Along with the sovereign governance classifications, Ecstrat maintains a database of over 9,000 stocks in all major markets that are further classified by their corporate governance structure. The database serves as a base for all of Ecstrat's work.
To highlight potential risks and opportunities in major markets, Ecstrat has developed a five-factor proprietary scorecard that is intended to be indicative of potential risk and opportunities in major markets worldwide, represented as recommended weightings for asset allocation.
Applying a proprietary ranking methodology for 48 major markets that utilities the governance database, we calculate a sector adjusted ranking which highlights the cheapest and the most expensive markets in Ecstrats universe at any given point in time. The rankings are complemented by four other top-down factors, which are Macro, Policy, Governance and Currency that together make-up the scorecard.