Importance of International Investing

International investing can potentially help reduce overall correlation and risk. A diversified portfolio allows investors to be exposed to businesses that are in various stages of a market cycle.

Opportunity Set

75% of the world’s publicly traded companies, representing 50% of the world’s market capitalization, operate outside of the U.S. Investing internationally opens up an array of new prospective investments.

Source: FMRCo, Factset

Growth

The U.S. only accounts for less than 25% of the world’s GDP. Identifying and investing in faster growing economies can help enhance overall return potential.

 

Source: World Bank

0.67

Improved Risk-Adjusted Return

Less correlation exists between U.S. and international stocks. A mix of domestic and international holdings have the potential to improve the overall risk-adjusted return of an investor’s portfolio.

Source: Morningstar. Five-year correlation of international markets to the U.S. markets as of 12/31/2017. Measured by MSCI EAFE vs. S&P 500.

U.S. vs International Performance

The U.S. has outperformed the world this decade. Given the market’s tendencies for mean reversion, international stocks appear poised to undergo a period of outperformance vs. their U.S. counterparts.

Source: Morningstar. Rolling three-year performance for the S&P 500 versus the MSCI EAFE Index.

Opportunities exist in all corners of the Globe

Taking advantage of these prospects requires a seasoned manager with an extensive track record of investing in foreign markets. Learn more about the Cambiar International strategies and how they can fit into your asset allocation.

 

Product Name Geography Category Holdings Range Avg. Security Weighting Market Cap Range
International
International Equity
40-50
2.25%
>$5B
International
International Equity
40-50
2.25%
>$5B
International
International Small Cap
40-50
2.25%
$500MM-$5B
Global
Global Equity
45-55
2%
>$5B