March 31, 2019

The Importance of Country Allocation: Developed Versus Emerging Markets

In portfolios invested in international equities, what drives returns—country or industry allocation? As this paper shows, it turns out that the answer differs depending on whether you’re looking at developed international equities or the emerging markets. We dive into the numbers to measure and demonstrate the relative impacts of country, industry, and style on portfolio returns.

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The Importance of Country Allocation: Developed Versus Emerging Markets

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