December Country Rankings

 

Issue attachment (not archived)December Country Rankings

November Highlights

• In a strong reversal from October, global equities pulled back and the MSCI ACWI was slightly negative for the month of November returning -0.83%.  For the year, the range of country returns is 58% with the average country down -7.63% in USD.
• Currency hedging was a key driver of outperformance in November. Being short the Yen and Euro were the biggest contributors to performance as the Yen weakened by 1.50% and the Euro weakened by 3.75%.

December Rankings

• We are significantly overweight the Asia-Pacific region as 4 out of the top 5 countries are in the region (Taiwan, Japan, Korea, and China). Asia is a 9% overweight in Global Core and a 19% overweight in International 
• We continue to see value in hedging currency exposure. We are hedged in Japan, Germany, and South Korea.

• The United States dropped 4 spots in our rankings to 7^th overall, with an extended valuation as the main reason for this drop. The U.S. is now the 4^th most expensive country in our model, having the 3^rd highest P/B ratio, and the 4^th highest 12 month trailing P/E.