Today’s environment can offer a rare opportunity to reassess international exposure as a proactive decision to help position portfolios for a more dynamic global economy.
Daniel McKellar, CFA, Senior Vice President, International Equities dives into the multiple market drivers that have shifted to give international equities time in the sun.
International Equity Strategies
International Equity
Backed by more than 25 years navigating the non-US markets, this all-weather strategy pursues consistent and repeatable alpha through the combination of three perspectives, while providing broad developed and emerging market exposure.
The Bailard International Equity Strategy blends quantitative country evaluation and quantitative stock evaluation, together with a key layer of qualitative oversight. Country awareness underlies the whole process. This balance of human and machine brings agility and nuance to decision-making, seeking opportunities across the world’s strong markets while mitigating risks.
Performance
| Total Return, As of 12/31/2025 | Quarter | YTD | 1 Year | 3 Years | 5 Years | 10 Years |
|---|---|---|---|---|---|---|
| Gross of Fees | 5.54% | 35.37% | 35.37% | 21.96% | 11.19% | 8.59% |
| Net of Fees | 5.45% | 34.87% | 34.87% | 21.51% | 10.78% | 8.18% |
| MSCI EAFE Index | 4.86% | 31.22% | 31.22% | 17.22% | 8.92% | 8.18% |
Past performance is no indication of future results. All investments involve a risk of loss. Performance is annualized for periods grater than one year. Net of fee performance is calculated by netting down the gross return by actual management fees as of the date paid from each account. There are risks involved in investing, including the risk of loss and the risk that the market value of your investments will fluctuate as the stock market fluctuates. International and emerging market equities are subject to increased risks due to economic or political instability, differences in accounting principles, and fluctuating exchange rates, with heightened risks for emerging markets. Investments in a particular style may underperform other styles of investing or the overall market. Please see the respective strategy’s fact sheet above for additional important risk and performance disclosures, as well as at the bottom of this page.
Smart SRI ADR
Combining high responsible and sustainable investing standards with our proprietary ESG Capture® framework and portfolio optimization techniques to deliver a non-US equity portfolio with a low tracking error to the MSCI EAFE Index.
We employ this proprietary process of scoring responsible and sustainable attributes to uncover leaders and avoid laggards to help mitigate long-term portfolio risk. We also seek to avoid investments in fossil fuels, controversial weapons and a number of products that adversely affect women, girls, and disadvantaged communities. This Smart SRI strategy typically holds 35-45 American depository receipts (ADRs) on average, diversified across industry sectors.
Performance
| Total Return, As of 12/31/2025 | Quarter | YTD | 1 Year | 3 Year | 5 Year | Since Inception (6/30/2018) |
|---|---|---|---|---|---|---|
| Gross of Fees | 4.63% | 27.11% | 27.11% | 19.23% | 10.66% | 9.68% |
| Net of Fees | 4.49% | 26.44% | 26.44% | 18.65% | 10.10% | 9.10% |
| MSCI EAFE INDEX | 4.86% | 31.22% | 31.22% | 17.22% | 8.92% | 7.80% |
Past performance is no indication of future results. All investments involve a risk of loss. Performance is annualized for periods grater than one year. Net of fee performance is calculated by netting down the gross return by actual management fees as of the date paid from each account.
The integration of ESG considerations as part of the Strategy may result in the exclusion of securities that might otherwise merit investment, potentially resulting in lower returns than a similar investment strategy without such considerations. Investors can differ in their views of what constitutes positive or negative ESG characteristics. As a result, the strategy may invest in issuers that do not reflect the ESG beliefs and values of any particular investor.
In evaluating a security or issuer based on ESG considerations, we are dependent upon certain information and data from third-party providers of ESG research, which may be incomplete, inaccurate, or unavailable. As a result, there is a risk that we may incorrectly assess a security or issuer. We do not make any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness, or completeness of such ESG assessment. There may be limited availability of ESG data in certain sectors, as well as limited availability of investments with positive ESG assessments in certain sectors. Our evaluation of ESG criteria is subjective and may change over time.
There are risks involved in investing, including the risk of loss and the risk that the market value of your investments will fluctuate as the stock market fluctuates. International and emerging market equities are subject to increased risks due to economic or political instability, differences in accounting principles, and fluctuating exchange rates, with heightened risks for emerging markets. Investments in a particular style may underperform other styles of investing or the overall market. Please see the respective strategy’s fact sheet above for additional important risk and performance disclosures, as well as at the bottom of this page.
Portfolio Managers
International Equity Ex-Energy
Backed by more than 25 years navigating the non-US markets, this all-weather strategy pursues consistent and repeatable alpha through the combination of three perspectives, while providing broad developed markets exposure with the exclusion of the energy sector.
The Bailard International Ex-Energy Equity Strategy blends quantitative country evaluation and quantitative stock evaluation, together with a key layer of qualitative oversight. Country awareness underlies the whole process. This balance of human and machine components allows for agility and nuanced decision-making that seeks to uncover opportunities across the world’s strongest markets, while mitigating risks. Client-specific, sustainable and responsible investing objectives may be added or modified for new mandates.
Performance
| Total Return, As of 12/31/2025 | Quarter | YTD | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|---|---|
| Composite (Gross) | 5.01% | 34.73% | 34.73% | 21.56% | 11.20% | 8.64% |
| Composite (Net) | 4.86% | 34.17% | 34.17% | 21.05% | 10.73% | 8.17% |
| MSCI EAFE Index | 4.86% | 31.22% | 31.22% | 17.23% | 8.92% | 8.18% |
| MSCI EAFE ex-Energy | 4.83% | 31.38% | 31.38% | 17.61% | 8.69% | 8.16% |
Past performance is no indication of future results. All investments involve a risk of loss. Performance is annualized for periods greater than one year. Net of fee performance is calculated by netting down the gross return by actual management fees as of the date paid from each account.
There are risks involved in investing, including the risk of loss and the risk that the market value of your investments will fluctuate as the stock market fluctuates. International equities are subject to increased risks due to economic or political instability, differences in accounting principles, and fluctuating exchange rates. Investments in a particular style may underperform other styles of investing or the overall market. Please see the respective strategy’s fact sheet above for additional important risk and performance disclosures, as well as at the bottom of this page.
The integration of ESG considerations as part of the Strategy may result in the exclusion of securities that might otherwise merit investment, potentially resulting in lower returns than a similar investment strategy without such considerations. Investors can differ in their views of what constitutes positive or negative ESG characteristics. As a result, the strategy may invest in issuers that do not reflect the ESG beliefs and values of any particular investor. In evaluating a security or issuer based on ESG considerations, we are dependent upon certain information and data from third-party providers of ESG research, which may be incomplete, inaccurate, or unavailable. As a result, there is a risk that we may incorrectly assess a security or issuer. We do not make any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness, or completeness of such ESG assessment. There may be limited availability of ESG data in certain sectors, as well as limited availability of investments with positive ESG assessments in certain sectors. Our evaluation of ESG criteria is subjective and may change over time.
Portfolio Managers
Let's Connect
Learn more or schedule a meeting with one of our equity teams.
Diana L. Dessonville
Executive Vice President | Director, Institutional Client Services
diana.dessonville@bailard.com
(650) 571-5800
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