Are your investments mostly U.S. based? Here you can discover strategies to globalize your portfolio and capitalize on worldwide trends that could drive investment growth for decades. 

Four Major Trends Are Driving Global Growth: 

  1. Increased Wealth
  2. Technologlical Innovation
  3. Dynamic Reinventions
  4. Changing Demographics

Also, jump directly to our asset allocation guide and view all funds.

Increased Wealth

Do You Own Enough International Stocks

Africa Could Overtake the U.S. in Beer Sales 

Demand for beer is surging across Africa. For the world’s biggest brewers, Africa is their fastest-growing region, with Nigeria and South Africa the top markets. Beer consumption across the region may overtake U.S. levels.

Companies like Heineken (Oppenheimer Funds: OIDYX & ODVYX) are acquiring local brewers and marketing their international brands, as more Africans are buying the same labels Americans and Europeans enjoy.

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Do You Own Enough International Stocks

Chinese Tourists Are Key Customers for Parisian Fashion Shops

Along the Champs-Élysées in Paris, the showcase stores for the world’s most esteemed fashion brands look to hire staff who can speak Cantonese or Mandarin. These companies now see as much as 50% of their revenue coming from China and other emerging markets. These shoppers want Burberry coats, Gucci handbags (sold by Kering - Oppenheimer Funds: OGLYX, OIDYX & ODVYX) and Louis Vuitton luggage and Yves Saint Laurent haute couture (LVMH - Oppenheimer Funds: OGLYX, OIDYX, QIVYX, OIGYX & ODVYX).

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Do You Own Enough International Stocks

South Korea Is the New Center of Asian Beauty 

The ascendancy of South Korean culture, especially music and TV, has helped the country surpass Japan as the trendsetter for Asian beauty standards. One of the South Korean companies leading the way is Amore Pacific (Oppenheimer Funds: OIDYX, QIVYX & ODVYX), which offers makeup, fragrance, and skin care products.

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Chile is a Growth Market for Internet and Pay TV Services 

The number of Internet users in Chile has doubled over the past 10 years as the country has become wealthier. Internet and Pay TV services are one of the first things people want once they have more income. Chile, like much of Latin America, is a significant growth market for telecommunications companies. One of the dominant players across the region is Liberty Latin America. 

Technological Innovation

Do You Own Enough International Stocks

Vancouver to Host This Summer's "Olympics" of Online Gaming

In August of this year, thousands of fans will travel to Vancouver to watch an esports tournament. Interest in the tournament demonstrates how popular gaming has become. Today’s games demand huge amounts of processing power. That has created a growing market for companies like AMD (Oppenheimer Funds: OGIYX), which manufactures the microprocessors and graphics processors needed to deliver virtual reality and 3D experiences.

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Do You Own Enough International Stocks

Singapore Is Among the World's Leaders in Factory Automation

Singapore now employs 488 robots per 10,000 employees – the second highest “robot density” rate in the world. Factory automation would not be possible without sensors to gauge proper positioning, temperature, pressure, and torque. Keyence (Oppenheimer Funds: OGLYX, OIDYX & OIGYX) develops sensors for 200,000 customers in 100 countries. TDK (Oppenheimer Funds: OGLYX, OIDYX & QIVYX) sells sensors that are used for automation and in smartphones, computers, and appliances.

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Do You Own Enough International Stocks

China's E-commerce Dominate Their Markets Even More Than U.S. Peers Do 

Chinese e-commerce companies have a bigger share of their retail market than U.S. firms have of theirs. One of Tencent's (Oppenheimer Funds: GLVYX, OIDYXQIVYX & ODVYX)  lines of business is WeChat, a social networking app with a billion users that can be used to send messages, make payments, and hail rides. Alibaba (Oppenheimer Funds: GLVYX, OIDYX, QIVYX, OIGYX & ODVYX) is always finding new ways to monetize its capabilities and expand its ecosystem of mobile payments and cloud computing.

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European Companies Are Helping to Revolutionize Cars

Electric cars get the attention, but even cars with traditional engines are taking part in the “electronification” revolution as electronic components guide everything cars do today. The Austrian firm ams (Oppenheimer Funds: OIDYX & OIGYX) provides the sensors used in windshield wipers, temperature controls, and back-up alerts. The German company Infineon (Oppenheimer Funds: OGIYX, OIDYX, QIVYX & OIGYX) supplies processors that power navigation and stability control systems.

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Dynamic Reinventions

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The Investor of the Walkman Looks to Reinvent Itself

Sony (Oppenheimer Funds: OIDYX & QIVYX) made listening to music a mobile experience when it introduced the Walkman in 1979. In subsequent decades, it failed to recognize new trends and conceded the digital music revolution to Apple. The company may be poised to turn things around. It has cut costs, shed unprofitable businesses, and reduced its workforce. A new CEO is instilling a culture that looks to set, not follow, new trends.

