BOSTON - The margin of outperformance of internationally diversified portfolios has narrowed in recent years, according to figures compiled by Ibbotson Associates on behalf of the Pioneer Funds, Boston.
Still, in every 10-year period beginning in 1977 and ending in 1995, a blend of 30% foreign and 70% U.S. stocks beat a 100% U.S. portfolio. Even in the most recent 10 years, the blended investment did better with an average annual return of 14.98% vs. 14.84%.
In the first three 10-year periods, spanning 1977 through 1988, blended portfolios outperformed by more than 200 basis points on average. In later periods, the lead dwindled from 1.92% from 1980 to 1989 to 0.14% from 1986 to 1995.
International stocks were represented by the Morgan Stanley Capital International Europe Australasia Far East index; U.S. stocks were represented by the S&P 500.