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...

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Yes, I may have some home bias
24 votes
No, my portfolio is geographically diversified
6 votes
30 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

learningboy1988

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

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