Global Wave: A friendly Wave

Research evidence excerpt

Global Wave: A friendly Wave

Notice to Readers:

The various screens identified in this report are intended to be indicative metrics only

and may not be used for reference purposes or as a measure of performance for any

financial instrument or contract, or otherwise relied upon by third parties for any other

purpose, without the prior written consent of BofA Global Research. These screens were

not created to act as a benchmark.

The screens in this report are not a recommended list either individually or as a group of

stocks. Investors should consider the fundamentals of the companies and their own

individual circumstances/objectives before making any investment decisions.

Table 2: Acronyms and Definitions

Acronyms used in this report and its definitions (full form)

Acronym Definition (full form)

MSCI Morgan Stanley Capital International

ACWI All Country World Index

GEM Global Emerging Markets

APxJ Asia Pac ex-Japan

DM Developed Markets

ex or Ex Excluding

YoY Year-on-year

YTD Year-to-date

1m 1-month

3m 3-months

6m 6-months

12m 12-months

QE Quantessential

EM Earnings Momentum

PM Price Momentum

PE Price-to-Earnings (Forecast)

PB Price-to-Book (Trailing)

OW Overweight

UW Underweight

Styles For more details on how these styles are defined please refer to Global Quantessential Style

report

TE Tracking Error = Tracking error (or active risk) quantifies how closely a screen tracks the index to

which it is benchmarked. It is measured by the standard deviation of relative returns. The lower

the tracking error (standard deviation) the better the screen tracks the returns of the index.

Tracking error in this research is based on the monthly returns of the screens and the underlying

index.

Name with * Name with * represents non-benchmark stocks