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The case for a global approach to investing
July 2011
In most countries, the asset allocation of investment portfolios, for a number of largely interrelated reasons, has tended to entail both a bias towards domestically listed securities and the separate management of domestic and overseas assets. Those features have become less pronounced in recent years, but they continue to characterize the majority of U.S. investment plans.
In this paper, we describe how investment approaches have evolved in the U.S., and suggest some of the principal reasons for the traditional 'home' bias, and for the partitioning of domestic and overseas assets by U.S. investors. We explore the likely benefits of overseas investment to U.S.-based investors, and make the case for investment arrangements in bond, equity and multi-asset portfolios to be global (and active) in nature, rather than biased towards domestic assets, or split between domestic and overseas allocations.
The paper is available to read in an eBook version, which is compatible with iPads, iPhones and Android devices.
To read the pdf version, please download The case for a global approach to investing.
The case for a global approach to investing is also available as a webcast presented by Paul Markham.
