--- title: Why domicile doesn't matter description: Why domicile doesn't matter. The most important factor determining the level of risk and variability of return in a portfolio is asset allocation. Download our new research paper, today! --- [![Timeline Logo - MFL](https://go.timelineapp.co/hubfs/Timeline%20Logo%20-%20MFL.svg) ![Timeline Logo - MFL](https://go.timelineapp.co/hubfs/Timeline%20Logo%20-%20MFL.svg) ](https://www.timeline.co) [![Timeline Logo - MFL](https://go.timelineapp.co/hubfs/Timeline%20Logo%20-%20MFL.svg) ](https://www.timeline.co) - [Platform](https://www.timeline.co/platform) - [Planning](https://www.timeline.co/planning) - [Portfolios](https://www.timeline.co/portfolios) - [Resources ](https://www.timeline.co/events) - - [Events & Papers](https://www.timeline.co/events) - [Blog](https://www.timeline.co/resources) [Login to Timeline](https://planning.timeline.co/sessions/new) [![sr-logo-small](https://f.hubspotusercontent20.net/hub/275827/hubfs/sr-assets/images/sr-logo@2x.png?width=180&height=41&name=sr-logo@2x.png) ![Timeline Logo - MFL](https://go.timelineapp.co/hs-fs/hubfs/Timeline%20Logo%20-%20MFL.png?width=200&height=52&name=Timeline%20Logo%20-%20MFL.png) ](https://www.timelineapp.co/) # Why domicile doesn't matter The most important factor determining the level of risk and variability of return in a portfolio is asset allocation. [Download Your Copy](https://share-eu1.hsforms.com/1hNAic7ttSOSwIzjd1YKePgf1a1r) ## Our New Research Paper ![A2](https://go.timelineapp.co/hs-fs/hubfs/A2.png?width=500&height=500&name=A2.png) left-quote Created with Sketch. The most important decision to be made in asset allocation is the split between equity and fixed income. And this responsibility rightly rests with the financial adviser as this ratio is the key driver of portfolio risk and return outcomes and must be aligned with the individual client’s needs. As portfolio managers, we must decide how to allocate within those broad asset classes. ###### Why domicile doesn't matter ![A2-1](https://go.timelineapp.co/hs-fs/hubfs/A2-1.png?width=500&height=500&name=A2-1.png) left-quote Created with Sketch. It’s natural for clients to feel more comfortable investing in their home markets, in familiar companies with high street names among them, but this home bias is not relevant in today’s capital markets. Globalisation means that companies have economic exposures that reach much further than their domicile, giving them a wider diversification of financial drivers. ###### Country of listing is not country of exposure ![A3](https://go.timelineapp.co/hs-fs/hubfs/A3.png?width=500&height=500&name=A3.png) left-quote Created with Sketch. We should bear in mind that what we are talking about here is largely the country of listing. When a company decides to come to the markets to raise funding via an Initial Public Offering (IPO), it has a choice where to list its shares and there are real-world consequences of the exchange that it selects. A company’s choice may well be influenced by how onerous the listing requirements of alternative exchanges are found to be. Most exchanges allow foreign issuers, so domicile or country of business is not a limiting factor. ###### Real differences of listing location ## Benefits ![1-2](https://go.timelineapp.co/hs-fs/hubfs/1-2.png?width=282&height=285&name=1-2.png) ### A total of 5 chapters ![2-2](https://go.timelineapp.co/hs-fs/hubfs/2-2.png?width=282&height=285&name=2-2.png) ### Completely Free ![3_V2](https://go.timelineapp.co/hs-fs/hubfs/3_V2.png?width=282&height=285&name=3_V2.png) ### Efficiently Researched ![L1-1](https://go.timelineapp.co/hs-fs/hubfs/L1-1.png?width=1200&height=957&name=L1-1.png) ### A word on currency A UK investor buying US stocks carries the risk of the exchange rate movements of sterling against the dollar as well as the risk of the underlying equity. Short term fluctuations in exchange rates can dwarf what’s going on in the actual investments. [Read On](https://share-eu1.hsforms.com/1hNAic7ttSOSwIzjd1YKePgf1a1r) ### Impact of Currency on Returns Companies with exposure overseas are already taking measures to mitigate the impact of exchange rate fluctuations on performance. Stock markets punish short term disappointments in reported earnings, so companies have their own hedging strategies in place to protect against this. ![L2](https://go.timelineapp.co/hs-fs/hubfs/L2.png?width=1200&height=957&name=L2.png) # Why domicile doesn't matter The most important factor determining the level of risk and variability of return in a portfolio is asset allocation. [Grab Your Copy](https://share-eu1.hsforms.com/1hNAic7ttSOSwIzjd1YKePgf1a1r) **Timeline is product of Timelineapp Tech Limited Registered in England. RC: 11405676. **   **© 2022. Timelineapp Tech Limited. All Rights Reserved. [Terms & Conditions](https://www.timelineapp.co/terms) /[Privacy Policy](https://www.timelineapp.co/policy)**