August 2013 Investment Insight, "The Case for Global Equities"

Abstract

Equities remain an important component in investor portfolios. An increasing number of investors have recognized that the healthiest equity portfolios are well-diversified not only by investment style and market capitalization, but also by geography. However, most Canadian investors still exhibit a "home-country bias" : a tendency to favour investments in domestic companies and securities.

In a new publication, Investment Insight, Segal Rogerscasey Canada explains why that bias creates a long-term disadvantage in an investment portfolio and makes the case that global equities are a way to avoid that disadvantage.

In Segal Rogerscasey Canada's experience, implementing a global equity structure need not be overly disruptive. It is not necessary to replace all Canadian and non-Canadian equity managers within a portfolio because a number of money managers have begun to expand their offerings to include global equities. In some cases, expanding investment guidelines might be a simple solution. In other situations, it might make sense to maintain Canadian and non-Canadian managers and look to add global mandates selectively as opportunities arise.