How International is Your Global Fund?

Investors would be forgiven for thinking a global equity fund is offering  international stock market exposure - but they'd be wrong

Emma Wall 4 September, 2013 | 4:29PM
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Income seekers know that dividend paying stocks are no longer solely found on the FTSE 100. Savvy investors will look to buy up companies from across the globe in a bid to gain access to both inflation beating yield and potential capital growth offered by developing markets.

But if you think a global equity income fund would take care of that for you - you'd be wrong.  

Every single one of the top 20 stocks found in a typical global equity income fund is listed in either the UK, US, Switzerland or France. Offering investors no direct exposure to emerging market companies - or even to the non-core Eurozone stock markets. Diversified this is not. 

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Emma Wall  is former Senior International Editor for Morningstar