4Ps Analysis: A Proprietary Framework for Global Equity Allocation

March 2024

City National Rochdale's approach is that, after asset allocation, the next important decision in portfolio construction is where to invest regionally. Our proprietary 4Ps analysis framework (Policies, Population, Potential, Profitability) seeks to identify the best opportunities for global equity investing over the coming decade.


We review the economic data for various countries and rank each based on the following criteria:



Any opinions, projections, forecasts, and forward-looking statements presented herein are valid as of the date of this document and are subject to change.



After adding together the relative positioning, we arrive at a total equally weighted score (lower is better). The below describes our views and approach:

Policies are foundational for economic success

We separate Germany from Europe ex-UK for two reasons:

• We believe Germany is the strongest economy within the EU

• Germany provides a relative frame of reference for Japan, which is comparable in size

The population dynamics of a country are vitally important for productivity levels and successful economic growth A nation’s economic potential is ultimately a product of its labor force’s growth and productivity

More Workers + Higher Output per Worker = Stronger Economic Growth

Potential for innovation in industries of high intellectual property is important, as these industries tend to have higher secular growth and profitability, as well as the potential to provide higher wages to employees


A country’s venture capital community and technology-focused universities, combined with the creative spirit of innovation, are important factors

Profitability supports sustained competitive advantage


We believe the higher level of growth and profitability increases the amount of resources available to invest in the future, thus enhancing the economic outlook

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*Europe xUK data includes Germany


Using our multifactor 4Ps framework, we strongly believe the U.S. is the best developed-markets country in which to find economic and profit growth, which ultimately drive stock returns





Developed markets alone don’t offer much diversification benefits for U.S. investors. However, many investors mistakenly believe that all country indices are the same. We separate EM Asia from EM Non-Asia.

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(AS OF JANUARY 31, 2024)

A relative comparison of historical equity index returns provides support for our conclusion that countries and/or regions that score better in our 4Ps framework should outperform over the long term.


For illustrative purposes only. Information is not representative of the performance achieved by any CNR product or service. The 4Ps process is one of a number of tools that CNR uses in determining global equity asset allocation. This represents a relative performance comparison of annualized 5 year regional equity index returns.

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