- Greater Regional Granularity — Emerging Asia and CEEMEA regions now broken down by major economies. Underweight China and India; Neutral South Korea and Taiwan. In CEEMEA, Neutral South Africa and Russia.
- What’s Changed? — Emerging Asia region previously ranked Overweight. Likely reflecting weakness in Information Technology sector — downgraded to Neutral last month — tech-heavy Korea and Taiwan have experienced slowing earnings momentum.
- ESG “Materiality Matrix” Update — We now plot ESG likelihood/ESG impact profiles for nine of the MSCI GICS in our proprietary ESG “Materiality Matrix,” with Consumer Staples being the most recent addition.
Figure 1: Regional Over- and Underweights Figure 2: Sector Over- and Underweights
Source: Cornerstone Capital Group
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Michael Geraghty is the Global Markets Strategist at Cornerstone Capital Inc. He has over three decades of experience in the financial services industry including working as an investment strategist at UBS and Citi.