Twenty Years of International Equity Investing

16 Pages Posted: 9 Feb 2014

See all articles by Richard O. Michaud

Richard O. Michaud

New Frontier Advisors

Gary L. Bergstrom

Acadian Asset Management

Ronald Frashure

Acadian Asset Management

Brian Wolahan

Acadian Asset Management

Date Written: 1996

Abstract

International equity portfolio diversification is now well accepted by investors around the world. It was a novel concept, and perceived as unusually risky, when proposed originally in the Journal by Bergstrom (1975). In the twenty years since, many other writers have described the risk reduction and return enhancement of carefully diversifying portfolios across different international equity markets. A comprehensive summary of the extensive literature appears in Solnik (1988).

In these two decades, the benefits of global portfolio diversification have been largely accepted by the academic and professional investment communities. At this point, it is of interest to consider two critical questions: 1. Has international equity diversification achieved it original objectives of raising return per unit of risk for U.S.-based and other global investors? 2. What new routes are open to future global investors?

Suggested Citation

Michaud, Richard O. and Bergstrom, Gary L. and Frashure, Ronald and Wolahan, Brian, Twenty Years of International Equity Investing (1996). Journal of Portfolio Management, Vol. 23, No. 1, 1996. Available at SSRN: https://ssrn.com/abstract=2391322

Richard O. Michaud (Contact Author)

New Frontier Advisors ( email )

155 Federal Street
Suite 1000
Boston, MA 02110
United States
617-482-1433 (Phone)
617-482-1434 (Fax)

HOME PAGE: http://www.newfrontieradvisors.com

Gary L. Bergstrom

Acadian Asset Management ( email )

260 Franklin Street
Boston, MA 02110
United States

Ronald Frashure

Acadian Asset Management

260 Franklin Street
Boston, MA 02110
United States

Brian Wolahan

Acadian Asset Management ( email )

260 Franklin Street
Boston, MA 02110
United States

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