Exposure to authoritarian countries is not worth the risk in a portfolio.

TOBAM has launched TOBAM LBRTY® Equity Strategy, an approach to equity investing seeking to mitigate exposure to countries governed by autocratic regimes.

TOBAM’s original and extensive research on portfolio’s authoritarian exposure leads to four main conclusions:

1. 1. There is a tyranny risk driver,
   2. The tyranny risk driver is negatively rewarded over time,
   3. Most of a portfolio’s exposure to the tyranny risk driver is contributed by its indirect exposure to it,
   4. The tyranny driver is independent from other risk drivers.