International Investing. The Dutch Investor's Perspective

Journal of Investing, Fall 1997

Posted: 18 Apr 1998

See all articles by Jarrod Wilcox

Jarrod Wilcox

Wilcox Investment, Inc.

Stefano Cavaglia

Brinson Partners; Maastricht University - Department of Finance; PanAgora Asset Management, Inc.

Abstract

As Dutch investors add international securities to their portfolios, it becomes important to understand and evaluate both the benefits of diversification and management of the associated currency exposures. According to the analytical framework developed here, three conclusions are primary. Historical returns are poor predictors of future returns. More sensible asset allocation relates expected return to risk. And Dutch investors could benefit from more international diversification but only if most of their currency exposure is hedged away.

JEL Classification: G12, G15

Suggested Citation

Wilcox, Jarrod and Cavaglia, Stefano M. F. G., International Investing. The Dutch Investor's Perspective. Journal of Investing, Fall 1997. Available at SSRN: https://ssrn.com/abstract=77350

Jarrod Wilcox

Wilcox Investment, Inc. ( email )

950 Centre Street
Newton, MA 02459
United States
617-332-4666 (Phone)

Stefano M. F. G. Cavaglia (Contact Author)

Brinson Partners

209 LaSalle Street
Chicago, IL 60604
United States

Maastricht University - Department of Finance ( email )

Maastricht, 6200 MD
Netherlands
31 43 888-838 (Phone)
31 43 270-999 (Fax)

PanAgora Asset Management, Inc.

260 Franklin Street
22nd Floor
Boston, MA 02110
United States
617-439-6385 (Phone)

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