What is the purpose of the International SMA strategy?
Motley Fool Wealth Management's International strategy is a diversifying strategy. What I mean by that is that we are using that as a portion of your blended portfolio. So we'll mix that with the Everlasting strategy, or with the Supernova strategy, or the MDP strategy. And we're thinking of all these things as part of the whole. Might layer in the Fixed Income piece. And so we'll look at your portfolio and the financial outcomes that you're looking for in the future, and [mix] those in the way that we think we have the best probability of achieving that financial outcome.
What is the investment background of the portfolio managers who run the International strategy?
Prior to coming to The Motley Fool, I was in telecommunications doing mergers and acquisitions work internationally, so I've spent a lot of time evaluating businesses outside of the United States. I've been managing money for The Motley Fool through Motley Fool Asset Management since 2009 with our mutual funds, so I have plenty of experience as a professional money manager. So International is something that I've done for a long time, international businesses are things that I know quite well, and I have plenty of experience managing money.
Motley Fool Wealth Management's International strategy is led by Bill Mann and Nate Weisshaar who both serve as its portfolio managers. Both of them have great experience investing in international markets. Bill Mann grew up at The Motley Fool working with Tom Gardner and later moved on to writing the Global Gains newsletter before ultimately moving to asset management and the mutual funds where he has a history of managing international portfolios
Nate Weisshaar was so beloved as an international investor the Motley Fool saw fit to send him to the U.K. to pick international stocks there.
Why did the Fool Wealth team decide to include International as one of its seven signature SMA strategies and who is this strategy right for?
Fifty-five percent of global market cap is outside of the United States, so if you're only looking at domestic companies, you're really shutting yourself off from about half of the world's companies. We're looking for companies that are outside of the United States that have the same exact attributes that you look for, for companies here in the United States: excellent management team, excellent economics, and they're findable all over the world.
Motley Fool Wealth Management's International strategy is good for many investors who have a long-term time horizon and need a diversified portfolio. International stocks and domestic stocks don't move in lockstep with one another. That gives us the opportunity to build a more robust portfolio. There's a higher probability of achieving a long-term investor's financial objectives.