Investing abroad

Introduction| Course| Q&As | Recommended reading| Quiz |

Introduction

Context

One of the most effective types of diversification is geographical. Historical evidence suggests that spreading your investments between the UK and faster-growing foreign markets can significantly reduce your risk, while boosting your returns. But this advantage is offset by the greater difficulty and expense of investing abroad directly. It is therefore important to choose your route into foreign investment with great care.

Prior knowledge required

You will need to be familiar with unit and investment trusts, indexed funds, portfolio management, the rudiments of how stock markets work, and how to use the services of offline and online brokers.

Contents

1. Why invest abroad?
2. Risk and reward in foreign investment
3. Custody risk
4. Currency risk
5. UK companies are foreigners too
6. Foreign unit and investment trusts
7. Picking foreign trusts
8. How to make the most of trusts
9. Tracker funds for foreign markets
10. Foreign companies on the London exchange
11. American Depository Receipts
12. Investing in American companies
13. Investing in European companies
14. Investing in Asian companies
15. Investing in other markets
16. Dividends and withholding taxes
17. Markets go global
18. Conclusion

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