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Asian investors reveal home bias challenges

Reported by Top1000funds
Mar 21, 2024· 1 min read
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Key Takeaways
  • • Top1000funds.com reports that home bias, the tendency of investors to overweight domestic assets, creates challenges for Asia-based investors that affect investors in other regions much less.
  • • The feature draws on three Asia-based investors, though their individual views are not detailed in the available coverage.
  • • Related coverage indicates that local-market bias has produced lackluster returns for Asian investors in the past, and Aberdeen Asia Focus lead manager Gabriel Sacks argues that overcoming home bias is key.
Summary
Top1000funds.com reports that for investors based in Asia, home bias can create challenges that affect investors in other regions much less. The feature includes perspectives from three Asia-based investors, though their individual views are not detailed in the available coverage.

Related coverage points in the same direction. An AB analysis states that local-market bias has produced lackluster returns for Asian investors in the past and could do so again. Academic research cited in the publisher's coverage, including a 2022 study by M Wallmeier, finds that some important Asian countries show a persistent above-average home bias, but that this does not condemn global investors to suffer losses in diversification.

Gabriel Sacks, lead manager of Aberdeen Asia Focus, argues that overcoming home bias is key and that Asian smaller companies offer overlooked opportunities for investors seeking to diversify.

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Sources

1 outlet

AlphaMaven summarised this story from the reporting below. Each link opens the original article.

Top1000funds Asian investors reveal home bias challenges