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A New President in South Africa Fosters Hope for Reform 

When the African National Congress elected Cyril Ramaphosa, there were concerns that Jacob Zuma, who had tumultuous tenure as President, might not resign. After much drama, he did and that fostered hope that South Africa (Oppenheimer Funds: OIBYX & OEMYX) could institute reforms to spur economic growth and reduce government debt. If it is at least partially successful, its bonds may become more attractive to global investors.

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Sao Paulo a Key Stop for a Paper Suppliers' Global Ambitions 

Delivering paper cups and safety glasses may not seem like an exciting business, but Bunzl (Oppenheimer Funds: OIDYX & OIGYX) has been a great story for investors. Grocery stores, restaurants, and hospitals outsource the purchase and delivery of their inventory to Bunzl. Acquisitions are a big part of the UK-based firm’s business. In 2008, it entered Latin America, starting in Sao Paulo. Today, it has 500 locations in 30 countries.

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Reforms May Allow India to Capitalize On Its Strengths

India (Oppenheimer Funds: OIBYX & OEMYX) has instituted a number of reforms. A goods and services tax created a unified domestic market. A new bankruptcy framework made it easier for companies to restructure when necessary. The central bank now has a better way to manage inflation. In the fourth quarter of 2017, the economy, relative to the fourth quarter of 2016, grew 7.2% -- a promising sign that these reforms could spur growth.

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Changing Demographics

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Chilly Antarctica Has Become a "Hot" Tourist Destination

Visits to Antarctic jumped by 15% last year. Rising incomes around the world and aging populations have swelled the ranks of retirees with money to spend on “transformational” experiences. For cruise-line companies like Carnival (Oppenheimer Funds: OIDYX, QIVYX & OIGYX), these trends have brought steady annual increases in passengers, as more people board cruise ships for unique experiences like trekking across glaciers with penguins.

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Denmark Is a Hotbed of Biomedical Research

Each year, the Lundbeck Foundation awards 500 million Danish kroner to Danish-based, biomedical sciences research. It may explain why Danish firms are among the biggest players in the pharmaceuticals industry. H. Lundbeck (Oppenheimer Funds: OGIYX & OIDYX) developed a treatment for Parkinson’s, while Genmab (Oppenheimer Funds: OGIYX, GLVYX & OIDYX) developed a “blockbuster” drug (generating $1 billion in yearly sales) to treat multiple myeloma, a type of blood cancer.

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A Small U.S. Firm Is Developing Innovative Cancer Treatments 

Nektar Therapeutics (Oppenheimer Funds: OGIYX), a San Francisco-based pharmaceutical company, is working on a drug that stimulates the production of cancer-fighting T-cells in the body’s immune system that will attack and shrink tumors with fewer side effects than other commonly used therapies. It is also working on therapies that can address autoimmune diseases and chronic pain.

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Do You Own Enough International Stocks

Dubai Now Has the Busiest Airport for International Travelers

More than 80 million people fly in and out of the Dubai International Airport every year. With rising incomes, and more older, retired people around the world, air travel is a growth business. That has benefited companies like Airbus (Oppenheimer Funds: OGLYX, OIDYX, QIVYX & OIGYX), the airplane manufacturer, which has experienced a rising demand for its planes as airline companies look to expand and update their fleets.

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How to Globalize Your Portfolios

Once you educate clients about the value of thinking more globally, the next question is how do you develop an allocation strategy for them that provides the optimal level of global exposure. The following asset allocation strategy is built on two general principles. The first is that a major world index – the MSCI All Country World Index – can provide guidance on how to allocate equity holdings across the U.S., international developed (both large and small and mid-cap), and emerging stock markets. The second is that fixed-income allocations across global markets can be guided by the income levels you need. We’ve recently written about that in length based on a Black-Litterman Optimization framework. The goals of the optimizations are to provide potential guideposts for investors as they seek to build new income portfolios out of asset classes beyond the Bloomberg Barclays U.S. Aggregate Bond Index. Using this framework, an investor looking to achieve a yield from 3% to 5% yield, for example, might consider allocating about 6% of their total portfolio towards a higher yielding, albeit higher risk, asset class like international debt. These allocation percentages are in no way recommendations, but they may serve as useful context for asset allocation considerations.

 

Global Equities 

Do You Own Enough International Stocks

These portfolios invest both in the United States and anywhere else in the world. They give portfolio managers the freedom to invest in what they consider to be the best companies in the world. They allow investors to gain full global diversification in a single portfolio.

 

 

International Equities 

Do You Own Enough International Stocks

These portfolios invests almost exclusively in countries outside the United States. They enable investors and advisors to target non-U.S. markets and make their own decisions about their global diversification strategies.

 

 

International Debt 

Do You Own Enough International Stocks

These funds can invest anywhere in the world in bonds issued both by government and corporations. They allow investors to diversify their holdings and not be entirely dependent on what is happening with the U.S. economy and interest rates. We believe a global debt portfolio has many more opportunities to find income and returns for investors. That extra income can come from higher interest rates in other countries, higher yields on corporate debt outside the United States, or the returns available from the fluctuations in other country’s currencies.