In a world of uncertainty, we see possibility. Inflation-proof your portfolio with our global solutions.
Harness the power of global diversification
Investing beyond Canada’s borders can be an invaluable strategy to help protect your portfolio from inflation, reduce your home-country bias and expose you to new industries.
At Russell Investments, we believe globally diversifying in asset classes such as Fixed Income, Equities and Alternatives (such as Real Assets), can help reduce risk and smooth out returns in your investment portfolio.
Discover a world of diversification benefits with our global solutions.
Key reasons to consider global diversification in your portfolio
Global investing means diversifying your portfolio outside of your own country. For Canadians, this would include investing in US and international markets. Global diversification can help contribute to long-term investing success—and reduce your home-country bias. Here’s how:
Larger opportunity set
Considering Canada represents only approximately 3.3% of world stocks1, diversifying globally provides investors with significant additional investment opportunities.
Increased exposure to different industries and sectors
Canada’s economy and capital markets are heavily concentrated in a few key industries, such as natural resources, financial services and commodities. Investing beyond Canada’s borders provides exposure to flourishing industries such as big tech, consumer goods and services, and health care.
Through investing globally, you increase your exposure to companies and assets that have a lower correlation to the ones already held in your investment portfolio, thus potentially decreasing volatility.
Fixed income investing can provide numerous benefits including: steady income sources, diversification from equity exposure and principal protection.
Long-term capital appreciation, diversification and broader exposure are all reasons to consider equity investing.
Alternative investments, such as Real Assets (including global infrastructure and real estate), can provide downside protection benefits, attractive return profiles, as well as diversified equity exposure and inflation hedging potential.
For access to unique benefits typically not available in traditional asset classes, consider:
Dented, not derailed
Russia/Ukraine adds to near-term growth risks for the global economy and will keep inflation high for longer. Uncertainty is high, but equity markets are oversold and should recover if tensions ease in coming months.