Aust Vs Int’l Equity Portfolio Journal


Often described as home bias, an enduring feature of strategic asset allocations in Australia and abroad is a relatively high weight to domestic assets. This paper analyses whether a home bias to Australian equities can be justified, and concludes that, on the basis of evidence from historic outcomes, investors with very long investment horizons should have held most if not all of those equities in global portfolio decision would have disappointed over many short and even medium-term periods. On balance, on the evidence presented in this paper, it would appear prudent to lean towards inversting at least 50% and perhaps up to 60%-70% of a portfolio’s total equity exposure in international equities.


File Size: 257KB
File Type: PDF
Pages: 4





































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