null Dynamic Global ex-US Equity

Dynamic Global ex-US Equity

Active Equity Global
  • Benchmark MSCI ACWI-ex U.S.
  • Inception Date July 2018

Strategy Overview

Mellon’s Dynamic Global ex-US Equity strategy (DEXUS) is a versatile, index-based active equity strategy designed to deliver excess returns with benchmark-like risk.


Objective

DEXUS seeks to outperform the MSCI ACWI ex-US Index while maintaining a similar level of risk. The strategy’s excess returns are expected to have a very low correlation to its peer group, including traditional stock selection and factor based approaches.


Approach

DEXUS applies the widely recognized academic theory of the Capital Asset Pricing Model (CAPM) and the Capital Market Line (CML) to develop a portfolio of three broad exposures (MSCI ACWI ex-US, long US Treasury bonds, and cash) designed to outperform the MSCI ACWI ex-US Index with a similar level of risk.

The strategy allows for modest leverage (up to 50%) to dynamically allocate across these three broad exposures or risk premiums. By design, fundamental valuation, macro, volatility and tail risk management are incorporated into the strategy, which is expected to provide low downside participation and high upside participation.

Please note that all investment strategies involve risk.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

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