International Core Strategy

Strategy Overview

HGI's International Core Strategy seeks to offer a more consistent risk/return profile relative to the MSCI ACWI ex USA benchmark by minimizing style bias. The Strategy is a 50/50% blend of our International Growth and International Value Strategies. The Strategy seeks to add value through stock selection and does not attempt to time the market by changing the allocation percentage to each investment style. To reduce style balance, accounts in the Strategy are rebalanced to a 50/50% allocation semi-annually or when cash flows permit. This Strategy invests principally in equity securities of international companies, including emerging markets. Securities selected are generally those of large-cap companies with a market capitalization of over $1 billion. Securities purchased are from ideas generated by both the Growth and Value Teams' bottom-up research efforts. The Strategy does not use derivatives to hedge currency exposure. Cash and cash equivalents are generally less than 5% of the portfolio.

Regional / Sector Allocation

The Strategy's major regions are Europe, Japan and the Rest of the World. There are no specific percentage limitations on sector or country weighting as such exposure is the residual of the bottom-up stock selection process. Allocations to the economic sectors and regions have typically ranged between +/- 5% to +/- 10% of the index weighting.

Portfolio Construction

The Strategy results in a portfolio that typically holds 120-140 securities. By combining the two constituent styles, the Strategy has typically resulted in a portfolio diversified among companies, regions and sectors, with no single position usually exceeding 5% of the portfolio at time of purchase.

For detailed information sheet and performance history, please click here (PDF)

To view a full performance presentation for this product, please click here (PDF)

To read a Commentary for the Quarter Ending September 30, 2011, please click here (PDF)