International Equities Infographic
IS YOUR PORTFOLIO WELL POSITIONED TO
Take Advantage of International Opportunities?
SECOND QUARTER 2017
There are compelling reasons why now is precisely the time to cast a longer look at international equities.
HOW IS YOUR INTERNATIONAL EXPOSURE?
IS YOUR PORTFOLIO OVEREXPOSED TO THE UNITED STATES?
CONSIDER INTERNATIONAL EQUITIES NOW.
Price/Book: Price per share divided by book value per share. Price/Cash Flow: Price per share
divided by cash flow per share. Price/Earnings: Price per share divided by earnings per share. Yield: Annual income from the investment (dividend, interest, etc.) divided by the current market price of the investment. Cyclically Adjusted Price/Earnings: Price divided by 10-year earnings adjusted for inflation.
MSCI EAFE: International developed markets, large/mid cap. S&P 500: U.S. large cap.
MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.
Diversification does not assure a profit or protect against a loss in a declining market.
The information provided in this material should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any security transactions, holdings or sectors discussed were or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance discussed herein.
Strategies discussed herein are subject to change at any time by the investment manager in its discretion due to market conditions or volatility. International and emerging markets investing is subject to certain risks such as currency fluctuation and social and political changes; such risks may result in greater share price volatility. The Brandes investment approach tends to result in portfolios that are materially different than their benchmarks with regard to such characteristics such as risk, volatility, diversification, and concentration. The declaration and payment of shareholder dividends are solely at the discretion of the issuer and are subject to change at any time. The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice.
United States: Issued by Brandes Investment Partners, L.P., 11988 El Camino Real, Suite 600, San Diego, CA 92130.
Singapore/Asia: FOR INSTITUTIONAL/ACCREDITED INVESTOR USE ONLY. Issued by Brandes Investment Partners (Asia) Pte. Ltd., Asia Square Tower 2, 12 Marina View #2301, Singapore 018961. Company Registration Number
01212812M. ARBN: 164 952 710. This document is for “institutional investors” or “accredited investors” as defined under the Securities and Futures Act,Chapter 289 of Singapore and may not be distributed to any other person. This document is being provided for information purposes only. Incorporated in Singapore in 2012, Brandes Investment Partners (Asia) Pte. Ltd. (Brandes Asia) provides portfolio management services to clients in Asia (as permitted under local law). Brandes Investment Partners, L.P., a U.S. registered investment adviser and a sister entity to Brandes Asia, provides research, portfolio construction and other support to Brandes Asia.
Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L. P., in the United States and Canada.
1Source: FactSet as of 12/31/2016. Includes companies with market capitalization above $1 billion.
2Source: The U.S. Census Bureau as of 3/30/2017. U.S. share of world population.
3Source: IMF World Economic Outlook Database, October 2016. There is no assurance that a forecast will be accurate. Because of the many variables involved, an investor should not rely on forecasts without realizing their limitations.
4Source: FactSet, MSCI and S&P. Underperformance of 102 months: 6/30/2008-12/31/2016. Based on cumulative return. International equities: MSCI EAFE Index; U.S. equities: S&P 500 Index.
Past performance is not a guarantee of future results. One cannot invest directly in an index.
5Source: Morningstar as of 12/31/2016. Includes actively managed U.S. open-end funds and exchange-traded funds.
6Source: FactSet, MSCI and S&P as of 12/31/2016. International equities: MSCI EAFE; U.S. equities: S&P 500. Past performance is not a guarantee of future results. One cannot invest directly in an index.
7Source: http://www.starcapital.de/research/stockmarketvaluation as of 12/31/2016. U.S. represented by all U.S. stocks in the Datastream Global Equity Universe. International represented by all
non-U.S. countries in the Datastream Global Equity Universe. Includes only companies for which data is supplied by two independent providers. Past performance is not a guarantee of future results.
8Source: http://www.econ.yale.edu/~shiller/data.htm. As of 12/31/2016, which was not a peak. Data prior to S&P 500 inception of March 1957 estimated using data from its predecessor, the Standard
and Poor’s Composite Index. Past performance is not a guarantee of future results. One cannot invest directly in an index.
9Source: FactSet as of 12/12/2016. Forward P/E is Price / Next Twelve Months Time-Weighted Annual estimates via FactSet Market Aggregates. Universe captures 98% of market cap and free-float
adjusted market cap in each country. Past performance is not a guarantee of future results.