Other Style Boxes

Nugget of the week

International equity: The equity style box for international equity (stocks) uses the same key characteristics as the U.S. equity style box. However, the investing style characteristic is based on free cash flow rather than earnings to make funds comparable across geographies with different accounting regulations.

Fixed income: The fixed income (bond) style box categorizes funds by credit quality (high, medium, low) on the vertical axis and interest rate sensitivity (limited, moderate, extensive) as measured by duration (short, intermediate, long) on the horizontal axis.

Individual assets: The concept of style boxes can also be employed to classify individual assets (stocks, bonds).