The case for international diversification (Investment Insight)

By Global Equities Team, Aberdeen

The benefits of investing internationally have been well documented and yet investors have continued to invest a disproportionate amount in stocks listed on their home market. This phenomenon, termed ‘home-bias’, became apparent following the most recent global financial crisis. Starting in the US with sub-prime mortgages and the collapse of Lehman Brothers, shockwaves were sent around the world leading to the near-collapse of some of the most established international markets. Globalisation has allowed investors to access new investment opportunities and better risk-adjusted returns, but as correlations between markets increased, sceptics have started to question the benefits of international diversification.

With this in mind, it is worth considering if the case for international diversification still stands.

Recommended

Steve-Webb-speaks-at-NAPF-Conference-in-2013-700.jpg
7

Steve Webb: Treasury could target salary sacrifice

Former pensions minister Steve Webb says salary sacrifice could be in the Treasury’s sights ahead of the Conservative Government’s first Budget in July. Speaking to Money Marketing, Webb, who lost his Thornbury & Yate constituency seat during the general election, says the pledge from the Government not to raise tax rates leaves ministers with little […]

FCA interior logo 620x430
7

FCA bans ex-equity release boss over £1m ‘illegitimate transfers’

The FCA has banned Kevin Allen, the former sole shareholder of mortgage intermediary NMB, for propping up the business through “illegitimate transfers” from New Life totalling £1m. Allen, who was finance director at equity release provider New Life, funnelled the money between 2009 and 2013 without the knowledge of the other New Life directors. Allen […]

hopkins
1

Platforum: Piecing together the vertical integration puzzle

Vertical integration, a term much bandied about, is a devil’s child to some and a saving grace to others. It is the merging together of two or more businesses that are up or downstream from each other, in that they are further or closer to the end customer. Old Mutual Wealth customer director Carlton Hood […]

Investment Forum

Position Portfolios for a Changing China, Accelerating Disruption and More Political Discourse Is China an asset class? Why Investors’ Understanding of China is Changing How is disruption changing the way we invest? Established Ways of Doing Business Are Being Challenged What to Watch: Why politics matters more than ever in 2017 Key takeaways: Despite volatile […]

Newsletter

News and expert analysis straight to your inbox

Sign up
Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com