How should investors navigate the International equity markets? Different cultures, different languages, different accounting standards, different currencies, different geographies. Should investors even bother? The way we approach International equity markets is no different than how we approach U.S. markets. We define our investment universe, we determine our model constraints and decision rules, and then we let relative strength do its thing. Simple trend following.
How has this approach worked over time? Make sure you are seated, and then see below:
Source: PSN, as of 6/30/2015
Some quick facts about this portfolio:
- Inception 3/31/2006
- Invests in 30-40 ADRs from Developed and Emerging International Markets
- Fully invested at all times
- Buys stocks out of the top quartile of our ranks and sells stocks when they fall out of the top half of our ranks
- Seeks to overweight strong sectors and underweight weak sectors
- No country constraints
A fact sheet of the strategy can be found here. E-mail [email protected] if you have questions.
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.
The system is transforming a previously poisonous brown-area (polluted space) right into a clean,
green residing house.
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