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Travel the world with your investment portfolio

30 July 2021

4 minute read

Here we look at three funds investing in regions abroad that often serve as popular holiday spots.

Who's it for? All investors

Jetting off to explore far away lands is a distant memory for now. Even with travel opening up for some that have managed to secure a booking this summer, many will be waiting a little longer to venture overseas to their favourite holiday destination.

In the meantime there are other ways you can dip into local life all around the world – through cuisine, literature, Google maps or even by using your pension or ISA to invest overseas.

By selecting funds that invest in specific regions, you can gain exposure to thousands of fascinating businesses all around the world that need the backing of private investors.

Here we look at three funds investing in regions abroad that often serve as popular holiday spots.

Findlay Park American Fund

This fund offers the opportunity to invest in companies that are based in the US which is home to the world’s largest economy and industries, as well as sought-after holiday destinations.

The company behind this fund – Findlay Park – is unique because it only offers one fund. And because they are so good at it, they manage about $16 billion worth of investors’ money.

For every single investment they make, they ask themselves the question: “how much are we going to lose if we are wrong?” rather than “how much are we going to make if we are right?”

The largest proportion is held in the technology sector with names such as Microsoft, Amazon and Alphabet (Google’s parent company) that you might want exposure to.

So for example, with Microsoft, even during periods of downturn and recession, companies will still be paying Microsoft for their Windows software.

We believe this is a useful fund for your portfolio.

BlackRock European Dynamic Fund

While many are excited by the potential that companies in the US have to offer – and its large technology sector – other regions, such as Europe, can often be overlooked.

Investing in Europe has been out of favour lately with the many challenges brought on by Brexit – and the pandemic. Yet the BlackRock European Dynamic Fund has a long and successful track record in identifying Europe’s winning companies.

The manager is able to take a dynamic approach to the companies he selects and can invest a substantial proportion of the fund into industries and sectors that may only represent a small part of the market, if that’s where he believes the best opportunities lie.

In doing so, the fund will take you on a tour of France, the Netherlands, Switzerland, Denmark and Italy among many other popular places people enjoy visiting. The manager has the ability – along with his team – to find interesting, and profitable, companies.

Ninety One Emerging Markets Equity Fund

Emerging markets funds allow investors to access countries with economies still in the development phase – often with large, young populations, a rising middle class, and the potential for strong economic growth. This fund takes you to a number of exciting destinations including China, South Korea, Hong Kong and South America.

The management team at Ninety One looks to identify high quality companies that exhibit, for example, strong management, robust earnings and growing cash flows.

The fund invests heavily in technology and computer companies with electronics giant Samsung in its top 10 holdings as well as Taiwan Semiconductor Manufacturing, which makes computer chips. The fund also holds retailers and banks among other industries.

Identifying the best investment opportunities is no easy task but we believe the team at Ninety One (previously known as Investec) is one of a small number in the marketplace that has the breadth, depth, experience and expertise to navigate the emerging markets.

Mind your exposure

Make sure you are comfortable with the risks involved when investing in different regions. For example, emerging markets are likely to be more volatile than developed markets such as the UK and US.

Seek true balance

These three funds may not be your destination of choice. They are all part of the Barclays Funds List , where you can find many other options. Our list is made up of a number of funds from each of the investment sectors we believe are key for building a diversified portfolio to ensure you have exposure to different companies, industries and types of market from different regions around the world.

This should avoid a sudden drop in the value of a single investment, or group of related investments impacting on your portfolio too much as your stronger returning investments will ideally make up for it.

Explore a package deal

Instead of having to monitor your investments it’s worth considering a diversified investment fund, which invests across multiple markets and types of assets, where the ongoing management is done on your behalf.

The Barclays Ready-made Investments (RMI) is just one example of a range of diversified funds which allow you to select the level of risk you are most comfortable with. These multi-asset funds invest in passive funds across a range of asset classes and regions, offering a globally diversified one-stop solution for investors. Ready-made Investments are not the only funds that we offer and they won’t be appropriate for everyone.

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