investment process

INTERNATIONAL EQUITIES

Using the local bottom-up investment approach and stock picking ability, the same skills are applied to the international equity markets. The offshore focus is based on strategic and tactical asset allocation among the major global indices as well as direct single stock exposure where appropriate. Tactical asset allocation allows advantage to be taken of relative outperformance of the various global indices by allocating additional capital when they are assessed to be undervalued.

The strategy employs style-based indices for the developed markets. Using various parameters, that have been developed, various style factors allow the breakdown of the indices into growth and value components. With this distinction in place, portfolios are modeled with a bias towards either growth or value in order to ensure that the equity component is aligned with the portfolio objective.

Some of the growth factors taken into account are five year earnings per share, sales per share and internal growth rates. The value characteristics include book value to price ratio, cash flow to price ratio, sales to price ratio and dividend yield.