Investing in Single-Country ETFs: An Exclusive Interview with David Allen, Global Equity Portfolio Manager and a Member of the Investment Committee at Accuvest Global Advisors
67 WALL STREET, New York - October 9, 2013 - The Wall Street Transcript has just published its Investing Strategies Report. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Long-Term Investing - Value Investing - International Investment Strategies
Companies include: iShares MSCI Austria Capped (EWO), iShares MSCI Germany Index (EWG), AdvisorShares Accuvest Global Opportunity ETF (ACCU) and many others.
In the following excerpt from the current Investing Strategies Report, an experienced asset manager discusses his innovative approach to international investing:
TWST: Please begin with a historical background of Accuvest Global Advisors and a snapshot of your business today.
Mr. Allen: Accuvest Global Advisors started in 2005 and was seeded as an in-house asset manager for a multifamily office. The unique thing about this multifamily office is it was serving high net worth individuals, families, endowments and foundations, all in the Greater Latin American and South American region, providing traditional wealth management services. One core principle was to help design and implement consistent and disciplined global portfolios, both multiasset class portfolios as well as equity-specific strategies.
One of the things that we developed in 2005 was a way to help our end clients get better global diversification in their equity portfolios. They dealt with a large home country bias in their portfolios, concentrated in whatever country they might be from, and so we wanted to develop a way to help them realize the opportunity set that existed outside of their home countries. So we created a country ranking model to evaluate global equity markets. In 2005 we started ranking 20 countries; now we rank 32 or 34 different countries, depending on the strategy. We wanted to compare the countries apples-to-apples, find a disciplined way to do that using long-term investment principles that seem to be drivers of country market returns, evaluate those countries, and then build portfolios based on the rankings.
So we started doing that in 2005. We looked at country fundamentals, momentum, risk-evaluation factors, equally weighting those buckets and doing that on a monthly basis, and then developed two core-type strategies for our clients...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
