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March 14, 2011 at 11:58 AM
Mutual fund authority Bob Pozen told AdvisorOne on Friday that Americans should consider investing in international funds twice as much as they do now.
During an interview promoting his new book, The Fund Industry: How Your Money Is Managed, co-written with Theresa Hamacher, Pozen said that most Americans are under-invested internationally, and they should put as much as half of their 401(k) money into global securities.
“From a diversification point of view, half of the world’s market assets are outside of the United States, but it’s the rare U.S. individual who has half of his or her portfolio outside,” said Pozen, who is chairman emeritus of MFS Investment Management and a former vice chairman of Fidelity Investments.
hen you think about it, your job is here, your house is here," said Pozen (left). "If you put half of your 401(k) internationally, you would actually have about 25% or 30% of your assets internationally. We’re not saying you should be at half, but the average retail investor has something like 10% or 15% invested internationally. In our view, that’s much too low.”