Quantitative Models for International Equity Portfolios

Abstract

Investors’ attitudes to investing in international equities vary widely. Many people consider the investments available in their home market provide more than adequate opportunities to earn handsome returns. It is also sometimes argued that investing overseas deprives local enterprise of much needed investment capital. Trustees of pension funds may also argue that, because the liabilities of the fund are denominated in the home currency, it makes sense to offset these with assets similarly denominated.