First Quarter International Review 2013
While equity markets are not as fundamentally cheap as they were at the beginning of 2012 they remain relatively much more attractive than government bonds. We are overweight emerging markets on a valuation basis and have also tilted the recommended portfolio towards high-dividend stocks. We have also added to our Japanese exposure on a currency-hedged basis in the expectation of renewed reflation efforts by the Bank of Japan. Within Fixed Income we continue to exit duration risk (i.e. government bonds) in favour of credit risk (high yield, emerging markets and convertible bonds). 03_2013_CFAL_Quarterly_International_Economic_and_Market_Overview-4 Click here for full Global Market Review

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