See how our strategies connect investors to great companies
in both developed and emerging markets.
Two good reasons to look outside the U.S.:
Better diversification and access to great companies
Is the Time Coming for International Leadership?
International and U.S. stocks have historically alternated periods of leadership over time. Maintaining a core international allocation as part of your total equity portfolio can help you participate when these shifts unfold and potentially diversify the political and economic risks associated with overreliance on one market.
Legg Mason equity managers ClearBridge Investments, Martin Currie and Royce & Associates believe demographic trends and market cyclicality continue to favor international markets long-term.
Will the U.S. outperform the world forever?
Source: FactSet, as of 6/30/18. Past performance is no guarantee of future returns. Chart shows performance of S&P 500 vs. MSCI EAFE. The S&P 500 Index is an unmanaged index of 500 stocks that is generally representative of the performance of larger companies in the U.S. The MSCI EAFE Index is an unmanaged index of equity securities from developed countries in Western Europe, the Far East, and Australia.
Insights on International Equity
International stocks are gaining traction with investors — but passive strategies may not be the best guide to opportunity. ClearBridge's Eliza Mazen explains why an active approach to diversifying international growth stocks may make more sense.
Many investors have historically been hesitant to invest in emerging markets, concerned about currency volatility, political instability and an overreliance on commodities. Yet this view is increasingly outdated as the sector evolves.
1Source: Bloomberg. As of December 31, 2017, the U.S. represented 36.5% of world equity market capitalization. World market capitalization represented by Bloomberg World Exchange Market Capitalization Index, ex-U.S. U.S. market capitalization represented by U.S. portion of Bloomberg World Exchange Market Capitalization Index.
International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Small- and mid-cap stocks involve greater risks and volatility than large-cap stocks. Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial situation or needs of any particular investor, and does not constitute, and should not be construed as, investment advice, forecast of future events, a guarantee of future results, or a recommendation with respect to any particular security or investment strategy or type of retirement account. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional
IMPORTANT INFORMATION: All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s web page for specific details regarding investment objective, risks, performance and other important information. Review this information carefully before you make any investment decision.
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Active management does not ensure gains or protect against market declines.
Equity securities are subject to price fluctuation and possible loss of principal.
Diversification does not guarantee a profit or protect against loss.
Outperformance does not imply positive results.
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