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Health & Fitness

International Investing - Great Britain

The world is a big place – there are over 190 countries and 7 billion people in the world, which really boggles the mind if you sit down and think about it. In addition to being an interesting intellectual exercise, this fact can also have broad implications for your investments and your financial future. It is easy to stay focused on U.S. firms, news, and events during the day-to-day grind, but it is always important to be aware of your surrounding – especially when it comes to your investments. With that in mind, this series of articles will focus on countries and investment opportunities outside of the United States that you might not hear about usually.

As always, be sure to consult a financial services professional familiar with both the potential investment and your unique financial situation before embarking on any investment program.

Great Britain

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There are numerous historical ties between Great Britain and the United States, and the cultures of both nations continue to rub off on each other. Downton Abbey is one of the most popular TV series currently being aired, and the NFL has hosted professional games in London since 2007. This connection obviously extends beyond the realms of entertainment. The governmental and economic ties between the U.S. and U.K. are extensive. But why would you consider putting your hard-earned money to work in investments in the U.K.?
One the reason most often cited as an advantage to investing in the U.K. is the breadth and depth of possible investment opportunities. The FTSE 100, and the financial markets overall, are home to some of the world’s largest and most diversified conglomerates. This global presence and diversification, aided by the experience of many of the firms with dealing with global markets (some for literally hundreds of years), makes the U.K. an attractive opportunity. Additionally, and perhaps more importantly, London (and more specifically “The City,” sort of like the financial district in NYC) is among the top international financial hubs in the world. This liquidity and transparency are definitely “pros” to consider when contemplating overseas investments.

When looking at investing in the U.K. there are two primary ways to go about it – ADR’s or direct purchases. An ADR, basically, is a certificate held by a U.S. banking institution that represents a certain number of shares in the foreign company, and is held by the U.S. institution. This helps cut down on the administrative fees and other costs that would otherwise be incurred. For more direct exposure, you can also purchase shares directly from U.K stock exchanges if your broker offers those services to its retail investor base (you and I).

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Some of the more prominent companies that are available for investment via ADR are Barclays, BP, GlaxoSmithKline, Rio Tinto, and BHP Billiton. In addition to these specific ADR-available U.K. stocks, there are numerous ETF’s available to investors – the most popular of which include the MSCI United Kingdom Index Fund.

Obviously, there are a lot of high quality companies and opportunities to consider if you are thinking about investing in Great Britain

As always, I have attached some links with more information

Happy Reading!

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