Borderless Investor

Borderless investing - not just the concept, but the term itself - made a rare appearance in Sunday’s New York Times. Citing data on global funds, the piece notes a growing interest in borderless investing among institutions.

The notion of borderless investing appears to be taking hold among institutional investors. Through the first half of this year, institutional funds placed $18.7 billion into globally oriented strategies that permit managers to invest anywhere in the world, according to Eager, Davis & Holmes, a consultant to institutional managers that is based in Louisville, Ky. That is a huge jump from the $1.4 billion that was invested in this strategy in all of 2006. “The question is: Is this an anomaly, or is it something that will continue to develop going forward?” said David F. Holmes, a partner at the consultancy.

Boston-based MFS, which pioneered mutual fund investing in the 1920s, is a borderless believer.

David A. Antonelli, chief investment officer for non-United States equity investments at MFS Investment Management, whose MFS Global Equity fund also invests in this borderless style.

“When you’re buying a TV, you might look for a model with the best picture quality, or you might look to what Consumer Reports said was is the most reliable television,” he said. “That TV might end up being a Japanese TV, but you’re not buying it because the company that made it was headquartered in Japan.”

He added that “over time, this will be the same way people invest.”