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Draw-down in foreign currency reserves of Emerging market central banks is on-going and his a policy reaction to capital outflows.Less US dollars or Euros on EM central bank balance sheets means less support for assets in these currencies. Capital outflows are taking place in the the form of reimbursement of US dollar denominated debt as its service becomes more costly for local entities, in the form of increase US dollar deposits by foreign residents. Deleverating in the Emerging markets reduces the broad liquidity M2. This is a situation to monitor. On the other side, some of the capital outflows are reinvested in developed markets and along with the European and Japanese central banks action, this has a offsetting effect on global liquidity. These cross-currents create volatility but global liquidity is not disappearing.

  • Core markets are US and Western Europe
  • Select industry group exposure in Japan, China
  • Factor exposure resulting from top down analysis and sector analysis in emerging markets and Japan
  • Main strategy: Undervalued Growth
  • Currencies usually not hedged
  • Same as Global Growth but larger exposure on US markets
  • Exposure to emerging markets also through ETFs and mutual funds
  • Strategies: Undervalued Growth, Dividend Increase and Recovery
  • Currencies hedged in ETFs
  • Mix of growth and high dividend yield equities with a portion of fixed income ETFs and mutual funds with US and international exposure similar to pure Equity mandate
  • Exposure to emerging markets also through ETFs and mutual funds
  • Strategies: Undervalued Growth, Dividend Increase and Recovery
  • Currencies hedged in ETFs
  • Mix of large cap, high dividend yield equities with a portion of fixed income ETFs and mutual funds with US and international exposure similar to pure Global Growth Equity mandate
  • Target portfolio yield of 3%
  • Exposure to emerging markets also through ETFs and mutual funds
  • Strategies: Dividend Increase
  • Currencies hedged in ETFs