Recent headlines offer a flurry of both opportunities and challenges for global investors. In Asia, the re-election of Prime Minister Shinzo Abe and the Liberal Democratic Party’s consolidation of control of the Diet means that voters have said “Yes” to his Three Arrows policy. The Wall Street Journal reports that Nissan Motor Co.’s profits grew by 14% in the first quarter, benefiting from a weaker Yen. Could this be a sign that Mr. Abe’s policies are beginning to lift the nation out of the economic stagnation that has gripped the island nation for a decade?
Japanese Prime Minister Shinzo Abe at the Diet session in Tokyo on Aug. 2, 2013
Europe has consistently made the headlines as the region appears to alternate from crisis to shoots of green and back to crisis. Plagued by high unemployment and divergence between core nations and heavily indebted peripheral members, the region is likely to face headwinds for some time.
While investors might want to bury their head in the sand and continue to invest in familiar domestic companies, it is up to asset management firms to explain why in today’s globalized world, international funds remain an important portfolio component. Companies should take the initiative to educate investors about the benefits – and risks – of global and international funds, while promoting their products. A fund company’s message can be bolstered by insightful thought leadership that cuts through the chatter and gets to the core of investing issues.
Corporate Insight’s July 2013 Mutual Fund Monitor monthly report looks at International Investing, offering in-depth competitive analysis of how 17 leading asset management firms are presenting global investment opportunities to retail investors. For more information on the report and our Mutual Fund Monitor research service, please contact Jeff Latzer, head of mutual fund research, at firstname.lastname@example.org.