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International Equities

Investing beyond your own country’s borders opens a world of opportunities - literally.
Past performance is not a guide to future performance. The value of an investment and the income generated from it can fall as well as rise and is not guaranteed. You may get back less than you originally invested.

International equities definition

Investing beyond your own country’s borders opens a world of opportunities - literally.

International equities are shares in companies listed on stock exchanges globally, including those in developed and emerging markets.

Investing in equities of this type commonly means investing outside of a domestic market, although investors may find that some international equity funds invest in their home market, too.

International equities

Key benefits of international equities     

  • Diversification reduces risk in a portfolio – by spreading the range of investments, the less exposed a portfolio is to the fortunes of just one financial asset.
  • International equities offer investors the fullest range of markets, industries, companies, investment styles, countries and corporate objectives, including some that may not be available to any or a great extent in investors’ domestic markets. 
  • For stock-pickers, these equities represent the biggest potential pool of opportunities and risk levels.

However, while some international equity funds may invest globally, some may concentrate on specific regions or countries. The regions of the world all offer opportunities.

As the world’s largest economy, the United States accounts for the biggest single country share – approximately half* – of global market capitalisation. It is the most lucrative consumer market and a powerhouse of innovation, especially in the field of technology. The country has a well-earned reputation for its ongoing ability to re-invent itself and lead the way in many industries, including dot coms, financial services, pharmaceuticals, automobiles and retailers.

Europe too offers many options to international investors. Its trading bloc is the world’s largest while the continent’s 50 countries offer an unmatched diversity of cultures and economies, making it an ideal market by which to diversify any portfolio of equities. It is known as a particularly good hunting ground for stock-picking investors who can consistently identify the best opportunities, especially in leading industries such as automobiles, specialised services including financial, pharmaceutical products, machinery equipment and agriculture.

Japan is the world’s third largest economy and offers a diverse range of investment opportunities. Noted for its stable political system and economic management, it can offer several world leading companies to international equity investors in industries including automobiles, semiconductors, computers, machine tools, consumer electronics, ship building, pharmaceuticals, aerospace and petrochemicals.

Emerging markets, located in Latin America, Africa, Eastern Europe and Asia, offer the opportunity to invest in faster-growing economies, albeit with higher risk than in western developed markets. Many of them have favourable demographics with expanding middle classes, especially in Asia, supporting their long-term growth prospects.

Traditionally known for commodities and mining, emerging markets are increasingly embracing industries such as mobile technology (China), electronics (Taiwan, South Korea), information technology (India) and banking (Brazil) and could add value to many portfolios.

*Source: www.statista.com, January 2021

 
Understanding international equities

Liontrust's range of international equity funds

Liontrust offers a broad range of funds giving access to global, regional and single country markets. They are managed by four teams using different investment processes, but they are all actively managed funds based on high conviction approaches.

The Liontrust funds include: 

Aims to deliver capital growth over the long term (five years or more) using the Sustainable Future investment process. This process uses a thematic approach to identify the key structural growth trends that will shape the global economy of the future and the fund managers then seek to invest in well run companies whose products and operations capitalise on these transformative changes. Find out more

Aims to deliver capital growth over the long-term using the Sustainable Future investment process. This process uses a thematic approach to identify the key structural growth trends that will shape the global economy of the future and the fund managers then seek to invest in well run companies whose products and operations capitalise on these transformative changes. The Fund invests in companies incorporated, domiciled or which conduct significant business in the in the European Economic Area and Switzerland, and can invest up to 5% in UK-listed stocks. Find out more

Aims to achieve capital growth over the long term through investment in sustainable securities, mainly consisting of European equities. Find out more
Aims to generate long term capital growth. The Fund invests, directly or indirectly, in a mix of asset classes across the world including, but not limited to, equity, fixed income and alternatives. There is no predetermined exposure to any asset class or region. Find out more
Aims is to generate income with the potential for long term capital growth. The Fund invests at least 80% in shares of companies across the world. The Fund may also invest up to 20% in other eligible asset classes. Find out more
Aims to generate long term capital growth. The Fund invests at least 80% in shares of small sized companies across the world. These are companies which, at the time of purchase, have a market capitalisation of under £10 billion. Find out more
Aims to generate long term capital growth. The Fund invests at least 80% in shares of US companies. These are companies which, at the time of purchase, are incorporated, domiciled, listed or conduct significant business in the US. Find out more
The investment objective is to generate long term capital growth. The Fund invests at least 80% in shares of emerging market companies. These are companies in countries which, at the time of purchase, appear anywhere in the MSCI Emerging Markets Index. Find out more
Aims to deliver capital growth over the long term by using the Cashflow Solution process to identify and invest in companies incorporated, domiciled, listed or which conduct significant business in the European Economic Area and Switzerland. The Fund has an equally weighted portfolio. Find out more
Managed using the Cashflow Solution investment process to invest in a portfolio of long, synthetic long and synthetic short investments primarily in European equities and equity-related derivatives. It is expected that a positive absolute return will be generated over three-year periods but there is no guarantee that such a return will be generated over that specific period or within another period. Find out more
Aims to achieve long-term capital growth by investing primarily in European smaller companies. The Fund is managed using the Cashflow Solution process. Find out more
Aims to generate long term capital growth. The Fund invests at least 80% in shares of Japanese companies. These are companies which, at the time of purchase, are incorporated, domiciled, listed or conduct significant business in Japan. Find out more
Aims to generate long term capital growth. The Fund invests at least 80% in shares of Latin American companies. These are companies in countries which, at the time of purchase, appear anywhere in the MSCI EM Latin America index. Find out more
investment objective is to generate long term capital growth. The Fund invests at least 80% in shares of Chinese companies which, at the time of purchase, are incorporated, domiciled, listed or conduct significant business in China, Hong Kong or Taiwan. Find out more
to generate long term capital growth. The Fund invests at least 80% in shares of Indian companies. These are companies which, at the time of purchase, are incorporated, domiciled, listed or conduct significant business in India. Find out more