The world has changed in fundamental ways. We believe it’s time to rethink the way investors take advantage of the new opportunities presented to them. That’s why we take a comprehensive approach to investing, seeking companies located anywhere in the world that we believe are positioned to benefit from structural growth themes.
In the more than four decades since we launched our first global product, the investing world has been turned upside down. Consider these facts:
- The U.S. now accounts for less than 25% of the world’s economic output and less than 50% of the world’s stock market capitalization.1
- Nearly 75% of the world’s largest 500 companies aren’t based in the United States.2
- Asia ex-Japan is projected to contribute more to world GDP growth over the next five years than the U.S. and Europe combined.3
And yet, many U.S. investors are still hesitant to globalize their portfolio, defaulting to a home country bias. By limiting themselves to just buying at home, investors are potentially missing out on the world’s best investment opportunities.
Big Ideas Matter
As long-term investors, we are keenly interested in structural changes in the world, and where and to whom the economic benefits will flow. We focus on powerful demographic and economic shifts that serve as tailwinds to sustain potential earnings growth over the next decade.
We categorize these broad global themes into an investing framework we call MANTRA—mass affluence, new technology, restructuring and aging. The megatrends that make up MANTRA present enormous opportunities for investors.
Learn more about how our MANTRA framework, combined with our rigorous investment philosophy, is designed to deliver solid long-term returns for our shareholders.
1 Source: International Monetary Fund (economic output), World Bank (market capitalization), 2014.↩
2 Source: Fortune Global 500, July 2014.↩
3 Source: IMF, October 2014, Prudential estimates.↩
Special Risks: Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes and geopolitical risks. Emerging and developing market investments may be especially volatile. Due to the recent global economic crisis that caused financial difficulties for many European Union countries, Eurozone investments may be subject to volatility and liquidity issues. Investments in securities of growth companies may be volatile. Mid-sized company stock is typically more volatile than that of larger, more established businesses, as these stocks tend to be more sensitive to changes in earnings expectations and tend to have lower trading volumes than large-cap securities, creating potential for more erratic price movements. It may take a substantial period of time to realize a gain on an investment in a mid-sized company, if any gain is realized at all. Diversification does not guarantee profit or protect against loss.