Country Rotation Strategy
Investment in international equity consists of dynamic exposure to specific equity markets around the globe, to which we add a core exposure to fixed income in order to achieve the desired levels of risk. The countries and industries where we choose to invest are those whose expected risk-adjusted returns exceed those of fixed income at a given moment. The Investment Committee conducts this allocation process after careful review of Innealta’s proprietary framework.
The strategy considers investment in the equity markets of more than 40 countries, including more than 20 emerging markets. Actual investments are made after the Investment Committee has assessed the prospective risk-adjusted reward scenario for each of these countries. When not invested in a given country’s equity market, funds are invested in a portfolio of fixed income and other asset classes for which the Investment Committee maintains a more favorable risk-reward outlook.