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