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Follow the Money

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If you need further convincing that advisors are increasingly allocating their clients’ assets to overseas markets, just look at recent data from Advisor Perspectives. Using data culled from the Advisor Perspectives universe of about $50 billion of assets managed by RIAs that serve high-net-worth and ultra-high-net-worth clients, Robert Huebscher, CEO of Advisor Perspectives, says that over the last year advisors have increased their non-U.S. exposure from 10.1% to 13.0% of total assets, an increase of 30%.

Advisors are increasing clients’ international exposure, Huebscher says, as a way to hedge against recessionary and inflationary fears that are mounting in the U.S. The majority of the jump in non-U.S. holdings has been invested in emerging markets, Huebscher points out. Allocations to developed non-U.S. equities decreased from 88.2% to 78.5% of non-U.S. assets, he says, while allocations to emerging non-U.S. equities increased from 8.6% to 18.1% of non-U.S. assets.