Implementing Global Equity
As markets have become increasingly global in nature, the case has been made for U.S. pension plans to move from the traditionally segregated U.S./non-U.S. approach, towards a more global equity structure. The typical arguments for a move towards global equity allocations include greater breadth, stronger alpha generation, further portfolio diversification, a reduction in U.S. home bias, and a more favorable fee structure. This paper focuses on global equity fundings since 2003, the characteristics of the winners, management team structure, benchmark awareness and various implementation options.