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Why own global value equities today
Owning Global Value equities today serves as a vital portfolio hedge against high market concentration and valuations, particularly in the U.S. and within pockets of the Information Technology ecosystem. Adding a Global Value option within a total portfolio structure that is likely heavily geared towards a common index such as the MSCI World can improve portfolio resilience and long-term return potential. Notably, a well-balanced and attractively Global Value option should allow investors to:
Take advantage of significant valuation gaps between growth and value stocks, and between U.S. and non-U.S. stocks.
Provide tangible near-term cash flows and dividends from stocks with robust balance sheets and resilient earnings.
Reduce concentration risk inherent in the S&P 500 (tech stocks) and the S&P/TSX (materials, energy).
Beutel Goodman World Focus Equity
Video
Record ~5-min intro to WFF with Ryan
Portfolio specifications
Bottom-up, fundamental approach leading to high-conviction, ‘best-ideas’ portfolio
~30 holdings diversified by sector and region
Solid Quality characteristics (low financial leverage, high returns) with lower valuation metrics versus index, plus strong dividend support
Benefits
Consistent approach focused on identifying high-quality global opportunities trading at attractive valuations
Differentiated portfolio in the context of a more Core/Growth-oriented peer group that aligns closer with the index
Balanced regional and sector allocations with more diversified exposure and less effective concentration than most indices
Potential for downside protection through dual Valuation/Quality buffer
