The Enhanced International Equity investment strategy seeks to enhance a portfolio’s performance relative to the MSCI EAFE Index, while keeping other risk-related and country-weighting attributes in line with the benchmark.
The Enhanced International Equity investment approach is based on proprietary quantitative modeling strategies, which are grounded in fundamental valuation, profitability, and earnings quality ratios. In addition, market sentiment and metrics that effectively quantify market momentum are used in the selection process.
This strategy attempts to outperform the MSCI EAFE Index using a multi-factor model to overweight undervalued securities and underweight overvalued ones, while remaining sector and region neutral. In addition to seeking to outperform its own benchmark, the portfolio is structured to resemble and retain similar risk characteristics to its benchmark.
Enhanced International Equity portfolios are subject to certain risks such as market and investment style risk. Investing in non-U.S. markets involves certain additional risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity, and the potential for market volatility and political instability.
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