Shedding the Home-Country Bias
Author: Brent Finck, CFA, Aviva Investors
Familiarity bias is part of human nature, but US investors who allocate only to their domestic high yield market are missing out on a big part of the opportunity set — more than 30%, actually. A manager given the freedom to pursue a global mandate will naturally be presented with a more diverse selection of companies to choose from and, potentially, more alpha sources from which to deliver returns. Learn more about what drives the diversification benefits of going global, including variations in economic conditions, sector compositions and quality.