StateTrust recommends a risk/return global investment policy with certain client investment profiles.
By including stocks from other countries in a client’s domestic portfolio, it is possible to improve the risk/return tradeoff of investment opportunities.
Over the period under examination in the graphic below (1970-2010), an investor could have achieved higher returns at given levels of risk if including international investments. The improvement in the risk/return tradeoff is due to correlation differences of the international asset classes with the U.S. asset classes.
Source: StateTrust’s analysis of Morningstar data. Performance shown is not indicative of the performance of any specific investment. An investor cannot invest in an index, such as the one these graphs are based on. Past returns are no guarantee of future performance. These returns are based on historical information, from sources believed to be reliable, but accuracy cannot be guaranteed, and these returns can vary in future time periods.
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