News
Think bigger: Why a global investment strategy beats a local approach
2 April 2025
At Atlas Wealth, we understand that wealth management in today’s world requires a global perspective. While many UK investors feel comfortable focusing on domestic markets, this approach can limit long-term growth and increase risk exposure. A truly diversified strategy looks beyond borders, capturing opportunities across asset classes and economies to build resilient, high-performing portfolios. Here’s why a global approach is essential for HNW investors.
The risks of a home bias
Many UK investors naturally gravitate towards domestic markets, allocating a disproportionate share of their portfolio to UK equities, bonds, and property. This “home bias” is understandable, familiarity breeds confidence, but it also creates significant limitations. The UK market represents only a small fraction of global investment opportunities, meaning investors who concentrate too heavily on domestic assets risk missing out on stronger returns elsewhere.
Moreover, relying too much on UK markets exposes portfolios to economic and policy risks specific to the region. Political uncertainty, regulatory changes, and sector-specific downturns can have outsized effects when a portfolio lacks geographic diversification. Advisers are increasingly repositioning client portfolios with a global orientation, reflecting a broader industry shift away from home bias.
Global markets, local impact
Investing internationally provides access to high-growth sectors and industries that may be underrepresented in the UK. Technology, healthcare innovation, and manufacturing are just a few examples of sectors where global leaders are driving significant returns, often far exceeding domestic market performance. Limiting investments to the UK could mean missing out on transformative growth opportunities. Historical analysis shows that diversification across regions and asset classes has consistently helped reduce portfolio risk and support long-term investment goals, even through major economic upheavals.
Beyond sectoral benefits, international diversification is essential for resilience. Different economies move through market cycles at different times, while the UK may experience stagnation or recession, other regions may be in periods of expansion. Exposure to a range of global markets helps investors smooth out volatility and maintain steady long-term growth, reducing dependence on any single economy.
Strategic asset allocation: the Atlas approach
A global investment strategy isn’t just about holding international assets, it requires thoughtful asset allocation to balance risk and reward effectively. At Atlas wealth, we take a strategic approach that combines exposure to both developed and emerging markets, optimising portfolios available through St. James's Place for risk-adjusted returns. Developed markets offer the opportunity for greater stability, strong governance, and reliable returns, while emerging markets provide access to faster growth potential, albeit with higher risk. Striking the right balance is key.
Behavioural tendencies like favouring the familiar often lead investors to over-concentrate in domestic assets, yet this can limit risk-adjusted returns and increase exposure to regional shocks. A globally diversified portfolio, by contrast, draws on opportunities across economies and sectors, offering a more resilient foundation for long-term growth.
Crucially, our investment approach is tailored to individual client objectives rather than constrained by geography. Rather than defaulting to domestic allocations, we build portfolios based on long-term wealth goals, liquidity needs, and risk tolerance. This ensures that every investment decision aligns with an overarching strategy designed for sustainable growth and capital preservation.
Why a personalised, global approach matters
There is no universal formula for investing, every portfolio must be structured around the investor’s specific needs, ambitions, and risk profile. At Atlas wealth, we reject one-size-fits-all solutions, instead crafting bespoke investment strategies that leverage the best global opportunities. This includes integrating tax-efficient structures such as international investment bonds to enhance efficiency and long-term returns.
Despite recent political encouragement to focus on domestic assets, many UK investors continue to look abroad—driven not by disloyalty, but by the appeal of global growth and the broader opportunities international markets offer. Partnering with an experienced adviser representing St. James's Place ensures access to exclusive global investment opportunities that may not be available to retail investors. With the right guidance, UK HNW investors can move beyond domestic limitations, capitalise on emerging trends, and build robust portfolios designed for long-term success.
