Westwood LBRTY Global Equity ETF (BFRE) Seeks to Reduce Autocracy-Related Risks While Maintaining Broad Market Diversification
DALLAS, March 27, 2025 (GLOBE NEWSWIRE) -- Westwood Holdings Group (WHG), a publicly traded investment management boutique and wealth management firm, today announced the launch of the Westwood LBRTY Global Equity ETF (NYSE: BFRE). The latest Westwood Exchange-Traded-Fund (ETF) offers a distinctive, data-driven approach to global equity investing by seeking to limit exposure to authoritarian regimes while maintaining broad market exposure.
BFRE employs TOBAM’s LBRTY methodology, an innovative approach
that aims to generate performance by systematically reducing exposure to companies that can be subjected to the economically irrational, unpredictable and corrupt behavior of autocratic governments. This strategy aligns with investors who prioritize risk management and recognize the long-term economic benefits of investing in countries with strong institutions, civil liberties and rule of law.BFRE takes a distinctive approach with the goal of reducing the unrewarded risks from countries with oppressive regimes and arbitrary rule while staying aligned with global market benchmarks. This strategy helps mitigate the impact of geopolitical risks and market volatility tied to countries operating under authoritarian rule.
Synthesizing multi-dimensional datasets from independent sources that measure global democracy, BFRE reduces the direct and indirect exposure to authoritarian countries, such as China and Russia. Unlike traditional exclusion-based strategies, this methodology provides a more comprehensive assessment than the simple removal of a country from the investable universe. The approach operates on two levels: at the country level, it excludes stocks listed in nations that lack democratic governance, an independent judiciary and strong civil liberties; at the stock level, it prioritizes companies listed in democratic countries with minimal reliance on authoritarian regimes.
The ETF is designed to provide broad market coverage by including global developed and emerging markets, offering a wider investment scope than many existing alternatives. This design simplifies investment allocation by reducing the need for multiple funds and strategies while providing a dynamic investment option.
“Investors are increasingly seeking solutions that solve for the interconnected nature of global economies. BFRE works to minimize direct and indirect exposure to authoritarian regimes while aligning with investor’s goals and objectives. Traditional exclusion-based approaches often result in unintended exposures and uncompensated risks, whereas BFRE takes a more nuanced and comprehensive approach,” said Greg Behar, Head of Managed Investment Solutions at Westwood. “By systematically assessing both direct and indirect ties to authoritarian regimes, BFRE offers investors a more precise and effective way to reduce exposure while maintaining a well-diversified, global equity portfolio.”
Brian Casey, CEO of Westwood Holdings Group added: “BFRE is designed to offer investors a forward-thinking solution that helps mitigate exposure to the geopolitical risks tied to authoritarian regimes while ensuring alignment with global equity benchmarks. By leveraging TOBAM’s proprietary LBRTY approach, we are providing a strategy that prioritizes financial resilience and democratic investment.”
“Geopolitical risk is coming back with a vengeance, making this a dangerous time to be exposed to autocratic countries” said Yves Choueifaty, CEO of TOBAM and a pioneer in risk factor investing. “BFRE is backed by a wealth of academic research proving the economic superiority of democratic countries. It leverages this research to build sophisticated portfolios designed to improve the long-term risk-reward of our investors by mitigating their exposure to autocratic governments that are prone to destroy value creation.”
TOBAM is an investment management firm running systematic approaches for leading asset owners since 2006. TOBAM is SEC-registered and invented the Diversification Ratio®, which is now part of the Chartered Financial Analyst (CFA) curriculum worldwide.
BFRE’s methodology is rooted in TOBAM’s extensive research, which highlights the long-term financial advantages of investing in democratic markets. Historical data indicates investors in countries with oppressive regimes and arbitrary rules are exposed to unrewarded risks and will underperform in the long run.
For more information on the Westwood LBRTY Global Equity ETF and other investment solutions offered by Westwood, please visit westwoodetfs.com.
ABOUT WESTWOOD HOLDINGS GROUP, INC.
Westwood Holdings Group, Inc. (NYSE: WHG) is a boutique asset management firm that offers a diverse array of actively-managed and outcome-oriented investment strategies, along with white-glove trust and wealth services, to institutional, intermediary and private wealth clients. For over 40 years, Westwood’s client-first approach has fostered strong, long-term client relationships due to our unwavering commitment to delivering bespoke investment strategies with a vehicle-optimized approach, exceptional counsel and unparalleled client service. Our flexible and agile approach to investing allows us to adapt to constantly changing markets, while continually seeking innovative strategies that meet our investors’ short and long-term needs.
Our team at Westwood comes from varied backgrounds and life experiences, which reflects our origins as a woman-founded firm. We are committed to incorporating diverse insights and knowledge into all aspects of our services and solutions. Our culture and approach to our business reflect our core values—integrity, reliability, responsiveness, adaptability, flexibility and collaboration—and underpin our constant pursuit of excellence. For more information on Westwood, please visit westwoodgroup.com
ABOUT TOBAM
TOBAM is an asset management company offering innovative capabilities designed to maximize the benefits of scientific research to build efficient investment exposures. TOBAM’s expertise relies on 3 core pillars:
- TOBAM’s Maximum Diversification® approach, supported by original, patented research and a mathematical definition of diversification, provides clients with diversified core exposure, in equity and fixed income markets.
- TOBAMSolutions®, a research driven division, dedicated to building customized solutions and services for sophisticated institutional investors.
- A LBRTY® strategy, which aims to help investors substantially mitigate their exposure to autocratic regimes in their portfolio.
- In line with its mission statement and commitment to diversification, TOBAM also launched a satellite activity (CRYPTOBAM®) on cryptocurrencies in 2017.
For more information, please visit www.tobam.fr or tobamdirect.com
No comments:
Post a Comment