Accounting for Geographic Exposure in Performance and Risk Reporting for Equity Portfolios

Accounting for Geographic Exposure in Performance and Risk Reporting for Equity Portfolios — March 2015

Section 2: Application to Performance and Risk Reporting

Figure 6: FTSE Developed Asia Pacific (Regional Breakdown)

Figure 7: FTSE Developed Asia Pacific (Regional Breakdown)

constituents to the four regions. The sales exposure (or cap-weighted sales exposure) of index constituents to the European market has fallen from 59% (47%) in FY 2003 to 49% (43%) in FY 2012, which highlights the high exposure of United Kingdom-based stocks to non-European regions. Also the exposure (or cap- weighted sales exposure) of UK companies

the index which are not majorly exposed to the Developed Asia-Pacific market (companies with less than 50% exposure to Developed Asia-Pacific) has increased from 28.58% in June 2004 to 34.66% in June 2013 (see Appendix: Table 17).

Figures 8 and 9 report sales and cap- weighted sales exposure of FTSE 100

Figure 8: FTSE 100 (Regional Breakdown)

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