Investment perspectives

(Re)validating the case for international bonds

July 10, 2023

Two pie charts. The left pie chart depicts the global capital market, which is composed of 24% international bonds, 22% U.S. bonds, 22% international equities, and 32% U.S. equities. The right pie chart depicts the global fixed income market, which is composed of 52% international bonds and 48% U.S. bonds.
A bar chart showing the volatility percentages along the y-axis for U.S. bonds (3.5%), unhedged international bonds (7.5%), and hedged international bonds (2.7%). Currency hedging international bonds reduced the volatility of the asset class by 64% (from 7.5% to 2.7%).
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