
Reimagining country investing: A guide to capturing opportunities, managing risks and integrating sustainable-investment objectives
The paper offers insights for global investors on the benefits of constructing a diversified portfolio with country and regional-market allocation. The paper analyses variables such as GDP growth, innovation, thematic and geographic-revenue exposure and macroeconomic risks, while highlighting the role of sustainable finance in the process.
Please login or join for free to read more.

OVERVIEW
The paper suggests that investors can achieve the balanced risk-return profile they seek by creating a globally diversified portfolio that invests in different countries and regions. The paper examines the composition of broad regional markets and individual equity markets to identify opportunities for investment in different markets and regions while managing risks. The paper suggests that global investors can incorporate decision-making criteria that range from macroeconomic indicators, such as economic growth, inflation, and currency strength, to bottom-up analysis and top-down analysis, such as diversification across countries, sectors, themes and geographic revenues.
The paper highlights that investing in emerging technologies and innovation is a valuable avenue for investors wishing to gain exposure to structural changes in the global economy, and suggests that investors may benefit from constructing a portfolio that aligns with net-zero targets. The paper suggests that investors should consider including environmental, social, and governance (ESG) strategies in their portfolio to manage risks and opportunities that may arise.
The paper identifies a range of macroeconomic risks, such as monetary policy and price stability, fiscal discipline and outstanding debt, and trade and current-account balance. The paper suggests that investors who understand the macroeconomic risks and opportunities of different markets and sectors can make better-informed investment decisions.
The paper highlights the importance of sustainable finance for investors who wish to manage financially relevant risks and opportunities. The paper analyses emerging sustainable-finance issues, such as the low-carbon transition, and suggests that investors who shift capital from carbon-intensive assets to low- or zero-carbon assets can reduce their portfolios’ exposure to climate-transition risk while capitalising on low-carbon-transition opportunities. Additionally, the paper suggests that investors who want to integrate sustainable-investment objectives in their portfolios should consider investing in companies with a strong commitment to environmental sustainability, labour-relations issues, and governance structures that promote responsible and sustainable business practices.
The paper presents an integrated framework for global investing with a focus on identifying countries and regional markets that offer investment opportunities with promising growth trajectories and transformative potential. The paper suggests that investors who identify these opportunities can construct a diversified portfolio that mitigates risks while also offering access to the unique opportunities of each market. The paper recommends that investors adopt a comprehensive approach to strategic allocation that incorporates macroeconomic indicators, bottom-up analysis, and top-down analysis.