Challenges For Global Stock Managers
As an investment strategy, global stock investing is nothing new. However, true integrated global investing?allowing a manager the latitude to invest in any stock market in the world?has been slow to catch on among U.S.-based institutional investors. This may, however, be changing. It has been seen that three factors are interacting, leading many plans to consider global stock mandates. They are increased correlations between the non-U.S. and U.S. stock markets, studies showing the impact of sectors over countries and desire for more latitude. All three have been discussed in detail. Thus, moving to a global platform will require change in the U.S. institutional investment manager community. If global investing takes hold in some meaningful way, many firms will need to better integrate their analyst platforms as well.