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SPAC in fashion: Cancer-focused Aum is latest biotech to use blank check route Apollo Raises $2.4bn Credit Fund to Buy Hung Bank Loans Stonepeak Partners eyes as much as $20bn for North America infrastructure fund Credit Suisse issues 462m shares to qualified investors in $4bn capital hike Ontario Teachers to pay almost $1.5bn for stake in UK electricity transmission network SSEN Eurazeo holds first close of Transition Infrastructure Fund at €210m Carlyle hires advisers to explore DEPT sale in 2023 Livingbridge appoints new head of services Don’t Blow Your Post-Holiday Opportunity to Thank Your Nonprofit Supporters Savor Signature Squares at a Buddy’s Pizza Fundraiser

Is there really a need to invest in foreign companies in the name of geographical diversification?

This year, Singaporeans celebrate five decades of nation-building. Development, transformation and progress of this once fishing village into a modern city has been nothing short of an economic miracle. As we look forward to the next 50 years, how will SG100 be like? Will Singapore still prosper? Will Singapore still be relevant in the distant future? It is no secret that the Singapore market is lagging other major global indexes in recent years. The 2013 ‘penny stocks debacle’ has somewhat dealt a crippling blow to the confidence of local retail investors. So naturally, people are starting to shift their funds towards foreign stocks which offer potentially better returns and diversification as there is no guarantee that a tiny island Singapore will still be around 50 years from now.

Well, in my opinion, blue-chips such as DBS, UOB, OCBC, SingTel, ST Engineering, SingPost and CapitaLand have already spread their businesses deep into other countries for years. In fact, some of them are not as ‘local’ as they seem although they have the term ‘Sing‘ in their names. For instance, SingTel gets the bulk of its annual revenue from overseas subsidiaries like Bharti in India and Optus in Australia. Some REITs offer exposure to other countries too. For example, Mapletree Logistics Trust has a massive portfolio of logistics real estate spanning across Asia.

So do not fret. You can still achieve geographical diversification by being vested in these ‘local’ companies.





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