Global equities are a vast opportunity set that spans thousands of companies across developed and emerging markets, diverse sectors and varied market capitalizations. They offer exposure to unique economic drivers, many of which move independently of the U.S. business cycle. Yet despite this expansive universe, many active managers have struggled to deliver consistent outperformance in recent years.
- We believe fundamental, bottom-up research allows stock selection to have the greatest impact: In today’s volatile, narrative-driven markets, rigorous company-level research by experienced teams has been a more reliable path to excess returns than attempting to time macro trends or factor rotations, which require being right at both entry and exit points.
- Regional and sector concentration creates both risk and opportunity: The U.S. market's heavy reliance on mega-cap tech (the "Mag 7") contrasts sharply with more diversified opportunities abroad, including European value and defense stocks, Japanese governance reform and emerging markets, meaning a truly global, benchmark-aware approach can capture opportunities a U.S.-centric view misses.
- Discipline and patience matter more than chasing recent winners: Allocating to recently outperforming managers often leads to disappointing results due to mean reversion, whereas approaches anchored in patient capital over time and stock selection, rather than sector or factor bets, have been better positioned to deliver consistent, risk-adjusted returns over time.
Related articles
To balance risk, look beyond the obvious
Why dividend growth?
About the author
Contact us
- +44 20 3727 8000
- 201 Bishopsgate, London, United Kingdom
Endnotes
The views and opinions expressed are for informational and educational purposes only as of the date of production/writing and may change without notice at any time based on numerous factors, such as market or other conditions, legal and regulatory developments, additional risks and uncertainties and may not come to pass. This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of market returns, and proposed or expected portfolio composition. Any changes to assumptions that may have been made in preparing this material could have a material impact on the information presented herein by way of example. Performance data shown represents past performance and does not predict or guarantee future results. Investing involves risk; principal loss is possible.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. For term definitions and index descriptions, please access the glossary on nuveen.com. Please note, it is not possible to invest directly in an index.
Important information on risk
All investments carry a certain degree of risk, including possible loss of principal, and there is no assurance that an investment will provide positive performance over any period of time. Equity investments are subject to market risk or the risk that stocks will decline in response to such factors as adverse company news or industry developments or a general economic decline. Debt or fixed income securities are subject to market risk, credit risk, interest rate risk, call risk, tax risk, political and economic risk, and income risk. As interest rates rise, bond prices fall. Non-U.S. investments involve risks such as currency fluctuation, political and economic instability, lack of liquidity and differing legal and accounting standards. These risks are magnified in emerging markets. This report should not be regarded by the recipients as a substitute for the exercise of their own judgment. It is important to review your investment objectives, risk tolerance and liquidity needs before choosing an investment style or manager.
Nuveen, LLC provides investment solutions through its investment specialists.
This information does not constitute investment research as defined under MiFID.