The International Equities model managed by Robert Giannini takes a quantitative and systematic approach to investing in international equities. The model hedges against downside risk from long exposure by using broad market ETFs. International Equities is rebalanced monthly and generally holds from three to ten international ETFs. When a position draws down more than 25 percent, its allocation is either decreased or eliminated.
Last week, Giannini added several new positions to the model, including iShares MSCI Emerging Markets Index Fund (EEM), a fund that attempts to mirror the performance of the MSCI Emerging Markets index. On December 7th, according to Yahoo! Finance, some of the fund’s major holdings included Posco (NYSE: PKX) and Chunghwa Telecom Co Ltd (NYSE: CHT). On the same day, Morningstar.com showed the fund trading at a premium to NAV.
Giannini also added iShares MSCI UK Index Fund (EWU) to the model. EWU attempts to replicate the performance of the MSCI United Kingdom index. In order to do so, the fund generally tries to keep 95 percent of its assets invested in those securities of the index. On December 7th, Morningstar.com showed the fund trading at a premium to NAV.
Lastly, Ishares S&p Gsci Commodity Indexed Trust (GSG) was added to the International Equities model. GSG looks to mirror the performance of the S&P GSCI Excess Return Index, which is an index that measures global price movements and inflation and works as a benchmark for the commodity markets. According to ishares.com, as of December 6th, more than 67 percent of the fund’s assets were invested in the energy sector while just 17 percent were invested in the agriculture sector. On December 7th, Morningstar.com showed the fund trading at a discount to NAV.
