ornamentWhy Global & International Investing?

Global funds invest in both foreign countries and in the U.S., while international funds invest only in foreign countries. There are two primary reasons to consider global investing. The world market offers more opportunities and provides broader diversification, which can reduce risk and increase return.

U.S. stocks account for 45 percent of the world market. Broadening your investment horizon to include foreign companies increases your investment opportunities nearly two-fold. There are a high number of world-class companies outside of the U.S. and emerging markets' economies are growing significantly faster than the U.S. market. Recent economic data shows China and India's economies growing at rates of 8.2% and 6.2%, respectively, while the U.S. grows at a comparatively much slower rate. In addition, international diversification reduces risk by spreading out investments in non-correlating markets and lowers the volatility of the portfolio as measured by the standard deviation of returns.

Global and international investing also increases return possibilities and minimizes losses. There are periods of time when global and international investing have provided greatly superior returns. For example, over the ten years ending June 30, 2012, international stocks have outperformed U.S. stocks, particularly in emerging markets, which have returned 11.35% per annum.*

Global markets are dynamic, with geographic opportunities constantly changing. Let French Broad Global Investors navigate your global investment allocations while reducing risk and increasing your return. We can provide you with the expertise and knowledge to start making valuable global investments today.

* MSCI Emerging Markets Index (as of 6/30/2012)