Why international investing now?
With global growth reviving, the time for international diversification is at hand.
After several years of U.S. market dominance, the attractiveness of international investing is on the rise as global growth reaccelerates.
WHY INVEST INTERNATIONALLY?
Variation in growth prospects and policy mixes can lead to low price correlation and manage overall portfolio volatility.
Positioning portfolios accordingly is how active managers add value.
Expanded opportunity set
The number of publicly-traded international stocks and bonds makes for a much larger opportunity set than just the U.S.
The world’s top companies can be found in places that may surprise you.
Lower price-to-earnings ratios of major non-U.S. equity indexes and higher bonds yields outside the U.S.—especially in emerging market debt.
This could mean greater potential to identify attractively-valued securities.
We believe that active management is the best way for investors to access all the potential benefits from diversifying in international stock and fixed-income markets.
EXPANDED OPPORTUNITY SET
Two-thirds of global market cap is outside of the US...
...& over 70% of global debt has been issued outside of the U.S.
Equity market capitalization percentages are in U.S.$ terms and derived from the Bloomberg U.S. Market Cap as a Percentage of World Market Cap Index. Global debt percentages are derived from total global debt as measured by Bloomberg’s Global Debt Map and includes government-issued and private sector corporate debt; measured in the U.S. $ terms. International investments are subject to special risks including currency fluctuations, social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets.
Source: Bloomberg, as of September 30, 2017.