Foreign Equity

Fisher Investments Institutional Group's Foreign Equity strategy utilizes a top-down investment process based on applying capital markets technology to the analysis of a wide range of economic, political, and sentiment drivers to formulate forecasts and develop portfolio themes. The strategy attempts to exploit the structure of foreign markets and to capitalize on country and sectory/industry cycles as they come into and out of favor.

Fisher Investments believes that approximately 1/3 of the strategy's performance is attributed to each of the country, sector, and security decisions. The strategy adheres to a strict application of portfolio management discipline to remain continuously cognizant of the composition of the relevant benchmark (e.g., MSCI EAFE Index) and the relative risks engineered into portfolios.

Additionally, the strategy seeks to add value at the security level. Fisher Investments believes traditional individual security research is most effective when used to complement higher-level portfolio themes and characteristics rather than as the sole focus of the investment process.

Foreign Equity Diagram

Overview of the Investment Process

Top-down process focuses on the most important determinants of portfolio return
Economic, political and sentiment drivers shape portfolio themes and country and sector weights
Combination of quantitative and fundamental research
Security selection levered to themes
Active risk management