Investing In Global Equities: An Alternative Approach To Structuring Equity Portfolios

摘要

a higher alpha potential without added risk. Because the lower correlations of excess returns with the other asset classes may offset potentially higher risks of global equity products, the resulting total equity portfolio may have lower overall risk and a higher information ratio. Depending on investors' risk tolerances and alpha targets and the maintenance of desired beta exposure to U.S. and non-U.S. equities in asset allocation, investors might want to consider some allocation of their equity position to global equity managers, financing the allocation roughly equally from U.S. and non-U.S. equity managers.