U.S. investors said they have just 11% on average of their income producing assets invested internationally. As measured against investors from 12 other countries surveyed by Legg Mason, the U.S. investor has the least amount invested internationally.
According to the survey, 64% of U.S. investors said that “global uncertainty” was their major barrier to international investing for income, followed by “too much risk” (50%), “currency risk” (45%) and “not enough transparency” (44%).
That said, fully 60% of all U.S. investors said they would be open to considering international for equities and 53% said for fixed income; while 34% of investors who are investing internationally said they were focusing more on international opportunities compared to five years ago.
Where would they invest?
Per the survey findings, U.S. investors inclined to consider international markets are most likely to look for equity or fixed income opportunities in the United Kingdom and Japan, followed by Europe (excluding UK), Brazil, China, and other Emerging Market countries. They are least likely to consider Russia.