Best of Breed

The BofA Global Best of Breed (BoB) report outlines the quantitative strategy's 3Q26 holdings, which are heavily weighted toward consumer stocks and specific geographic exposures like France and China. Despite recent 2Q26 underperformance, the model continues to exhibit superior long-term risk-adjusted returns versus the MSCI ACWI.

Key Takeaways

• 1.Global Best of Breed screen underperformed MSCI ACWI by 948bps in 2Q26.
• 2.The 3Q26 portfolio is overweight Consumer Discretionary and Consumer Staples sectors.
• 3.The 3Q26 screen shows an overweight position in France and China, with Developed Market exposure rising to 78%.

Table of Contents

• BoB underperformed ACWI in 2Q26
• BoB favors Consumer Discretionary and Staples in 3Q26
• BoB favors Quality & Growth
• Global Best of Breed 3Q26
• 3Q26
• BoB favors Consumer Discretionary & Consumer Staples
• The 3Q26 screen is long the France and China
• BoB has high quarterly turnover
• BoB underperformed ACWI by 948bps in 2Q26
• Risks to the strategy
• Performance
• How we calculate performance
• Our Best of Breed methodology
• All sectors (ex-Financials)
• Financials
• Screen Rebalancing
• Important Disclosures

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