Global Equity
The broadest equity allocation available to an institutional investor — encompassing all publicly traded equities across every geography and market cap worldwide.
For an endowment or pension this is typically the largest single allocation and the primary driver of long-term returns. The standard benchmark is the MSCI All Country World Index (ACWI), which covers approximately 85% of the global investable equity universe across 23 developed and 24 emerging markets.
Institutional allocators typically structure global equity across passive index exposure for core beta, active managers for alpha in less efficient markets, emerging markets as a separate sleeve given complexity, and small cap as a separate sleeve given liquidity differences.
Frequently Asked Questions
What is global equity allocation?
Global equity is the broadest equity allocation — encompassing publicly traded stocks across all geographies and market caps worldwide. It's typically the largest allocation in institutional portfolios and the primary driver of long-term returns.
What benchmark is used for global equity?
The standard benchmark is the MSCI All Country World Index (ACWI), covering approximately 85% of the global investable equity universe across 23 developed and 24 emerging markets.
How do institutions structure their global equity allocation?
Institutions typically use passive index exposure for core beta, active managers for alpha in less efficient markets, and separate sleeves for emerging markets and small cap given their distinct characteristics.
Explore with Ora
Ask Ora anything about global equity and related investment concepts. Get Bloomberg-grade intelligence in plain English, in seconds.