AlpacaInvestments started a poll

I find the part about investors exhibiting home bias particularly interesting. To quote from the article, "Despite the potential loss of performance and higher risk, 54% of our Swiss clients (UBS Wealth Management) who are active investors, still hold more than half their assets in Swiss companies."

I find this statistic about home bias applies to me - and as mentioned in the article, it is mainly due to familiarity with the companies that we're investing in. When my friends ask me about advice for new investors, I often tell them that I started investing in SGX listed companies because I was more familiar with them. Currently, 100% of my portfolio consists of SGX listed instruments.

However, as I get more investing experience, I begin to feel the need to reduce my home bias, and look towards getting wider geographical exposure. Perhaps starting with ETFs exposed to different regions would be a good first step, before proceeding to analysing individual equities.

How many of us here have exhibited home bias, and what do you think can be done to reduce this?

https://www.straitstimes.com/business/comp...

Read more
Yes, I may have some home bias
25 votes
No, my portfolio is geographically diversified
6 votes
31 votes
Voting is ongoing
3 likes
8 comments
investingnote0

40% SGX-Listed, 20% Unit Trust, 20% SSB, 10% NASQ

Smallcapasia

Thats why i ventured out into other countries :D

losemoneyinvestor

At this day and age a little hard to find companies with local exposure only ya? I think this mentality is more prevalent in other regions with the dominant industries of the country.

AlpacaInvestments

Reply to @learningboy1988 : I suppose the article isn’t referring to only holding stocks with 100% local exposure. Rather, it is advising against holding a portfolio of stocks with significant local exposure, for example, having more than 50% of revenue of our portfolio companies being derived from Singapore.

Dividend_Warrior

Interesting point. Got me thinking too. Did a rough, back-of-the-envelope tabulation of my portfolio holdings. Only CMT, FCT & MCT have S'pore concentrated revenue source. The rest of my counters have rather healthy geographical diversification. Even though I am only vested in S'pore listed counters, I still managed to achieve some sort of geographical diversification in my portfolio.

- FLT: Australia & Europe
- MLT: S'pore, Australia, Japan, China, Hong Kong, South Korea, Malaysia
- Ascendas REIT: S'pore & Australia
- Keppel DC: S'pore, Europe & Australia
- MINT: S'pore & USA
- MNACT (used to be MGCCT): China, Hong Kong & Japan
- Suntec REIT: S'pore & Australia
- Singtel: S'pore, Australia, India, Indonesia, Thailand, Philippines, Africa
- RMG: S'pore & China

Dividend_Warrior

Reply to @AlpacaInvestments : Top 3 are S'pore, Australia & China

  View More Replies

There are more for you ...

View more and participate in our discussion now. It's FREE.

Creating an account means you’re okay with InvestingNote's Terms and Conditions