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The Outperformance in Roubini Barclay Country insights(TM) Supports Its Methodology

Posted:  26 Oct 13:25

 

In September 2015 Barclays and Roubini Global Economics (now 4CAST-RGE) collaborated to launch the Roubini Barclays Country Insights™ Indices, a family of tradable equity indices that aim to pick fundamentally strong countries. One year later four of the indices have outperformed their market benchmarks, with the fifth coming in par.

 

The Roubini Barclays Country InsightsTM Indices aim to select fundamentally strong countries by using the Country InsightsTM Investment Attractiveness Scores to evaluate the fundamental health of a country investment. The Roubini Barclays Indices draw on Roubini Global Economics (RGE) world class expertise in quantitative macro research coupled with Barclays market leading strengths in the structuring, trading and distribution of indices.

 

This live outperformance adds validation to the Roubini Country Insights™ model that underpins the indices. The indices use the Roubini Country Insights™ model to quantitatively and in a non-discretionary manner to evaluate the strengths and weaknesses of countries around the world.

 

Working from the premise that the majority of investors would not invest in a company without first assessing its assets, liabilities and ownership structure, the Roubini Barclays Country Insights™ Indices aim to perform a similar analysis when looking at the economic attractiveness of a country. Instead of focusing entirely on a country’s short-term economic performance, the indices use a holistic data set in an attempt to understand the investment risk and benefits of a particular country or region. This data includes factors that impact a country’s ‘balance sheet’, including the health of the banking system, the total debt of the economy, the age of the population and its ability to innovate.The Roubini Barclays Country Insights™ Indices aim to provide enhanced beta exposure by notionally allocating exposure, whilst considering liquidity, in a systematic manner to equity benchmark indices in countries that the model perceives to be the most fundamentally sound.There are few effective macro or country strategies that provide investors with a way to differentiate between countries in today’s difficult macro-environment. These indices may appeal to investors that are macro managers, seeking to allocate across countries and those benchmarked to MSCI major regional indices.

 

Further information can be found on the index website at Roubini.Barclays.com

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