Building Global Equity Portfolios I: Capturing Global and Local Top-Down Sources of Return

QMA

February 2020

Research shows that approximately 30%-40% of the variability in global equity securities can be explained by top-down country and industry memberships.

In QMA’s latest white paper, Georgios Sakoulis, PhD, Managing Director and Head of Multi-Asset Solutions; Roy Henriksson, PhD, Managing Director and Chief Investment Officer; and Lorne Johnson, PhD, Managing Director and Portfolio Manager, explore their top-down method to capture global and local sources of return in equity portfolios. The team explains how their decision-making framework can be used to capture these often-neglected exposures without adding uncompensated risk, and suggests that this approach can be used independently or in combination with bottom-up approaches.