JRB International Equity Fund Investment Choices

International equity funds are those mutual funds that invest solely or primarily in non-U.S. companies. Mutual funds that invest in non-U.S. companies may purchase equities from both developed and emerging economies. Examples of international companies include Nestle, Novartis, Samsung, Taiwan Semiconductor Manufacturing and Toyota.

International equities play an important role in a diversified portfolio. Investing in one of the JRB international fund offerings allows you to leverage the potentially higher economic growth that can occur in foreign markets. This advantage can become even more pronounced when the U.S. economy is weak.

While volatility is often higher outside the U.S., the JRB’s international fund offerings reduce volatility by mixing emerging market stocks with those in industrialized nations.

In addition to the risks associated with equity investing in general, international equites are also subject to political risk, currency risk and emerging markets risk.

  • Political risks include the chance that world events, such as the impact of the COVID-19 pandemic or regional conflict, will adversely affect the value of investments.
  • Currency risk is the chance that the value of a foreign investment, measured in U.S dollars, will decrease because of unfavorable changes in currency exchange rates. Conversely, if the dollar declines in value, a foreign investment could increase in value.
  • Emerging markets risk is the chance that the stocks of companies located in emerging markets will be substantially more volatile and less liquid than the stocks of companies located in more developed foreign markets.

American Funds EuroPacific R6 Fund (RERGX)

The American Funds EuroPacific R6 Fund is an actively managed fund that seeks long-term growth of capital through investment in companies primarily in Europe and the Pacific Basin. Fund managers select investments they believe have the potential for above-average capital appreciation. The Fund normally invests at least 80% of assets in companies headquartered in Europe and the Pacific Basin. Fund managers can also invest in emerging markets. The Fund may be appropriate for those who want an opportunity for above-average growth of capital and/or an opportunity to diversify their portfolio with international investments.

The benchmark for the American Funds EuroPacific R6 Fund is MSCI All Country World excluding USA Index.

View JRB Investment Returns Sheet

American Funds EuroPacific R6 Fund Fund Fact Sheet

American Funds EuroPacific R6 Fund Prospectus


Vanguard Total International Stock Index (VTSNX)

The Vanguard Total International Stock Index Fund seeks to mirror the performance of the FTSE Global All Cap excluding U.S. Index. This market capitalization weighted index is designed to measure equity market performance of companies located in developed and emerging markets, excluding the United States. The six largest markets covered in the Index are Japan, the United Kingdom, China, Canada, France and Switzerland. Together, companies in these countries represent about 2/3 of the Fund’s investments.

View JRB Investment Returns Sheet

Vanguard Total International Stock Index Fund Fact Sheet

Vanguard Total International Stock Index Fund Prospectus


Conclusion

International equity investments play an important role in any portfolio. When U.S. markets decline, international equities may provide positive returns. With different investment approaches and strategies, both the Oakmark International Fund and Vanguard Total International Stock Index Fund provide excellent options for those seeking to diversify their investments.

Please contact us at 888-JRB-FREE (572-3733) or send us an email to discuss your asset allocation or any other investment question you have.


Updated August 2021