Assess and rank stocks based on price to intrinsic value relationship, using fundamental research, including detailed economic, industry, and company analysis.
Construct and monitor portfolios in line with risk management and client/portfolio guidelines.
Select stocks diversified typically among 12 to 15 countries; strategy generally holds between 125 and 175 stocks.
Active currency management is used to manage risk and serves as a potential source of return.
Currency strategies are developed separately and coordinated with country allocations.

Equity strategies are primarily subject to all the investment risks associated with stocks. Stocks have shown greater growth potential than other types of securities, but they have also shown greater volatility and risk of loss. Strategies that focus on small- or mid-cap stocks are generally more volatile and subject to greater risk. Strategies that invest in foreign or emerging markets are subject to special risks that are not normally associated with domestic investment, including possible adverse currency fluctuations and political, social and economic risks. There can be no assurance that any strategy will achieve its objective.