Final Thoughts
The UK may be home, but a strong investment strategy looks far beyond national borders. By embracing a global perspective, investors can unlock greater opportunities, manage risk more effectively, and help achieve long-term financial security. At Atlas wealth, our role is to guide our clients through this global landscape, ensuring that every investment decision is aligned with their broader financial vision. Now is the time to think bigger, because the best opportunities are rarely confined to just one market.
The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
The risks of a home bias
Many UK investors naturally gravitate towards domestic markets, allocating a disproportionate share of their portfolio to UK equities, bonds, and property. This “home bias” is understandable, familiarity breeds confidence, but it also creates significant limitations. The UK market represents only a small fraction of global investment opportunities, meaning investors who concentrate too heavily on domestic assets risk missing out on stronger returns elsewhere.
Moreover, relying too much on UK markets exposes portfolios to economic and policy risks specific to the region. Political uncertainty, regulatory changes, and sector-specific downturns can have outsized effects when a portfolio lacks geographic diversification. Advisers are increasingly repositioning client portfolios with a global orientation, reflecting a broader industry shift away from home bias.
Global markets, local impact
Investing internationally provides access to high-growth sectors and industries that may be underrepresented in the UK. Technology, healthcare innovation, and manufacturing are just a few examples of sectors where global leaders are driving significant returns, often far exceeding domestic market performance. Limiting investments to the UK could mean missing out on transformative growth opportunities. Historical analysis shows that diversification across regions and asset classes has consistently helped reduce portfolio risk and support long-term investment goals, even through major economic upheavals.
Beyond sectoral benefits, international diversification is essential for resilience. Different economies move through market cycles at different times, while the UK may experience stagnation or recession, other regions may be in periods of expansion. Exposure to a range of global markets helps investors smooth out volatility and maintain steady long-term growth, reducing dependence on any single economy.
Strategic asset allocation: the Atlas approach
A global investment strategy isn’t just about holding international assets, it requires thoughtful asset allocation to balance risk and reward effectively. At Atlas wealth, we take a strategic approach that combines exposure to both developed and emerging markets, optimising portfolios available through St. James's Place for risk-adjusted returns. Developed markets offer the opportunity for greater stability, strong governance, and reliable returns, while emerging markets provide access to faster growth potential, albeit with higher risk. Striking the right balance is key.
Behavioural tendencies like favouring the familiar often lead investors to over-concentrate in domestic assets, yet this can limit risk-adjusted returns and increase exposure to regional shocks. A globally diversified portfolio, by contrast, draws on opportunities across economies and sectors, offering a more resilient foundation for long-term growth.
Crucially, our investment approach is tailored to individual client objectives rather than constrained by geography. Rather than defaulting to domestic allocations, we build portfolios based on long-term wealth goals, liquidity needs, and risk tolerance. This ensures that every investment decision aligns with an overarching strategy designed for sustainable growth and capital preservation.
Why a personalised, global approach matters
There is no universal formula for investing, every portfolio must be structured around the investor’s specific needs, ambitions, and risk profile. At Atlas wealth, we reject one-size-fits-all solutions, instead crafting bespoke investment strategies that leverage the best global opportunities. This includes integrating tax-efficient structures such as international investment bonds to enhance efficiency and long-term returns.
Despite recent political encouragement to focus on domestic assets, many UK investors continue to look abroad—driven not by disloyalty, but by the appeal of global growth and the broader opportunities international markets offer. Partnering with an experienced adviser representing St. James's Place ensures access to exclusive global investment opportunities that may not be available to retail investors. With the right guidance, UK HNW investors can move beyond domestic limitations, capitalise on emerging trends, and build robust portfolios designed for long-term success.
Final Thoughts
The UK may be home, but a strong investment strategy looks far beyond national borders. By embracing a global perspective, investors can unlock greater opportunities, manage risk more effectively, and help achieve long-term financial security. At Atlas wealth, our role is to guide our clients through this global landscape, ensuring that every investment decision is aligned with their broader financial vision. Now is the time to think bigger, because the best opportunities are rarely confined to just one market.
The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.
