Monday, December 27, 2010

Global Fund

A global fund is able to invest in stocks, bonds, and other assets/securities as permitted in its policies; in any region of the world. Such funds are able to better optimize their risk return profile through international diversification, adding asset classes from around the world which may carry lower historical correlations with e.g. domestic securities. Some global funds will be both global and multi-asset class, but others will focus on one asset class but with the ability to pick stocks from all over the world (but likely within the context of minimum liquidity and market capitalization requirements) e.g. a global equities fund, or global bonds fund.

Synonyms: Global bond fund, Global equities fund, Balanced fund, Multi-asset fund

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