Global investment management requires time, effort, and dedication. Any type of investment vehicle performs best under constant supervision. It is important to decide the level of activity you anticipate having in your investments. The more active you are, the greater impact your decisions will have on the growth of your investments.
There are five tips for global investment management: broker relationship management, researching, due diligence and local conditions. If you are a laissez-faire investor, it is in your best interest to use a global investment management firm. These firms meet with the investor to determine your profile, risk tolerance, and goals.
Management of your broker relationship is critical to successful global investment management. The broker is not your friend, but someone who acts on your behalf. Their role is to provide advice that helps you meet your financial goals. It is up to the client to define the roles, acceptable risks, and reporting frequency.
Invest the time to thoroughly research all your global investments. Learn about the company, the product or services they provide, history, financial activity, and role within their industry. Pay attention to changes in leadership, the tone of presentations and speeches in public spaces. This work provides you with the background necessary to make decisions based on facts and not media reports.
Complete your due diligence before investing a specific country. Research their political stability, strength of the local economy, power of the military, and the living conditions. Although developing nations provide opportunities for growth, it is important to select locations with a lower risk of uprising, military coup, or other activities that will interrupt commercial business pursuits.
Subscribe to a local newspaper or magazine in the country that you are investing in. Learn about local issues, political scandals, and citizens concerns. These items will provide insight into business decisions made by the company executive. By staying informed on changes in the local area, you will be able to adjust your investment as conditions shift.
It is a good idea to periodically review your portfolio diversity. Reduce your overall risk exposure by allocating a percentage of your investments to different types of financial instruments. Ensure that these tools are still moving you towards your goals by calculating the percentage of change for every six-month interval.
If the rate of return exceeds your original benchmark values, consider moving the profits into a secure account. If the rate of return is lower than your benchmarks, look at the mix and adjust as necessary. Always adjust the values for inflation to separate portfolio performance from other factors.