Global Equity ETF Strategy
This strategy employs a macro-driven, top-down style to construct a global tactical asset allocation equity-only portfolio.
Benchmark: 100% MSCI ACWI Index
Inception Date: 10/31/2010
Nasdaq Fund Network Ticker: RBAEQX
Objective
The Global Equity ETF Strategy seeks risk-adjusted long-term growth by employing a top-down style to construct a global tactical equity-only portfolio. The investment team uses quantitative indicators and the firm’s macro-economic analysis to invest in global equity market segments at different times. Market segments chosen for emphasis or de-emphasis may vary from general market consensus views and the strategy may at times seek to identify areas where there is scarcity of capital and/or potentially overlooked investment opportunities.
Asset Allocation Guidelines
The strategy’s allocation is based on a long-term neutral policy of 100% equity but has the flexibility to add up to 30% cash.
Equity: 70% to 100%
Cash: 0% to 30%
Portfolio Construction
1. Top-down macro research
Investment committee performs ongoing analysis of factors such as corporate profits, liquidity and investor sentiment or valuation.
2. Risk assessment
Manage diversification based on correlation of assets within the portfolios, rather than the number of assets. Determine risk using capital market assumptions.
3. Strategic allocation guidelines
Guidelines provide an additional layer of risk management. Each portfolio has a neutral equity and fixed income allocation with guardrails to control the minimum and maximum allocation for each asset class.
4. Asset allocation
Construct global, multi-asset portfolios utilizing 5-30 ETFs that align with market views based on asset class, size, style, industry, geography and themes.
Features:
Utilize 5-30 ETFs to achieve desired exposures
Maximize contribution from top-down macro-economic views
Minimize portfolio risk through asset class portfolio risk measurement
Minimize stock-specific risk through usage of ETFs
Manage overall portfolio risk by “x-raying” the underlying holding of the ETFs