BGA Global Country Allocation Framework (Borealis G-CAF) is our transparent and intuitive framework for classifying about 150 cross-sectional country-level anomalies (“factors”) across 9 “factor groups” that were gleaned from academic literature published over the last 30 years. Borealis aspires to be at the forefront of structuring and standardizing factors for country-based investing, and accordingly, G-CAF creates common parlance and characterizations around country-level index factors for creating feasible country allocation strategies for ETF sponsors, global allocation specialists, institutional money managers, portfolio managers, investment advisers, equity analysts, financial services companies, rating agencies, and financial data analytics firms.
9 Factor Groups
Countries with low valuation ratios outperform countries with high valuation ratios.
Dividend Yield (DY)
Sales-to-Price Ratio (SL/P)
Sales-to-EV Ratio (S/EV)