The top down case for European Banks – this time it really is different...

Bringing together our series on Model Portfolios, we show how a balanced 60:40 Portfolio of Equities and Bonds based on our Global Bond Model Portfolio combined with either our Global Equity Factor Model Portfolio (Portfolio 1) or our Global Equity Theme Model Portfolio (Portfolio2) show different risk return profiles, but both show better returns with much lower risk than the benchmark.

In this note, we look at how we can construct a different Global Equity Model Portfolio using the same process of Conviction Scores and Dynamic Allocation, but looking instead at a diversified portfolio through the lens of ‘Global Themes’.

This is the second in our series of posts about our various model portfolios, and looks at Global Equities from the perspective of Factors.

We are making a series of posts about our various model portfolios, starting with Global Bonds. The Bond Portfolio shown here is key to what drove our earlier views on not owning bonds at the end of last year