Helping Advisors Blog

Given all the uncertainty in Europe these days and increasing signs of a slowdown in China, we thought the time might be right to ask advisors what global investing means to them and how they provide global exposure to clients. We were also curious to know if their global strategies changed over the last five years. That’s the focus for this quarter’s Financial Professional Outlook.

So what does it really mean to be a global investor? Is it merely a matter of geography (where a company is domiciled)? Is it where a company makes its money? Could it be both?

In our efforts to put a definition around the term “global investing,” we offered several options to advisors. We decided to frame the question specifically around their exposure to global equity and below you’ll see the question and choices.

Advisor’s definition of global equity

Responses from Russell’s 2012 3rd Quarter Financial Professional Outlook question, “Which of the following best describes an investment strategy that has global equity exposure? (Please choose only one.)

The top definition, ”a strategy that is not constrained by geography,” had a 39% response, while 34% chose “a strategy that invests in companies whose revenues are generated both inside and outside the United States” and 25% selected “a strategy that invests in companies domiciled both inside and outside the United States.”

There wasn’t a runaway winner here. In fact, it’s pretty clear to us that the way advisors define global investing is open to interpretation. Since there isn’t one definition of what it means to be a global investor, it’s important that advisors articulate their own view to get clients on the same page. That opens the door for advisors to have a conversation on the role global investing can play in a diversified portfolio.

In the coming weeks we’ll discuss in more depth additional findings from the September 2012 Financial Professional Outlook, so please stay tuned.

Download the most recent version of the quarterly Financial Professional Outlook.