A new solution to investors' home bias

FTSE teams up with an Australian fund manager to promote a novel indexing method for institutional investors worldwide.

The problem of home bias is a hoary old chestnut in the world of investment. Pick a country, and find investors' equity holdings inordinately skewed to domestic securities, often far out of proportion to global benchmarks.

Hong Kong pension funds, for example, allocate on average 28% of their equities to local stocks, when Hong Kong comprises only 1% of global indices. This is hardly unique American institutions put up to 85% of their equities allocation into domestic stocks,...

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