Mandate
Highstreet offers international equity portfolio management through the expertise of Bailard Inc. Bailard is located in San Francisco and has been serving private investors and institutions since 1969. Bailard recognizes that in today’s global environment a country’s political, economic and financial infrastructure impact each country’s stock market. Their international equity strategy differentiates itself by adding value through a unique country-selection process covering 48 developing and emerging markets outside of North America. Furthermore, their quantitative process is tailored to each market and allows them to change their investment bias when selecting specific stocks.
Objective
The portfolio expects to deliver a return that is 2% better than the MSCI EAFE over a rolling 4-year period.
Investment Philosophy and Approach
Bailard believes in two key aspects with respect to their international equity philosophy:
- Countries matter.
Individual country characteristics such as culture, government regulation, fiscal and monetary policy, politics and local trading affect stock markets and provide opportunities to add value through country selection.
- Dynamic style.
Bailard’s investment process allows flexibility to move between value and growth/momentum styles to capitalize on opportunities, depending on market environments.
Bailard’s multi-factor model ranks countries according to various value, momentum and risk characteristics. The process offers a top-down country allocation among 48 markets. A stock ranking model is tailored to the specific conditions of the region and market to screen and rank stocks on a variety of value, momentum, earnings revisions and earnings quality variables in order to identify the most attractive stocks.
Investment Products
The Highstreet International Equity Fund A was launched in January 2006.
This pooled fund is available to both private and institutional investors.
|
