Author Topic: Is second best international exposure fund better than none at all?  (Read 1162 times)

k290

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I have been putting off diversifying my portfolio with an international feeder fund for the following reason:

The global index feeder fund in my country that is (historically) the best (in terms of returns and holding up against market downturns) has been closed for new investments since early 2014. This is because of my country's strict exchange control regulations. The holding company has run out of assets that are allowed to be offshore. This is due to the high popularity of the fund, and our quickly weakening currency. Exchange control limits how much of their total assets can be offshore.

The fund will open up again when they have capacity. I have been waiting for this to happen but no news for the past 6 months.

My current portfolio consists of local equity and a local listed property equity fund. No offshore exposure. Should I be investing in another fund that will give me offshore exposure, even though its not my first choice, described above? Historically returns are 2% lower than my first choice. I find it difficult to go ahead with it because I generally always never settle for the best available after doing my due diligence.

Any opinions on how I should come to a decision would be appreciated.

forummm

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Re: Is second best international exposure fund better than none at all?
« Reply #1 on: July 26, 2015, 06:49:20 AM »
Hard to know without more detail. Why not just buy global ETFs like Vanguard's? That way you'd get the whole world. I'm not sure if the fund you are talking about is buying the whole world or is doing active management and charging high fees.

k290

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Re: Is second best international exposure fund better than none at all?
« Reply #2 on: July 27, 2015, 10:32:55 AM »
Hard to know without more detail. Why not just buy global ETFs like Vanguard's? That way you'd get the whole world. I'm not sure if the fund you are talking about is buying the whole world or is doing active management and charging high fees.

The fund is most like this: https://personal.vanguard.com/us/funds/snapshot?FundId=0129&FundIntExt=INT#tab=0

Is the above fund "buying the whole world"?

forummm

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Re: Is second best international exposure fund better than none at all?
« Reply #3 on: July 27, 2015, 11:07:30 AM »
Hard to know without more detail. Why not just buy global ETFs like Vanguard's? That way you'd get the whole world. I'm not sure if the fund you are talking about is buying the whole world or is doing active management and charging high fees.

The fund is most like this: https://personal.vanguard.com/us/funds/snapshot?FundId=0129&FundIntExt=INT#tab=0

Is the above fund "buying the whole world"?


No, that one is about 800 stocks. This one (7200 stocks) is the total world index: VT

https://personal.vanguard.com/us/funds/snapshot?FundId=3141&FundIntExt=INT