Global Equity Markets
Below is some information about how this service can be utilized to help you with your financial goals. For further and more in-depth information, please contact us and one of our advisors will be in touch with you.
Many people think about global equity investing as either a diversifier or an opportunity to achieve better returns. By targeting the fastest-growing regions such as China and India, some investors assume they can put a metaphorical rocket under their portfolio.
By targeting the most famous brands – Amazon, Google, Apple – other investors assume they can obtain truly blue-chip exposure. Yet, at the heart of this decision is an ambition to derive better outcomes than they can otherwise obtain by investing locally.
Therefore, global equities are better thought about as a process of filling portfolios with assets that offer attractive reward for risk. By extension, this requires one to have conviction over the best assets as well as reasoned analysis to support that conviction.
It is important to have a clear and consistent analytical framework that enables investors to make a holistic assessment of these opportunities. As future returns are a function of both the cash flow generated by an asset and the price paid for that cash flow, it is essential that any assessment incorporates both these factors together including the future risks to that cash flow.
The central idea is to obtain an independent view of reward for risk among global equities.
Absolute valuation: We have a clear understanding of valuations, including what each asset can be expected to deliver over their desired time horizon for instance, over 10-years or more.
Relative valuation: We understand valuations and how well the asset ranks compared to other markets.
Contrarian perspective: We identify whether the market’s current expectations, positioning and sentiment are supportive or contrary to the herd. We consider out-of-favor assets, since the greatest opportunities often lie in unloved industries or at companies that have recently had bad news but remain fundamentally strong.
Fundamental risk: We clearly understand the range of possible scenarios, as well as any risk that would cause investment errors over the investment horizon.