Americans Not Flocking to International Equities

A scant 13% of Americans currently invest in international stocks and only 19% plan to do so over the next five years.

A survey conducted by asset manager Schroders found that an investor’s likelihood to invest in international stocks increases with income level, as only 10% of those with an income under $25,000 say they plan to invest in international stocks, while 38% with incomes over $75,000 say they plan to do the same.

Interestingly, men are 50% more likely to invest in international equities than women, indicating a higher risk tolerance among male investors, according to the survey.

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Although other investments were more popular, the majority of Americans are not looking at investments in the near future: 49% of American investors plan to invest in CDs, savings accounts, or money market funds in the next five years and 35% of respondents said they will invest in mutual funds.

When considering countries, Americans view China as the world’s dominant economic superpower in the next decade, compared with the United States, India, Germany and Russia, the survey found.

“China’s economic growth and rising purchasing power illustrates the long- term opportunities for investors looking for higher returns from companies based in or benefiting from the world’s fast-growing and emerging economies,” said Virginie Maisonneuve, Head of International Equities at Schroder Investment Management, in a press release. “This is one of the main reasons to buy international stocks.”

The Schroder Individual Investor Survey was conducted as a telephone poll between May 31 and June 4, 2007 among a nationally representative sample of more than 1,000 American investors over 18 years of age.

Albridge Solutions Makes Accounting and Reporting Solution More Flexible

Albridge Solutions Inc. has added internal rate of return (IRR) and daily time weighted return (DTWR) rates calculations to its Albridge Wealth Reporting portfolio accounting and performance reporting solution.

Albridge, which provides wealth management services and technology to help financial institutions and advisers determine clients’ assets, says the new IRR and the already-offered Modified Dietz formulas enable financial advisers to use a dollar-weighted calculation when figuring out a client’s portfolio performance. This means advisers will take into greater account the timing and size of cash flows in and out of a portfolio and their impact on portfolio performance over time.

The DTWR calculation is more geared toward asset managers looking to follow the CFA Institute standards for measuring their investment performance, which means the calculation is less impacted by the timing and size of cash flows on performance over time, according to a company press release.

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The calculation can be made anytime, as well as on a cyclical basis.

“In expanding the range of rate of return (ROR) calculation options, Albridge is now providing individuals and asset managers with an unmatched level of choice in selecting calculations for measuring and reporting on performance at the individual holding, asset class, account, investor and consolidated portfolio levels,’ said Jake Rohn, executive vice president, Albridge Solutions, in the press release.

For more information visit www.albridge.com.

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