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

Conclusions

is clearly highlighted from the evidence that exposure of the three developed markets indices to non-domestic regions and to emerging markets is significant and has increased over the past years. Also, the observation that during certain years the difference in contribution of stocks with varied geographic exposure to the performance of the index is large, highlights the importance of analysing the performance of equity portfolios in terms of geographic exposure.

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An EDHEC-Risk Institute Publication