Capturing a World in Motion: Four Principles for Adding Alpha in a Global Equity Allocation

Summary

The landscape has changed for global equity investors. Over the past decade, we’ve seen the end of a long trend of offshoring, low inflation, falling rates and a consistently strong US dollar. In recent years supply chains have been rewired, the trend towards globalisation has peaked, inflation concerns have reappeared, interest rates have reset higher, and geopolitics are back at centre stage. 

Against that backdrop, how can investors build a portfolio that harnesses structural change while surviving the inevitable shocks along the way? 

We think they need to get four key things right to help build an allocation that keeps pace with a fast-moving world.