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The country allocation is based on such factors as interest rates, stock market volatility and aggregate earnings forecasts.
So, to be successful at international investing, you need to have a good country allocation process.
Our research shows that in a well-diversified international portfolio, 80% of the return variability comes from the country allocation.
So, therefore, you need to get your country allocation process correct in order to have a successful international strategy.
The No. 1 way to achieve a successful return in international markets is to have a country allocation process that helps you determine which countries will outperform.
Based on our experience and our research, when you have a diversified portfolio, a lot of the return attributed to any stock is due to country allocation.
Similar(52)
It focuses too much attention on country allocations and not enough on stock picking.
However, despite the obvious bias towards Spain and Italy, many managers don't predetermine their country allocations.
For the equity portion of his model portfolios, Kurtz starts with country allocations determined by a blend of gross domestic product and market capitalizations.
These special measures are neutral for the EU budget, as they will be implemented within the country allocations agreed in the current multi-financial framework for 2014-2020.
The country-by-country allocation would be determined by a "distribution key", based on population, economic strength and refugees already present.Taken together, suggests Frans Timmermans, the powerful Dutch commissioner who has overseen much of this work, the ideas should restore public trust in a broken system and, perhaps, open the door to more ambitious plans in future.
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