Asset Allocation Enhancements: Non-US Equities & Global Benchmarks

  • In our recent Asset Allocation Video, we discussed the “global” expansion of our Asset Allocation Engine, which now gives recommendations across global equities (US, DM ex US, and EM), global bonds, and cash relative to global benchmark portfolios.
  • We generally consider EM assets as a high-beta play on the global liquidity cycle. We have embedded this liquidity framework into our macro regime and fair value models to determine the tilts between US and Non-US (DM ex US & EM) equities.
  • Today, the engine favors US equities over non-US equities (both EM and DM ex-US) given the current "neutral" macro regime and moderate liquidity headwinds.
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