International investing is more than purchasing shares in an international mutual fund. Americans often diversify their portfolio internationally by simply investing in an American managed mutual fund that invests in foreign or foreign and U.S. companies. A small investor can benefit from international investments in this way and rest well, knowing that professional managers with knowledge of foreign opportunities and risks are at the helm of their investment.
These funds are well publicized in the United States and include names such as Dean Witter World Wide Investment Trust; Fidelity Overseas Fund; Financial Group Pacific Fund; Kemper International Fund; Keystone International Fund; T. Rowe Price International Recovery Fund; Prudential-Bache Global Fund; Putnam Global Growth Fund; Scudder International; and Templeton World Fund.
There are funds located and managed from all over the world. Some of these funds produce impressive returns. Most Americans have probably never heard of these funds. Why? As stated previously, there are three strong reasons.
- It is not worth the trouble and expense for foreign companies to expand operations into the U.S. market due to heavy regulations.
- They cannot meet strict SEC and other U.S. governmental regulatory bodies to offer their investments in the states. This does not mean these are not good investments, but they do not meet the United States government’s idea of acceptable standards.
- If more Americans realized that greater returns are possible, in some cases sizeable annual returns, whether investing in CDs, stocks, bonds, or whatever, they would likely be inclined to move their money out of fragile U.S. banks and U.S. systems that Americans are forced to accept. Therefore, many of these foreign investment opportunities are not legally permitted to advertise in the United States and are not promoted here. That is why, for example, you only hear about USA managed international and global investment funds.