Global Growth Equity  >  Non-U.S. Growth - (EAFE Only)

Non-U.S. Growth - (EAFE Only)

Revisiting Earnings Acceleration

Is earnings acceleration an underused source of diversification and excess return? See what the new data shows across regions, sectors and factors in different market environments.

See the Data
Revisiting Earnings Acceleration as a Source of Diversifying Excess Returns.

Summary

TARGET

Tracking Error 4% - 6% over a standard market cycle
Excess Return 2% - 3% over a standard market cycle

INVESTMENT TEAM

Rajesh Gandhi, CFA

Jim Zhao, CFA

8 Investment Analysts

3 Client Portfolio Managers

Documents & Resources

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The Non-U.S. Growth (EAFE Only) strategy follows the belief that excess returns can be achieved by investing in companies with improving fundamentals and accelerating growth characteristics.

  • Centers on the belief that accelerating growth in earnings and revenues, rather than the absolute level of growth, is more highly correlated to stock price performance.
  • Directs us to research different companies than other growth managers, as we do not require an absolute threshold of earnings or revenue growth.
  • Allows us to take advantage of both the normal price appreciation that results from a company’s earnings growth and the market's re-rating of a company's price-to-earnings multiple.

Availability

Investment capabilities are available to institutional clients through separate accounts, sub-advised portfolios and commingled vehicles. Please contact us for availability in your region.

Performance

*Annualized

Data reflects past performance. Past performance does not guarantee future results. The value of investments may fluctuate. Data assumes reinvestment of dividends and capital gains.

Sources: MSCI Inc., FactSet

Portfolio managers are not licensed by the Hong Kong Securities and Futures Commission to perform any regulated function in or from Hong Kong. Furthermore, none of the portfolio managers are located in or operate in or from Hong Kong.

Source: MSCI. Morgan Stanley Capital International (MSCI) makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI.