Yes, a dividend-paying domestic allocation can be categorized as a global allocation

Posted on: 08/31/2015

This is great news!

The large multinational companies in iSectors Domestic Equities Allocation model earn one-half of their revenues from international and emerging market countries. In turn, clients are getting international investment exposure by investing in iSectors Domestic Equities Allocation.

How can this be? It’s pretty simple. Each company carefully manages where to focus its resources. That said if Coke believes there is more opportunity for growth in South America than in Southeast Asia, they’ll move resources to South America.

Safe to say, iSectors’ domestic portfolio is extremely well managed at a very granular level. Since our international exposure comes from U.S. companies, we have an international allocation with a currency hedge. This has us helped us immensely over the last couple years, while the dollar strengthened and international equities performed poorly. Thus, the dividend yields provide a nice supplement to the low-interest rate income currently available from fixed income investments in client portfolios. These nice, annually increasing, dividends also help to hedge the downside in market corrections.

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