Table of Contents
Case Background 2
Key Findings 2
This case deals with a matter that all international investors deal with. When a client decides to invest internationally, they run the risk of not only the investment losing value, but also the currency losing value. In the case of Sandra Meyer, it was not about just convincing a client about investing internationally; she had to convince her largest client’s Chief Investment Officer, Henry Bosse. The three (3) main topics Sandra was focusing on were international diversification benefits, currency fluctuations and the possible benefits,…show more content… The returns of a series of portfolios based on different mixes of foreign and U.S. equities, using the returns on the S&P 500 and EAFE indices (both original country currency and USD converted) to construct these portfolios.
My recommendations for Sandra begin with how she will present this information. She needs to understand that, currently, her client is hesitant in investing internationally, and she needs to reinforce the idea that she is using their money and will be supportive with any decision they select. This allows the client to have a sense of comfort and importance when they are listening to the presentation. If the client is not comfortable, they will not likely follow through with the presentation no matter how accurate and promising the information portrayed is.
After Sandra effectively conveys her understanding about using the client’s money to invest internationally, I feel she should immediately continue the presentation by explaining her data set time period and the various markets and countries used to collect said data. I would suggest that she use the planned set from 1991 to 2013 with the subdivision as planned. Now some might think that including so many years before the market crash of 2009 is unnecessary, but, to the contrary, it shows how the US market and the USD always bounce back after an economic crisis. Sandra’s extensive research in the