Investors from around the world look to the United States as the center of the financial world. Our stable legal and monetary systems and our free markets attract billions of dollars in foreign capital every year. However, it would be a mistake to let your search for investment opportunities end at our shores.

In 14 of the last 30 years (ending in 2006), foreign stocks were the top–performing asset class, compared with domestic stocks, bonds, and cash equivalents (see chart below). If you had invested only in domestic equities during this period, you would have missed out on owning an asset class that outperformed the other three in almost one out of every two years since 1977. Past performance does not guarantee future results.

If you want to expand your portfolio’s geographic boundaries, international mutual funds may be a good option. By investing in companies outside the United States, international funds invest not only across industry sectors and securities, but across national boundaries as well. International mutual funds also offer many of the same benefits as domestic mutual funds, including professional management and convenience.

Multinational Diversity
International mutual funds can help you diversify your portfolio by spreading investments across different markets outside the United States. Because markets move in their own cycles, losses in one market may be offset by gains in another. Of course, diversification does not guarantee against loss; it is a method used to help manage investment risk.

Buck the System
Your return can also be affected by currency fluctuations. Investments denominated in a foreign currency are influenced by the exchange rate with the U.S. dollar.

Mutual fund shares fluctuate with market conditions and, when redeemed, may be worth more or less than their original cost. Before investing overseas, consider your risk profile carefully. The risks associated with investing on a worldwide basis include differences in financial reporting, currency exchange risk, as well as economic and political risks unique to the specific country.

Mutual funds are sold only by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

International investing can offer investors a chance to participate in foreign markets. Call today to discuss whether to take your portfolio global.