BlackRock takes note of the pick up in investor flows to international markets in recent months:
Our latest analysis leads us to believe that many investors are applying a spring cleaning approach to their portfolios as well, rebalancing as the first quarter ended. The latest exchange traded fund (ETF) flows data show the industry just closed a record opening quarter. More specifically, investors are putting their money to work in markets outside the U.S. Of the $97.2 billion of net new assets raised in the first quarter, over $70 billion went into equity funds with international exposure.
Surely, much of this renewed interest in international equity markets has to do with the fact that both Developed International Markets and Emerging Markets are outperforming the U.S. so for in 2015:
Source: Dorsey Wright. Updated through 4/23/15. The performance above is based on pure price returns, not inclusive of dividends or all transaction costs. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss.
One way to consider getting exposure to international equity markets is through our Systematic RS International SMA portfolio. This portfolio invests in 30-40 ADRs. We buy stocks out of the top quartile of our relative strength ranks and sell when they fall out of the top half.
As of 3/31/15
Over the last 9 years, this SMA has outperformed its benchmark by 6.57% annually on a net basis.
To receive the fact sheet for this strategy, please e-mail [email protected].
The performance represented in this brochure is based on monthly performance of the Systematic Relative Strength International Model. Net performance shown is total return net of management fees for all Dorsey, Wright & Associates managed accounts, managed for each complete quarter for each objective, regardless of levels of fixed income and cash in each account. The advisory fees are described in Part II of the adviser’s Form ADV. The starting values on 3/31/2006 are assigned an arbitrary value of 100 and statement portfolios are revalued on a trade date basis on the last day of each quarter. All returns since inception of actual Accounts are compared against the MSCI EAFE Total Return Index. The MSCI EAFE Total Return Index is a stock market index that is designed to measure the equity market performance of developed markets outside of the United States and Canada and is maintained by MSCI Barra. A list of all holdings over the past 12 months is available upon request. The performance information is based on data supplied by the Manager or from statistical services, reports, or other sources which the Manager believes are reliable. There are risks inherent in international investments, which may make such investments unsuitable for certain clients. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities. Past performance does not guarantee future results. In all securities trading, there is a potential for loss as well as profit. It should not be assumed that recommendations made in the future will be profitable or will equal the performance as shown. Investors should have long-term financial objectives when working with Dorsey, Wright & Associates.
